FIRSTRAND LIMITED - Provisional audited results and cash dividend declaration for the year ended 30 June 2018

Release Date: 06/09/2018 08:15
Code(s): FSR FSRP
 
Wrap Text
Provisional audited results and cash dividend declaration for the year ended 30 June 2018

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)



PROVISIONAL AUDITED RESULTS AND CASH DIVIDEND DECLARATION FOR THE YEAR ENDED 30 JUNE 2018



FirstRand's portfolio of integrated financial services businesses comprises FNB, RMB, WesBank, Aldermore and Ashburton Investments. The group operates in South
Africa, certain markets in sub-Saharan Africa and the UK, and offers a universal set of transactional, lending, investment and insurance products and services.

This announcement covers the provisional audited summary financial results of FirstRand Limited based on International Financial Reporting Standards for the year ended
30 June 2018. 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 115 and 116 of the Analysis of financial results booklet on www.firstrand.co.za. Commentary is based on normalised results, unless otherwise
indicated.



FINANCIAL HIGHLIGHTS

                                                                                                                             Group (including Aldermore)

R million                                                                                                                2018                 2017              % change

Basic and diluted normalised earnings per share (cents)                                                                 470.8                436.2                     8
Normalised earnings (R million)                                                                                        26 411               24 471                     8
Normalised net asset value per share (cents)                                                                          2 157.9              1 941.7                    11
Ordinary dividend per share (cents)                                                                                       275                  255                     8
ROE (%)                                                                                                                  23.0                 23.4
Basic and diluted headline earnings per share (cents)                                                                   472.7                423.7                    12
Basic and diluted earnings per share (cents) - IFRS                                                                     473.3                438.2                     8
Net asset value per share (cents) - IFRS                                                                              2 157.9              1 941.2                    11
Advances (net of credit impairments)                                                                                1 121 227              893 106                    26
Deposits                                                                                                            1 267 448              983 529                    29
Credit loss ratio (%)                                                                                                    0.84                 0.91



RESULTS EXCLUDING ALDERMORE

Any reference to financial information "excluding Aldermore" represents the subtraction of the Aldermore specific information from the group's income statement and
statement of financial position.

                                                                                                                             Group (excluding Aldermore)

R million                                                                                                                2018                 2017              % change

Normalised earnings                                                                                                    26 135               24 471                     7
Advances (net of credit impairments)                                                                                  957 810              893 106                     7
Deposits                                                                                                            1 094 270              983 529                    11
ROE (%)                                                                                                                  22.8                 23.4



OVERVIEW OF RESULTS

"FirstRand's portfolio of businesses once again produced quality topline growth and a superior ROE. FNB's results reflect another strong performance from its South
African business, growing earnings 16% on the back of growth in customers, volumes and balance sheet, and successful cross-sell strategies. RMB's diversified
corporate and investment banking portfolio delivered a solid performance in a challenging market. WesBank had a tough year, however, it still delivered an acceptable
return on equity. The recently acquired UK bank, Aldermore, enhanced group earnings and ROE.

These results represent another year of high quality earnings and sustainable returns for shareholders."

Alan Pullinger
CEO



INTRODUCTION

FirstRand Limited is a portfolio of integrated financial services businesses operating in South Africa, certain markets in sub-Saharan Africa and the UK. Many of these
businesses are leaders in their respective segments and markets, and offer 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 and enabled by disruptive digital and data platforms, allows the group to fully optimise the franchise 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 towards South Africa and are generated by FirstRand's large lending and transactional franchises, which have resulted in deep and
loyal customer and client bases, and the group remains focused on protecting and growing these valuable banking businesses. FirstRand also believes that through the
utilisation of the origination capabilities, operating platforms and distribution networks of these businesses, it can diversify through capturing a larger share of profits from
providing savings, insurance and investment products.

The growth opportunity is significant given the 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.

The group's strategy outside of its domestic market includes growing its presence and offerings in nine markets in the rest of Africa where it believes it can organically
build competitive advantage and scale over time.

In the UK, the group has, over the past eight years, focused on organically transforming its existing business, MotoNovo, into the UK's third-largest independent used
vehicle financier. In the year under review, the group took the decision to acquire Aldermore Group plc (Aldermore), a UK specialist lender, and is in the process of
integrating the two businesses. FirstRand believes this will result in an appropriately diversified UK business, with an established and scalable local funding platform, that
represents a more sustainable and less volatile business model. The group can also extract additional value for shareholders over the medium to longer term through
introducing its successful financial resource management methodology, unlocking synergies between MotoNovo and Aldermore, and over the longer term, potentially
building a transactional offering.



THE MACROECONOMIC ENVIRONMENT

South Africa's macroeconomic operating environment for the year to June 2018 was characterised by two distinctly different six-month periods.

In the first half of the group's financial year, policy ambiguity and political uncertainty weighed on domestic risk appetite, economic activity, and investor and consumer
sentiment. This was particularly acute following the medium-term budget policy statement in October 2017, and the resultant S&P downgrade of South Africa's local
currency sovereign rating to below investment grade.

The macroeconomic environment in the second half of the group's financial year started more positively following the change in leadership of the ruling party, the
appointment of President Ramaphosa as head of the government and a relatively investor-friendly cabinet reshuffle in February 2018. These changes allowed the country
to avoid further downgrades and were followed by new board and management appointments at key state-owned enterprises (SOEs) and other government agencies. This
resulted in improved foreign and domestic confidence.

It is clear, however, that progress on meaningful structural reform will be difficult and slow. GDP expanded only 1% over the first three quarters of the group's financial
year, credit growth remained in the mid-single digits and the unemployment rate remained static. Relatively muted inflation did provide some support to household
finances and this allowed the South African Reserve Bank (SARB) to cut interest rates 50 bps over the course of the year.

In the rest of the sub-Saharan region, conditions remained mixed. Economic activity in Namibia and Botswana was subdued mainly on the back of South African
macroeconomic weakness. The Nigerian economy continued to recover and the macroeconomic outlook will improve on the strength of supportive oil prices.

In the UK, macroeconomic uncertainty continued to be driven by Brexit (which will formally take effect at the end of March 2019). This has weighed somewhat on UK
economic activity, although unemployment continued to drift lower and wages trended upwards, resulting in consumer demand and house prices holding up reasonably
well.



OVERVIEW OF RESULTS

Against this mixed economic backdrop, FirstRand's portfolio of businesses once again produced quality topline growth. The group continued to strengthen its balance
sheet and protect its return profile. Normalised earnings for the year to 30 June 2018 increased 8% with a normalised ROE of 23.0%.

The table below shows a breakdown of sources of normalised earnings from the portfolio.



SOURCES OF NORMALISED EARNINGS

                                                                                                                         Year ended 30 June

R million                                                                                   2018      % composition               2017       % composition           % change

FNB                                                                                       14 877                 56             12 801                  53                 16
- FNB SA                                                                                  14 767                                12 776
- FNB Africa                                                                                 110                                    25
RMB                                                                                        7 327                 28              6 918                  28                  6
WesBank                                                                                    3 626                 14              3 996                  16                 (9)
Aldermore*                                                                                   276                  1                  -                   -                  -
FCC (including Group Treasury) and other**,#,+                                               656                  2              1 112                   4                (41)
NCNR preference dividend                                                                    (351)                (1)              (356)                 (1)                (1)
Normalised earnings                                                                       26 411                100             24 471                 100                  8

* After the dividend on the contingent convertible securities (AT1) of R115 million.
** Includes FirstRand Limited (company).
# Includes capital endowment, the impact of accounting mismatches, interest rate management and foreign currency liquidity management.
+ FCC represents group-wide functions.


FNB's results reflect another strong operating performance from its domestic franchise, driven by strong 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
showed an improved performance year-on-year.

RMB's portfolio also delivered a strong performance driven by good growth in high quality earnings and solid operational leverage.

WesBank's performance remained mixed with both the South African retail and UK VAF businesses posting declines in profits, whilst the personal loans business
performed strongly and corporate delivered a solid performance.

The group's performance includes a three-month profit contribution from Aldermore, which was acquired by FirstRand effective 1 April 2018. The contribution to group
earnings was R276 million post the AT1 dividend payment.

FCC's performance was negatively affected by lower central credit overlay releases, the first-time inclusion of the amortisation of the intangible assets associated with the
acquisition of Aldermore, Aldermore deal fees and an increase in operational expenses.

Total group NII increased 10% (7% excluding Aldermore), underpinned by strong growth in deposits (+29% total, +11% excluding Aldermore) and solid advances growth
(+25% total, +7% excluding Aldermore), offset by negative capital and deposit rate endowment following the 25 bps cuts in the repo rate in July 2017 and March 2018.
Lending margins at FNB benefited from repricing new residential mortgage business and lower funding costs. Lending margins at RMB, however, remained under
pressure from competition, particularly in investment-grade lending, and ongoing term funding pressures and liquidity costs. Both RMB and WesBank's corporate business
continued to exercise discipline in origination to preserve returns.

Group NIR increased 7% (6% excluding Aldermore) and reflects strong fee and commission income growth of 10%, supported by higher volumes across FNB's digital and
electronic channels and increased customer numbers. Private equity realisations also supported group NIR, albeit at lower levels than the previous year. Insurance revenue
increased 6%, benefiting from strong volume growth of 20% and 8%, respectively, in funeral and credit life policies, resulting in annual premium income increasing 35%
year-on-year. Fee, commission and insurance income represents 79% of group operational NIR.

Total cost growth of 9% reflects the inclusion of Aldermore from 1 April 2018. Excluding Aldermore, operating cost growth (7%) was slightly lower than the first half of the
year, but continues to trend above inflation due to ongoing investment in insurance and asset management activities, platforms to extract further efficiencies and the
build-out of the group's footprint in the rest of Africa. Despite these cost pressures, the group's cost-to-income ratio only increased marginally from 51.0% to 51.2% due
to resilient topline growth.

