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FSRP/FSPP - FirstRand Limited - Trading Statement - June 2010 FirstRand Limited (Incorporated in South Africa) (Registration number 1966/010753/06) JSE "B" Preference Share Code: FSRP JSE ISIN: ZAE000060141 JSE "B1" Preference Share Code: FSPP JSE ISIN: ZAE000070900 ("FirstRand" or "the Group") TRADING STATEMENT - JUNE 2010 When announcing results for the six month period to December 2009, FirstRand indicated to shareholders that the Group expected its operating environment to remain challenging for the remainder of the financial year to June 2010. As expected, revenue from banking activities remained under pressure. Net interest income in particular continued to be subdued as a result of low levels of borrowing due to the continued high indebtedness levels amongst retail customers. Corporate lending also remained at relatively low levels. Although decreasing interest rates have provided some relief to households, the negative endowment income on deposits and capital has been significant. Bad debts have continued to reduce in line with expectations. The Group previously indicated to shareholders a credit loss ratio range of 140bps to 150bps for the year to June 2010 (compared to 181bps in the year to June 2009) and now expects to report at the bottom end of this range. As a result of the improvement in bad debts; WesBank`s earnings have recovered strongly, the losses at FNB Homeloans are reducing significantly and FNB Card has returned to profitability. The Equity Trading division of RMB division will be profitable for the 12 months to June 2010, representing a significant turnaround from the losses of R782 million incurred in the comparative year. Momentum Group Limited ("Momentum") has benefited from an improvement in equity markets and a strong performance from FNB Life. The recently announced listing of Life Healthcare Group Holdings Limited ("Life Healthcare") has resulted in RMB and Momentum disposing of their respective shareholdings. The RMB shareholding represented an investment by its Private Equity division and this realisation will result in a net profit of approximately R800 million which will be included in the normalised earnings of FirstRand. The Momentum shareholding is held in policyholder portfolios, and as such will have no direct impact on Group earnings. The table below shows the guidance for the increase in the Group`s Earnings Per Share ("EPS"), Headline Earnings Per Share ("HEPS") and diluted normalised EPS for the year to June 2010. 12 months Earnings to June guidance 2009 for the 12
months to June 2010 Actual EPS 124.9 34 - 44% Actual HEPS 133.3 27 - 37% Diluted normalised EPS 126.8 32 - 42% Excluding the proceeds from the Life Healthcare realisation, diluted normalised EPS is expected to be between 20% - 30% higher than the comparative period. The financial information on which this trading statement is based has not been reviewed or reported on by FirstRand`s auditors. Details of FirstRand`s results for the year ending June 2010 are expected to be released on SENS and published in the press on or about 14 September 2010. Sandton 10 June 2010 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 10/06/2010 11:08:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
