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FIRSTRAND LIMITED - Unaudited results and cash dividend declaration for the six months ended 31 December 2012

Release Date: 05/03/2013 08:00
Code(s): FSR FSRP     PDF:  
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Unaudited results and cash dividend declaration for the six months ended 31 December 2012

FirstRand Limited
Registration number: 1966/010753/06
Income tax reference number: 9150/201/71/4
JSE code: FSR ISIN: ZAE000066304 (FSR)
NSX share code: FST



UNAUDITED RESULTS AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

INTRODUCTION
This report covers the unaudited financial results of FirstRand Limited (FirstRand or the Group) based on International Financial
Reporting Standards (IFRS) for the six months ended 31 December 2012.

The primary results and accompanying commentary are presented on a normalised basis as the Group believes this most accurately
reflects its economic performance. The normalised earnings have been derived from the unaudited IFRS financial results.

The normalised results include a consolidated income statement, statement of comprehensive income, statement of financial position,
statement of cash flows and a statement of changes in equity. A detailed description of the difference between normalised and IFRS
results is provided on www.firstrand.co.za. Commentary is based on normalised results, unless indicated otherwise.

Alan Hedding, CA(SA), supervised the preparation of the consolidated financial results.

FINANCIAL HIGHLIGHTS

                                                               Six months ended                               Year ended
                                                                 31 December                                     30 June
                                                                 2012             2011         % change             2012
Normalised earnings (R million)                                 7 218            5 771              +25           12 730
Earnings per share (cents) (IFRS)
- Basic                                                         128.5            111.1               16            241.7
- Diluted                                                       127.9            109.2               17            236.8
Headline earnings per share (cents) (IFRS)
- Basic                                                         131.7            103.3               27            231.5
- Diluted                                                       131.1            101.5               29            226.9
Diluted normalised earnings per share (cents)                   128.0            102.4              +25            225.8
Normalised net asset value per share (cents)                  1 200.6          1 053.0              +14          1 142.4
Dividend per ordinary share (cents)                              55.0             44.0              +25            102.0
Normalised return on equity (%)                                  21.9             19.5                              20.7


The Group consists of a portfolio of leading financial services franchises; these are First National Bank (FNB), the retail and
commercial bank, Rand Merchant Bank (RMB), the corporate and investment bank, and WesBank, the instalment finance business.


STATEMENT OF HEADLINE EARNINGS - IFRS

                                                                  Six months ended                            Year ended
                                                                    31 December                                  30 June
R million                                                           2012           2011        % change             2012

Profit for the period                                              7 574          6 590              15           14 369
Non-controlling interests                                          (405)          (386)               5            (898)
NCNR preference shares                                             (150)          (137)               9            (275)
Earnings attributable to ordinary equityholders                    7 019          6 067              16           13 196
Adjusted for:                                                        176          (428)          (>100)            (554)
(Gain)/loss on disposal of investment securities and
other investments of a capital nature                                (1)              2                               20
Gain on disposal of available-for-sale assets                        (1)           (36)                            (154)
Gain on disposal of associates or joint ventures                       -          (463)                            (473)
Gain on disposal of subsidiaries                                    (10)           (17)                            (266)
(Gain)/loss on the disposal of property and equipment                (1)             24                               49
Fair value of investment properties                                    -              -                             (12)
Impairment of goodwill                                                 2             18                              115
Impairment of assets in terms of IAS 36                              254             15                                7
Other                                                                  -            (1)                               41
Tax effects of adjustments                                          (69)             23                               43
Non-controlling interest adjustments                                   2              7                               76

Headline earnings                                                  7 195          5 639              28           12 642


RECONCILIATION FROM HEADLINE EARNINGS TO NORMALISED EARNINGS

                                                                  Six months ended                           Year ended
                                                                    31 December                                 30 June
R million                                                           2012             2011      % change            2012
Headline earnings                                                  7 195            5 639            28          12 642
Adjusted for:                                                         23              132          (83)              88
IFRS 2 Share-based payment expense                                    22               29          (24)              77
Treasury shares*                                                      47              103          (54)             251
- Consolidation of share trust                                        47               94                           242
- FirstRand shares held by policyholders                               -                9                             9
Total return swap adjustment                                        (53)                -                         (240)
Private equity subsidiary realisations                                 7                -                             -

Normalised earnings                                                7 218            5 771           25           12 730
* Includes FirstRand shares held for client trading activities.

OVERVIEW OF RESULTS

INTRODUCTION
The South African macro and socio economic environment for the first six months of the financial year remained challenging. Initial
concerns related to global issues such as the potential breakup of the euro zone, a hard landing in China and the possibility of
significant fiscal contraction in the USA. As these global macroeconomic concerns subsided, local labour market action, sovereign
rating downgrades and growing domestic economic imbalances introduced a new set of uncertainties.

The South African economy started to show signs of slowing in the early part of the period under review. This slowdown, coupled with
the downside risks posed by the global environ-ment, prompted the SARB to lower the repo rate by another 50 bps in July. Strike
action in a number of industries also exacerbated the downward pressure on economic activity towards the end of 2012. The labour
unrest and reports indicating that South Africas current account deficit widened markedly during the course of last year resulted in a
weaker rand, and inflation started to trend upwards. The combination of these developments resulted in a number of rating agencies
downgrading South Africas sovereign rating.