The group's credit loss ratio of 90 bps (84 bps including Aldermore) is marginally down year-on-year and remains well below the group's through-the-cycle threshold,
reflecting the positive impact of the group's origination strategies and provisioning policies over the past two financial years. Many of the group's lending books are
trending in line or better than expectations, particularly unsecured and corporate credit. The credit impairment charge, however, increased 6% and was driven by the
following factors:

-    a continued deterioration in WesBank's SA VAF charge, mainly due to ongoing elevated arrears and NPLs and an increase in the emergence period;
-    continued normalisation of the MotoNovo impairment charge, reflecting new business strain given strong book growth over multiple periods, the impact of business
     written prior to the risk cuts in the previous year and continued 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;
-    higher NPLs in FNB card and personal loans, but in line with expectations given the strong book growth in the prior year, however, the charge benefited from active
     collection strategies;
-    a further increase in FNB's and WesBank's rest of Africa charge, reflecting the ongoing tough macros in various of the jurisdictions the group operates in and
     increased conservatism in provisions;
-    an increase in corporate NPLs due to the migration of certain secured counterparties. The impairment charge benefited from the proactive provisioning in prior years;
     and
-    a lower charge in residential mortgages, due to loss given default credit model recalibrations, despite higher NPL formation given cycle-driven normalisation.


Overall portfolio provisions increased 6% and reflect continued conservative provisioning on the back of book growth, and the still constrained macroeconomic operating
environment in South Africa and many of the African jurisdictions the group operates in.



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 15% to R21.4 billion, driven by a strong
performance from its South African business, which grew pre-tax profits 16%. The turnaround in the rest of Africa portfolio continued. PBT for FNB's rest of Africa
businesses declined 11%, an improvement compared to the 29% decline in the prior year. FNB produced an ROE of 40.7%.



FNB FINANCIAL HIGHLIGHTS

                                                                                                                                               Year ended 30 June

R million                                                                                                                                  2018          2017        % change

Normalised earnings                                                                                                                      14 877        12 801              16
Normalised profit before tax                                                                                                             21 416        18 624              15
- South Africa                                                                                                                           20 510        17 744              16
- Rest of Africa*                                                                                                                           906           880               3
Total assets                                                                                                                            429 234       401 937               7
Total liabilities                                                                                                                       409 151       383 680               7
NPLs (%)                                                                                                                                   3.48          3.24
Credit loss ratio (%)                                                                                                                      1.11          1.20
ROE (%)                                                                                                                                    40.7          36.9
ROA (%)                                                                                                                                    3.53          3.28
Cost-to-income ratio (%)                                                                                                                   53.5          54.5
Advances margin (%)                                                                                                                        3.74          3.57

* Includes FNB's activities in India, which were discontinued in 2017. 2018 includes a once-off profit in FNB India.



SEGMENT RESULTS

                                                                                                                                              Year ended 30 June

R million                                                                                                                                 2018          2017        % change

Normalised PBT
Retail                                                                                                                                  12 505        10 620              18
Commercial                                                                                                                               8 005         7 124              12
Rest of Africa                                                                                                                             906           880               3
Total FNB                                                                                                                               21 416        18 624              15



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's rest of Africa portfolio represents a mix of mature businesses with significant scale and market share (Namibia, Botswana and Swaziland), combined with recently
established (sub-scale) and start-up businesses, such as Mozambique, Zambia, Tanzania and Ghana. Whilst the portfolio has shown some recovery in the year under
review, with losses reducing in the start-up subsidiaries, its performance continues to be impacted by increased credit impairments and continued investment in the
organic build-out strategies.

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                                                                                                                                               16              3
Cost increase*                                                                                                                                            8              2
Advances growth                                                                                                                                           8              1
Deposit growth                                                                                                                                           10              4
NPLs                                                                                                                                                   3.12           6.33
Credit loss ratio                                                                                                                                      1.00           2.00
Cost-to-income ratio                                                                                                                                   51.2           70.6
Operating jaws                                                                                                                                          1.9            1.6

* Rest of Africa cost increase benefited from a reduction in FNB India operating expenses as these activities were discontinued in 2017. Excluding this, rest of Africa
  costs increased 6%.


Despite the negative endowment impact of the 25 bps cuts in the repo rate in July 2017 and March 2018, FNB's NII increased 8%, driven by strong volume growth in
both advances (+7%) and deposits (+9%).

FNB's focus on customer acquisition and cross-selling into its core transactional retail and commercial customer bases continues to be the main driver of both advances
and deposits growth in the premium and commercial segments.

The table below unpacks the growth in advances and deposits on a segment basis. FNB's success in growing its deposit franchise, particularly in retail, continues to be
driven by cross-sell and product innovation.


SEGMENT ANALYSIS OF ADVANCES AND DEPOSIT GROWTH

                                                                                                                         Deposit growth            Advances growth

Segments                                                                                                                    %     R billion             %      R billion

Retail                                                                                                                     12          24.3             7           16.6
- Consumer                                                                                                                  5           4.1             3            1.1
- Premium                                                                                                                  16          20.2             7           15.5
Commercial                                                                                                                  7          14.4            12            9.8
FNB Africa                                                                                                                  4           1.3             1            0.4
Total FNB                                                                                                                   9          40.0             7           26.8


The mix of FNB's advances growth reflects its targeted, segment-specific origination strategies. Growth in the premium segment was driven by unsecured lending
origination, whilst the consumer segment experienced ongoing strong demand in affordable housing. Commercial continued to benefit from strong cross-sell momentum
and focused asset growth.

The tables below unpack advances at a product level per segment.

                                                                                                                                                Consumer
                                                                                                                                                Advances

R million                                                                                                                             2018          2017        % change

Residential mortgages                                                                                                               24 583        22 480               9
Card                                                                                                                                 9 056         9 211              (2)
Personal loans                                                                                                                       7 024         7 419              (5)
Retail other                                                                                                                         2 788         3 199             (13)


                                                                                                                                                 Premium
                                                                                                                                                Advances

R million                                                                                                                             2018          2017        % change

Residential mortgages                                                                                                              180 386       173 018               4
Card                                                                                                                                18 084        14 589              24
Personal loans                                                                                                                      10 137         6 953              46
Retail other                                                                                                                        13 064        11 664              12


                                                                                                                                               Commercial

R million                                                                                                                             2018          2017        % change

Advances                                                                                                                            93 987        84 146              12


The strength and quality of FNB's transactional franchise is clearly demonstrated in the strong NIR growth of 10% resulting from good growth in customers (total up 4%
to 8.15 million) and transaction volumes. Customer growth per segment is shown in the table below.


CUSTOMERS

                                                                                                                                                            Year-on-year
                                                                                                                                                                  growth

                                                                                                                                                                Customer
                                                                                                                                                                 numbers
Customer segment                                                                                                                                                       %

Consumer                                                                                                                                                               3
Premium                                                                                                                                                               17
Commercial                                                                                                                                                             2


Premium's NIR growth of 14% reflects customer acquisition, transactional volumes and the first-time inclusion of the wealth and investment management (WIM) activities.
The benefits of the product rationalisation and pricing actions taken last year are clearly showing up in the 7% increase in consumer's NIR. 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                                                                                                            2018          2017         % change

ATM/ADT                                                                                                                           243 023       232 310                5
Internet banking                                                                                                                  205 200       214 701               (4)
Banking app                                                                                                                       164 018        99 410               65
Mobile (excluding prepaid)                                                                                                         43 716        43 818                -
Point of sale merchants                                                                                                           496 673       429 715               16
Card swipes                                                                                                                       785 405       698 698               12


Cost growth is well controlled but continues to trend above inflation at 7%, mainly due to continued investment in diversification strategies and expansion in the rest of
Africa. The domestic cost-to-income ratio improved to 51.2% (2017: 52.1%).

Whilst FNB's overall bad debt charge was marginally lower (R120 million), NPLs increased year-on-year (+15%), with the South African retail books tracking well within
expectations at this point in the cycle. This reflects the quality of new business written, appropriate pricing strategies, the positive effect of cutbacks in higher risk
origination buckets in prior periods and active collection strategies. NPL formation in the commercial book and FNB card are ticking up, as expected, given previous book
growth and some residual pressure in the agricultural sector due to the drought. There was some cyclical normalisation in residential mortgage NPLs, which increased
11%, but this was expected given the low levels in previous years. Overall provisioning levels and overlays have increased.

Insurance revenue increased 8%, benefiting from good volume growth of 20% and 8% in funeral and credit life policies, respectively.

As disclosed previously, from 1 July 2017 the WIM activities were transferred from Ashburton Investments to FNB. Total WIM assets increased 8% to R245 billion at year
end. Collective investment scheme (CIS) funds were launched to the FNB customer base (branded FNB Horizon) in July 2016.

During the current investment cycle, customers opted for lower risk, fixed income funds which resulted in FNB Horizon AUM declining 1% to R3.6 billion, whilst the
Ashburton Stable Income fund grew from R3.6 billion to R5.6 billion over the same period. Share trading and stockbroking assets under execution (AUE) reduced 3% to
R70.7 billion driven mainly by market decline, however, brokerage revenues showed good growth with trade values for the year up 7% to R23 billion.

Assets under administration on the LISP platform increased from R16 billion to R19 billion, and customers on the platform increased to 28 070 with sales through banker
channels now enabled via phase 1 of robo-advice. Trust assets under administration also showed good growth from R34 billion to R38 billion, particularly in the
philanthropy trust offering. Private client-managed share portfolio AUM grew 22% to R47 billion, including good growth in offshore portfolio management. Assets under
advice increased from R61 billion to R67 billion, including net inflows of R5 billion for the year.



