FIRSTRAND LIMITED - Unaudited interim results and cash dividend declaration for the six months ended 31 December 2017

Release Date: 06/03/2018 08:15
 
Wrap Text
Unaudited interim results and cash dividend declaration for the six months ended 31 December 2017

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



UNAUDITED INTERIM RESULTS AND CASH DIVIDEND DECLARATION

for the six months ended 31 December 2017

FirstRand's portfolio of businesses comprises FNB, RMB, WesBank and Ashburton Investments and provides a universal set of transactional, lending, investment and
insurance products and services. The FCC franchise represents group-wide functions.

This announcement covers the unaudited condensed consolidated financial results of FirstRand Limited based on International Financial Reporting Standards (IFRS) for the
six months ended 31 December 2017. 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 results have been derived from the IFRS financial results. A detailed description of the difference between
normalised and IFRS results is provided on pages 103 to 105 of the Analysis of financial results booklet on www.firstrand.co.za. Commentary is based on normalised
results, unless otherwise indicated.



FINANCIAL HIGHLIGHTS

                                                                                                         Six months ended                                        Year ended
                                                                                                            31 December                                             30 June
R million                                                                                            2017                  2016               % change                 2017

Earnings performance
Basic and diluted normalised earnings per share (cents)                                             222.1                 207.6                      7                436.2
Normalised earnings                                                                                12 461                11 646                      7               24 471
Normalised net asset value per share (cents)                                                      2 014.2               1 843.0                      9              1 941.7
Ordinary dividend per share (cents)                                                                 130.0                 119.0                      9                255.0
ROE (%)                                                                                              22.5                  22.9                                        23.4
Basic and diluted headline earnings per share (cents)                                               224.2                 211.5                      6                423.7
Basic and diluted earnings per share (cents) - IFRS                                                 227.3                 212.0                      7                438.2
Net asset value per share (cents) - IFRS                                                          2 014.1               1 843.6                      9              1 941.2



OVERVIEW OF RESULTS

"FirstRand's portfolio of businesses produced a resilient performance, again characterised by quality topline growth, effective cost management and ongoing conservatism
in both origination and provisioning strategies."

Johan Burger
CEO



INTRODUCTION

FirstRand is a portfolio of integrated financial services businesses operating in South Africa, certain markets in sub-Saharan Africa, India and the UK. Many of these
businesses are market leaders in their respective segments and markets, and represent a universal set of transactional, lending, investment, and insurance products and
services.

FirstRand can provide its customers with differentiated and competitive value propositions due to its unique and highly flexible model of leveraging the most appropriate
brand, distribution channel, licence and operating platform available within the portfolio. This approach, which is underpinned by the disciplined allocation of financial
resources, allows the group to fully optimise the value of its portfolio. This has resulted in a long track record of consistent growth in high quality earnings and superior
and sustainable returns for shareholders.



GROUP STRATEGY

FirstRand's strategy accommodates a broad set of growth opportunities across the entire financial services universe from a product, market, segment and geographic
perspective.

Currently group earnings are tilted to its domestic market and are generated predominantly by lending and transactional activities, which have resulted in deep and loyal
client bases, and the group is focused on protecting and growing these valuable banking businesses. It also believes that through the utilisation of the origination
capabilities, operating platforms and distribution networks of these businesses, it can diversify and capture a larger share of profits from providing savings, insurance and
investment products.

The growth opportunity is significant given the level of annual flows to other providers from FNB's customer base alone. Through the manufacture and sale of its own
insurance, savings and investment products, the group will, over time, offer differentiated value propositions for customers and generate new and potentially meaningful
revenue streams.

With regards the group's strategy outside of its domestic market, in the rest of Africa it is growing its presence and offerings in nine markets where it believes it can
organically build competitive advantage and scale over time. In the UK, the group is acquiring Aldermore plc and will integrate its existing retail VAF business, MotoNovo,
into the Aldermore portfolio. This will result in more diversified lending business in the UK with a sustainable funding franchise.



THE MACROECONOMIC ENVIRONMENT

Whilst the South African economy experienced a mild recovery, persistent elevated risk and ongoing political uncertainty resulted in weak economic performance during
the period under review. GDP growth remained low, although agricultural production rebounded, business investment rose and lower inflation increased real income
growth. Expenditure also received some support from slightly lower debt service costs after the South African Reserve Bank (SARB) cut the repo rate to 6.75% in July
2017. Business and consumer confidence, however, remained depressed on the back of policy and political uncertainty.

In the rest of Africa, improved rainfall and higher commodity prices created a more supportive macro backdrop which allowed some countries to recover. Countries with
links to SA were, however, weighed down by low growth in the region's largest economy, causing activity levels to remain subdued.

Growth in the UK remained surprisingly resilient despite continued uncertainty around Brexit, as its labour market continued to tighten and higher European growth
supported demand for imports.



OVERVIEW OF RESULTS

Against this difficult backdrop, FirstRand's portfolio of businesses produced a resilient performance, again characterised by quality topline growth, effective cost
management and ongoing conservatism in both origination and provisioning strategies. The group continued to strengthen its balance sheet and protect its return profile.
Normalised earnings for the six months to 31 December 2017 increased 7% with a normalised ROE of 22.5%. The table below shows a breakdown of sources of
normalised earnings from the portfolio per operating business.



SOURCES OF NORMALISED EARNINGS

                                                                                     Six months ended 31 December                                    Year ended 30 June

R million                                                         2017       % composition         2016       % composition      % change          2017     % composition

FNB                                                              7 160                  58        6 409                  55            12        12 801                52
- FNB SA                                                         7 093                            6 351                                          12 776
- FNB Africa                                                        67                               58                                              25
RMB#                                                             3 139                  25        2 821                  24            11         6 902                28
WesBank#                                                         1 915                  15        1 944                  17            (1)        3 996                16
FCC (including Group Treasury) and other*,**                       424                   3          650                   6           (35)        1 128                 5
NCNR preference dividend                                          (177)                 (1)        (178)                 (2)           (1)         (356)               (1)
Normalised earnings                                             12 461                 100       11 646                 100             7        24 471               100

*  Includes FirstRand Limited (company).
** Includes capital endowment, the impact of accounting mismatches, interest rate management and foreign currency liquidity management.
#  Includes rest of Africa.


FNB's results reflect another strong operating performance from its domestic business driven by good non-interest revenue (NIR) growth on the back of ongoing customer
gains and increased transactional volumes, and high quality net interest income (NII) growth, particularly from deposit generation. FNB's rest of Africa portfolio delivered a
modest improvement off a low base.

RMB's portfolio also delivered strong, high quality growth across most of its activities underpinned by disciplined cost management and a significant reduction in the
impairment charge due to the conservative proactive provisioning in previous reporting periods.

WesBank's performance showed a mixed picture. The South African VAF business experienced a tough six months on the back of worse than expected arrears and
non-performing loans, however, the personal loans and corporate business performed strongly and MotoNovo delivered a solid performance.

At a group level, total NII increased 6%, underpinned by good growth in deposits (+9%) and solid advances growth (+7%). Lending margins remained under pressure
from continued elevated term funding and liquidity costs, and competitive pressures. Term lending in RMB and WesBank's corporate businesses remained muted due to
ongoing discipline in origination to preserve returns.

Group NIR increased 10% and reflects strong fee and commission income growth of 9%. This was driven mainly by higher volumes across FNB's digital and electronic
channels and growth in customer numbers and cross-sell. Private equity realisations in RMB, whilst modest, were higher than the comparative period.

Insurance revenue increased 7%, benefiting from strong volume growth of 11% and 9%, respectively, in funeral and credit life policies in FNB. Fee, commission and
insurance income represents 81% (December 2016: 83%) of group operational NIR.

Total cost growth of 8% continues to trend above inflation due to ongoing investment in the new insurance and asset management activities, platforms to extract further
efficiencies and building the footprint in the rest of Africa. As a result, operating jaws were marginally negative and the cost-to-income ratio deteriorated slightly to 51.7%
(December 2016: 51.3%).

The group's credit impairment ratio of 87 bps remains below the through-the-cycle threshold and well within expectations. Many of the group's lending books are
trending in line or better than expected, particularly unsecured and corporate credit, mainly due to the group's early and proactive approach to origination and
provisioning.

The impairment charge, however, increased 8% and was driven by the following:

- a deterioration in WesBank's SA VAF charge, mainly due to higher than expected arrears as well as increased levels of conservatism in portfolio impairments;
- a normalisation of the MotoNovo impairment charge, reflecting new business strain given strong book growth over multiple periods and increased conservatism in
  portfolio impairments;
- an increase in FNB's commercial segment, reflecting new business strain which was expected given the continued growth in new customers, cross-sell and up-
  sell strategies, and the impact of the ongoing drought in certain areas of South Africa; and
- a further increase in FNB's rest of Africa charge, reflecting the ongoing tough macros in various of the jurisdictions the group operates in.


Portfolio impairments in the retail, commercial and rest of Africa portfolios increased at a franchise level. The group believes this is prudent given that the rebound in the
macro environment in the six months to December 2017 was modest.

Corporate impairments decreased period-on-period, reflecting the benefit of proactive provisioning in prior reporting periods.

Overall portfolio provisions increased 5% and remain conservative, resulting in a performing book coverage ratio of 98 bps, which is above the actual charge.



OPERATING REVIEWS

FNB

FNB represents FirstRand's activities in the retail and commercial segments in South Africa and the broader African continent. It is growing its franchise on the back of a
compelling customer offering that provides a broad range of innovative financial services products. FNB grew its pre-tax profits 11% to R10.4 billion on the back of a
strong performance from its South African business, which grew pre-tax profits 12%, whilst the rest of Africa portfolio remained under pressure, down 5% (up 3%
including the impact of a once-off profit in FNB India) compared to a 29% decline in December 2016. Total FNB produced an ROE of 40.6%.



FNB FINANCIAL HIGHLIGHTS

                                                                                                              Year
                                                                        Six months ended                     ended
                                                                           31 December                     30 June
                                                                                                   %
R million                                                                2017      2016       change          2017
                                                                                               
Normalised earnings                                                     7 160     6 409           12        12 801
Normalised profit before tax                                           10 430     9 367           11        18 624
- South Africa                                                          9 864     8 820           12        17 744
- Rest of Africa                                                          566       547            3           880
Total assets                                                          413 097   394 658            5       401 937
Total liabilities                                                     402 329   384 480            5       383 680
NPLs (%)                                                                 3.21      3.09                       3.24
Credit loss ratio (%)                                                    1.17      1.15                       1.20
ROE (%)                                                                  40.6      38.1                       36.9
ROA (%)                                                                  3.52      3.32                       3.28
Cost-to-income ratio (%)                                                 53.6      54.0                       54.6
Advances margin (%)                                                      3.63      3.61                       3.58



SEGMENT RESULTS

                                                                                                              Year
                                                                        Six months ended                     ended
                                                                           31 December             %       30 June
R million                                                                2017      2016       change          2017
                                                                                                                                                            
Normalised PBT
Retail                                                                  5 947     5 347           11        10 658
FNB Africa                                                                566       547            3           880
Commercial                                                              3 917     3 473           13         7 086
Total FNB                                                              10 430     9 367           11        18 624


FNB South Africa's performance reflects the success of its strategy to:
- grow and retain core transactional accounts;
- provide market-leading digital platforms to deliver cost effective and innovative transactional propositions to its customers;
- use its deep customer relationships and sophisticated data analytics to effectively cross-sell and up-sell a broad range of financial services products;
- apply disciplined origination strategies;
- provide innovative savings products to grow its retail deposit franchise; and
- right-size its physical infrastructure to achieve efficiencies.


