Pillar 3 Quarterly Disclosures as at 31 March 2016 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: FRII (FRB or the bank) PILLAR 3 QUARTERLY DISCLOSURES AS AT 31 MARCH 2016 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 31 March 2016 are set out below. R million FSR FRB Common Equity Tier 1 capital Ordinary share capital and premium 8 019 16 808 Qualifying reserves 77 087 49 577 Non-controlling interests 677 - Regulatory deductions (3 630) (1 276) Total Common Equity Tier 1 capital 82 153 65 109 Total Additional Tier 1 capital 4 567 1 800 Total Tier 1 capital 86 720 66 909 Tier 2 capital Tier 2 instruments 12 921 13 463 Other qualifying reserves 810 284 Regulatory deductions - (149) Total Tier 2 capital 13 731 13 598 Total qualifying capital and reserves 100 451 80 507 Total minimum capital requirement per risk type: Credit risk 49 234 41 657 Counterparty credit risk 1 828 1 750 Operational risk 10 781 8 330 Market risk 1 738 1 618 Equity investment risk 3 598 813 Other assets 3 839 2 211 Total minimum capital requirement 71 018 56 379 Common Equity Tier 1 capital ratio (%) 12.0 12.0 Tier 1 capital ratio (%) 12.7 12.3 Total capital ratio (%) 14.7 14.8 Notes: - FRB includes foreign branches and subsidiaries. - The disclosed minimum capital requirement excludes the bank- specific individual capital requirement and add-on for domestic systemically important banks (D-SIB), which is reported at 10.375%. LEVERAGE The leverage ratios for the group and bank at 31 March 2016 are set out below. R million FSR FRB Tier 1 capital measure 86 720 66 909 Total exposure measure 1 203 819 1 083 165 Leverage ratio (%) 7.2 6.2 Notes: - FRB includes foreign branches and subsidiaries. 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 from 1 January 2016 is 70%. The average liquidity coverage ratios for the group and bank for the quarter ended 31 March 2016 are set out below. FSR FRB HQLA(R million) 129 749 115 841 Net cash outflows (R million) 178 526 154 451 Required LCR (%) 70 70 Actual LCR (%) 73 75 FRB has an approved committed liquidity facility (CLF) from the SARB for the calendar year 2016 as provided for under guidance note 8 of 2014 and 5 of 2015. The CLF was recognised as qualifying collateral for LCR purposes within the bank’s HQLA and subject to prescribed haircuts as required by the SARB. The group manages the HQLA portfolio of level 1 and level 2 assets. The volatility and determination of the usage of the CLF is within approved risk appetite. The group continues to target a buffer in excess of the regulatory minimum and 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 70% 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 banks 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 19 May 2016 Sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 19/05/2016 09:05:00 Produced by the JSE SENS Department. 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