WIM ASSETS

R million                                                                                                                                 2018          2017       % change

FNB Horizon Series AUM                                                                                                                   3 588         3 629             (1)
Assets under advice                                                                                                                     66 812        60 811             10
Assets under administration                                                                                                             19 234        15 912             21
Trust assets under administration                                                                                                       37 906        34 318             10
Assets under management                                                                                                                 46 775        38 396             22
Assets under execution                                                                                                                  70 693        73 081             (3)
Total WIM assets                                                                                                                       245 008       226 147              8



RMB

RMB represents the group's activities in the corporate and investment banking segments in South Africa, the broader African continent and India. The strategy leverages
an entrenched origination franchise, a growing market-making and distribution product offering, and a strong private equity track record to ensure delivery of an
integrated corporate and investment banking (CIB) value proposition to corporate and institutional clients. This diversified business portfolio, coupled with a disciplined
approach to balancing risk, return and growth is designed to deliver sustainable earnings, balance sheet resilience and market-leading returns.



RMB FINANCIAL HIGHLIGHTS

                                                                                                                                              Year ended 30 June

R million                                                                                                                                 2018          2017          % change

Normalised earnings                                                                                                                      7 327         6 918                 6
Normalised profit before tax                                                                                                            10 350         9 781                 6
- South Africa and other                                                                                                                 8 629         8 466                 2
- Rest of Africa*                                                                                                                        1 721         1 315                31
Total assets                                                                                                                           453 084       432 652                 5
Total liabilities                                                                                                                      442 516       420 983                 5
NPLs (%)                                                                                                                                  0.85          0.62
Credit loss ratio (%)                                                                                                                     0.08          0.20
ROE (%)                                                                                                                                   25.3          25.8
ROA (%)                                                                                                                                   1.64          1.61
Cost-to-income ratio (%)                                                                                                                  44.0          43.4

* Includes in-country and cross-border activities.


RMB's diversified portfolio delivered a solid performance, with pre-tax profits increasing 6% to R10.4 billion. The ROE of 25.3% was underpinned by RMB's high quality
earnings and solid operational leverage. RMB remains disciplined in its financial resource allocation to ensure preservation of returns and has maintained strong credit
provisioning levels.

Notwithstanding the difficult operating environment, which included sovereign rating downgrades, RMB's continued focus on growing the group's corporate and
institutional client base and revenue pools underpinned the performance of the South African portfolio with strong contributions from investment banking and advisory
activities, and solid corporate and transactional banking earnings. In addition, excellent cost discipline enabled continued investment into the enhancement of core
platforms.

The rest of Africa portfolio remains key to RMB's strategy. It produced pre-tax profits of R1.7 billion, up 31% on the prior year and now contributes 17% (2017: 13%) to
RMB's overall pre-tax profits. This performance was supported by strong corporate and transactional banking and flow trading activities, combined with credit impairment
overlay releases given the improvement in the oil and gas sector. RMB continues to execute on its client-led strategy on the continent by leveraging platforms, expertise
and diversified product offerings.



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                                               Year ended 30 June

R million                                                                                                                                   2018          2017      % change

Investment banking and advisory                                                                                                            4 391         3 630            21
Corporate and transactional banking                                                                                                        1 861         1 731             8
Markets and structuring                                                                                                                    1 532         1 598            (4)
Investing                                                                                                                                  2 507         2 837           (12)
Investment management                                                                                                                         21            29           (28)
Other                                                                                                                                         38           (44)        (>100)
Total RMB                                                                                                                                 10 350         9 781             6


The investment banking and advisory activities delivered strong growth in an environment characterised by tough credit markets and low economic growth. This
performance was underpinned by new deal origination, solid lending income and resilient fee income due to client mandates requiring advisory, capital markets and
structuring activities, and lower credit impairments.

RMB's corporate and transactional franchise continued to focus on leveraging its platforms to grow product offerings locally and in the rest of Africa. This resulted in
higher transactional volumes and average deposit balances in the rest of Africa. In addition, increased demand for working capital solutions supported performance.

Markets and structuring activities faced a difficult local operating environment, which resulted in reduced appetite from large clients. The performance was further
impacted by a weaker result in the credit trading portfolio and an isolated operational event in the hard commodities portfolio. This was partially offset by a robust fixed
income and foreign exchange performance, with the latter generating strong growth in Nigeria.

Investing activities produced satisfactory results off a high base, supported by realisations in the private equity portfolio. Given the macroeconomic environment and the
significant realisations in prior periods, annuity earnings have come under pressure. The quality and diversity of the Ventures and Corvest portfolios are, however, still
reflected in the strong unrealised value which has been maintained at R3.7 billion. The business remains in an investment cycle and, during the year, several additional
acquisitions were made which will contribute to earnings growth in future periods.

Other activities benefited from the reduction in losses in the legacy portfolios and higher endowment earned on capital invested, together with continued investment into
the group's markets infrastructure platform.



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 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 ended 30 June

R million                                                                                                                                   2018          2017      % change

Normalised earnings                                                                                                                        3 626         3 996            (9)
Normalised profit before tax                                                                                                               5 130         5 612            (9)
Total assets                                                                                                                             228 433       214 222             7
Total liabilities                                                                                                                        221 953       207 809             7
NPLs (%)                                                                                                                                    4.41          3.80
Credit loss ratio (%)                                                                                                                       1.93          1.68
ROE (%)                                                                                                                                     17.4          20.0
ROA (%)                                                                                                                                     1.61          1.87
Cost-to-income ratio (%)                                                                                                                    42.2          40.2
Net interest margin (%)                                                                                                                     4.95          4.93


WesBank's total pre-tax profits declined 9%, and the business delivered an ROE of 17.4% and an ROA of 1.6%. The domestic personal loans and corporate lending
businesses showed strong operational performances. MotoNovo's profits decreased 15% in pound terms. The local VAF business had a challenging year, and in the face
of increasing competition, has focused on protecting its origination franchise and return profile through disciplined pricing. Its operating model and relationships
strengthened with new partnerships secured with Isuzu, Mahindra, Haval and Opel.

The table below shows the performance of WesBank's various activities year-on-year.



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                                              Year ended 30 June

R million                                                                                                                                 2018          2017       % change

Normalised PBT
VAF                                                                                                                                      3 662         4 192            (13)
- Retail SA*                                                                                                                             2 235         2 658            (16)
- MotoNovo**                                                                                                                             1 019         1 190            (14)
- Corporate and commercial                                                                                                                 408           344             19
Personal loans                                                                                                                           1 473         1 352              9
Rest of Africa                                                                                                                              (5)           68          (>100)
Total WesBank                                                                                                                            5 130         5 612             (9)

* Includes MotoVantage.
** Normalised PBT for MotoNovo down 15% to £59 million.

The performance of the SA VAF business was impacted by increased impairment levels, up from 1.54% in the prior year to 1.88%. The credit performance reflects some
specific issues in the vehicle finance sector, such as increasing later stage arrears and NPL levels. Overall NPLs continued to be impacted by lengthening recovery
timelines and more customers opting for court orders for repossessions.

As explained at the half year, higher than expected NPLs in the self-employed and small business segments resulted from operational issues with some scorecards,
including third-party data quality, and this issue continued to play out in the second half.

SA VAF was further impacted by margin pressure, partly due to increased competitive activity and WesBank's current focus on originating lower-risk business, which is
generally written at lower margins.

WesBank's personal loans business performed well on the back of strong advances growth of 10% year-on-year. Growth was achieved through optimisation of direct
marketing channels and streamlining approval processes. Margins have stabilised post the NCAA rate caps and targeted risk cuts, and the impairment ratio has increased
to 8.20% (2017: 7.91%), in line with expectations. NPLs in the personal loans portfolio have increased due to a lengthening in write-off period in anticipation of the
adoption of IFRS 9. Similar impairment increases and higher provisions also impacted associate earnings.

The local corporate business posted a strong operational performance, albeit off a low base and despite a general slowdown in the sectors served. Volumes have grown
strongly in the SME and business segment due to greater collaboration with FNB commercial. Impairments reduced 28% year-on-year on the back of a 5% improvement
in NPLs.

MotoNovo's performance was impacted primarily by increased investment spend, margin pressure and rising credit impairments.

The lending margin pressure resulted from competitors benefiting from lower cost of funding. In addition, MotoNovo incurred costs related to building the online platform
(findandfundmycar.com) and experienced some strain in the personal loans book due to its previous strategy of diversification.

FirstRand believes that some of these pressures will be alleviated when MotoNovo is integrated into Aldermore as it will no longer be disadvantaged from a cost of funds
perspective and will not require further investment in diversification strategies given the mix of the Aldermore portfolio.

The MotoNovo credit performance is in line with expectations, particularly following a number of years of strong book growth. The business has taken specific actions
regarding origination; these actions included targeted risk cuts and termination of certain origination relationships, which were resulting in higher risk new business. These
actions also resulted in MotoNovo's new business production contracting 4% in pound terms (7% in rand terms). Increased NPLs and ongoing prudent provisioning
resulted in an increase in the pound impairment ratio of 1.56% for the year under review (2017: 1.46%).

Total WesBank NIR growth continues to largely track growth in new units, which declined year-on-year and reflects subdued insurance revenues. Other NIR decreased as
a result of the sale of RentWorks in November 2017, and the prior year also included a once-off credit of R68 million relating to the release of certain reserves. Excluding
the effect of this, NIR increased 6% year-on-year.

WesBank continues to control operational expenditure and improve efficiencies. Its cost-to-income ratio has, however, increased mainly due to increased investment.



ALDERMORE

Aldermore is a UK specialist lender and savings bank, which has grown significantly on the back of a clear strategy to offer simple financial products and solutions to
meet the needs of underserved small and medium-sized enterprises (SMEs), as well as homeowners, professional landlords and savers. At 30 June 2018, Aldermore had
238 000 customers with assets of £10.4 billion and £7.8 billion of customer deposits.

Aldermore focuses on specialist lending across five areas: asset finance, invoice finance, SME commercial mortgages, residential mortgages and buy-to-let. It is funded
primarily by deposits from UK savers. With no branch network, it serves customers and intermediary partners online, by phone and face-to-face through a network of nine
regional offices located around the UK.

Aldermore's commitment to exceptional service, total transparency and its vision to deliver "banking as it should be" has resulted in a genuinely differentiated customer
proposition.