FNB continued to see growth in customers as shown in the table below.

                                                                            Period-
                                                                          on-period
                                                                             growth
                                                                           Customer
                                                                            numbers
Customer segment                                                                  %

Consumer                                                                          1
Premium                                                                          12
Commercial                                                                        7


FNB's rest of Africa portfolio represents a mix of mature businesses with significant scale and market share, such as Namibia and Botswana, combined with newly
established and start-up businesses, such as Mozambique, Zambia, Tanzania and Ghana. Whilst the portfolio has shown some recovery in the period under review, these
businesses continue to face macro headwinds and regulatory challenges. The continued investment drag on the back of the organic build-out strategies continues to
place pressure on current performance.

A breakdown of key performance measures from the South African and rest of Africa businesses is shown below.

%                                                                                FNB SA Rest of Africa

PBT growth                                                                       12                  3
Cost increase                                                                     9                  4
Credit loss ratio                                                              1.07               1.88
Advances growth                                                                   5                  -
NPLs as % of advances                                                          2.88               5.77
Deposit growth                                                                   12                  5
Cost-to-income ratio                                                           51.5               68.9
Operating jaws                                                                  0.5                2.2


Despite the negative endowment impact of the 25 bps decrease in the repo rate in July 2017, total FNB NII increased 7%. Advances growth remained moderate (+5%)
with good growth in deposits (+11%). The table below breaks down advances and deposit growth on a segment basis and demonstrates FNB's success in continuing to
attract deposits.



SEGMENT ANALYSIS OF ADVANCES AND DEPOSIT GROWTH

                                                                                  Deposit growth            Advances growth
Segment                                                                           %    R billion             %    R billion

Retail                                                                           13         24.7             4         10.7
- Consumer                                                                       10          7.4             3          1.1
- Premium                                                                        14         17.3             5          9.6
Commercial                                                                       11         20.4             8          6.7
FNB Africa                                                                        5          1.7             -          0.2
Total FNB                                                                        11         46.8             5         17.6


The subdued overall advances growth reflects ongoing prudency in FNB's origination strategies, particularly in the consumer segment where households are still
experiencing pressure on disposable income. FNB's focus on cross-selling into its core transactional retail and commercial customer bases continues to be the main
driver of both advances and deposit growth in the premium and commercial segments.

The tables below unpack advances, at both a segment and product level, and reflect the targeted nature of FNB's risk appetite and origination strategies. The consumer
segment saw good growth in its affordable housing book, but unsecured lending contracted on the back of conservative risk appetite. In the premium segment, mortgages
showed muted growth as FNB continued to focus on low risk origination, however, unsecured advances grew strongly on the back of cross-sell and up-sell strategies to
the existing customer base.

                                                                                          Consumer
                                                                                          Advances
R million                                                                      2017         2016      % change

Residential mortgages                                                        23 811       21 339            12
Card                                                                          9 061        9 192            (1)
Personal loans                                                                6 965        7 926           (12)
Retail other                                                                  3 033        3 309            (8)

                                                                                          Premium
                                                                                          Advances
R million                                                                      2017         2016      % change

Residential mortgages                                                       174 893      170 098             3
Card                                                                         16 002       13 303            20
Personal loans                                                                7 597        6 505            17
Retail other                                                                 12 068       11 049             9

                                                                                        Commercial
R million                                                                      2017         2016      % change

Advances                                                                     87 900       81 173             8


The quality of FNB's transactional franchise is clearly demonstrated in strong NIR growth of 11%, with the premium and commercial segments delivering growth of 16%
and 10%, respectively. Premium's NIR reflects the inclusion for the first time of the wealth and investment management (WIM) activities. In addition, the benefits of the
actions taken last year are clearly showing up in consumer's NIR growth of 10%.

Overall fee and commission income benefited from transactional volume growth of 10% driven by FNB's digital and electronic channels, as can be seen from the table
below.

CHANNEL VOLUMES

Thousands of transactions                                                      2017          2016     % change

ATM/ADT                                                                     121 389       115 141            5
Internet                                                                    104 024       105 141           (1)
Banking app                                                                  73 590        44 400           66
Mobile                                                                       22 776        22 161            3
Point-of-sale                                                               659 783       585 418           13


Cost growth continues to trend above inflation at 8%, mainly on the back of investment in diversification strategies and rest of Africa expansion. The domestic cost-to-
income ratio improved marginally to 51.5%.

FNB's overall bad debts and NPLs increased period-on-period (NPLs +9%), however, the main driver of this increase was the rest of Africa portfolio which continues to
show strain (NPLs +33%). NPLs in the South African retail books are well within expectations at this point in the cycle, increasing 5%. This reflects the quality of new
business written, appropriate pricing strategies and the positive effect of cutbacks in higher risk origination buckets. NPL formation in the commercial book is ticking up,
but this is not unexpected given previous book growth and some residual pressure in the agricultural sector due to the drought. Overall provisioning levels and overlays
have increased.

Insurance revenue increased 19%, benefiting from good volume growth of 11% and 9% in funeral and credit life policies, respectively.

As disclosed previously, from 1 July 2017 the wealth and investment management (WIM) activities were transferred from Ashburton Investments to FNB and progress is
promising. On the back of the launch of asset management solutions/funds originated by Ashburton Investments to the FNB customer base (branded FNB Horizon) in July
2016, assets under management (AUM) exceeded R3.6 billion at December 2017, with total WIM assets amounting to R239 billion. A split of WIM assets is provided in
the table below. Share trading and stockbroking assets under execution (AUE) increased 1% to R76 billion with good brokerage revenue growth in the second quarter due
to increased market volatility.

Assets under administration (AUA) on the linked investment service provider (LISP) platform grew from R14 billion to R17 billion, and customers on the platform increased
to 26 133. There was good growth in trust assets under administration from R26 billion to R36 billion and in the philanthropy trust offering. Assets under management
grew 16% from R37 billion to R44 billion, including growth in offshore portfolio management. Assets under advice increased from R57 billion to R61 billion.

R million                                                                      2017          2016     % change

FNB Horizon Series AUM                                                        3 646           529         >100
Assets under advice                                                          61 131        57 356            7
Assets under administration                                                  17 973        14 618           23
Trust assets under administration                                            36 945        26 308           40
Assets under management                                                      43 650        37 740           16
Assets under execution                                                       76 098        75 199            1
Total WIM assets                                                            239 443       211 750           13



RMB

RMB represents the group's activities in the corporate and investment banking segments in South Africa, the broader African continent and India. The business strategy
leverages a market-leading origination franchise to deliver an integrated corporate and investment banking value proposition to corporate and institutional clients. This,
combined with an expanding market-making and distribution product offering and an excellent track record in private equity investments, contributes to a well-diversified
and sustainable earnings base. The strategy is underpinned by sound risk management, designed to effectively balance the relationship between profit growth, returns
and earnings volatility.


RMB FINANCIAL HIGHLIGHTS

                                                                                                                  Year
                                                                               Six months ended                  ended
                                                                                 31 December             %     30 June
R million                                                                      2017       2016      change        2017
                                                                                                                                                                                                                                              
Normalised earnings                                                           3 139      2 821          11       6 902
Normalised profit before tax                                                  4 450      4 011          11       9 759
- South Africa                                                                3 611      3 327           9       8 444
- Rest of Africa*                                                               839        684          23       1 315
Total assets                                                                460 844    421 350           9     431 920
Total liabilities                                                           451 128    411 523          10     420 950
NPLs (%)                                                                       0.35       0.86                    0.62
Credit loss ratio (%)                                                             -       0.20                    0.20
ROE (%)                                                                        22.9       20.8                    25.8
ROA (%)                                                                        1.40       1.33                    1.61
Cost-to-income ratio (%)                                                       46.7       47.0                    43.4

* Strategy view, including in-country and cross-border activities.



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                  Year
                                                                               Six months ended                  ended
                                                                                 31 December             %     30 June
R million                                                                      2017       2016      change        2017
                                                                                                                                                           
Investment banking and advisory                                               1 811      1 534          18       3 626
Corporate and transactional banking                                             961        877          10       1 731
Markets and structuring                                                         736        735           -       1 612
Investing                                                                       591        625          (5)      2 841
Investment management                                                            19          5        >100          15
Other                                                                           332        235          41         (66)
Total RMB                                                                     4 450      4 011          11       9 759


RMB delivered a strong operational performance, with pre-tax profits increasing 11% to R4.5 billion. The ROE of 22.9% demonstrates both the quality and diversification
of the portfolio. RMB's balance sheet remains robust, with high quality earnings and solid operational leverage. Cost growth was well below inflation due to the benefits of
platform investment and ongoing automation, despite continued spend on regulatory and compliance initiatives.

The rest of Africa portfolio remains key to RMB's strategy and delivered pre-tax profits of R839 million, up 23% on the comparative period. This performance reflects a
strong performance from corporate and transactional banking and solid growth in structuring and flow trading income. Results were further bolstered by credit impairment
overlay releases given the improvement in the oil and gas sector.

The performance of investment banking and advisory activities was underpinned by good lending income aided by strong advances growth in prior periods, resilient fee
income on the back of advisory and capital market mandates, lower credit impairments given historical proactive provisioning and improved operational leverage due to a
continued focus on cost management. The macroeconomic environment, however, constrained advances growth in the current period, which also dampened origination
and structuring fee income. The business remains disciplined in its financial resource allocation to ensure preservation of returns and maintained its strong credit
provisioning levels.

Corporate and transactional banking's focus on leveraging platforms, managing costs and expanding product offerings locally and in the rest of Africa contributed to good
profit growth. The business benefited from increased transactional volumes and average deposit balances in the rest of Africa. In addition, increased demand for working
capital solutions bolstered the results. The global foreign exchange business, however, continued to be adversely impacted by regulatory changes in certain rest of Africa
jurisdictions.

Markets and structuring activities delivered a resilient performance, reflecting good client flow, robust structuring opportunities and an ability to successfully navigate
volatile fixed income and foreign exchange markets, both locally and in the rest of Africa. Earnings were, however, constrained by lower equity flows, coupled with weaker
performances in the credit trading and hard commodities portfolios.

Investing activities produced satisfactory results, supported by the realisation of certain investments in the Private Equity portfolio. Given the macroeconomic environment
and realisations in prior periods, annuity earnings have come under pressure. The quality and diversity of the Ventures and Corvest portfolios is, however, still reflected in
the strong unrealised value of the portfolio of R3.4 billion (June 2017: R3.7 billion). The business remains in an investment cycle and during the year, several additional
acquisitions were made.