Despite weaker growth, higher inflation and a weaker rand, credit extension registered double digit growth for the first time in more
than three years. Mortgage credit extension, however, continued to be weak and house prices remained under pressure.
The slowdown in South Africa did impact some parts of the Common Monetary Area (specifically Namibia) and Botswana. Elsewhere
in the region, those economies exposed to resources performed better as international commodities prices remained buoyant.

OVERVIEW OF RESULTS
FirstRand produced excellent results for the six months to 31 December 2012, achieving normalised earnings of R7 218 million, an
increase of 25% on the previous period, and producing a normalised return on equity (ROE) of 21.9% (2011: 19.5%).

All three franchises delivered strong operational performances, delivering good topline growth and profitability. In the case of FNB, this
was once again driven by customer acquisition, loan and deposit growth and the continued focus on driving transactional volumes
across all of its platforms, particularly electronic. WesBank grew new business volumes across all portfolios and the client franchises in
RMB delivered both good growth in profits and higher returns.

The table below shows a breakdown of sources of normalised earnings:

SOURCES OF NORMALISED EARNINGS

                                               Six months ended                                      Year ended
                                                 31 December                                          30 June
                                                     %                         %                                    %
                                                compo-                    compo-            %                  compo-
R million                            2012       sition       2011         sition       change        2012      sition
FNB                                 4 023           56      3 360             58           20       6 666          53
RMB                                 1 969           27      1 455             25           35       3 654          29
WesBank                             1 390           19      1 193             21           17       2 599          20
Corporate Centre and
consolidation adjustments           (344)          (5)      (345)            (6)            -       (703)         (6)
FirstRand Limited (company)*          330            5        245              4           35         789           6
NCNR preference dividend            (150)          (2)      (137)            (2)            9       (275)         (2)
Normalised earnings                 7 218          100      5 771            100           25      12 730         100
* Included in this amount is the consolidation adjustment of R518 million (December 2011: R232 million, June
2012: R818 million) to bring the IFRS 2 costs from cash settled in the underlying subsidiaries to equity settled at
the Group level. This adjustment arises from the increase in the FirstRand share price between periods.

The Groups income statement benefited from an increase of 14% in net interest income (NII), driven by good growth in new business
at FNB, WesBank and RMB. Asset margins continued to benefit from mix of advances, pricing in FNB and funding strategies. Total
non-interest revenue (NIR) grew 24%, underpinned by increases in fee and commission income at FNB and WesBank. RMBs client
activities, particularly financing, advisory and structuring also contributed.

The Groups core operating costs grew 11% for the period. However, the combination of the ongoing impact of depreciation on small
value assets and software maintenance, investment in expansion initiatives, increases in IFRS 2 Share-based payments directly linked
to the Groups increased share price, as well as higher variable costs linked to the Groups performance, resulted in a 16% total cost
increase.

A reconciliation of operating expenses is provided in the table below.

RECONCILIATION OF OPERATING EXPENSES

                                                               Six months ended                              Year ended
                                                                 31 December                           %        30 June
R million                                                        2012             2011            change           2012
Operating expenses                                             15 120           12 995                16         27 212
Adjusted for:
Share-based payments                                            (179)             (45)              >100          (469)
New subsidiaries                                                    -                -                 -           (82)
Expansion costs                                                 (442)            (212)              >100          (497)
RMB Corporate Banking software impairments                      (248)                -                                -
Cooperation agreements and joint ventures                       (345)            (253)                36          (564)
Accelerated depreciation and Full Maintenance Rental
(FMR)                                                           (166)             (75)              >100          (409)
Core costs                                                     13 740           12 410                11         25 191


The increase in bad debts from 80 bps to 91 bps, is in line with expectations given the absolute book growth and the shift in asset
class mix. It also includes R575 million of credit impairment overlays at FNB and RMB, the creation of which reflects the Groups view
that the benign credit cycle has bottomed.

Non-performing loans (NPLs) decreased 3%, which is again in line with expectations and reflects the ongoing improvement in the large
retail books such as HomeLoans and Card. NPLs in the unsecured books picked up in line with expectations.

The Groups overall balance sheet continued to show good growth in advances compared to December 2011, driven by strong new
business volumes (indicated below), particularly in those portfolios where the Group was historically underweight, such as unsecured
and corporate (structured) lending.


 - Unsecured lending in FNB (excluding Card)             R4.6 billion
 - Unsecured lending in WesBank                          R2.6 billion
 - Vehicle and asset finance at WesBank                  R31.5 billion
 - RMBs structured lending book                         R13.3 billion

On a rolling six months basis, growth in these portfolios has started to moderate.

OVERVIEW OF OPERATING FRANCHISES
FirstRands vision is to be the African financial services group of choice, creating long-term franchise value and delivering superior and
sustainable economic returns to shareholders within acceptable levels of volatility. The Group seeks to achieve this through two
parallel growth strategies:

- become a predominant player in all of the financial services profit pools in South Africa, growing in existing markets and those where
it is under-represented; and

- grow its franchise in the broader African continent, targeting those countries expected to show above average domestic growth and
which are well positioned to benefit from the trade and investment flows between Africa, China and India.

These strategies are executed through its portfolio of operating franchises, within a framework set by the Group and good progress
continues to be made. Below is a brief overview of progress on these strategic objectives and the financial and operational
performance of each franchise.