A detailed strategic rationale for the group's acquisition of Aldermore was outlined in the group's announcement of interim results for the six months to December 2017.
The acquisition became effective on 1 April 2018 and the group's performance for the year to June 2018 includes three months' profit contribution from Aldermore.


ALDERMORE FINANCIAL HIGHLIGHTS

                                                                                                                                                 Three months
                                                                                                                                                 ended 30 June

                                                                                                                                               2018          2018
                                                                                                                                          R million     £ million

Normalised earnings*                                                                                                                            276            16
Normalised profit before tax                                                                                                                    549            32
Total assets                                                                                                                                189 867        10 446
Total liabilities                                                                                                                           176 089         9 688
NPLs (%)                                                                                                                                       0.38          0.38
Credit loss ratio (%)                                                                                                                          0.12          0.13
ROE (%)                                                                                                                                        12.1          12.9
ROA (%)                                                                                                                                        0.80          0.84
Cost-to-income ratio (%)                                                                                                                       52.5          52.5
Advances margin (%)                                                                                                                            3.15          3.15

* After the dividend on the contingent convertible securities (AT1) of R115 million.



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                                                 Three months
                                                                                                                                                 ended 30 June

                                                                                                                                               2018          2018
                                                                                                                                          R million     £ million
Normalised PBT
Asset finance                                                                                                                                   220            13
Invoice finance                                                                                                                                  54             3
SME commercial mortgages                                                                                                                        160             9
Buy-to-let mortgages                                                                                                                            433            25
Residential mortgages                                                                                                                           154             9
Central functions                                                                                                                              (472)          (27)
Total Aldermore                                                                                                                                 549            32


On Thursday, 6 September 2018, Aldermore announces results for the 18 months to June 2018 and these can be accessed on https://investors.aldermore.co.uk. In this
period, Aldermore delivered a strong operational performance, characterised by:

-    advances growth of 20% to £9 billion;
-    deposits of £7.8 billion, up 17%;
-    statutory PBT of £195 million;
-    ROE of 13.5%;
-    NII of £430 million;
-    net interest margin of 3.48%, in line with prior period;
-    cost-to-income ratio of 53.7% (46.0% excluding the impact of deal fees, integration cost and impairment of intangible assets); and
-    credit loss ratio of 16 bps, in line with expectations.


ADDITIONAL INFORMATION - ALDERMORE

                                                                Three months ended
                                                                   30 June 2018*

                                                            R million          £ million

Net interest income before impairment of advances              1 224                  71
Impairment charge                                                (46)                 (3)
Net interest income after impairment of advances               1 178                  68
Non-interest revenue                                             118                   7
Income from operations                                         1 296                  75
Operating expenses                                              (706)                (41)
Net income from operations                                       590                  34
Share of profit of associates and joint ventures after tax         2                   -
Income before tax                                                592                  34
Indirect tax                                                     (43)                 (2)
Profit before tax                                                549                  32
Income tax expense                                              (158)                 (9)
Profit for the year                                              391                  23
Contingent convertible securities (AT1)                         (115)                 (7)
Earnings attributable to ordinary shareholders                   276                  16
Cost-to-income ratio (%)                                        52.5                52.6
Diversity ratio (%)                                              8.9                 9.0
Credit loss ratio (%)                                           0.12                0.13
NPLs as a percentage of advances (%)                            0.38                0.38
Consolidated statement of financial position includes
Advances (after ISP - before impairments)                    163 876               9 016
- Normal advances                                            162 001               8 913
- Securitised advances                                         1 875                 103
NPLs net of ISP                                                  616                  34
Investments in associates                                         92                   5
Total deposits                                               173 178               9 528
Total assets                                                 189 867              10 446
Total liabilities                                            176 089               9 688
Capital expenditure                                                1                   -

* Aldermore acquisition date 1 April 2018.


ALDERMORE STATEMENT OF FINANCIAL POSITION
as at 30 June 2018


                                                                                                                                            R million             £ million
ASSETS
Cash and cash equivalents                                                                                                                      11 001                   605
Derivative financial instruments                                                                                                                  413                    23
Investment securities                                                                                                                          14 402                   792
Advances                                                                                                                                      163 417                 8 991
- Gross advances                                                                                                                              163 876                 9 016
- Impairment of advances                                                                                                                         (459)                  (25)
Accounts receivable                                                                                                                               171                    10
Investments in associates                                                                                                                          92                     5
Property and equipment                                                                                                                             67                     4
Intangible assets                                                                                                                                 262                    14
Deferred income tax asset                                                                                                                          42                     2
Total assets                                                                                                                                  189 867                10 446
EQUITY AND LIABILITIES
Liabilities
Derivative financial instruments                                                                                                                  304                    17
Creditors, accruals and provisions                                                                                                              1 304                    72
Current tax liability                                                                                                                             106                     5
Deposits                                                                                                                                      173 178                 9 528
Employee liabilities                                                                                                                               88                     5
Tier 2 liabilities                                                                                                                              1 099                    60
Deferred income tax liability                                                                                                                      10                     1
Total liabilities                                                                                                                             176 089                 9 688
Equity
Ordinary shares                                                                                                                                   582                    35
Share premium                                                                                                                                   1 240                    74
Reserves                                                                                                                                       10 722                   575
Capital and reserves attributable to ordinary equityholders                                                                                    12 544                   684
Contingent convertible securities (AT1)                                                                                                         1 234                    74
Capital and reserves attributable to equityholders of the group                                                                                13 778                   758
Non-controlling interests                                                                                                                           -                     -
Total equity                                                                                                                                   13 778                   758
Total equity and liabilities                                                                                                                  189 867                10 446



ASHBURTON INVESTMENTS

The asset management activities of the group are represented by Ashburton Investments (Ashburton).

Ashburton was launched in 2013 as part of FirstRand's strategy to access broader financial services profit pools.

The group's strategy is to disrupt in alternative investments as regulatory changes have allowed institutions to invest in private market and alternative assets. The group's
track record in origination and structuring presents investors with opportunities to participate in private equity, renewable energy and credit investments (including
investment grade, non-investment grade and mezzanine credit).

Ashburton's portfolio also consists of a traditional range of equity, fixed income and multi-asset funds. Its long-standing international offshore multi-asset range has
recently been strengthened through an investment partnership with Fidelity International. This range is well positioned for South African investors looking to diversify into
international markets.

Ashburton Investments grew AUM 7.5% year-on-year to R102 billion. This AUM growth was driven by good flows into the fixed income range due to the market cycle and
the strong performance in this range. The private markets business continues to deliver flows on the back of winning new mandates.

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


SEGMENT ANALYSIS OF NORMALISED EARNINGS

                                                                                                                Year ended 30 June

R million                                                                       2018         % composition                 2017          % composition              % change

Retail                                                                        12 445                    47               11 394                     47                     9
- FNB*                                                                         9 113                                      7 672
- WesBank*                                                                     3 332                                      3 722
Commercial                                                                     6 058                    23                5 403                     22                    12
- FNB                                                                          5 764                                      5 129
- WesBank                                                                        294                                        274
Corporate and investment banking                                               7 327                    28                6 918                     28                     6
- RMB*                                                                         7 327                                      6 918
Aldermore**                                                                      276                     1                    -                      -                     -
Other                                                                            305                     1                  756                      3                   (60)
- FCC (including Group Treasury) and consolidation
adjustments                                                                      656                                      1 112
- NCNR preference dividend                                                      (351)                                      (356)

Normalised earnings                                                           26 411                   100               24 471                    100                     8

*  Includes rest of Africa.
** After the dividend on the contingent convertible securities (AT1) of R115 million.



MANAGEMENT OF FINANCIAL RESOURCES

The management of the group's financial resources, which it defines as capital, funding and liquidity, and risk capacity, is a critical enabler of 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.

The management of the group's financial resources is executed through Group Treasury and is independent of the operating businesses. This ensures the required level
of discipline is applied in the allocation and pricing of financial 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.



BALANCE SHEET STRENGTH

Capital and leverage position

Current targeted ranges and actual ratios are summarised below.

                                                                                                                                     Capital                       Leverage

%                                                                                                                         CET1         Tier 1            Total         Total

Regulatory minimum*                                                                                                        7.5            9.0             11.2           4.0
Targets                                                                                                            10.0 - 11.0          >12.0            >14.0          >5.0
Actual**                                                                                                                  11.5           12.1             14.7           7.1

*  Excluding the bank-specific capital requirements, but including the countercyclical buffer requirement.
** Includes unappropriated profits.

The year-on-year reduction in the group's CET1 ratio of 280 bps resulted from:
The acquisition of Aldermore, which was funded from the group's existing cash resources, and reduced the group's CET1 ratio by 240 bps:

-    impairment of goodwill and intangibles (R8.3 billion); and
-    consolidation of Aldermore's RWA without a commensurate increase in the capital base, as the Aldermore's purchased equity is eliminated at a group level.


The local currency sovereign downgrade, contributing 3% to RWA growth or a 20 bps reduction in the CET1 ratio.

Higher than expected RWA growth of 10% which resulted in a net consumption of capital. This RWA growth tracked the increase in total assets and was driven by the
following:

-    significant advances growth late in the financial year on the back of certain RMB transactions;
-    increased high quality liquid assets (HQLA) in Group Treasury and certain securitisation structures; and
-    strong growth in unsecured lending in FNB's premium segment.

Following the Aldermore acquisition, the group has continued to operate well above its stated capital targets. Post-acquisition earnings from Aldermore added 20 bps to
the group's ROE.

The capitalisation of the underlying regulated entities did not change materially, and the standalone capitalisation of all regulated entities remained strong, particularly
FirstRand Bank Limited, which reported a CET1 ratio of 12.7%.