Other activities benefited from the curtailment of losses in the RMB Resources and legacy portfolios, and higher endowment earned on capital invested. This was offset by
costs associated with the group's market infrastructure programme which is aimed at driving efficiencies, ensuring regulatory and legislative compliance and improving
risk mitigation.

WESBANK

WesBank represents the group's activities in instalment credit and related services in the retail, commercial and corporate segments of South Africa and the rest of Africa
(where represented), and through MotoNovo Finance in the UK. Through the Direct Axis brand, WesBank also operates in the unsecured lending market in South Africa.
WesBank's leading position in its chosen markets is due to its longstanding alliances with leading motor manufacturers, suppliers and dealer groups, strong point-of-sale
presence and innovative channel origination strategies.


WESBANK FINANCIAL HIGHLIGHTS

                                                                                                                      Year
                                                                                   Six months ended                  ended
                                                                                      31 December            %     30 June
R million                                                                           2017       2016     change        2017
                                                                                                                                                     
Normalised earnings                                                                1 915      1 944         (1)      3 996
Normalised profit before tax                                                       2 705      2 755         (2)      5 612
Total assets                                                                     216 648    203 848          6     214 222
Total liabilities                                                                212 567    200 556          6     207 809
NPLs (%)                                                                            4.09       3.63                   3.80
Credit loss ratio (%)                                                               1.85       1.65                   1.68
ROE (%)                                                                             18.6       19.9                   20.0
ROA (%)                                                                             1.74       1.87                   1.87
Cost-to-income ratio (%)                                                            41.6       40.6                   40.2
Net interest margin (%)                                                             5.01       5.01                   4.93


WesBank's profit before tax declined 2%, resulting in an ROE of 18.6% and an ROA of 1.74%. Whilst the local personal loans and corporate lending businesses showed
strong operational performances, the local VAF business had a challenging six months. MotoNovo remained resilient despite certain strategic actions taken on origination,
which impacted new business volumes and some ongoing investment drag.

The table below shows the relative performance of WesBank's various activities.



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                      Year
                                                                                    Six months ended                 ended
                                                                                      31 December            %     30 June
R million                                                                           2017       2016     change        2017
                                                                                                                                                      
Normalised PBT
VAF                                                                                1 953      2 108         (7)      4 192
- Retail SA**                                                                      1 155      1 351        (15)      2 658
- MotoNovo#                                                                          600        588          2       1 190
- Corporate and commercial                                                           198        169         17         344
Personal loans                                                                       731        622         18       1 352
Rest of Africa                                                                        21         25        (16)         68
Total WesBank                                                                      2 705      2 755         (2)      5 612

** Includes MotoVantage.
#  Normalised PBT for MotoNovo up 3% to GBP34.0 million.


The performance of the SA VAF business was impacted by increased impairment levels, up from 1.42% in the prior period to 1.80%. This was partly due to an increase
in the performing loans coverage ratio to 0.92% from 0.83%, but also as a result of an increase in later stage arrears and NPL levels.

Higher than expected NPLs in the self employed and small business segments are a result of operational issues with some scorecards, including third-party data quality.
Some of this has been addressed, however, the impact of these issues will continue in the second half of the financial year. Overall NPLs continue to be impacted by
lengthening recovery timelines and more customers opting for court orders for repossessions. Similar impairment increases are also evident in the underlying associate
companies, further impacting associate earnings for the half year.

NIR growth of 4% has largely tracked book growth in SA retail VAF of 5%, but there is increasing competitive pressure particularly in the dealer value added products and
services (VAPS) segment.

Operating expenditure growth of 9% was largely due to increased profit shares payable to alliance partners and investment costs in platforms for both efficiency and
regulatory requirements.

WesBank's personal loans business performed well, on the back of strong advances growth of 15% period-on-period. Margins have stabilised post the NCAA rate caps
and targeted risk cuts, and the impairment ratio has consistently trended down to 7.54% (December 2016: 8.30%; June 2017: 7.91%) on the back of collection
strategies and active management of the debt-review portfolio.

The local corporate business posted a strong operational performance, albeit off a low base. This was mainly driven by resumed growth in new business and the
non-repeat of provisions created in the previous reporting period.

MotoNovo delivered GBP profit growth of 3% reflecting ongoing conservatism from an origination and provisioning perspective, resulting in GBP new business production
only increasing 0.3% (5.2% down in rand terms). Actions taken include targeted risk cuts and termination of certain origination relationships, which were resulting in
higher risk new business. As expected, arrears are tracking up in line with the macroeconomic environment. Provisions continue to increase with a GBP impairment ratio
of 1.57% for the period under review (December 2016: 1.43%; June 2017: 1.46%)


SEGMENT ANALYSIS OF NORMALISED EARNINGS

R million                                                         2017       % composition         2016      % composition     % change            2017       % composition

Retail                                                           6 112                  49        5 730                 49            7          11 421                  47
- FNB*                                                           4 340                            3 908                                           7 699
- WesBank*                                                       1 772                            1 822                                           3 722
Commercial                                                       2 963                  24        2 623                 23           13           5 376                  22
- FNB                                                            2 820                            2 501                                           5 102
- WesBank                                                          143                              122                                             274
Corporate and investment banking                                 3 139                  25        2 821                 24           11           6 902                  28
- RMB*                                                           3 139                            2 821                                           6 902
Other                                                              247                   2          472                  4          (48)            772                   3
- FCC (including Group Treasury) and consolidation
  adjustments**                                                    424                              650                                           1 128
- FirstRand and dividends paid on NCNR preference
  shares                                                          (177)                            (178)                                           (356)

Normalised earnings                                             12 461                 100       11 646                100            7          24 471                 100

*  Includes rest of Africa.
** Includes the central credit overlay.



UPDATE ON INVESTMENT MANAGEMENT STRATEGY

The group has an organic strategy to grow its asset management and WIM activities. Following the group's decision to move the WIM activities from Ashburton
Investments (AI) to FNB, AI represents a pure asset management business and subsequently undertook a review of its operating platforms. This resulted in some
rationalisation of the cost base and the group believes the business is now well positioned to deliver on its more focused mandate.

AI focuses on both traditional and alternative funds to be able to deliver on client needs. This includes a traditional range of equity, fixed income and multi asset funds as
well as specialist credit, private equity, renewable energy and infrastructure.

AI grew AUM 15% to R101 billion. Of the R13 billion of AUM growth, R6 billion was due to the purchase of the Pointbreak Namibia asset management business and a
further R3 billion from taking over the FNB Namibia funds in the previous financial year. There were good flows into traditional funds, due to a strong performance in the
fixed income range. The institutional fixed income solutions business continues to deliver flows on the back of winning new mandates.

Despite a tough year for the local financial markets, investment performance continues to show resilience with the majority of funds delivering solid performances relative
to peer groups.



STRATEGIC RATIONALE FOR PROPOSED ACQUISITION OF ALDERMORE PLC

On 6 November 2017, FirstRand announced its formal offer for Aldermore plc. The offer, at 313 pence per share, valued Aldermore at approximately GBP1.1 billion (R20
billion) and represented a premium of 22% to Aldermore's closing price on 12 October 2017, being the day before the first transaction announcement. The offer also
implied a price to net tangible book value multiple of 1.80 times.

FirstRand's stated strategy is to achieve a more diversified revenue profile across products, segments and geographies. Currently 4% of total group earnings is generated
by the group's UK business MotoNovo, one of the largest providers of motor finance for second-hand vehicles in the country. The success of this business, since it was
acquired in 2006, can largely be attributed to the introduction of WesBank's operating model. FirstRand, however, believes that MotoNovo is currently undiversified from a
product and market perspective and the acquisition of Aldermore will accelerate the diversification process using the strength of Aldermore's position in the SME,
mortgage and savings markets.

FirstRand recognises that the existing management team of Aldermore has a deep understanding of the business environment within which Aldermore operates.
MotoNovo, which has built a meaningful market share in financing second-hand vehicles and is organically building a more diversified product set, including personal
loans and insurance, will be integrated within Aldermore to form a separate pillar. Phillip Monks, Aldermore's CEO will lead the new combined UK business.

Once MotoNovo and Aldermore are integrated, new business will be funded through further scaling Aldermore's deposit and funding platform supported by some
securitisations. MotoNovo's back books, which are currently in FirstRand's London branch, will be run down over time. This has the added benefit for FirstRand that hard
currency funding capacity currently allocated to MotoNovo from FirstRand's domestic balance sheet can be redeployed into its South African and rest of Africa growth
strategies.

FirstRand will work closely with Aldermore's management team to identify growth opportunities that Aldermore can explore under FirstRand's ownership. FirstRand already
sees the potential to broaden the business model of the combined platform. FirstRand also believes further UK growth can be unlocked through cross-selling the current
product offerings across the MotoNovo and Aldermore customer bases, and, in the longer term, developing further financial services offerings.

Aldermore and MotoNovo are both highly profitable businesses delivering returns above FirstRand group hurdles, and FirstRand believes it can unlock further value in the
short to medium term through applying its proven practices in financial resource management. FirstRand defines financial resource management as capital, funding,
liquidity and risk capacity, and its approach is a recognised key differentiator and a significant contributor to its outperformance relative to peers.

FirstRand had carefully considered how current and potential macroeconomic future scenarios in the UK could impact the broader business. The group is comfortable that
the financial impact of this transaction is supportive of FirstRand's previous guidance to shareholders on growth, returns, capital position and dividend policy.


MANAGEMENT OF FINANCIAL RESOURCES

The management of the group's financial resources, which it defines as capital, funding and liquidity, and risk capacity, is critical and supportive to the achievement of
FirstRand's stated growth and return targets and is driven by the group's overall risk appetite. Forecast growth in earnings and balance sheet risk weighted assets is
based on the group's macroeconomic outlook and evaluated against available financial resources, considering the requirements of capital providers, regulators and rating
agencies. The expected outcomes and constraints are then stress tested and the group sets financial and prudential targets through different business cycles and
scenarios to enable FirstRand to deliver on its commitments to stakeholders at a defined confidence level. These stress scenarios include further sovereign downgrades
below investment grade on a local currency basis.

The management of the group's financial resources is executed through Group Treasury and is independent of the operating franchises. This ensures the required level of
discipline is applied in the allocation of financial resources and pricing of these resources. This also ensures that Group Treasury's mandate is aligned with the portfolio's
growth, return and volatility targets to deliver shareholder value. The group continues to monitor and proactively manage a fast-changing regulatory environment and
ongoing macroeconomic challenges.

The group adopts a disciplined approach to the management of its foreign currency balance sheet. The framework for the management of external debt takes into
account sources of sovereign risk and foreign currency funding capacity, as well as the macroeconomic vulnerabilities of South Africa. The group employs a self-imposed
structural borrowing limit and a liquidity risk limit more onerous than required in terms of regulations. This philosophy has translated into a resilient and sustainable
foreign currency balance sheet and has limited the impact on the group of the sovereign rating downgrade to sub-investment grade in March 2017 by S&P Global
Ratings. Prior to the downgrade, numerous steps to protect and enhance FirstRand's counterparty status in international funding, payments and derivative markets
provided the group with enhanced access to international financial market infrastructure and greater liquidity pools.