FNB
FNB represents FirstRands activities in the retail and commercial segments in both South Africa and the broader African continent. It is
growing its franchise strongly in both existing and new markets on the back of innovative products and delivery channels, particularly
focusing on electronic and digital platforms.

During the period under review, FNB completed an internal realignment of its successful segment focus. The original FNB segment
strategy, incorporating Mass, Consumer, Wealth, Commercial and Corporate, has been refined to focus on two larger segments -
Retail and Commercial. The African subsidiaries have been aligned under Retail and are now reported under total FNB. The Corporate
segment, previously FNB GTS, has been rebranded RMB Corporate Banking and aligned under RMB, the corporate and investment
bank, to provide an integrated and holistic offering to its large corporate customers.

FNB FINANCIAL HIGHLIGHTS

                                                             Six months ended                          Year ended
                                                               31 December                      %         30 June
R million                                                      2012            2011        change            2012
Normalised earnings                                           4 023           3 360            20           6 666
Profit before tax                                             5 777           4 895            18           9 668
Total assets                                                283 860         267 999             6         268 533
Total liabilities                                           272 923         258 868             5         255 277
Credit loss ratio (%)                                          1.19            0.94                          1.20
ROE (%)                                                        36.2            34.7                          35.0


FNB produced an excellent performance for the period, increasing pre-tax profits 18% and producing an ROE of 36.2%.

The business continued to benefit from its primary strategy to grow and retain core transactional accounts. This is underpinned by a
compelling value proposition (innovative products and channels at an acceptable cost to the customer) and supported by rewards
programmes, such as eBucks, SLOW lounges and fuel, data and airtime rewards. Innovations such as the Banking App, cellphone
banking and eWallet continue to attract new customers.
FNBs NII grew 22% driven by balance sheet growth and margin expansion due to the mix change to unsecured lending and the
repricing of newly-originated residential mortgages. Overall, lower growth in advances was partially offset by good deposit acquisition
(15% up). In addition, the R1.5 billion decrease in NPLs in HomeLoans positively impacted NII.

Advances increased 9%, in the main emanating from across the Retail segments in South Africa (up R10.6 billion) and Africa (up R3.7
billion). Card advances grew 14% on the back of proactive customer acquisition. Total residential mortgages increased 2% with
HomeLoans growing only 1%, reflecting FNBs strategy to write new business in the low-risk categories. Margins, however, remained
healthy. Affordable housing continued to show good growth at 17%.
FNBs focus on customer acquisition and retention underpinned the very good growth in deposits, driven by the core retail business,
the commercial segment and the African franchise.

FNBs strategy to grow core transactional banking accounts and drive activity across its electronic platforms resulted in strong
transactional volumes. NIR increased 13% mainly driven by activity in the Retail business (up 16%), with Commercial and Africa
contributing increases of 6% and 11%, respectively.

Bad debts increased 18%, which is below expectations given the growth in unsecured lending, with an exceptionally low R2 million at
Card. FNB has, however, taken the prudent decision to increase portfolio provisions, resulting in a total increase of 37%. Overall credit
quality across all portfolios is well within risk appetite and coverage ratios have increased.

FNB maintained core cost growth at 10%, reflecting its focus on ongoing efficiencies and streamlining platforms particularly in Retail.
When including investment costs, particularly in Africa (costs up 17%), total operating expenditure growth was 13%.

RMB
RMB represents the Groups activities in the corporate and investment banking segments in South Africa, the broader African continent
and India. Over the past three years, RMB has become a more client-centric business with a clear strategy anchored around a risk
appetite designed to effectively manage the trade-offs between earnings volatility, profit growth and returns.

The business continues to benefit from its focus on generating income from client-driven activities. This, coupled with steady
investment returns and a growing focus on asset management, has resulted in a higher quality and more sustainable earnings profile.
RMB made good progress with regard to its corporate banking franchise during the period under review. As mentioned in the FNB
section, FNB GTS has been rebranded RMB Corporate Banking and the alignment of this business fully under RMB better enables the
strategy to offer corporate and investment banking (CIB) solutions to the corporate and institutional client base.



RMB FINANCIAL HIGHLIGHTS

                                                               Six months ended                          Year ended
                                                                 31 December                      %         30 June
R million                                                        2012           2011         change            2012
Normalised earnings                                             1 969          1 455             35           3 654
Profit before tax                                               2 460          1 979             24           4 937
Total assets                                                  356 390        307 762             16         331 977
Total liabilities                                             349 629        301 566             16         324 230
ROE (%)                                                          22.2           18.1                           23.2


RMB produced an excellent result in the six months to December 2012. Pre-tax profits increased 24% to R2 460 million, which is a
record first-half performance, and the ROE also increased to 22.2% (2011: 18.1%).

The Investment Banking Division (IBD) continued to show good growth, increasing pre-tax profits 18% to R1 506 million. Much of this
growth was balance sheet-led, with the core loan book increasing 19%, which is well above market and driven by a number of large
deals coupled with the arranging and structuring of renewable energy funding facilities.

The Global Markets division also delivered a strong performance for the period, growing profits 40% to R894 million, mainly
underpinned by client activities. Low volatility in local foreign exchange and interest rate markets softened profitability, however, African
activities continued to deliver, driven by strong performances from the subsidiaries.