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, and 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, as well
as $500 million in international markets during the year. 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 issuing Additional Tier 1 and Tier 2 capital instruments in the domestic and/or international
markets. This will ensure sustainable support for ongoing growth initiatives and compensates for the haircut applied to capital instruments that 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 and geographies, 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 the group's pool
of HQLA that are available as protection against unexpected stress events or market disruptions as well as to facilitate the variable liquidity needs of the operating
businesses. The composition and quantum of 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 90% (2017: 80%) minimum liquidity coverage ratio (LCR) requirement set out by the SARB with the group's average LCR at 115% (2017: 97%).
FirstRand Bank's average LCR was 118% (2017: 105%). At 30 June 2018, the group's average available HQLA sources of liquidity per the LCR amounted to R203
billion, up from R165 billion in the prior year.

The net stable funding ratio (NSFR) came into effect on 1 January 2018 with a regulatory requirement of 100%. At 30 June 2018, the group's NSFR was 112%, whilst
FirstRand Bank's NSFR was 111%.



REGULATORY UPDATE

The South African regulatory architecture has been transformed to create a regulatory framework that will support an effective resolution regime. The Financial Sector
Regulation Act was signed into law during August 2017 and underpins the twin peaks regulatory system.

The twin peaks supervisory framework model reduces the number of agencies involved in supervision, with the establishment of two new regulatory agencies on 1 April
2018: the Prudential Authority (PA) in the SARB and a Financial Sector Conduct Authority (FSCA). Whilst the PA/SARB is responsible for monitoring and enhancing financial
stability as part of its explicit financial stability mandate, the SARB will also be responsible for assisting with the prevention of systemic events by means of its designation
as the Resolution Authority (RA).

In January 2018, a draft resolution framework was released to the banking industry for initial review following which it will be released to the public for general comment.
This draft framework sets out the broad principles for the resolution of banks, systemically important non-bank financial institutions and holding companies of banks, and
highlights the various legislative amendments required to ensure the framework is enforceable. Detailed definitions of key elements of the resolution framework are
subject to finalisation, and directives or addendums to this framework will be published once finalised. The resolution plans will allow the PA to prepare for an event from
which the group's recovery actions have failed or are deemed likely to fail. Bank resolution plans will be owned and maintained by the RA, but will require a significant
amount of bilateral engagement and input from the individual banks to enable the RA to develop a customised plan that is most appropriate to each bank.

The Financial Sector Regulation Act further empowers the PA to designate a group of companies as a financial conglomerate as well as to regulate and supervise such
designated financial conglomerates. The PA has released the following:

-    draft set of financial conglomerate supervision prudential standards;
-    draft criteria for the designation of financial conglomerates, and
-    draft reporting template for an informal consultation process with the industry.


The draft standards provide an early signal to the industry and affected stakeholders on the approach to the regulation and supervision of designated financial
conglomerates. Comments were due by the end of August 2018 and standards are expected to be implemented during the first half of 2019.

In addition, the Basel Committee on Banking Supervision (BCBS) finalised the Basel III reforms in December 2017, with specific focus on reducing the variability of risk
weighted assets. The BCBS has agreed on a lengthy five-year transitional period, starting 1 January 2022. The PA has confirmed a similar transitional period for banks in
South Africa. The 2017 reforms aim to address weaknesses identified during the global financial crisis, such as the credibility of the risk-based capital framework and to
introduce constraints on the estimates banks use in the internal models for regulatory capital purposes. The impact on the group capital position depends on the final
implementation by the SARB given a level of national discretion, however, the group continues to participate in the BCBS quantitative impact studies to assess and
understand the impact of such reforms. Based on the Basel guidelines, the group is expected to comfortably meet these requirements over the transitional period.



IFRS 9 AND IFRS 15

The group adopted IFRS 9 and IFRS 15, retrospectively, with effect from 1 July 2018. The IFRS 9 programme is at present in the process of final internal approval and
external audit validation.

The group will provide detailed audited transitional disclosure regarding the impact of the adoption of IFRS 9 and IFRS 15 during November 2018.

At present, the group believes the impact of adopting IFRS 9 and IFRS 15 will reduce the group's CET 1 ratio at 30 June 2018 by between 47 and 57 bps, on a fully
loaded basis.



DIVIDEND STRATEGY

Given the group's high return profile and strong capital generation, the board remains comfortable with a dividend cover of 1.7x which continues to track below its stated
long-term cover range of 1.8x to 2.2x.

As previously communicated, however, should capital demand increase to support sustainable balance sheet growth, the board will revisit whether it should migrate back
into the stated long-term cover range.



PROSPECTS

Following the outcome of the ANC elective conference in December 2017 sentiment and markets staged a recovery and the outlook for South Africa remains more
positive than it has been for some time. Given, however, the structural nature of many of South Africa's challenges the group believes that domestic fundamentals will not
change quickly.

Global financial conditions will prevent the SARB from easing monetary policy despite the low growth outlook. This, combined with lower commodity prices and prospects
of a slowdown in global growth next year, means that domestic economic activity will remain subdued in 2019. Against this backdrop, private sector activities such as
corporate investment and household consumption will most likely remain under pressure.

In the medium to longer term, given the market leading positions of its businesses in South Africa and the growth strategies it is executing on, FirstRand considers itself
strategically well positioned to benefit from renewed system growth. FNB's momentum is expected to continue on the back of customer and volume growth, and
cross-sell and up-sell strategies will deliver higher insurance revenues and good deposit and advances growth. RMB's private equity realisations are expected to be lower
in the current year compared to previous financial years.

With regard to the rest of Africa, there are signs that economic activity in most of the other sub-Saharan African countries that FirstRand operates in are picking
up. The Nigerian economy is experiencing an oil price-induced lift and growth rates in Namibia and Botswana are also expected to improve. The group expects its
portfolio to continue to show an improved performance.

In the UK, uncertainty over the outcome of Brexit continues to dominate the macroeconomic outlook and will continue to weigh on business and consumer confidence,
which in turn will suppress investment spending to a certain degree. These ongoing headwinds were all anticipated when FirstRand acquired Aldermore and, as indicated
previously, the group expects the growth trajectory to slow relative to the previous year, owing to competitive margin pressure and normalisation of credit costs.

The group expects to continue to deliver real growth in earnings and superior returns to shareholders.



EVENTS AFTER REPORTING PERIOD

DISCOVERY CARD

Subsequent to the year end, the group concluded a transaction with Discovery, through the issuance of preference shares, for the ultimate transfer and disposal of its
remaining effective 25.01% interest in Discovery Card and Discovery Bank, respectively. The consideration of this transaction is R1.8 billion, which together with the
preference share issuance of R1.3 billion in 2016, results in a total value unlock for FirstRand shareholders of approximately R3 billion. This transaction is expected to
be concluded during the financial year ending 30 June 2019.

At 30 June 2018, FNB includes Discovery Card advances with a gross value of R4.3 billion which will also be transferred at carrying value.



FNB SWAZILAND

During the next financial year, a minority interest in FNB Swaziland will be offered to local investors through a listing.



BOARD CHANGES

Changes to the directorate are outlined below.

                                                                                                                             Effective date

Appointments

T Winterboer                                            Independent non-executive director                                   20 April 2018
M Vilakazi                                              COO                                                                  1 July 2018

Retirements

BJ van der Ross                                         Independent non-executive director                                   30 November 2017
JH van Greuning                                         Independent non-executive director                                   30 November 2017
LL Dippenaar                                            Chairman and non-executive director                                  31 March 2018
JP Burger                                               CEO*                                                                 31 March 2018
PM Goss                                                 Independent non-executive director                                   30 April 2018
PK Harris                                               Non-executive director                                               30 April 2018

Change in designation

WR Jardine                                              Chairman                                                             1 April 2018
JP Burger                                               Executive director                                                   1 April 2018
AP Pullinger                                            CEO                                                                  1 April 2018
JP Burger                                               Non-executive director                                               1 September 2018
JJ Durand                                               Alternate non-executive director                                     3 September 2018

* JP Burger retired as CEO effective 31 March 2018. He remained an executive director until 31 August 2018 and became a non-executive director on 1 September 2018.



CASH DIVIDEND DECLARATIONS

DIVIDENDS

ORDINARY SHARES

The directors declared a gross cash dividend totalling 275 cents per ordinary share out of income reserves for the year ended 30 June 2018.

                                                                                                                                                    Year ended 30 June

Cents per share                                                                                                                                     2018           2017

Interim (declared 5 March 2018)                                                                                                                    130.0          119.0
Final (declared 5 September 2018)                                                                                                                  145.0          136.0
                                                                                                                                                   275.0          255.0


The salient dates for the final dividend are as follows:

Last day to trade cum-dividend                                                                                                                    Tuesday 2 October 2018
Shares commence trading ex-dividend                                                                                                             Wednesday 3 October 2018
Record date                                                                                                                                        Friday 5 October 2018
Payment date                                                                                                                                       Monday 8 October 2018


Share certificates may not be dematerialised or rematerialised between Wednesday 3 October 2018 and Friday 5 October 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 final dividend after deducting 20% tax will be 116.00000 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:

30 August 2016 - 27 February 2017                                                                                                                                  395.6
28 February 2017 - 28 August 2017                                                                                                                                  393.6
29 August 2017 - 26 February 2018                                                                                                                                  386.2
27 February 2018 - 27 August 2018                                                                                                                                  378.3



WR JARDINE                                                 AP PULLINGER                                           C LOW
Chairman                                                   CEO                                                    Company secretary


5 September 2018


STATEMENT OF HEADLINE EARNINGS - IFRS (AUDITED)
for the year ended 30 June


R million                                                                                                                  2018                 2017             % change

Profit for the year                                                                                                      28 144               26 139                    8
Contingent convertible securities (AT1)                                                                                    (115)                   -                    -
NCNR preference shareholders                                                                                               (351)                (356)                  (1)
Non-controlling interests                                                                                                (1 132)              (1 211)                  (7)
Earnings attributable to ordinary equityholders                                                                          26 546               24 572                    8
Adjusted for:                                                                                                               (37)                (810)                 (95)
Gain on disposal of investment securities of a capital nature                                                               (29)                  (3)
Loss/(gain) on disposal of available-for-sale assets                                                                         91                  (52)
Loss on disposal of non-private equity associates                                                                             -                    5
Impairment of non-private equity associates                                                                                   -                    4
Gain on disposal of investments in subsidiaries                                                                             (97)              (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                                                                           (63)                  14
Fair value movement on investment properties                                                                                (29)                   -
Transfer from foreign currency translation reserve                                                                          108                    -
Impairment of goodwill                                                                                                       12                  119
Impairment of assets in terms of IAS 36                                                                                      41                  370
Gain from a bargain purchase                                                                                                (42)                   -
Property-related insurance recovery                                                                                         (31)                   -
Tax effects of adjustments                                                                                                    -                   26
Non-controlling interests adjustments                                                                                         2                  429