BALANCE SHEET STRENGTH

CAPITAL AND LEVERAGE POSITION

Current targeted ranges and actual ratios are summarised below.

                                                                                                             December 2017
                                                                                                     Capital
%                                                                                          CET1         Tier 1          Total       Leverage#

Regulatory minimum*                                                                         7.3            8.5           10.8             4.0
Targets                                                                             10.0 - 11.0          >12.0          >14.0            >5.0
Actual**                                                                                   14.0           14.6           16.9             8.5

*  Excluding the bank-specific capital requirements.
** Includes unappropriated profits.
#  Based on Basel III regulations.


The group has maintained its strong capital position. Capital planning is undertaken on a three-year forward-looking basis, and the level and composition of capital is
determined taking into account businesses' organic growth plans, corporate transactions and stress-testing scenario outcomes. In addition, the group considers external
issues that could impact capital levels, which include regulatory, accounting and tax changes, macroeconomic conditions and outlook. 

The group continues to actively manage its capital composition and, to this end, issued R2.75 billion Basel III-compliant Tier 2 instruments in the domestic market during the period. This resulted in a
more efficient capital structure which is closely aligned with the group's internal targets. It remains the group's intention to continue optimising its capital stack by
frequently issuing Tier 2 instruments in domestic and/or international markets. This ensures sustainable support for ongoing growth initiatives and compensates for the
haircut applied to Tier 2 instruments which are not compliant with Basel III, as well as the maturity of existing Tier 2 instruments.



LIQUIDITY POSITION

Given the liquidity risk introduced by its business activities across various currencies, the group's objective is to optimise its funding profile within structural and regulatory
constraints to enable its businesses to operate in an efficient and sustainable manner. Liquidity buffers are actively managed via high quality liquid assets (HQLA) that are
available as protection against unexpected events or market disruptions as well as to facilitate the variable liquidity needs of the operating businesses. The quantum and
composition of the available sources of liquidity are defined by the behavioural funding liquidity at risk and the market liquidity depth of these resources. In addition,
adaptive overlays to liquidity requirements are derived from stress testing and scenario analysis of the cash inflows and outflows related to business activities.

The group exceeds the 80% minimum liquidity coverage ratio (LCR) requirement set out by the Basel Committee for Banking Supervision (BCBS) with the group LCR at
107% at 31 December 2017 (December 2016: 95%). FirstRand Bank's LCR was 101% (December 2016: 104%).

At 31 December 2017, the group's available HQLA sources of liquidity per the LCR amounted to R190 billion, with an additional R13 billion of management liquidity
available. FirstRand expects to be fully compliant with the net stable funding ratio (NSFR) requirements once implemented.



ACCOUNTING

IFRS 9 FINANCIAL INSTRUMENTS

The group's IFRS 9 implementation project continues to meet its objective of ensuring a high-quality implementation. The project adheres to strict governance practices.

The group elected not to restate comparative information included in the analysis of financial results or annual financial statements for the year ending 30 June 2019. In
the annual financial statements and analysis of financial results for the year ending 30 June 2019, the 2019 financial information will be based on IFRS 9 and the 2018
financial information will be based on IAS 39 Financial instruments: Recognition and Measurement. The amended disclosure requirements of IFRS 7 Financial Instruments:
Disclosures will also be prospectively applied by the group.

The group will, however, publish detailed information about the impact of transitioning to IFRS 9 during the fourth quarter of the 2018 calendar year. The external auditors
have been involved in the process, within allowed and acceptable practice per auditing regulations. This will facilitate compliance with the SARB's Directive 5/2017,
Regulatory treatment of accounting provisions - interim approach and transitional arrangements including disclosure and auditing aspects, which requires the IFRS 9
implementation to be audited within five months of the effective date.



DIVIDEND STRATEGY

Given the group's sustained superior return profile, sound operational performance and strong balance sheet, the board remains comfortable to pay a dividend higher
than earnings growth with a 1.7x cover which remains below its stated long-term cover range of 1.8x to 2.2x. This cover range is assessed on an annual basis as part of
the year end process.



PROSPECTS

Since the outcome of the ANC elective conference in December 2017, sentiment and markets have staged a material recovery and the outlook for South Africa is more
positive than it has been for some time.

FirstRand believes that the government should build on this renewed certainty, provide clear policy direction, appear willing to deal immediately with poor governance at
some of the large and systemic SOEs, address corruption and state capture, and strengthen fiscal discipline.

In the medium to longer term, given the market leading positions of its businesses and the growth strategies it is executing on, FirstRand considers itself strategically well
positioned to benefit from renewed growth.

Given the structural nature of many of South Africa's challenges, the group believes that the domestic fundamentals will not change quickly, therefore, it expects a similar
macro picture for the remainder of its financial year to June 2018. The group remains committed to delivering real growth in earnings and superior returns to
shareholders.



EVENTS AFTER REPORTING PERIOD

Since 31 December 2017 the group received final regulatory approval for the Aldermore transaction as disclosed in the SENS announcement of 1 March 2018. The
directors are not aware of any other material events that have occurred between the end of the reporting period and the date of this report.



BOARD CHANGES

Benedict James van der Ross retired as an independent non-executive director of FirstRand Limited and FirstRand Bank Limited on 30 November 2017.

Jan Hendrik van Greuning retired as an independent non-executive director of FirstRand Limited and FirstRand Bank Limited on 30 November 2017.

Lauritz Lanser Dippenaar will retire as board chairman and non-executive director of FirstRand Limited and FirstRand Bank Limited on 31 March 2018.

William Rodger Jardine has been appointed board chairman of FirstRand Limited and FirstRand Bank Limited, effective 1 April 2018.



MANAGEMENT CHANGES

On 27 February 2018, FirstRand announced the following changes:

- Johan Petrus Burger will retire as CEO of FirstRand Limited and FirstRand Bank Limited on 31 March 2018. He will remain an executive director of FirstRand Limited
  and FirstRand Bank Limited until 31 August 2018 and, subject to regulatory approval, become a non-executive director of FirstRand Limited and FirstRand Bank
  Limited on 1 September 2018.
- Alan Patrick Pullinger, currently deputy CEO, has been appointed CEO of FirstRand Limited and FirstRand Bank Limited, effective 1 April 2018.
- Mary Vilakazi has been appointed as COO and executive director of FirstRand Limited and FirstRand Bank Limited, effective 1 July 2018.



CASH DIVIDEND DECLARATIONS

ORDINARY SHARES

The directors declared a gross cash dividend totalling 130 cents per ordinary share out of income reserves for the six months ended 31 December 2017.

                                                                                                                                                         Six months ended
                                                                                                                                                           31 December
Cents per share                                                                                                                                        2017           2016

Interim (declared 5 March 2018)                                                                                                                       130.0          119.0


The salient dates for the interim ordinary dividend are as follows:

Last day to trade cum-dividend                                                                                                                        Monday 26 March 2018
Shares commence trading ex-dividend                                                                                                                  Tuesday 27 March 2018
Record date                                                                                                                                         Thursday 29 March 2018
Payment date                                                                                                                                          Tuesday 3 April 2018


Share certificates may not be dematerialised or rematerialised between Tuesday 27 March 2018 and Thursday 29 March 2018, both days inclusive.

For shareholders who are subject to dividend withholding tax (DWT), tax will be calculated at 20% (or such lower rate if a double taxation agreement applies for foreign
shareholders).

For South African shareholders who are subject to DWT, the net interim dividend after deducting 20% tax will be 104.00000 cents per share.

The issued share capital on the declaration date was 5 609 488 001 ordinary shares and 45 000 000 variable rate NCNR B preference shares.

FirstRand's income tax reference number is 9150/201/71/4.



B PREFERENCE SHARES

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



DIVIDENDS DECLARED AND PAID

                                                                                                                                                              Preference
Cents per share                                                                                                                                                dividends
Period:
1 March 2016 - 29 August 2016                                                                                                                                      394.7
30 August 2016 - 27 February 2017                                                                                                                                  395.6
28 February 2017 - 28 August 2017                                                                                                                                  393.6
29 August 2017 - 26 February 2018                                                                                                                                  386.2



LL Dippenaar                               JP Burger                                 C Low
Chairman                                   CEO                                       Company secretary


5 March 2018



STATEMENT OF HEADLINE EARNINGS - IFRS

                                                                                                       Six months ended                                     Year ended
                                                                                                          31 December                                          30 June
R million                                                                                          2017                 2016              % change                2017

Profit for the period                                                                            13 396               12 563                     7              26 139
NCNR preference shareholders                                                                       (177)                (181)                   (2)               (356)
Non-controlling interests                                                                          (470)                (493)                   (5)             (1 211)
Earnings attributable to ordinary equityholders                                                  12 749               11 889                     7              24 572
Adjusted for:                                                                                      (176)                 (30)                 >100                (810)
Gain on disposal of investment securities of a capital nature                                       (31)                   -                                        (3)
Gain on disposal of available-for-sale assets                                                       (22)                 (64)                                      (52)
Loss on disposal of non-private equity associates                                                     -                    4                                         5
Impairment of non-private equity associates                                                           -                    -                                         4
(Gain)/loss on disposal of investments in subsidiaries                                              (97)                   6                                    (1 817)
Loss on reclassification of non-current assets and disposal groups held for sale
which were not sold                                                                                   -                    -                                        95
(Gain)/loss on disposal of property and equipment                                                   (27)                   9                                        14
Fair value movement on investment properties                                                         (4)                   -                                         -
Impairment of goodwill                                                                                -                    -                                       119
Impairment of assets in terms of IAS 36                                                               -                    1                                       370
Other                                                                                               (30)                  (1)                                        -
Tax effects of adjustments                                                                           13                   15                                        26
Non-controlling interests adjustments                                                                22                    -                                       429

Headline earnings                                                                                12 573               11 859                     6              23 762


RECONCILIATION FROM HEADLINE TO NORMALISED EARNINGS

                                                                                                       Six months ended                                     Year ended
                                                                                                          31 December                                          30 June
R million                                                                                          2017                  2016             % change                2017

Headline earnings                                                                                12 573                11 859                    6              23 762
Adjusted for                                                                                       (112)                 (213)                 (47)                709
TRS and IFRS 2 liability remeasurement*                                                            (137)                 (166)                                     (63)
Treasury shares**                                                                                     8                     7                                      (12)
IAS 19 adjustment                                                                                   (56)                  (54)                                    (117)
Private equity-related#                                                                              73                     -                                      901

Normalised earnings                                                                              12 461                11 646                    7              24 471

*  The group uses a TRS with external parties to economically hedge itself against the exposure to changes in the FirstRand share price associated with the group's long-
   term incentive schemes.
   The TRS is accounted for as a derivative in terms of IFRS, with the full fair value change recognised in NIR.
   In the current period, FirstRand's share price increased by R20.10 and during the prior period increased by R8.33.
   This resulted in a significant mark-to-market fair value profit in the current period being included in the group's IFRS attributable earnings. The normalised results
   reflect the adjustment to normalise this period-on-period IFRS fair value volatility from the TRS.
** Includes FirstRand shares held for client trading activities.
#  Realisation of private equity subsidiaries net of private equity-related goodwill and other asset impairments.