Private Equity profits were up 8% to R229 million, driven mainly by equity-accounted earnings and income from investment
subsidiaries. The RMB Resources portfolio continued to experience pressure on profitability due to persistent weakness in the junior
mining sector, although losses were curtailed compared to the previous six months.

The Corporate Banking division produced a solid operational performance on the back of increased volumes.

WESBANK
WesBank represents the Groups activities in instalment finance in the retail, commercial and corporate segments. WesBanks
performance for the six months to December 2012 reflects its leading market position in instalment finance. In particular, long-standing
alliances with leading motor manufacturers and large dealer groups have generated increased market share within the required risk
profile.

WESBANK FINANCIAL HIGHLIGHTS

                                                            Six months ended                         Year ended
                                                              31 December                      %        30 June
R million                                                     2012           2011         change           2012
Normalised earnings                                          1 390          1 193             17          2 599
Profit before tax                                            1 961          1 688             16          3 650
Total assets                                               132 972        112 396             18        121 610
Total liabilities                                          129 323        109 682             18        117 110
Credit loss ratio (%)                                         1.12           1.07                          0.99
ROE (%)                                                       31.8           29.8                          33.9


On all key metrics WesBank delivered an excellent performance growing pre-tax profits 16% to R1 961 million, and producing an ROE
of 31.8%.

Total advances grew 17% to R129.9 billion on the back of new business growth of 19% to R39.2 billion. This was driven by the motor
and unsecured credit books, which delivered growth of 18% and 27%, respectively. Corporate new business volumes were also robust
(up 14%) and the positive turnaround at MotoNovo continued on the back of excellent volume growth.

Interest margins were maintained despite strong competition across all portfolios. The underlying retail vehicle finance advances are
also well balanced between fixed- and variable-rate. Origination is well within agreed risk thresholds and vintage performance is very
closely monitored. The credit quality in all portfolios continues to track within expectations.

Arrear levels have levelled off and further improvement is unlikely. NPLs decreased since June 2012, however, given that the credit
cycle has bottomed, this trend is likely to reverse going forward.

NIR reflected moderate growth with increased pricing pressures in the Auto card business.

Total cost growth of 5% reflects static headcount year-on-year, and includes increases in profit share payments to alliance partners and
increasing depreciation on FMR assets. Excluding these two items, year-on-year operating costs were slightly down.

STRATEGIC ISSUES

PROGRESS ON GROWTH STRATEGIES OUTSIDE SOUTH AFRICA
The Group seeks to generate incremental growth outside of its domestic market. It executes on the ground through its operating
franchises and enters each market depending on the specific growth opportunities presented. On the broader African continent the
priority countries for further investment remain Mozambique, Tanzania, Zambia, Nigeria, Ghana and kenya.

FNB continues to invest in growing its infrastructure in the new territories of Mozambique, Zambia and Tanzania and is leveraging its
South African developed products and solutions into these countries.

RMB is generating strong deal flow from its recently-established kenya representative office, and in February 2013 officially opened
RMB Nigeria. This followed the granting of an investment banking licence by the Central Bank of Nigeria, which required an initial
capital investment by FirstRand of $100 million.

RMB has been operating in Nigeria from a representative office since January 2010 and is already a meaningful player in the Nigerian
investment banking sector. The establishment of a fully-fledged investment banking operation will now allow RMB to rapidly build its
franchise, provide products and services to corporate and institutional clients, as well as attract in-country skills.
RMB Nigeria is providing the full spectrum of investment banking services to all industries, including corporate advisory, equity capital
markets, infrastructure and project finance, resource finance, structured trade and commodity finance, and fixed income, currency and
commodity services. These services are offered to large local, regional and international corporates already operating in, or entering
Nigeria and the broader west African economies.

The Group is awaiting final regulatory approvals relating to its offer for Merchant Bank Ghana (MBG) and expects to conclude this
transaction in the second half of the financial year. This will provide an excellent platform for FNB and RMB to roll out products and
services in Ghana. RMB is already generating a strong deal pipeline in-country, particularly in the property, and oil and gas sectors.

FirstRands Indian platform continues to gain traction. RMBs operations grew strongly albeit off a low base, mainly driven by the
in-country Global Markets and Investment Banking divisions. The FNB start up is also gaining momentum with the current focus on
building this platform into a profitable and scaleable operation.

PROGRESS ON INVESTMENT MANAGEMENT STRATEGY
Following the unbundling of its insurance subsidiary, Momentum, which included the asset management business, RMBAM, FirstRand
identified that investment management activities represented a significant gap in its portfolio. This gap, combined with opportunities
presented by regulatory changes and the Groups strategic objective to increase fee-generating activities, resulted in the creation of
Ashburton Investments.

The business will offer focused traditional and alternative investment solutions to individual and institutional investors and will combine
established active fund management expertise with alternative investment solutions from product providers Ashburton and RMB.

With an incremental and organic growth strategy, Ashburtons proposition is possible because it will be fully supported by the skills,
platforms and product origination capabilities of FirstRand. The Group believes it has a competitive advantage in this space given its
strong franchise in financial services, its balance sheet and a proven track record in incubating and growing greenfields businesses.

BALANCE SHEET STRENGTH
The Group believes a strong balance sheet is key to growth, particularly in periods of uncertainty.