Headline earnings                                                                                                        26 509               23 762                   12



RECONCILIATION FROM HEADLINE TO NORMALISED EARNINGS
for the year ended 30 June

R million                                                                                                                  2018                 2017             % change

Headline earnings                                                                                                        26 509               23 762                   12
Adjusted for:                                                                                                               (98)                 709                (>100)
TRS and IFRS 2 liability remeasurement*                                                                                     (54)                 (63)
Treasury shares**                                                                                                            18                  (12)
IAS 19 adjustment                                                                                                          (109)                (117)
Private equity-related realisations#                                                                                         47                  901

Normalised earnings                                                                                                      26 411               24 471                    8

*   The group uses a total return swap (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 year, FirstRand's share price increased R16.74 and during the prior year R2.31. This resulted in a significant mark-to-market fair value profit in the current year
    being included in the group's IFRS attributable earnings. The normalised results adjust for this year-on-year 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.



BASIS OF PRESENTATION

The summary consolidated financial statements contained in this announcement are prepared in accordance with the JSE Listings Requirements for provisional reports
and are derived from a complete set of the consolidated financial statements.

FirstRand prepares its summary consolidated financial results in accordance with:

-    the framework concepts and the recognition and measurement requirements of International Financial Reporting Standards (IFRS);
-    Financial Reporting Pronouncements as issued by Financial Reporting Standards Council;
-    SAICA Financial Reporting Guide as issued by the Accounting Practices Committee;
-    IAS 34 Interim Financial Reporting; and
-    requirements of the Companies no Act 71 of 2008, applicable to summary financial statements.


This announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34 as allowed by the JSE Listings Requirements. The provisional 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 consolidated financial statements and the summary consolidated financial statements. FirstRand's annual integrated report will be published on the
group's website, www.firstrand.co.za on or about 4 October 2018.



ACCOUNTING POLICIES

The accounting policies applied in the preparation of the consolidated financial statements from which the summary consolidated financial statements were derived, are in
terms of IFRS.

The consolidated financial statements, from which these summary consolidated financial statements are extracted, 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 accounting policies are consistent with those applied for the year ended 30 June 2017. Amendments to IAS 7 and 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 introduces additional disclosures in the statement of cash flows and notes to the annual financial statements that will enable the users of the
financial statements to evaluate changes in liabilities arising from financing activities. This amendment has been applied retrospectively on a voluntary basis 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 of these assets in line with the amendments and the adoption of these amendments had no impact on the group.



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.
Details of the nature of these adjustments and reasons thereof can be found on www.firstrand.co.za. The pro forma financial information should be read in conjunction
with the unmodified Deloitte & Touche and PricewaterhouseCoopers Inc. independent reporting accountants' report, which is available for inspection at the registered
office.



AUDITORS' REPORT

This announcement is itself not audited but is extracted from the underlying audited information.

The summary consolidated financial statements for the year ended 30 June 2018 contained in this announcement have been audited by PricewaterhouseCoopers Inc.
and Deloitte & Touche, who expressed an unmodified opinion thereon, in terms of ISA 810 (Revised).

The auditors also expressed an unmodified opinion on the financial statements from which the summary consolidated financial statements were derived. Unless the
financial information is specifically stated as audited, it should be assumed it is unaudited.

A copy of the auditors' report on the summary consolidated financial statements on the full provisional report and of the auditors' report on the consolidated financial
statements are available for inspection at FirstRand's registered office, 4 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, together with the financial
statements identified in the respective auditors' reports.

The auditors' report does not necessarily report on all of the information contained in this announcement. Shareholders are, therefore, advised, that in order to obtain a
full understanding of the nature of the auditors' engagement, they should review the auditors' report together with the accompanying financial information from the
issuer's registered office.

The forward-looking information has not been commented or reported on by the group's external auditors.

FirstRand's board of directors take full responsibility for the preparation of this announcement.


SUMMARY CONSOLIDATED INCOME STATEMENT - IFRS (AUDITED)
for the year ended 30 June

R million                                                                                            2018       2017     % change

Net interest income before impairment of advances                                                  49 098     44 917            9
Impairment and fair value of credit of advances                                                    (8 567)    (8 054)           6
Net interest income after impairment of advances                                                   40 531     36 863           10
Non-interest revenue                                                                               44 193     40 922            8
Income from operations                                                                             84 724     77 785            9
Operating expenses                                                                                (48 462)   (44 585)           9
Net income from operations                                                                         36 262     33 200            9
Share of profit of associates after tax                                                               519        757          (31)
Share of profit of joint ventures after tax                                                           390        281           39
Income before tax                                                                                  37 171     34 238            9
Indirect tax                                                                                       (1 077)    (1 081)           -
Profit before tax                                                                                  36 094     33 157            9
Income tax expense                                                                                 (7 950)    (7 018)          13
Profit for the year                                                                                28 144     26 139            8
Attributable to
Ordinary equityholders                                                                             26 546     24 572            8
Contingent convertible securities (AT1)                                                               115          -            -
NCNR preference shareholders                                                                          351        356           (1)
Equityholders of the group                                                                         27 012     24 928            8
Non-controlling interests                                                                           1 132      1 211           (7)
Profit for the year                                                                                28 144     26 139            8
Earnings per share (cents)
- Basic                                                                                             473.3      438.2            8
- Diluted                                                                                           473.3      438.2            8
Headline earnings per share (cents)
- Basic                                                                                             472.7      423.7           12
- Diluted                                                                                           472.7      423.7           12



SUMMARY CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - IFRS (AUDITED)
for the year ended 30 June

R million                                                                                            2018       2017     % change

Profit for the year                                                                                28 144     26 139            8
Items that may subsequently be reclassified to profit or loss
Cash flow hedges                                                                                      185       (150)       (>100)
Gains/(losses) arising during the year                                                                283       (141)       (>100)
Reclassification adjustments for amounts included in profit or loss                                   (26)       (67)         (61)
Deferred income tax                                                                                   (72)        58        (>100)
Available-for-sale financial assets                                                                  (650)      (282)        >100
Losses arising during the year                                                                     (1 009)      (397)        >100
Reclassification adjustments for amounts included in profit or loss                                    91        (52)       (>100)
Deferred income tax                                                                                   268        167           60
Exchange differences on translating foreign operations                                              1 175     (1 633)       (>100)
Gains/(losses) arising during the year                                                              1 175     (1 633)       (>100)
Share of other comprehensive loss of associates and joint ventures after tax and non-controlling
interests                                                                                             (72)      (157)         (54)
Items that may not subsequently be reclassified to profit or loss
Remeasurements on defined benefit post-employment plans                                                38        169          (78)
Gains arising during the year                                                                          43        241          (82)
Deferred income tax                                                                                    (5)       (72)         (93)

Other comprehensive income/(loss) for the year                                                        676     (2 053)       (>100)
Total comprehensive income for the year                                                            28 820     24 086           20
Attributable to
Ordinary equityholders                                                                             27 217     22 574           21
Contingent convertible securities (AT1)                                                               115          -            -
NCNR preference shareholders                                                                          351        356           (1)
Equityholders of the group                                                                         27 683     22 930           21
Non-controlling interests                                                                           1 137      1 156           (2)
Total comprehensive income for the year                                                            28 820     24 086           20


SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION - IFRS (AUDITED)
as at 30 June


R million                                                                   2018        2017

ASSETS
Cash and cash equivalents                                                 96 024      68 483
Derivative financial instruments                                          42 499      35 459
Commodities                                                               13 424      14 380
Investment securities                                                    208 937     167 427
Advances                                                               1 121 227     893 106
- Advances to customers                                                1 065 997     848 649
- Marketable advances                                                     55 230      44 457
Accounts receivable                                                        9 884       8 878
Current tax asset                                                            378         147
Non-current assets and disposal groups held for sale                         112         580
Reinsurance assets                                                            84          89
Investments in associates                                                  5 537       5 924
Investments in joint ventures                                              1 726       1 430
Property and equipment                                                    17 936      17 512
Intangible assets                                                         10 847       1 686
Investment properties                                                        754         399
Defined benefit post-employment asset                                         36           5
Deferred income tax asset                                                  2 884       2 202
Total assets                                                           1 532 289   1 217 707
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                    9 999      15 276
Derivative financial instruments                                          50 954      44 403
Creditors, accruals and provisions                                        19 620      17 014
Current tax liability                                                        438         277
Liabilities directly associated with disposal groups held for sale             -         195
Deposits                                                               1 267 448     983 529
Employee liabilities                                                      11 534       9 884
Other liabilities                                                          6 989       6 385
Policyholder liabilities                                                   4 593       3 795
Tier 2 liabilities                                                        28 439      18 933
Deferred income tax liability                                              1 477         832
Total liabilities                                                      1 401 491   1 100 523
Equity
Ordinary shares                                                               56          56
Share premium                                                              7 994       7 960
Reserves                                                                 112 975     100 868
Capital and reserves attributable to ordinary equityholders              121 025     108 884
Contingent convertible securities (AT1)                                    1 250           -
NCNR preference shares                                                     4 519       4 519
Capital and reserves attributable to equityholders of the group          126 794     113 403
Non-controlling interests                                                  4 004       3 781
Total equity                                                             130 798     117 184
Total equity and liabilities                                           1 532 289   1 217 707


SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS - IFRS (AUDITED)
for the year ended 30 June


R million                                                                                                                                    2018                  2017