PRESENTATION

BASIS OF PRESENTATION

FirstRand prepares its condensed consolidated interim financial statements in accordance with and containing information required by:

- International Financial Reporting Standard, IAS 34 Interim Financial Reporting;
- Financial Reporting Pronouncements as issued by Financial Reporting Standards Council;
- SAICA Financial Reporting Guides as issued by the Accounting Practices Committee; and
- requirements of the Companies Act no 71 of 2008.


The condensed consolidated interim results for the six months ended 31 December 2017 have not been audited or independently reviewed by the group's external
auditors.

This announcement does not include information pursuant to paragraph 16 A (j) of IAS 34 as allowed by the JSE Listings Requirements. The full interim report, which
includes these disclosures, is available on www.firstrand.co.za, or from the company's registered office and upon request.

The directors take full responsibility and confirm that this information has been correctly extracted from the underlying report.

Jaco van Wyk, (CA(SA), supervised the preparation of the condensed consolidated financial results.



ACCOUNTING POLICIES

The accounting policies applied in the preparation of the condensed consolidated interim financial statements are in terms of IFRS and are consistent with those applied
for the year ended 30 June 2017. The condensed consolidated interim financial statements are prepared in accordance with the going concern principle under the
historical cost basis as modified by the fair value accounting of certain assets and liabilities where required or permitted by IFRS.

The group has made voluntary changes to the presentation of deposits. These changes relate to the presentation of accrued interest on certain deposits and the
classification of negotiable notes with specific contractual terms. The changes in presentation have had no impact on the profit or loss or net asset value of the group
and only affects the classification of items on the statement of financial position.

Amendments to IAS 7 Statement of Cash Flows (IAS 7) and IAS 12 Income Taxes (IAS 12) became effective in the current year. These amendments have not had an
impact on the group's reported earnings, financial position or reserves, or a material impact on the accounting policies.

The amendments to IAS 7 introduce additional disclosures in the statement of cash flows that will enable the users of the financial statements to evaluate changes in
liabilities arising from financing activities. This amendment has been applied retrospectively and comparative information has been presented in line with the amended
disclosure requirements. The amendment to IAS 12 relates to the recognition of a deferred tax asset for unrealised losses on debt instruments that are measured at fair
value for accounting purposes but considered at cost for tax purposes. The group is accounting for deferred tax on these assets in line with the amendments. The
adoption of these amendments has no impact on the group.

No other new or amended IFRS became effective for the six months ended 31 December 2017 that impacted the group's reported earnings, financial position or reserves,
or the accounting policies.



NORMALISED RESULTS

The group believes normalised earnings more accurately reflect operational performance. Consequently, headline earnings have been adjusted to take into account
non-operational and accounting anomalies, which, in terms of the JSE Listings Requirements, constitute pro forma financial information.

This pro forma financial information, which is the responsibility of the group's directors, has been prepared for illustrative purposes to more accurately reflect operational
performance and because of its nature may not fairly present in terms of IFRS, the group's financial position, changes in equity, and results of operations or cash flows.


CONDENSED CONSOLIDATED INCOME STATEMENT - IFRS

                                                                             Six months ended                      Year ended
                                                                                31 December                           30 June
R million                                                                 2017                2016     % change          2017

Net interest income before impairment of advances                       23 734              22 200            7        44 917
Impairment and fair value of credit of advances                         (4 052)             (3 741)           8        (8 054)
Net interest income after impairment of advances                        19 682              18 459            7        36 863
Non-interest revenue                                                    21 389              19 514           10        40 922
Income from operations                                                  41 071              37 973            8        77 785
Operating expenses                                                     (23 708)            (21 708)           9       (44 585)
Net income from operations                                              17 363              16 265            7        33 200
Share of profit of associates after tax                                    283                 340          (17)          757
Share of profit of joint ventures after tax                                210                 127           65           281
Income before tax                                                       17 856              16 732            7        34 238
Indirect tax                                                              (478)               (573)         (17)       (1 081)
Profit before tax                                                       17 378              16 159            8        33 157
Income tax expense                                                      (3 982)             (3 596)          11        (7 018)
Profit for the period                                                   13 396              12 563            7        26 139
Attributable to
Ordinary equityholders                                                  12 749              11 889            7        24 572
NCNR preference shareholders                                               177                 181           (2)          356
Equityholders of the group                                              12 926              12 070            7        24 928
Non-controlling interests                                                  470                 493           (5)        1 211
Profit for the period                                                   13 396              12 563            7        26 139
Earnings per share (cents)
- Basic                                                                  227.3               212.0            7         438.2
- Diluted                                                                227.3               212.0            7         438.2
Headline earnings per share (cents)
- Basic                                                                  224.2               211.5            6         423.7
- Diluted                                                                224.2               211.5            6         423.7



CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - IFRS

                                                                              Six months ended                     Year ended
                                                                                 31 December                          30 June
R million                                                                 2017                2016     % change          2017

Profit for the period                                                   13 396              12 563            7        26 139
Items that may subsequently be reclassified to profit or loss
Cash flow hedges                                                           (99)                 45        (>100)         (150)
Gains/(losses) arising during the period                                   139                 116           20          (141)
Reclassification adjustments for amounts included in profit or loss         (7)                (53)         (87)          (67)
Deferred income tax                                                       (231)                (18)        >100            58
Available-for-sale financial assets                                        (86)               (210)         (59)         (282)
Losses arising during the period                                           (85)               (199)         (57)         (397)
Reclassification adjustments for amounts included in profit or loss        (22)                (64)         (66)          (52)
Deferred income tax                                                         21                  53          (60)          167
Exchange differences on translating foreign operations                    (856)             (1 437)         (40)       (1 633)
Losses arising during the period                                          (856)             (1 437)         (40)       (1 633)
Share of other comprehensive income/(loss) of associates and
joint ventures after tax and non-controlling interests                      54                 (60)       (>100)         (157)
Items that may not subsequently be reclassified to profit or loss
Remeasurements on defined benefit post-employment plans                    (43)                (82)         (48)          169
(Losses)/gains arising during the period                                   (60)               (113)         (47)          241
Deferred income tax                                                         17                  31          (45)          (72)

Other comprehensive loss for the period                                 (1 030)             (1 744)         (41)       (2 053)
Total comprehensive income for the period                               12 366              10 819           14        24 086
Attributable to
Ordinary equityholders                                                  11 729              10 213           15        22 574
NCNR preference shareholders                                               177                 181           (2)          356
Equityholders of the group                                              11 906              10 394           15        22 930
Non-controlling interests                                                  460                 425            8         1 156
Total comprehensive income for the period                               12 366              10 819           14        24 086


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - IFRS

                                                                                   As at                    As at
                                                                                 31 December              30 June
R million                                                                 2017               2016*          2017*

ASSETS
Cash and cash equivalents                                               65 805              65 983         68 483
Derivative financial instruments                                        53 586              35 721         35 459
Commodities                                                             15 489               9 110         14 380
Investment securities                                                  188 840             166 245        167 427
Advances                                                               927 732             864 171        893 106
- Advances to customers                                                874 476             821 384        848 649
- Marketable advances                                                   53 256              42 787         44 457
Accounts receivable                                                      9 443               9 514          8 878
Current tax asset                                                          356                 509            147
Non-current assets and disposal groups held for sale                       498                 833            580
Reinsurance assets                                                         133                  81             89
Investments in associates                                                5 726               5 173          5 924
Investments in joint ventures                                            1 946               1 458          1 430
Property and equipment                                                  17 859              17 591         17 512
Intangible assets                                                        1 663               1 689          1 686
Investment properties                                                      675                 399            399
Defined benefit post-employment asset                                        5                   8              5
Deferred income tax asset                                                1 936               2 003          2 202
Total assets                                                         1 291 692           1 180 488      1 217 707
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                 15 266              13 874         15 276
Derivative financial instruments                                        58 102              45 499         44 403
Creditors, accruals and provisions                                      16 449              16 739         17 014
Current tax liability                                                      415                 536            277
Liabilities directly associated with disposal groups held for sale           -                 508            195
Deposits                                                             1 040 042             952 121        983 529
- Deposits from customers                                              749 388             678 118        699 674
- Debt securities                                                      203 243             172 472        194 542
- Asset-backed securities                                               36 953              38 382         35 445
- Other                                                                 50 458              63 149         53 868
Employee liabilities                                                     8 270               7 316          9 884
Other liabilities                                                        6 511               7 674          6 385
Policyholder liabilities                                                 4 315               3 296          3 795
Tier 2 liabilities                                                      20 048              20 146         18 933
Deferred income tax liability                                              958               1 005            832
Total liabilities                                                    1 170 376           1 068 714      1 100 523
Equity
Ordinary shares                                                             56                  56             56
Share premium                                                            7 985               8 034          7 960
Reserves                                                               104 912              95 317        100 868
Capital and reserves attributable to ordinary equityholders            112 953             103 407        108 884
NCNR preference shares                                                   4 519               4 519          4 519
Capital and reserves attributable to equityholders of the group        117 472             107 926        113 403
Non-controlling interests                                                3 844               3 848          3 781
Total equity                                                           121 316             111 774        117 184
Total equities and liabilities                                       1 291 692           1 180 488      1 217 707

* Restated.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - IFRS

                                                                                                                          Six months ended                 Year ended
                                                                                                                             31 December                      30 June
R million                                                                                                             2017                2016                   2017