CAPITAL
FirstRands capital management strategy is aligned to this view and to the Groups overall objective to deliver sustainable returns to
shareholders within appropriate levels of volatility. The Groups current philosophy, given the uncertain macro environment, is to
operate at the higher end of its targeted capital levels to ensure balance sheet resilience. Current targeted ranges and ratios are
summarised in the table below.

                                                              FirstRand              Regulatory
%                                                             Actual       Target       minimum
Capital adequacy ratio                                        14.9    12.0 - 13.5          9.5*
Tier 1 ratio                                                  13.4           11.0           7.0
Core Tier 1 ratio                                             12.5     9.5 - 11.0          5.25
* The regulatory minimum excludes the bank-specific (Pillar 2b) add-on and capital floor.

                                                              FirstRand Bank
                                                              (FRB)*                  Regulatory
%                                                             Actual       Target        minimum
Capital adequacy ratio                                        14.6    11.5 - 13.0          9.5**
Tier 1 ratio                                                  12.7           10.5            7.0
Core Tier 1 ratio                                             11.9     9.0 - 10.5           5.25
* Reflects solo supervision, i.e. FirstRand Bank excluding foreign branches.
** The regulatory minimum excludes the bank-specific (Pillar 2b) add-on and capital floor.

With regard to the impact of Basel III, the final capital framework for banks operating in South Africa was released in October 2012 and
the impact on the Groups Core Tier 1 capital is expected to be minimal.

As part of the Groups strategy to utilise regulatory limits to optimise its capital structure, during the period under review FirstRand
replaced the FRB06 and FRB07 subordinated debt instruments with the FRB11 bond. This instrument meets the Basel III entry criteria
and will be included for grand-fathering from 1 January 2013 with full recognition envisaged once the resolution regime is implemented
in South Africa.

ASSET QUALITY
When assessing the underlying risk in the balance sheet, the Groups asset profile is dominated by a balanced advances portfolio,
which constitutes 73% of total assets. In terms of credit quality, 87% of advances are rated B upper or better. Cash and liquid assets
represent 17% of total assets, with only a small portion related to the investment and trading businesses.

PROSPECTS
The difficult macroeconomic environment is expected to continue for the rest of the financial year. Despite this, the Group expects to
continue to produce good organic growth. FNBs focus on customer acquisition and driving transactional revenues across its platforms
will drive NIR growth, as will RMBs client activities. With respect to advances growth, new business volumes in the retail lending books
are expected to moderate in the second half, a trend that is already manifesting on a rolling six-month basis. Corporate advances are
expected to remain robust at RMB.

Ongoing investment in stated growth opportunities will continue, which will result in cost pressure although strong revenue growth
should result in positive operating jaws.

DIVIDEND STRATEGY
The Group targets growth in dividend in line with sustainable earnings taking into account expansion plans. Therefore dividend cover
can vary from year to year.

BASIS OF PRESENTATION
FirstRand prepares its consolidated financial results in accordance with:

- IFRS, including IAS 34 Interim Financial Reporting;
- the Financial Reporting Guide as issued by the Accounting Practices Committee;
- JSE Listing Requirements; and
- the information as required by the Companies Act of South Africa.

The accounting policies applied are consistent with those applied in preparation of previous financial statements. A table reflecting the
restatement of prior year numbers and reasons therefore can be found below.

The Group believes normalised earnings more accurately reflect operational performance. Headline earnings are adjusted to take into
account non-operational and accounting anomalies. A detailed description of the difference between normalised and IFRS results is
provided on www.firstrand.co.za.

EVENTS AFTER THE REPORTING PERIOD
The directors are not aware of any material events, as defined in IAS 10, occurring between 31 December 2012 and the date of
authorisation of the interim results announcement.

BOARD CHANGES
Mr Jan Jonathan (Jannie) Durand was appointed to the Board as a non-executive director with effect from 23 October 2012. 
Mr Durand joined the Board as a shareholder representative of Financial Securities Limited (Remgro).

Mr Grant Glenn Gelink was appointed to the Board as an independent non-executive director with effect from 1 January 2013.

CASH DIVIDEND DECLARATION

ORDINARY SHARES
The directors have declared a gross cash dividend totalling 55.0 cents per ordinary share out of income reserves for the six months
ended 31 December 2012.

                                                         Six months ended
                                                           31 December
Cents per share                                            2012      2011
Interim (declared 5 March 2013)                            55.0      44.0
The salient dates for the interim dividend are as follows:


 Last day to trade cum-dividend                          Wednesday 20 March 2013
 Shares commence trading ex-dividend                     Friday 22 March 2013
 Record date                                             Thursday 28 March 2013
 Payment date                                            Tuesday 2 April 2013

Share certificates may not be dematerialised or rematerialised between Friday 22 March 2013 and Thursday 28 March 2013, both
days inclusive.

The interim dividend of 55.0 cents per share carries an STC credit of 4.27982 cents per share. Shareholders who are exempt from
Dividend Withholding Tax (DWT) will receive the full 55.0 cents per share. For shareholders who are subject to DWT, tax will be
calculated at 15% (or such lower rate if a double taxation agreement applies for foreign shareholders), after taking into account the
STC credit.

For South African shareholders who are subject to DWT the net final dividend after deducting 15% tax will be 47.39197 cents per
share.

