Pillar 3 quarterly disclosures as at 30 September 2015 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: BIFR1 (FRB or the bank) PILLAR 3 QUARTERLY DISCLOSURES AS AT 30 SEPTEMBER 2015 In accordance with Pillar 3 of the Basel Accord, Regulation 43(1)(e) of the Regulations relating to Banks requires the group to disclose quantitative information on its capital adequacy and liquidity ratios. Leverage is a supplementary measure to risk- based capital requirements and directive 4 of 2014 requires quarterly disclosure of the leverage position. The figures below have not been reviewed and reported on by the group’s external auditors. CAPITAL ADEQUACY The capital positions (excluding unappropriated profits) for the group and bank at 30 September 2015 are set out below. R million FSR FRB Common Equity Tier 1 capital Ordinary share capital and premium 8 053 16 808 Qualifying reserves 76 900 49 889 Non-controlling interests 751 - Regulatory deductions (2 445) (661) Total Common Equity Tier 1 capital 83 259 66 036 Total Additional Tier 1 capital 5 105 2 100 Total Tier 1 capital 88 364 68 136 Tier 2 capital Tier 2 instruments 13 463 14 079 Other qualifying reserves 807 270 Regulatory deductions - (165) Total Tier 2 capital 14 270 14 184 Total qualifying capital and reserves 102 634 82 320 Total minimum capital requirement per risk type: Credit risk 44 434 37 789 Counterparty credit risk 1 850 1 702 Operational risk 10 033 7 730 Market risk 1 475 1 178 Equity investment risk 3 356 597 Other assets 3 848 2 322 Total minimum capital requirement 64 996 51 318 Common Equity Tier 1 capital ratio (%) 12.8 12.9 Tier 1 capital ratio (%) 13.6 13.3 Total capital ratio (%) 15.8 16.0 Notes: - FRB includes foreign branches and subsidiaries. - The minimum capital requirement excludes any bank-specific individual capital requirement and is reported at 10%. LEVERAGE The leverage ratios for the group and bank at 30 September 2015 are set out below. FSR FRB FRB R million consolidated solo Tier 1 capital measure 88 364 68 136 64 264 Total exposure measure 1 177 801 1 057 953 1 022 396 Leverage ratio (%) 7.5 6.4 6.3 Notes: - In terms of directive 4/2014 ratios for FRB solo (excluding foreign branches) and FRB consolidated (including foreign branches and subsidiaries) are required to be disclosed. LIQUIDITY The liquidity coverage ratio (LCR) is the first minimum standard for funding and liquidity under the Basel III regime. The objective of the LCR is to promote short-term resilience of a bank’s liquidity risk profile by ensuring it has sufficient high quality liquid assets (HQLA) to survive a significant stress scenario for one month. Regulation 26(12)(a)(vi) requires banks to continuously meet their liquidity needs by calculating the LCR from 1 January 2015 on both a solo and consolidated basis; and directives 6 and 11 of 2014 require quarterly disclosure of the LCR. The LCR compliance is on a phased in basis, beginning with a 60% minimum requirement from 1 January 2015 with 10% incremental increases each year to 100% on 1 January 2019. The requirement effective 1 January 2016 will be 70%. The average liquidity coverage ratios for the group and bank for the quarter ended 30 September 2015 are set out below. FSR FRB HQLA(R million) 137 238 124 707 Net cash outflows (R million) 180 829 153 658 Required LCR (%) 60 60 Actual LCR (%) 76 81 FRB successfully applied for a committed liquidity facility (CLF) from the SARB as provided for under guidance note 8 of 2014 and 5 of 2015. The CLF was recognised as qualifying collateral for LCR purposes within our HQLA as required by the SARB. The group manages the HQLA portfolio of level 1 and level 2 assets, together with the CLF and considers volatility in funding flows as determined by internal risk appetite. As a result, the group targets a buffer in excess of the regulatory minimum. The group has in place strategies to reach the end-state LCR requirements in a sustainable manner. Notes: - FRB includes its operations in South Africa. - The consolidated LCR for the group (FSR) includes FRB’s operations in South Africa and all registered banks within the group. - The surplus HQLA holdings by subsidiaries and foreign branches in excess of the minimum required LCR of 60% have been excluded in the calculation of the consolidated group LCR. - Directive 11 of 2014 requires the LCR to be calculated on a simple average of the three month end data points for the past quarter and disclosure at a bank solo and consolidated level for bank and/or deposit-taking entities. - Further details on the liquidity coverage ratio can be found under the group analysis of financial results under the funding and liquidity section on the group’s website, http://www.firstrand.co.za/investorcentre/pages/financial- results.aspx - This announcement is also available on the group’s website: http://www.firstrand.co.za/investorcentre/pages/sens_announcemen ts_mvc.aspx Sandton 18 November 2015 Sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 18/11/2015 09:12:00 Produced by the JSE SENS Department. 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