Cash generated from operating activities
Interest and fee commission receipts                                                                                58 490              53 326                108 306
Trading and other income                                                                                             1 410               1 378                  2 857
Interest payments                                                                                                  (19 724)            (17 308)               (35 285)
Other operating expenses                                                                                           (19 182)            (18 183)               (35 106)
Dividends received                                                                                                   2 889               2 441                  5 971
Dividends paid                                                                                                      (7 806)             (6 800)               (13 650)
Dividends paid to non-controlling interests                                                                           (289)               (480)                (1 099)
Cash generated from operating activities                                                                            15 788              14 374                 31 994
Movement in operating assets and liabilities
Liquid assets and trading securities                                                                               (21 231)            (23 372)               (24 588)
Advances                                                                                                           (42 808)            (21 869)               (59 143)
Deposits                                                                                                            61 484              37 909                 71 085
Creditors (net of debtors)                                                                                          (1 150)                543                  3 262
Employee liabilities                                                                                                (4 902)             (4 956)                (5 337)
Other net liabilities                                                                                               (4 947)              4 323                   (319)
Taxation paid                                                                                                       (4 113)             (3 891)                (8 237)
Net cash generated from/(utilised by) operating activities                                                          (1 879)              3 061                  8 717
Cash flows from investing activities
Acquisition of investments in associates                                                                              (176)                (88)                   (98)
Proceeds on disposal of investments in associates                                                                       11                   1                     38
Acquisition of investments in joint ventures                                                                          (354)                (44)                   (44)
Proceeds on disposal of investments in joint ventures                                                                    -                  16                     17
Acquisition of investments in subsidiaries                                                                               -                   -                   (257)
Proceeds on disposal of investments in subsidiaries                                                                    212                   -                  1 815
Acquisition of property and equipment                                                                               (1 934)             (2 585)                (4 581)
Proceeds on disposal of property and equipment                                                                         218                 198                    514
Acquisition of intangible assets and investment properties                                                            (101)               (237)                  (434)
Proceeds on disposal of intangible assets and investment properties                                                      -                  (8)                     -
Proceeds on disposal of non-current assets held for sale                                                               219                 246                    170
Net cash outflow from investing activities                                                                          (1 905)             (2 501)                (2 860)
Cash flows from financing activities
Issue/(redemption) of other liabilities                                                                                656                (232)                (1 675)
Proceeds from the issue of Tier 2 liabilities                                                                        1 121               2 153                    941
Acquisition of additional interest in subsidiaries from non-controlling interests                                      (23)                (43)                  (162)
Issue of share of additional interest in subsidiaries from non-controlling interests                                    23                 129                      -
Net cash inflow from financing activities                                                                            1 777               2 007                   (896)
Net (decrease)/increase in cash and cash equivalents                                                                (2 007)              2 567                  4 961
Cash and cash equivalents at the beginning of the period                                                            68 483              64 303                 64 303
Effect of exchange rate changes on cash and cash equivalents                                                          (671)               (767)                  (763)
Transfer to non-current assets held for sale                                                                             -                (120)                   (18)
Cash and cash equivalents at the end of the period                                                                  65 805              65 983                 68 483
Mandatory reserve balances included above*                                                                          25 919              24 048                 24 749

* Banks are required to deposit a minimum average balance, calculated monthly with the central bank, which is not available for use in the group's day-to-day
  operations. The deposit bears no or low interest. Money at short notice constitutes amounts withdrawable in 32 days or less.


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

                                                                                                   Ordinary share capital and ordinary equityholders' funds
                                                                                                                                                                                                       Reserves
                                                                                            Defined                           Share-                             Foreign                           attributable
                                                                               Share        benefit       Cash flow            based       Available-           currency      Other    Retained     to ordinary         NCNR         Non-       
                                                      Share       Share      capital          post-           hedge          payment         for-sale        translation   reserves    earnings         equity-   preference  controlling      Total 
                                                    capital     premium    and share     employment         reserve          reserve          reserve            reserve                                holders       shares    interests     equity                      
R million                                                                                   premium         reserve                                                                                                  
                                                                                                                                                                                
Balance as at 1 July 2016                                56       7 952        8 008           (930)            308                9             (441)             3 310        374      89 107          91 737        4 519        3 801    108 065
Net proceeds of issue of share capital and premium        -           -            -              -               -                -                -                  -          -           -               -            -          129        129
Proceeds from the issue of share capital                  -           -            -              -               -                -                -                  -          -           -               -            -          130        130
Share issue expenses                                      -           -            -              -               -                -                -                  -          -           -               -            -           (1)        (1)
Disposal of subsidiaries                                  -           -            -              -               -                -                -                  -          -           -               -            -            -          -
Movement in other reserves                                -           -            -              -               -                2                -                  -         54         (44)             12            -          (10)         2
Ordinary dividends                                        -           -            -              -               -                -                -                  -          -      (6 619)         (6 619)           -         (480)    (7 099)
Preference dividends                                      -           -            -              -               -                -                -                  -          -           -               -         (181)           -       (181)
Transfer from/(to) general risk reserves                  -           -            -              -               -                -                -                  -          7          (7)              -            -            -          -
Changes in ownership interest of subsidiaries             -           -            -              -               -                -                -                  -          -         (26)            (26)           -          (17)       (43)
Consolidation of treasury shares                          -          82           82              -               -                -                -                  -          -           -               -            -            -         82
Total comprehensive income for the period                 -           -            -            (82)             45                -             (197)            (1 395)       (47)     11 889          10 213          181          425     10 819
Balance as at 31 December 2016                           56       8 034        8 090         (1 012)            353               11             (638)             1 915        388      94 300          95 317        4 519        3 848    111 774
Balance as at 1 July 2017                                56       7 960        8 016           (761)            158                9             (715)             1 690        462     100 025         100 868        4 519        3 781    117 184
Net proceeds of issue of share capital and premium        -           -            -              -               -                -                -                  -          -           -               -            -           23         23
Proceeds from the issue of share capital                  -           -            -              -               -                -                -                  -          -           -               -            -           23         23
Share issue expenses                                      -           -            -              -               -                -                -                  -          -           -               -            -            -          -
Disposal of subsidiaries                                  -           -            -              -               -                -                -                  -          -           -               -            -          (27)       (27)
Movement in other reserves                                -           -            -              -               -                -                -                  -        238        (180)             58            -          (79)       (21)
Ordinary dividends                                        -           -            -              -               -                -                -                  -          -      (7 629)         (7 629)           -         (289)    (7 918)
Preference dividends                                      -           -            -              -               -                -                -                  -          -           -               -         (177)           -       (177)
Transfer (to)/from general risk reserves                  -           -            -              -               -                -                -                  -         (8)          8               -            -            -          -
Changes in ownership interest of subsidiaries             -           -            -              -               -                -                -                  -          -        (103)           (103)           -          (25)      (128)
Consolidation of treasury shares                          -          25           25              -               -                -                -                  -          -         (11)            (11)           -            -         14
Total comprehensive income for the period                 -           -            -            (43)            (99)               -              (86)              (841)        49      12 749          11 729          177          460     12 366
Balance as at 31 December 2017                           56       7 985        8 041           (804)             59                9             (801)               849        741     104 859         104 912        4 519        3 844    121 316


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 December 2017

                                                                                                                                                                
                                                                                             
                                                                                                                      Margin related                     Private          Other            TRS and
                                                                                              Private                 items included                      equity       headline             IFRS 2
                                                                                               equity   Treasury       in fair value       IAS 19     subsidiary       earnings          liability
R million                                                                     Normalised     expenses    shares*              income   adjustment   realisations    adjustments      remeasurement             IFRS
                                                                                                                                                                                                       
Net interest income before impairment of advances                                 24 565            -          -                (878)           -              -              -                 47           23 734
Impairment charge                                                                 (4 052)           -          -                   -            -              -              -                  -           (4 052)
Net interest income after impairment of advances                                  20 513            -          -                (878)           -              -              -                 47           19 682
Total non-interest revenue                                                        20 002          201         (8)                878            -            (97)           211                695           21 882
- Operational non-interest revenue                                                19 514          201        (13)                878            -            (97)           211                695           21 389
- Share of profit of associates and joint ventures after tax                         488            -          5                   -            -              -              -                  -              493

Income from operations                                                            40 515          201         (8)                  -            -            (97)           211                742           41 564
Operating expenses                                                               (23 033)        (201)         -                   -           78              -              -               (552)         (23 708)
Income before tax                                                                 17 482            -         (8)                  -           78            (97)           211                190           17 856
Indirect tax                                                                        (478)           -          -                   -            -              -              -                  -             (478)
Profit before tax                                                                 17 004            -         (8)                  -           78            (97)           211                190           17 378
Income tax expense                                                                (3 894)           -          -                   -          (22)             -            (13)               (53)          (3 982)
Profit for the period                                                             13 110            -         (8)                  -           56            (97)           198                137           13 396
Attributable to
NCNR preference shareholders                                                        (177)           -          -                   -            -              -              -                  -             (177)
Non-controlling interests                                                           (472)           -          -                   -            -             24            (22)                 -             (470)
Ordinary equityholders of the group                                               12 461            -         (8)                  -           56            (73)           176                137           12 749
Headline and normalised earnings adjustments                                           -            -          8                              (56)            73           (176)              (137)            (288)
Normalised earnings attributable to ordinary equityholders of the group           12 461            -          -                   -            -              -              -                  -           12 461

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 December 2016

                                  
                                                                                                                     Margin related                     Private          Other            TRS and
                                                                                              Private                items included                      equity       headline             IFRS 2       
R million                                                                                      equity   Treasury      in fair value       IAS 19     subsidiary       earnings          liability                        
                                                                              Normalised     expenses    shares*             income   adjustment   realisations    adjustments      remeasurement           IFRS

Net interest income before impairment of advances                                 23 243            -          -             (1 043)           -              -              -                  -         22 200
Impairment charge                                                                 (3 741)           -          -                  -            -              -              -                  -         (3 741)
Net interest income after impairment of advances                                  19 502            -          -             (1 043)           -              -              -                  -         18 459
Total non-interest revenue                                                        18 132          282         (7)             1 043            -              -             46                485         19 981
- Operational non-interest revenue                                                17 663          282         (8)             1 043            -              -             49                485         19 514
- Share of profit of associates and joint ventures after tax                         469            -          1                  -            -              -             (3)                 -            467

Income from operations                                                            37 634          282         (7)                 -            -              -             46                485         38 440
Operating expenses                                                               (21 246)        (282)         -                  -           75              -             (1)              (254)       (21 708)
Income before tax                                                                 16 388            -         (7)                 -           75              -             45                231         16 732
Indirect tax                                                                        (573)           -          -                  -            -              -              -                  -           (573)
Profit before tax                                                                 15 815            -         (7)                 -           75              -             45                231         16 159
Income tax expense                                                                (3 495)           -          -                  -          (21)             -            (15)               (65)        (3 596)
Profit for the period                                                             12 320            -         (7)                 -           54              -             30                166         12 563
Attributable to
NCNR preference shareholders                                                        (181)           -          -                  -            -              -              -                  -           (181)
Non-controlling interests                                                           (493)           -          -                  -            -              -              -                  -           (493)
Ordinary equityholders of the group                                               11 646            -         (7)                 -           54              -             30                166         11 889
Headline and normalised earnings adjustments                                           -            -          7                  -          (54)             -            (30)              (166)          (243)
Normalised earnings attributable to ordinary equityholders of the group           11 646            -          -                  -            -              -              -                  -         11 646

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2017                                   
                                                                                                                      Margin related                     Private          Other            TRS and
                                                                                              Private                 items included                      equity       headline             IFRS 2    
R million                                                                                      equity     Treasury     in fair value       IAS 19     subsidiary       earnings          liability                                                           
                                                                              Normalised     expenses      shares*            income   adjustment   realisations    adjustments      remeasurement        IFRS