The issued share capital on the declaration date was 5 637 941 689 ordinary shares and 45 000 000 variable rate, NCNR B
preference shares.

FirstRands income tax reference number is 9150/201/71/4.

B PREFERENCE SHARES
Dividends on the B preference shares were calculated at a rate of 75.56% of the prime lending rate of FNB, a division of FirstRand
Bank Limited.

The following dividends were declared and paid:

                                                               B preference
                                                                  shares
Cents per share                                               2013      2012
Period
28 August 2012 - 25 February 2013                            320.3
30 August 2011 - 27 February 2012                                      305.2


LL Dippenaar           SE Nxasana                  BW Unser
Chairman               CEO                         Company secretary

5 March 2013



CONSOLIDATED INCOME STATEMENT - IFRS

                                                                 Six months ended                             Year ended
                                                                   31 December                                   30 June
                                                                   2012          2011*          % change            2012
R million
Net interest income before impairment of advances                12 376         10 530                18          21 882
Impairment of advances                                          (2 259)        (1 824)                24         (5 065)
Net interest income after impairment of advances                 10 117          8 706                16          16 817
Non-interest income                                              15 735         13 431                17          29 494
Income from operations                                           25 852         22 137                17          46 311
Operating expenses                                             (15 652)       (13 371)                17        (28 422)
Net income from operations                                       10 200          8 766                16          17 889
Share of profit of associates and joint ventures after
tax*                                                                298            283                 5           1 120
Income before tax                                                10 498          9 049                16          19 009
Indirect tax                                                      (462)          (385)                20           (551)
Profit before direct tax                                         10 036          8 664                16          18 458
Direct tax*                                                     (2 462)        (2 074)                19         (4 089)
Profit for the period                                             7 574          6 590                15          14 369
Attributable to:
Ordinary equityholders                                            7 019          6 067                16          13 196
NCNR preference shareholders                                        150            137                 9             275
Equityholders of the Group                                        7 169          6 204                16          13 471
Non-controlling interests                                           405            386                 5             898
Profit for the period                                             7 574          6 590                15          14 369
* Refer to reclassification of prior year numbers below.



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - IFRS

                                                            Six months ended                               Year ended
                                                              31 December                                     30 June
R million                                                     2012                2011       % change            2012
Profit for the period                                        7 574               6 590             15          14 369
OTHER COMPREHENSIVE INCOME
Items that may subsequently be classified to profit or
loss
Cash flow hedges                                             (124)               (275)           (55)           (420)
Available-for-sale financial assets                            578                 274           >100             560
Exchange differences on translating
foreign operations                                             323                 634           (49)             599
Share of other comprehensive income of associates
after tax and non-controlling interests                         24                (15)         (>100)           (167)
Other comprehensive income for the period before
tax                                                            801                 618             30             572
Income tax relating to components of other
comprehensive income                                          (98)                (10)           >100            (41)
Other comprehensive income for the period                      703                 608             16             531
Total comprehensive income for the period                    8 277               7 198             15          14 900
Total comprehensive income attributable to:
Ordinary equityholders                                       7 703               6 648             16          13 706
NCNR preference shareholders                                   150                 137              9             275
Equityholders of the Group                                   7 853               6 785             16          13 981
Non-controlling interests                                      424                 413              3             919
Total comprehensive income for the period                    8 277               7 198             15          14 900



CONSOLIDATED STATEMENT OF FINANCIAL POSITION - IFRS

                                                                     As at 31 December               As at 30 June
R million                                                     2012               2011*          2010*            2012
ASSETS
Cash and cash equivalents                                   52 695              38 545         31 511          38 363
Derivative financial instruments                            56 502              57 721         51 052          52 913
Commodities                                                  8 003               5 880          4 164           5 108
Accounts receivable                                          6 400               7 894          5 598           6 007
Policy loans                                                     -                   -             26               -
Tax asset                                                      606                 163            798             331
Advances                                                   563 038             498 258        453 290         524 507
Investment securities and other investments                113 944             126 237        127 884         119 708
Investments in associates and joint ventures                 7 040               6 663          5 819           6 869
Property and equipment                                      13 207              11 949         10 409          12 026
Intangible assets                                            1 557               1 647          1 510           1 743
Reinsurance assets                                             846                 855            527             898
Post-employment benefit asset                                    8                   3              -               7
Investment properties                                          452                 203            161             215
Deferred income tax asset                                      524                 470            451             471
Non-current assets and disposal groups
held for sale                                                  505               5 173          2 609             599
Total assets                                               825 327             761 661        695 809         769 765