Cash generated from operating activities
Interest and fee commission receipts                                                                                                      124 420               108 306
Trading and other income                                                                                                                    4 693                 2 857
Interest payments                                                                                                                         (40 941)              (35 285)
Other operating expenses                                                                                                                  (37 177)              (35 106)
Dividends received                                                                                                                          5 649                 5 971
Dividends paid                                                                                                                            (15 387)              (13 650)
Dividends paid to non-controlling interests                                                                                                  (923)               (1 099)
Taxation paid*                                                                                                                             (9 414)               (8 237)
Cash generated from operating activities                                                                                                   30 920                23 757
Movement in operating assets and liabilities
Liquid assets and trading securities                                                                                                      (27 540)              (24 588)
Advances                                                                                                                                  (90 785)              (59 143)
Deposits                                                                                                                                  126 565                71 085
Movement in accounts receivable and creditors                                                                                                (990)                 3262
Employee liabilities                                                                                                                       (5 220)                (5337)
Other operating liabilities                                                                                                                (3 774)                 (319)
Net cash generated from operating activities                                                                                               29 176                 8 717
Cash flows from investing activities
Acquisitions of investments in associates                                                                                                    (308)                  (98)
Proceeds on disposal of investments in associates                                                                                           2 276                    38
Acquisition of investments in joint ventures                                                                                                 (361)                  (44)
Proceeds on disposal of investments in joint ventures                                                                                           -                    17
Acquisition of investments in subsidiaries#                                                                                                (9 634)                 (257)
Proceeds on disposal of investments in subsidiaries                                                                                           212                 1 815
Acquisition of property and equipment                                                                                                      (3 577)               (4 581)
Proceeds on disposal of property and equipment                                                                                                519                   514
Acquisition of intangible assets and investment properties                                                                                   (586)                 (434)
Proceeds on disposal of intangible assets and investment properties                                                                             8                     -
Proceeds on disposal of non-current assets held for sale                                                                                      219                   170
Net cash outflow from investing activities                                                                                                (11 232)               (2 860)
Cash flows from financing activities
Proceeds from the issue of other liabilities                                                                                                1 673                   812
Redemption of other liabilities                                                                                                              (862)               (2 487)
Proceeds from the issue of Tier 2 liabilities                                                                                               9 823                 2 909
Repayment of Tier 2 liabilities                                                                                                            (1 272)               (1 968)
Acquisition of additional interest in subsidiaries from non-controlling interests                                                             (45)                 (162)
Issue of shares of additional interest in subsidiaries from non-controlling interests                                                          14                     -
Net cash inflow/(outflow) from financing activities                                                                                         9 331                  (896)
Net increase in cash and cash equivalents                                                                                                  27 275                 4 961
Cash and cash equivalents at the beginning of the year                                                                                     68 483                64 303
Effect of exchange rate changes on cash and cash equivalents                                                                                  266                  (763)
Transfer to non-current assets held for sale                                                                                                    -                   (18)
Cash and cash equivalents at the end of the year                                                                                           96 024                68 483
Mandatory reserve balances included above**                                                                                                26 303                24 749

*  In the current year taxation paid was reclassified from investment in operating assets and liabilities to cash generated from operations. The reclassification amounted
   to R8 237 million. The net impact on the prior year cash generated from operating activities was R8 237 million with a nil impact on the net cash generated from
   operating activities.
** 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.
#  Gross cash paid less cash in subsidiaries on date of acquisition.


SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - IFRS (AUDITED)
for the year ended 30 June

                                                                                                                                     Ordinary share capital and ordinary equityholders' funds
                                                                                                                                                                                                                                                            NCNR
                                                                                                                           Defined                                                                                                       Reserves     preference
                                                                                                            Share          benefit                               Share-                             Foreign                          attributable     shares and
                                                                                                          capital            post-          Cash flow             based       Available-           currency                           to ordinary     contingent          Non-
                                                                         Share            Share         and share       employment              hedge           payment         for-sale        translation      Other   Retained         equity-    convertible   controlling      Total
R million                                                              capital          premium           premium          reserve            reserve           reserve          reserve            reserve   reserves   earnings         holders     securities*    interests     equity

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                                       -                -                 -                -                  -                 -                -                  -          -          -               -              -             -          -
Proceeds from the issue of share capital                                     -                -                 -                -                  -                 -                -                  -          -          -               -              -             -          -
Share issue expenses                                                         -                -                 -                -                  -                 -                -                  -          -          -               -              -             -          -
Acquisition of subsidiaries                                                  -                -                 -                -                  -                 -                -                  -          -          -               -              -             8          8
Movement in other reserves                                                   -                -                 -                -                  -                 3                -                  -        195       (167)             31              -            81        112
Ordinary dividends                                                           -                -                 -                -                  -                 -                -                  -          -    (13 294)        (13 294)             -        (1 099)   (14 393)
Contingent convertible securities dividends                                  -                -                 -                -                  -                 -                -                  -          -          -               -              -             -          -
Preference dividends                                                         -                -                 -                -                  -                 -                -                  -          -          -               -           (356)            -       (356)
Transfer from/(to) general risk reserves                                     -                -                 -                -                  -                 -                -                  -         16        (16)              -              -             -          -
Changes in ownership interest of subsidiaries                                -                -                 -                -                  -                 -                -                  -          -       (175)           (175)             -          (166)      (341)
Movement in treasury shares                                                  -                8                 8                -                  -                 -                -                  -          -         (8)             (8)             -             -          -
Total comprehensive income for the year                                      -                -                 -              169               (150)                -             (274)            (1 620)      (123)    24 572          22 574            356         1 156     24 086
Vesting of share-based payments                                              -                -                 -                -                  -                (3)               -                  -          -          6               3              -             -          3
Balance as at 30 June 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                                       -                -                 -                -                  -                 -                -                  -          -          -               -              -            14         14
Proceeds from the issue of share capital                                     -                -                 -                -                  -                 -                -                  -          -          -               -              -            14         14
Share issue expenses                                                         -                -                 -                -                  -                 -                -                  -          -          -               -              -             -          -
Acquisition of subsidiaries                                                  -                -                 -                -                  -                 -                -                (24)         -          -             (24)         1 250           (22)     1 204
Movement in other reserves                                                   -                -                 -                -                  -                 7                -                  -        191       (226)            (28)             -            12        (16)
Ordinary dividends                                                           -                -                 -                -                  -                 -                -                  -          -    (14 921)        (14 921)             -          (923)   (15 844)
Contingent convertible securities dividends                                  -                -                 -                -                  -                 -                -                  -          -          -               -           (115)            -       (115)
Preference dividends                                                         -                -                 -                -                  -                 -                -                  -          -          -               -           (351)            -       (351)
Transfer from/(to) general risk reserves                                     -                -                 -                -                  -                 -                -                  -         18        (18)              -              -             -          -
Changes in ownership interest of subsidiaries                                -                -                 -                -                  -                 -                -                  -          -       (139)           (139)             -             5       (134)
Movement in treasury shares                                                  -               34                34                -                  -                 -                -                  -          -          2               2              -             -         36
Total comprehensive income for the year                                      -                -                 -               38                185                 -             (646)             1 166        (72)    26 546          27 217            466         1 137     28 820
Vesting of share-based payments                                              -                -                 -                -                  -               (12)               -                  -          -         12               -              -             -          -
Balance as at 30 June 2018                                                  56            7 994             8 050             (723)               343                 4           (1 361)             2 832        599    111 281         112 975          5 769         4 004    130 798

* The current amount for NCNR preference shares is R4 519 million and the contingent convertible securities (AT1) is R1 250 million.


RECONCILIATION OF NORMALISED TO IFRS SUMMARY CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2018


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

Net interest income before impairment of advances                      51 254            -          -             (2 252)           -              -              -              96     49 098
Impairment charge                                                      (8 567)           -          -                  -            -              -              -               -     (8 567)
Net interest income after impairment of advances                       42 687            -          -             (2 252)           -              -              -              96     40 531
Total non-interest revenue                                             41 926          320        (18)             2 252            -            (27)            92             557     45 102
- Operational non-interest revenue                                     41 012          320        (13)             2 252            -            (27)            92             557     44 193
- Share of profit of associates and joint ventures after tax              914            -         (5)                 -            -              -              -               -        909

Income from operations                                                 84 613          320        (18)                 -            -            (27)            92             653     85 633
Operating expenses                                                    (47 664)        (320)         -                  -          151              -           (53)            (576)   (48 462)
Income before tax                                                      36 949            -        (18)                 -          151            (27)            39              77     37 171
Indirect tax                                                           (1 077)           -          -                  -            -              -              -               -     (1 077)
Profit before tax                                                      35 872            -        (18)                 -          151            (27)            39              77     36 094
Income tax expense                                                     (7 865)           -          -                  -          (42)           (20)             -             (23)    (7 950)
Profit for the year                                                    28 007            -        (18)                 -          109            (47)            39              54     28 144
Attributable to
Contingent convertible securities (AT1)                                  (115)           -          -                  -            -              -              -               -       (115)
NCNR preference shareholders                                             (351)           -          -                  -            -              -              -               -       (351)
Non-controlling interests                                              (1 130)           -          -                  -            -              -             (2)              -     (1 132)
Ordinary equityholders of the group                                    26 411            -        (18)                 -          109            (47)            37              54     26 546
Headline and normalised earnings adjustments                                -            -         18                  -         (109)            47            (37)            (54)      (135)
Normalised earnings attributable to ordinary equityholders of the
group                                                                  26 411            -          -                  -             -             -              -               -     26 411

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS SUMMARY CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2017


                                                                                                                                                                                  TRS and
                                                                                                               Margin-related                     Private          Other           IFRS 2
                                                                                      Private                  items included                      equity       headline        liability
                                                                                       equity     Treasury      in fair value        IAS 19    subsidiary       earnings       remeasure-
R million                                                             Normalised     expenses       shares*            income    adjustment  realisations    adjustments             ment       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
Contingent convertible securities (AT1)                                        -            -            -                  -             -             -              -                -          -
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 assessment impairments.