Net interest income before impairment of advances                                 46 626            -            -            (1 796)           -              -              -                 87      44 917
Impairment charge                                                                 (8 054)           -            -                 -            -              -              -                  -      (8 054)
Net interest income after impairment of advances                                  38 572            -            -            (1 796)           -              -              -                 87      36 863
Total non-interest revenue                                                        39 268          745           12             1 796            -         (1 788)         1 849                 78      41 960
- Operational non-interest revenue                                                38 227          745           11             1 796            -         (1 788)         1 853                 78      40 922
- Share of profit of associates and joint ventures after tax                       1 041            -            1                 -            -              -             (4)                 -       1 038

Income from operations                                                            77 840          745           12                 -            -         (1 788)         1 849                165      78 823
Operating expenses                                                               (43 773)        (314)           -                 -          163              -           (584)               (77)    (44 585)
Income before tax                                                                 34 067          431           12                 -          163         (1 788)         1 265                 88      34 238
Indirect tax                                                                      (1 081)           -            -                 -            -              -              -                  -      (1 081)
Profit before tax                                                                 32 986          431           12                 -          163         (1 788)         1 265                 88      33 157
Income tax expense                                                                (6 951)           -            -                 -          (46)            30            (26)               (25)     (7 018)
Profit for the year                                                               26 035          431           12                 -          117         (1 758)         1 239                 63      26 139
Attributable to
NCNR preference shareholders                                                        (356)           -            -                 -            -              -              -                  -        (356)
Non-controlling interests                                                         (1 208)           -            -                 -            -            426           (429)                 -      (1 211)
Ordinary equityholders of the group                                               24 471          431           12                 -          117         (1 332)           810                 63      24 572
Headline and normalised earnings adjustments                                           -         (431)**       (12)                -         (117)         1 332           (810)               (63)       (101)
Normalised earnings attributable to ordinary equityholders of the group           24 471            -            -                 -            -              -              -                  -      24 471

*   FirstRand shares held for client trading activities.
**  Private equity-related goodwill and other asset impairments.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2017

                                                                                                         Treasury
R million                                                                                    Normalised   shares*          IFRS

ASSETS
Cash and cash equivalents                                                                        65 805         -        65 805
Derivative financial instruments                                                                 53 586         -        53 586
Commodities                                                                                      15 489         -        15 489
Investment securities                                                                           188 928       (88)      188 840
Advances                                                                                        927 732         -       927 732
- Advances to customers                                                                         874 476         -       874 476
- Marketable advances                                                                            53 256         -        53 256
Accounts receivable                                                                               9 443         -         9 443
Current tax asset                                                                                   356         -           356
Non-current assets and disposal groups held for sale                                                498         -           498
Reinsurance assets                                                                                  133         -           133
Investments in associates                                                                         5 726         -         5 726
Investments in joint ventures                                                                     1 890        56         1 946
Property and equipment                                                                           17 859         -        17 859
Intangible assets                                                                                 1 663         -         1 663
Investment properties                                                                               675         -           675
Defined benefit post-employment asset                                                                 5         -             5
Deferred income tax asset                                                                         1 936         -         1 936
Total assets                                                                                  1 291 724       (32)    1 291 692
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                                          15 266         -        15 266
Derivative financial instruments                                                                 58 102         -        58 102
Creditors, accruals and provisions                                                               16 449         -        16 449
Current tax liability                                                                               415         -           415
Liabilities directly associated with disposal groups held for sale                                    -         -             -
Deposits                                                                                      1 040 042         -     1 040 042
- Deposits from customers                                                                       749 388         -       749 388
- Debt securities                                                                               203 243         -       203 243
- Asset-backed securities                                                                        36 953         -        36 953
- Other                                                                                          50 458         -        50 458
Employee liabilities                                                                              8 270         -         8 270
Other liabilities                                                                                 6 511         -         6 511
Policyholder liabilities                                                                          4 315         -         4 315
Tier 2 liabilities                                                                               20 048         -        20 048
Deferred income tax liability                                                                       958         -           958
Total liabilities                                                                             1 170 376         -     1 170 376
Equity
Ordinary shares                                                                                      56         -            56
Share premium                                                                                     8 056       (71)        7 985
Reserves                                                                                        104 873        39       104 912
Capital and reserves attributable to ordinary equityholders                                     112 985       (32)      112 953
NCNR preference shares                                                                            4 519         -         4 519
Capital and reserves attributable to equityholders of the group                                 117 504       (32)      117 472
Non-controlling interests                                                                         3 844         -         3 844
Total equity                                                                                    121 348       (32)      121 316
Total equities and liabilities                                                                1 291 724       (32)    1 291 692

*   FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2016

                                                                                                            
R million                                                                                                  Treasury        
                                                                                             Normalised     shares*         IFRS
ASSETS
Cash and cash equivalents                                                                        65 983           -       65 983
Derivative financial instruments                                                                 35 721           -       35 721
Commodities                                                                                       9 110           -        9 110
Investment securities                                                                           166 270         (25)     166 245
Advances                                                                                        864 171           -      864 171
- Advances to customers                                                                         821 384           -      821 384
- Marketable advances                                                                            42 787                   42 787
Accounts receivable                                                                               9 514           -        9 514
Current tax asset                                                                                   509           -          509
Non-current assets and disposal groups held for sale                                                833           -          833
Reinsurance assets                                                                                   81           -           81
Investments in associates                                                                         5 173           -        5 173
Investments in joint ventures                                                                     1 407          51        1 458
Property and equipment                                                                           17 591           -       17 591
Intangible assets                                                                                 1 689           -        1 689
Investment properties                                                                               399           -          399
Defined benefit post-employment asset                                                                 8           -            8
Deferred income tax asset                                                                         2 003           -        2 003
Total assets                                                                                  1 180 462          26    1 180 488
EQUITY AND LIABILITIES 
Liabilities
Short trading positions                                                                          13 874           -       13 874
Derivative financial instruments                                                                 45 499           -       45 499
Creditors, accruals and provisions**                                                             16 739           -       16 739
Current tax liability                                                                               536           -          536
Liabilities directly associated with disposal groups held for sale                                  508           -          508
Deposits**                                                                                      952 121           -      952 121
- Deposits from customers                                                                       678 118           -      678 118
- Debt securities                                                                               172 472           -      172 472
- Asset-backed securities                                                                        38 382           -       38 382
- Other                                                                                          63 149           -       63 149
Employee liabilities                                                                              7 316           -        7 316
Other liabilities                                                                                 7 674           -        7 674
Policyholder liabilities                                                                          3 296           -        3 296
Tier 2 liabilities                                                                               20 146           -       20 146
Deferred income tax liability                                                                     1 005           -        1 005
Total liabilities                                                                             1 068 714           -    1 068 714
Equity
Ordinary shares                                                                                      56           -           56
Share premium                                                                                     8 056         (22)       8 034
Reserves                                                                                         95 269          48       95 317
Capital and reserves attributable to ordinary equityholders                                     103 381          26      103 407
NCNR preference shares                                                                            4 519           -        4 519
Capital and reserves attributable to equityholders of the group                                 107 900          26      107 926
Non-controlling interests                                                                         3 848           -        3 848
Total equity                                                                                    111 748          26      111 774
Total equities and liabilities                                                                1 180 462          26    1 180 488

*  FirstRand shares held for client trading activities.
** Restated.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2017

                                                                                                                                         
R million                                                                                                                                Treasury            
                                                                                                                  Normalised              shares*                IFRS
ASSETS
Cash and cash equivalents                                                                                             68 483                    -              68 483
Derivative financial instruments                                                                                      35 459                    -              35 459
Commodities                                                                                                           14 380                    -              14 380
Investment securities                                                                                                167 516                  (89)            167 427
Advances                                                                                                             893 106                    -             893 106
- Advances to customers                                                                                              848 649                    -             848 649
- Marketable advances                                                                                                 44 457                    -              44 457
Accounts receivable                                                                                                    8 878                    -               8 878
Current tax asset                                                                                                        147                    -                 147
Non-current assets and disposal groups held for sale                                                                     580                    -                 580
Reinsurance assets                                                                                                        89                    -                  89
Investments in associates                                                                                              5 924                    -               5 924
Investments in joint ventures                                                                                          1 379                   51               1 430
Property and equipment                                                                                                17 512                    -              17 512
Intangible assets                                                                                                      1 686                    -               1 686
Investment properties                                                                                                    399                    -                 399
Defined benefit post-employment asset                                                                                      5                    -                   5
Deferred income tax asset                                                                                              2 202                    -               2 202
Total assets                                                                                                       1 217 745                  (38)          1 217 707
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                                                               15 276                    -              15 276
Derivative financial instruments                                                                                      44 403                    -              44 403
Creditors, accruals and provisions                                                                                    17 014                    -              17 014
Current tax liability                                                                                                    277                    -                 277
Liabilities directly associated with disposal groups held for sale                                                       195                    -                 195
Deposits**                                                                                                           983 529                    -             983 529
- Deposits from customers                                                                                            699 674                    -             699 674
- Debt securities                                                                                                    194 542                    -             194 542
- Asset-backed securities                                                                                             35 445                    -              35 445
- Other                                                                                                               53 868                    -              53 868
Employee liabilities                                                                                                   9 884                    -               9 884
Other liabilities                                                                                                      6 385                    -               6 385
Policyholder liabilities                                                                                               3 795                    -               3 795
Tier 2 liabilities                                                                                                    18 933                    -              18 933
Deferred income tax liability                                                                                            832                    -                 832
Total liabilities                                                                                                  1 100 523                    -           1 100 523
Equity
Ordinary shares                                                                                                           56                    -                  56
Share premium                                                                                                          8 056                  (96)              7 960
Reserves                                                                                                             100 810                   58             100 868
Capital and reserves attributable to ordinary equityholders                                                          108 922                  (38)            108 884
NCNR preference shares                                                                                                 4 519                    -               4 519
Capital and reserves attributable to equityholders of the group                                                      113 441                  (38)            113 403
Non-controlling interests                                                                                              3 781                    -               3 781
Total equity                                                                                                         117 222                  (38)            117 184
Total equities and liabilities                                                                                     1 217 745                  (38)          1 217 707

*  FirstRand shares held for client trading activities.
** Restated.



RESTATEMENT OF PRIOR YEAR NUMBERS

DESCRIPTION OF RESTATEMENTS

The group made the following changes to the presentation of deposits.



ACCRUED INTEREST ON DEPOSITS

The group previously recognised accrued interest on certain deposits as part of creditors, accruals and provisions in the statement of financial position. During the current
financial period, accrued interest was reclassified to deposits. This is more in line with the group's current practice for advances where the accrued interest is recognised
as part of the carrying value of the underlying financial instrument.

CLASSIFICATION OF DEBT SECURITIES

The SARB issued guidance clarifying that negotiable notes with an issue price, a redemption/maturity date and redemption price or face value should be classified as debt
securities rather than deposits from customers. The group reclassified certain issued notes to align the regulatory and statutory reporting requirements.

These changes in presentation had no impact on the profit or loss or net asset value of the group and only affected the classification of items on the statement of
financial position.