EQUITY AND LIABILITIES
Liabilities
Short trading positions                                      9 219              11 944         15 801           5 343
Derivative financial instruments                            58 284              58 329         50 027          53 760
Creditors and accruals                                       8 788               9 764          6 077           9 086
Tax liability                                                  289                 409            319             386
Deposits                                                   651 349             589 597        535 429         606 281
Provisions                                                     584                 523            861             592
Employee liabilities                                         6 671               5 936          4 993           6 933
Other liabilities                                            5 401               5 615          9 435           6 383
Policyholder liabilities under insurance contracts           1 543               1 373          2 007           1 517
Deferred income tax liability                                1 498               2 226          2 474           1 679
Tier 2 liabilities                                           8 120               6 366         10 219           7 885
Liabilities directly associated with disposal groups held
for sale                                                        83               4 480            419             113
Total liabilities                                          751 829             696 562        638 061         699 958
Equity
Ordinary shares                                                 55                  55             54              55
Share premium                                                5 387               5 167          5 194           5 216
Reserves                                                    60 832              52 284         45 112          57 250
Capital and reserves attributable to ordinary
equityholders                                               66 274              57 506         50 360          62 521
NCNR preference shares                                       4 519               4 519          4 519           4 519
Capital and reserves attributable to equityholders of
the Group                                                   70 793              62 025         54 879          67 040
Non-controlling interests                                    2 705               3 074          2 869           2 767
Total equity                                                73 498              65 099         57 748          69 807
Total equity and liabilities                               825 327             761 661        695 809         769 765
* Refer to reclassifications of prior year numbers below.



CONSOLIDATED STATEMENT OF CASH FLOWS - IFRS

                                                              Six months ended             Year ended
                                                                31 December                   30 June
                                                                2012            2011#            2012
R million
Net cash flows from operating activities                      11 140            6 124          16 635
Net cash generated/(utilised) from operations                  9 439            1 298         (7 064)
Tax paid                                                     (3 412)          (2 307)         (5 331)
Net cash inflow from operating activities                     17 167            5 115           4 240
Net cash outflow from investing activities                   (2 374)          (2 364)         (3 763)
Net cash (outflow)/inflow from financing activities            (495)            1 335           3 464
Net increase in cash and cash equivalents from
operations                                                    14 298            4 086           3 941
Cash and cash equivalents at the beginning of the
year                                                          38 363           34 240          34 240
Cash and cash equivalents at the end of the year              52 661           38 326          38 181
Cash and cash equivalents acquired*                                -                -               1
Cash and cash equivalents disposed of*                           (2)                -            (31)
Effect of exchange rate changes on cash and cash
equivalents                                                       36              219             212
Cash and cash equivalents at the end of the year              52 695           38 545          38 363
Mandatory reserve balances included above**                   14 991           13 443          13 677
* Cash and cash equivalents acquired and disposed of relate to cash balances held by subsidiaries acquired and disposed of during
the year.
** Banks are required to deposit a minimum average balance calculated monthly with the central bank, which is not available for use in
the Groups day-to-day operations. The deposit bears no or low interest. Money at short notice constitutes amounts withdrawable in 32
days or less.
#  Prior year restatements due to reclassifications.



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - IFRS
for the six months ended 31 December

                                               Ordinary share capital and ordinary equityholders funds
                                                                    Share
                                                              capital and      General      Cash flow   Share-based
                                      Share           Share         share         risk          hedge       payment
R million                           capital         premium       premium      reserve        reserve       reserve
Balance as at 1 July 2011                53           4 945         4 998           13          (451)         2 739
Movement in other reserves                -               -             -            -              -           315
Ordinary dividends                        -               -             -            -              -             -
Preference dividends                      -               -             -            -              -             -
Transfer from/(to) reserves               -               -             -           14              -             -
Changes in ownership
interest
in subsidiaries                           -               -             -            -              -             -
Consolidation of treasury
shares                                    2             222           224            -              -             -
Total comprehensive income
for the period                            -               -             -            -          (198)             -
Balance as at 31 December
2011                                     55           5 167         5 222           27          (649)         3 054
Balance as at 1 July 2012                55           5 216         5 271           57          (753)         3 247
Issue of share capital                    -               -             -            -              -             -
Movement in other reserves                -               -             -            -              -         (262)
Ordinary dividends                        -               -             -            -              -             -
Preference dividends                      -               -             -            -              -             -
Transfer from/(to) reserves               -               -             -           15              -             -
Changes in ownership
interest
in subsidiaries                           -               -             -            -              -             -
Consolidation of treasury
shares                                    -             171           171            -              -             -
Total comprehensive income
for the period                            -               -             -            -           (89)             -
Vesting of share-based
payment reserve                           -               -             -            -              -          (26)
Balance as at 31 December
2012                                     55           5 387         5 442           72          (842)         2 959



                                     Ordinary share capital and ordinary equityholders funds                 Non-
                                                                                             Reserves   cumulative
                                                     Foreign                             attributable         non-
                                 Available-         currency                              to ordinary   redeemable          Non-
                                   for-sale      translation          Other     Retained      equity-   preference   controlling      Total
R million                           reserve          reserve       reserves     earnings      holders       shares     interests     equity
Balance as at 1 July 2011               225              474             13       48 620       51 633        4 519         3 069     64 219
Movement in other reserves                -                -          (142)          166          339            -          (31)        308
Ordinary dividends                        -                -              -      (6 341)      (6 341)            -         (369)    (6 710)
Preference dividends                      -                -              -            -            -        (137)             -      (137)
Transfer from/(to) reserves               -                -              -         (14)            -            -             -          -
Changes in ownership
interest
in subsidiaries                           -                -              -         (35)         (35)            -           (8)       (43)
Consolidation of treasury
shares                                    -                -              -           40           40            -             -        264
Total comprehensive income
for the period                          187              606           (14)        6 067        6 648          137           413      7 198
Balance as at 31 December
2011                                    412            1 080          (143)       48 503       52 284        4 519         3 074     65 099
Balance as at 1 July 2012               626            1 052          (118)       53 139       57 250        4 519         2 767     69 807
Issue of share capital                    -                -              -            -            -            -           (4)        (4)
Movement in other reserves                -                -           (36)            -        (298)            -           (9)      (307)
Ordinary dividends                        -                -              -      (3 183)      (3 183)            -         (412)    (3 595)
Preference dividends                      -                -              -            -            -        (150)             -      (150)
Transfer from/(to) reserves               -                -              -         (15)            -            -             -          -
Changes in ownership
interest
in subsidiaries                           -                -              -           13           13            -          (61)       (48)
Consolidation of treasury
shares                                    -                -              -           49           49            -             -        220
Total comprehensive income
for the period                          442              311             20        7 019        7 703          150           424      8 277
Vesting of share-based
payment reserve                           -                -              -        (676)        (702)            -             -      (702)
Balance as at 31 December
2012                                  1 068            1 363          (134)       56 346       60 832        4 519         2 705     73 498



