FIRSTRAND LIMITED - Pillar 3 Quarterly Disclosures as at 31 March 2018

Pillar 3 Quarterly Disclosures as at 31 March 2018

FirstRand Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/010753/06)
JSE ordinary share code: FSR
Ordinary share ISIN: ZAE000066304
JSE B preference share code: FSRP
B preference share ISIN: ZAE000060141
NSX ordinary share code: FST
(FSR or the group)

FirstRand Bank Limited
(Incorporated in the Republic of South Africa)
(Registration number 1929/001225/06)
JSE company code interest rate issuer: FRII
JSE company code debt issuer: FRD
JSE company code ETF issuer: FRLE
(FRB or the bank)

PILLAR 3 QUARTERLY DISCLOSURES AS AT 31 MARCH 2018

In accordance with Pillar 3 of the Basel Accord, Regulation 43 of
the Regulations relating to Banks requires the group to disclose
quarterly information on its capital adequacy. The capital positions
(excluding unappropriated profits) for the group and the bank for
the quarter ended 31 March 2018 are set out below.

R million                                                FSR       FRB
Ordinary share capital and premium                     8 046    16 808
Other reserves and non-controlling interests          96 233    63 885
Regulatory deductions                                (4 223)    (2 145)
Total Common Equity Tier 1 capital                   100 056    78 548

Total Additional Tier 1 capital                       3 977      1 200

Total Tier 1 capital                                 104 033    79 748

Tier 2 instruments                                   19 094     19 092
Other qualifying reserves                             1 612        633
Regulatory deductions                                (2 602)       (8)
Total Tier 2 capital                                 18 104     19 717

Total qualifying capital and reserves                122 137    99 465

Minimum capital requirement
Credit                                               61   440   53 889
Counterparty credit                                   2   983    2 897
Operational                                          13   470   10 684
Market                                                2   645    2 325
Equity investment                                     2   773      739
Other assets                                          5   336    2 473
Threshold items                                       1   606      411
Total minimum capital requirement                    90   253   73 418

Common Equity Tier 1 capital ratio                    12.3%      11.9%
Tier 1 capital ratio                                  12.8%      12.1%
Total capital ratio                                   15.1%      15.1%

Notes:
-  Figures above have not been reviewed or reported on by the group’s
   external auditors.
-  FRB includes foreign branches and subsidiaries.
-  Available capital excludes unappropriated profits.
-  The disclosed minimum capital requirement excludes the
   confidential bank-specific individual capital requirement and
   add-on for domestic systemically important banks, and is reported
   at 11.125%.
-  There is currently no requirement for the countercyclical buffer
   add-on in South Africa. The group is required to calculate the
   countercyclical buffer requirement on private sector credit
   exposures in foreign jurisdictions where these buffer requirements
   are applicable. The current impact on the group is immaterial.
-  Whilst the accounting consolidation of the Aldermore transaction
   was effective 1 April 2018, the group settled the full cash amount
   for the acquisition on 20 March 2018. The impact of the full
   consolidation of Aldermore will be reported as part of the group’s
   year end results in September 2018. At 31 December 2017, this cash
   amount was reported as available cash balances, carrying a 0% risk
   weighting. For the period ended 31 March 2018, this cash payment
   was reclassified as a prepayment at a risk weighting of 100%,
   resulting in an increase in risk weighted assets and a resultant
   decline in the group capital ratios.

ADDITIONAL DISCLOSURE

Regulation 43 (2) and the BCBS Pillar 3 disclosure requirements
require additional quarterly disclosure on capital, risk weighted
assets, leverage and liquidity. These disclosures are available on
the group’s website:
https://www.firstrand.co.za/InvestorCentre/Pages/commondisclosures
.aspx

Sandton
31 May 2018

Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
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