RESTATED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION – IFRS


                                                                                              As at 31 December 2016                         As at 30 June 2017
                                                                                        As                    Accrued                       As
                                                                                previously        Debt    interest on               previously           Debt
R million                                                                         reported     securities    deposits    Restated     reported     securities      Restated

ASSETS
Cash and cash equivalents                                                           65 983             -            -      65 983       68 483              -        68 483
Derivative financial instruments                                                    35 721             -            -      35 721       35 459              -        35 459
Commodities                                                                          9 110             -            -       9 110       14 380              -        14 380
Investment securities                                                              166 245             -            -     166 245      167 427              -       167 427
Advances                                                                           864 171             -            -     864 171      893 106              -       893 106
- Advances to customers                                                            821 384             -            -     821 384      848 649              -       848 649
- Marketable advances                                                               42 787             -            -      42 787       44 457              -        44 457
Accounts receivable                                                                  9 514             -            -       9 514        8 878              -         8 878
Current tax asset                                                                      509             -            -         509          147              -           147
Non-current assets and disposal groups held for sale                                   833             -            -         833          580              -           580
Reinsurance assets                                                                      81             -            -          81           89              -            89
Investments in associates                                                            5 173             -            -       5 173        5 924              -         5 924
Investments in joint ventures                                                        1 458             -            -       1 458        1 430              -         1 430
Property and equipment                                                              17 591             -            -      17 591       17 512              -        17 512
Intangible assets                                                                    1 689             -            -       1 689        1 686              -         1 686
Investment properties                                                                  399             -            -         399          399              -           399
Defined benefit post-employment asset                                                    8             -            -           8            5              -             5
Deferred income tax asset                                                            2 003             -            -       2 003        2 202              -         2 202
Total assets                                                                     1 180 488             -            -   1 180 488    1 217 707              -     1 217 707
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                             13 874             -            -      13 874       15 276              -        15 276
Derivative financial instruments                                                    45 499             -            -      45 499       44 403              -        44 403
Creditors, accruals and provisions                                                  16 890             -         (151)     16 739       17 014              -        17 014
Current tax liability                                                                  536             -            -         536          277              -           277
Liabilities directly associated with disposal groups held for sale                     508             -            -         508          195              -           195
- Deposits                                                                         951 970             -          151     952 121      983 529              -       983 529
- Deposits from customers                                                          693 053       (14 950)          15     678 118      715 101        (15 427)      699 674
- Debt securities                                                                  157 522        14 950            -     172 472      179 115         15 427       194 542
- Asset-backed securities                                                           38 382             -            -      38 382       35 445              -        35 445
- Other                                                                             63 013             -          136      63 149       53 868              -        53 868
Employee liabilities                                                                 7 316             -            -       7 316        9 884              -         9 884
Other liabilities                                                                    7 674             -            -       7 674        6 385              -         6 385
Policyholder liabilities                                                             3 296             -            -       3 296        3 795              -         3 795
Tier 2 liabilities                                                                  20 146             -            -      20 146       18 933              -        18 933
Deferred income tax liability                                                        1 005             -            -       1 005          832              -           832
Total liabilities                                                                1 068 714             -            -   1 068 714    1 100 523              -     1 100 523
Equity
Ordinary shares                                                                         56             -            -          56           56              -            56
Share premium                                                                        8 034             -            -       8 034        7 960              -         7 960
Reserves                                                                            95 317             -            -      95 317      100 868              -       100 868
Capital and reserves attributable to ordinary equityholders                        103 407             -            -     103 407      108 884              -       108 884
NCNR preference shares                                                               4 519             -            -       4 519        4 519              -         4 519
Capital and reserves attributable to equityholders of the group                    107 926             -            -     107 926      113 403              -       113 403
Non-controlling interests                                                            3 848             -            -       3 848        3 781              -         3 781
Total equity                                                                       111 774             -            -     111 774      117 184              -       117 184
Total equities and liabilities                                                   1 180 488             -            -   1 180 488    1 217 707              -     1 217 707


FAIR VALUE HIERARCHY AND MEASUREMENTS



TRANSFERS BETWEEN FAIR VALUE HIERARCHY LEVELS

There were no transfers in or out of the various levels for the financial periods ended 31 December 2016 and 31 December 2017.

The following represents the significant transfers into levels 1, 2 and 3 and the reasons for these transfers for the year ended 30 June 2017. Transfers between levels of
the fair value hierarchy are deemed to occur at the beginning of the reporting period.

                                                                                              As at 30 June 2017
                                      Transfers            Transfers
R million                                    in                  out        Reasons for significant transfers in
                                             
Level 1                                       -                    -        There were no transfers into level 1.
Level 2                                       -                  (38)       There were no transfers into level 2.
Level 3                                      38                    -        The JSE publishes volatilities of strike prices of options between 70% and 130%. Any volatility
                                                                            above or below this range results in inputs becoming unobservable. During the year ended 30
                                                                            June 2017, the observability of volatilities used in determining the fair value of certain over the
                                                                            counter options became unobservable and resulted in the transfer of R38 million out of level 2
                                                                            into level 3 of the fair value hierarchy.
Total transfers                              38                  (38)



CONDENSED SEGMENT REPORT - IFRS

                                                                                       Six months ended 31 December 2017
                                                  FNB                            RMB                                         FCC
                                                                                                                      (including
                                                                                                                           Group     FirstRand
                                                            FNB        Investment      Corporate                        Treasury)        group      Normalised
R million                                    FNB         Africa           banking        banking        WesBank        and other    normalised     adjustments          Total

Profit before tax                          9 864            566             3 489            961          2 705            (581)        17 004             374         17 378
Total assets                             364 073         49 024           405 983         54 861        216 648         201 135      1 291 724             (32)     1 291 692
Total liabilities                        353 438         48 891           397 558         53 570        212 567         104 352      1 170 376               -      1 170 376

                                                                                       Six months ended 31 December 2016
                                                  FNB                            RMB                                        FCC
                                                                                                                     (including
                                                                                                                          Group      FirstRand
                                                            FNB        Investment      Corporate                       Treasury)         group      Normalised
R million                                    FNB         Africa           banking        banking        WesBank       and other     normalised     adjustments          Total

Profit before tax                          8 820            547             3 134            877          2 755            (318)        15 815             344         16 159
Total assets                             345 805         48 853           378 971         42 379        203 848         160 606      1 180 462              26      1 180 488
Total liabilities                        336 049         48 431           370 296         41 227        200 556          72 155      1 068 714               -      1 068 714

                                                                                              Year ended 30 June 2017
                                                  FNB                            RMB                                        FCC
                                                                                                                     (including
                                                                                                                          Group      FirstRand 
                                                            FNB        Investment      Corporate                       Treasury)         group      Normalised
R million                                    FNB         Africa           banking        banking        WesBank       and other     normalised     adjustments           Total

Profit before tax                         17 744            880             8 028          1 731          5 612          (1 009)        32 986             171          33 157
Total assets                             351 978         49 959           386 048         45 872        214 222         169 666      1 217 745             (38)      1 217 707
Total liabilities                        333 698         49 982           377 316         43 634        207 809          88 084      1 100 523               -       1 100 523


CONTINGENCIES AND COMMITMENTS

                                                                                                              As at                                                  As at
                                                                                                             31 December                                           30 June
R million                                                                                             2017                   2016            % change                 2017

Contingencies and commitments
Guarantees (endorsements and performance guarantees)                                                35 028                  40 317                (13)              34 006
Letters of credit                                                                                    8 329                   6 318                 32                6 731
Total contingencies                                                                                 43 357                  46 635                 (7)              40 737
Irrevocable commitments                                                                            114 604                 115 381                 (1)             119 325
Committed capital expenditure                                                                        2 659                   1 736                 53                3 936
Operating lease commitments                                                                          3 742                   4 101                 (9)               3 779
Other                                                                                                  222                     318                (30)                 306
Contingencies and commitments                                                                      164 584                 168 171                 (2)             168 083
Commitments
Commitments in respect of capital expenditure and long-term investments
approved by the directors                                                                            2 659                   1 736                 53                3 936



NUMBER OF ORDINARY SHARES IN ISSUE

                                                                                Six months ended 31 December                                    Year ended 30 June
                                                                         2017                                       2016                                  2017
                                                                  IFRS          Normalised                IFRS            Normalised               IFRS         Normalised
Shares in issue
Opening balance as at 1 July                             5 609 488 001       5 609 488 001       5 609 488 001         5 609 488 001      5 609 488 001      5 609 488 001
Less: treasury shares                                       (1 314 888)                  -            (473 626)                    -           (311 919)                 -
- Shares for client trading*                                (1 314 888)                  -            (473 626)                    -           (311 919)                 -

Number of shares in issue (after treasury shares)        5 608 173 113       5 609 488 001       5 609 014 375         5 609 488 001      5 609 176 082      5 609 488 001
Weighted average number of shares
Weighted average number of shares before
treasury shares                                          5 609 488 001       5 609 488 001       5 609 488 001         5 609 488 001      5 609 488 001      5 609 488 001
Less: treasury shares                                       (1 656 596)                  -          (1 075 586)                    -         (1 480 934)                 -
- Shares for client trading*                                (1 656 596)                  -          (1 075 586)                    -         (1 480 934)                 -

Basic and diluted weighted average number of
shares in issue                                          5 607 831 405       5 609 488 001       5 608 412 415         5 609 488 001      5 608 007 067      5 609 488 001

* For normalised reporting, shares held for client trading activities are treated as externally issued.



COMPANY INFORMATION

DIRECTORS

LL Dippenaar (chairman), JP Burger (chief executive officer), AP Pullinger (deputy chief executive officer), HS Kellan (financial director), MS Bomela, HL Bosman, JJ
Durand, GG Gelink, PM Goss, NN Gwagwa, PK Harris, WR Jardine, F Knoetze, RM Loubser, PJ Makosholo, TS Mashego, EG Matenge-Sebesho, AT Nzimande



COMPANY SECRETARY AND REGISTERED OFFICE

C Low
4 Merchant Place, Corner Fredman Drive and Rivonia Road
Sandton 2196
PO Box 650149, Benmore 2010
Tel: +27 11 282 1808
Fax: +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
Tel: +27 11 282 8000
Fax: +27 11 282 4184


NAMIBIAN SPONSOR

Simonis Storm Securities (Pty) Ltd
4 Koch Street
Klein Windhoek
Namibia



TRANSFER SECRETARIES - SOUTH AFRICA

Computershare Investor Services (Pty) Ltd
1st Floor, Rosebank Towers
15 Biermann Avenue
Rosebank 2196
PO Box 61051, Marshalltown 2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248



TRANSFER SECRETARIES - NAMIBIA

Transfer Secretaries (Pty) Ltd
4 Robert Mugabe Avenue, Windhoek
PO Box 2401, Windhoek, Namibia
Tel: +264 612 27647
Fax: +264 612 48531



AUDITORS

PricewaterhouseCoopers Inc.
4 Lisbon Lane
Waterfall City, Jukskei View
2090

Deloitte & Touche
Building 8, Deloitte Place
The Woodlands, Woodlands Drive
Woodmead, Sandton



6 March 2018

Date: 06/03/2018 08:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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