RECLASSIFICATION OF PRIOR YEAR NUMBERS

During the reporting period the following reclassifications were made to the income statement and statement of financial position in line
with the reclassifications for the year ended 30 June 2012:

                                      Amount
31 December 2011               as previously     Amount as
R million                           reported      restated       Difference     Explanation
Income statement                                                                The Groups share of profits from
Share of profit from                     401           283              118     associates and joint ventures was
associates and joint                                                            stated net of the related tax expense.
ventures                                                                        The comparative information was
                                                                                restated in order to be comparable with
                                                                                the updated presentation.
Direct tax                           (2 192)       (2 074)            (118)     As per above.
Profit for the year                    6 590         6 590                -     No effect on profit for the year.

Statement of financial                                                          During the June 2012 financial year a
position                                                                        comprehensive review of liabilities
Creditors and accruals                12 152         9 764            2 388     disclosure was undertaken by the
Deposits                             595 200       589 597            5 603     Group to ensure that the presentation is
Provisions                             2 965           523            2 442     consistent with industry practice and to
                                                                                provide more detailed and useful
Post-retirement liabilities            2 346             -            2 346
                                                                                information in the financial statements. A
Employee liabilities                       -         5 936          (5 936)     reclassification was required to bring the
Other liabilities                          -         5 615          (5 615)     comparative numbers in line with the
Tier 2 liabilities                         -         6 366          (6 366)     updated presentation.
Long-term liabilities                  5 048             -            5 048
Policyholder liabilities under
investment contracts                      90             -               90
Note: Non-performing loans at 31 December 2011 have been restated from R18 366 million to R18 388 million.

                                  Amount
31 December 2010           as previously    Amount as
R million                       reported     restated   Difference     Explanation
Statement of financial                                                 During the June 2012 financial year a
position                                                               comprehensive review of liabilities
Creditors and accruals            10 193        6 077        4 116     disclosure was undertaken by the
Deposits                         543 713      535 429        8 284     Group to ensure that the presentation is
Provisions                         3 254          861        2 393     consistent with industry practice and to
                                                                       provide more detailed and useful
Post-retirement liabilities        2 202            -        2 202
                                                                       information in the financial statements. A
Employee liabilities                   -        4 993      (4 993)     reclassification was required to bring the
Other liabilities                      -        9 435      (9 435)     comparative numbers in line with the
Tier 2 liabilities                     -       10 219     (10 219)     updated presentation.
Long-term liabilities              7 489            -        7 489
Policyholder liabilities under
investment contracts                 163            -          163


COMPANY INFORMATION

DIRECTORS
LL Dippenaar (Chairman), SE Nxasana (Chief executive officer), VW Bartlett, JJH Bester, MS Bomela, JP Burger (Financial director
and chief operating officer), L Crouse, JJ Durand, GG Gelink, PM Goss, NN Gwagwa, Pk Harris, WR Jardine, EG Matenge-Sebesho,
AT Nzimande, D Premnarayen (India), kB Schoeman, Rk Store, BJ van der Ross, JH van Greuning

SECRETARY AND REGISTERED OFFICE
BW Unser
4 Merchant Place, Corner Fredman Drive and Rivonia Road
Sandton 2196
PO Box 650149, Benmore 2010
Telephone: +27 11 282 1808
Telefax: +27 11 282 8088
Website: www.firstrand.co.za

JSE SPONSOR
Rand Merchant Bank (a division of FirstRand Bank Limited)

CORPORATE FINANCE
1 Merchant Place, Corner Fredman Drive and Rivonia Road
Sandton 2196
Telephone: +27 11 282 1847
Telefax: +27 11 282 4184

JSE INDEPENDENT SPONSOR
PricewaterhouseCoopers Corporate Finance (Pty) Ltd 2 Eglin Road Sunninghill Sandton 2196

NAMIBIAN SPONSOR
Simonis Storm Securities (Pty) Ltd 4 Koch Street Klein Windhoek Namibia
Transfer secretaries - South Africa
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg 2001
PO Box 61051, Marshalltown 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5221

TRANSFER SECRETARIES - NAMIBIA
Transfer Secretaries (Pty) Ltd
4 Robert Mugabe Avenue, Windhoek
PO Box 2401, Windhoek, Namibia
Telephone: +264 612 27647
Telefax: +264 612 48531

5 March 2013

Date: 05/03/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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