RECONCILIATION OF NORMALISED TO IFRS SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2018


                                                                                                         Treasury
R million                                                                                  Normalised      shares*       IFRS

ASSETS
Cash and cash equivalents                                                                      96 024           -      96 024
Derivative financial instruments                                                               42 499           -      42 499
Commodities                                                                                    13 424           -      13 424
Investment securities                                                                         209 004         (67)    208 937
Advances                                                                                    1 121 227           -   1 121 227
- Advances to customers                                                                     1 065 997           -   1 065 997
- Marketable advances                                                                          55 230           -      55 230
Accounts receivable                                                                             9 884           -       9 884
Current tax asset                                                                                 378           -         378
Non-current assets and disposal groups held for sale                                              112           -         112
Reinsurance assets                                                                                 84           -          84
Investments in associates                                                                       5 537           -       5 537
Investments in joint ventures                                                                   1 680          46       1 726
Property and equipment                                                                         17 936           -      17 936
Intangible assets                                                                              10 847           -      10 847
Investment properties                                                                             754           -         754
Defined benefit post-employment asset                                                              36           -          36
Deferred income tax asset                                                                       2 884           -       2 884
Total assets                                                                                1 532 310         (21)  1 532 289
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                                         9 999           -       9 999
Derivative financial instruments                                                               50 954           -      50 954
Creditors, accruals and provisions                                                             19 620           -      19 620
Current tax liability                                                                             438           -         438
Liabilities directly associated with disposal groups held for sale                                  -           -           -
Deposits                                                                                    1 267 448           -   1 267 448
Employee liabilities                                                                           11 534           -      11 534
Other liabilities                                                                               6 989           -       6 989
Policyholder liabilities                                                                        4 593           -       4 593
Tier 2 liabilities                                                                             28 439           -      28 439
Deferred income tax liability                                                                   1 477           -       1 477
Total liabilities                                                                           1 401 491           -   1 401 491
Equity
Ordinary shares                                                                                    56           -          56
Share premium                                                                                   8 056         (62)      7 994
Reserves                                                                                      112 934          41     112 975
Capital and reserves attributable to ordinary equityholders                                   121 046         (21)    121 025
Contingent convertible securities (AT1)                                                         1 250                   1 250
NCNR preference shares                                                                          4 519           -       4 519
Capital and reserves attributable to equityholders of the group                               126 815         (21)    126 794
Non-controlling interests                                                                       4 004           -       4 004
Total equity                                                                                  130 819         (21)    130 798
Total equity and liabilities                                                                1 532 310         (21)   1 532 289

* FirstRand shares held for client trading activities.


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


                                                                                                         Treasury
R million                                                                                  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
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
Contingent convertible securities (AT1)                                                             -           -           -
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 equity and liabilities                                                                1 217 745         (38)  1 217 707

* FirstRand shares held for client trading activities.


ACQUISITION OF ALDERMORE (AUDITED)



Identifiable assets acquired and liabilities assumed at the 1 April 2018 fair value are as follows.

                                                                                                                                                            Aldermore
R million                                                                                                                                                        2018

ASSETS
Cash and cash equivalents                                                                                                                                       8 676
Derivative financial instruments                                                                                                                                  512
Accounts receivable                                                                                                                                               298
Current tax asset                                                                                                                                                   -
Advances                                                                                                                                                      147 447
Investment securities                                                                                                                                          11 922
Investments in associates                                                                                                                                          81
Property and equipment                                                                                                                                             68
Deferred income tax asset                                                                                                                                          58
Intangible assets                                                                                                                                                 244
Total assets acquired                                                                                                                                         169 306
LIABILITIES
Derivative financial instruments                                                                                                                                  266
Creditors and accruals                                                                                                                                          1 597
Current tax liability                                                                                                                                             164
Deposits                                                                                                                                                      153 735
Employee liabilities                                                                                                                                               28
Other liabilities                                                                                                                                                   -
Deferred income tax liability                                                                                                                                      10
Tier 2 liabilities                                                                                                                                              1 030
Total liabilities acquired                                                                                                                                    156 830
Net asset value at date of acquisition                                                                                                                         12 476
Total goodwill is calculated as follows:
Total cash consideration transferred                                                                                                                           18 311
Total non-cash consideration transferred                                                                                                                            -
Contingent consideration transferred                                                                                                                                -
Less: net identifiable asset value at date of acquisition                                                                                                     (12 476)
Add: effective cash flow hedge                                                                                                                                    651
Less: intangible assets identified                                                                                                                             (2 362)
Add: deferred tax                                                                                                                                                 537
Add: non-controlling interests at acquisition of contingent convertible securities (AT1)                                                                        1 234
Goodwill on acquisition                                                                                                                                         5 895



FirstRand Limited acquired control by obtaining the entire issued share capital of Aldermore Group plc (Aldermore) through FirstRand International Limited. Aldermore is a
UK-based specialist lender and savings bank. The acquisition will allow the group to expand its current UK operations, which focus on vehicle asset financing through
MotoNovo. It allows the group immediate product diversification and potential subsequent cross-selling opportunities between MotoNovo and Aldermore's customer bases.
The effective date of the acquisition was 1 April 2018. Aldermore is a separately reportable segment of the group.

The group's functional currency is rand and the purchase price was settled in pounds which resulted in foreign currency exposure for the group. The group hedged a
portion of the purchase price in two tranches, which qualified for cash flow hedge accounting with effect from 27 September and 17 October 2017, with the fair value
movements of the effective portion of the hedge recognised in other comprehensive income. At the date of acquisition, the amount of R651 million accumulated in other
comprehensive income was released and adjusted against the investment in Aldermore, effectively resulting in an adjustment to the amount of goodwill recognised on
consolidation.

On the acquisition of Aldermore, the outstanding deferred bonuses and long-term incentive awards of Aldermore employees were replaced with a deferred cash
instrument aligned to the outstanding term of the awards. This cash instrument will vest on the same date as the original awards.

The accounting for the Aldermore business combination is provisional at 30 June 2018 due to the inherent complexity and judgement associated with identifying
intangible assets, and determining the fair value of identified intangible assets and certain on-balance sheet items.

The acquisition resulted in the recognition of the following intangible assets:

                                              Amount
Intangible assets                         (R million)     Description

Broker relationship                            2 201      Brokers are a vital element of the Aldermore business model. The majority of new loans are sourced through
                                                          a network of non-exclusive brokers. These brokers do not have the authority to underwrite the loans, but are
                                                          responsible for business origination. These relationships are amortised on a straight line basis over seven years.

Core deposit                                     113      The core deposit intangible asset has been recognised for the unique funding model of Aldermore. Aldermore has
                                                          a cost-efficient funding structure of readily available customer and wholesale market deposits. This core deposit
                                                          intangible asset is amortised on a straight line basis over two years.

Trademark (brand)                                 48      The Aldermore trademark is established in the challenger bank market in the UK. This trademark is amortised on
                                                          a straight line basis over two years.

Goodwill                                       5 895      Goodwill is attributable to the synergies arising from the acquisition of Aldermore as it provides the group with
                                                          access to the UK market, opportunities to diversify its business, cross-selling of products, as well as the skills and
                                                          technical talent of the Aldermore workforce.


The acquired receivables consisted of advances, accounts receivable and debt investment securities. The fair value of these receivables was a reasonable approximation
of the carrying value (contractual cash less cash flows not expected to be collected) of these receivables at the acquisition date. Acquisition-related expenditure of R133
million has been disclosed as operating expenditure in the consolidated income statement.

From the date of acquisition, Aldermore contributed R1 344 million of revenue (NII and NIR) and R549 million to profit before tax of the group. If the acquisition had taken
place at the beginning of the current period, the group revenue and profit before tax would have been R98 298 million and R37 517 million respectively.



FAIR VALUE HIERARCHY AND MEASUREMENTS (AUDITED)

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

                                                                                                        2018

R million                             Transfers in          Transfers out       Reasons for significant transfer in

Level 1                                          -                      -       There were no transfers into level 1.

Level 2                                         34                 (1 101)      Certain over the counter equity options have been transferred to level 2 in the current year
                                                                                because the inputs used in the valuation of these positions have become observable as the
                                                                                maturity of these trades are less than twelve months.

Level 3                                      1 101                    (34)      Market volatilities are only available for a limited range of strike prices. The further away over
                                                                                the counter equity options are from their trade date, the more likely it becomes that their strike
                                                                                prices are outside the prevailing range of strike prices for which volatilities are available.
                                                                                During the current year, the observability of volatilities used in determining the fair value of
                                                                                certain over the counter equity options became unobservable and resulted in the transfer into
                                                                                level 3 of the fair value hierarchy.

Total transfers                              1 135                 (1 135)


                                                                                                        2017

R million                             Transfers in          Transfers out       Reasons for significant transfer 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 current year, 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)



SUMMARY SEGMENT REPORT - IFRS (AUDITED)
for the year ended 30 June


                                                                                                      2018

                                      FNB                          RMB                                                         FCC
                                                                                                                        (including
                                                                                                                             Group      FirstRand
                                  FNB            FNB      Investment         Corporate                                    Treasury)         group        Normalised
R million                          SA         Africa        banking            banking      WesBank       Aldermore      and other     normalised       adjustments           Total

Profit before tax              20 510            906          8 489              1 861        5 130             549         (1 573)        35 872               222          36 094
Total assets                  379 397         49 837        399 444             53 640      228 433         189 867        231 692      1 532 310               (21)      1 532 289
Total liabilities             359 120         50 031        390 143             52 373      221 953         176 089        151 782      1 401 491                 -       1 401 491

                                                                                                   2017

                                      FNB                          RMB                                                    FCC
                                                                                                                   (including
                                                                                                                        Group        FirstRand
                                 FNB           FNB     Investment       Corporate                                    Treasury)           group      Normalised
R million                         SA        Africa        banking         banking      WesBank        Aldermore     and other       normalised     adjustments         Total

Profit before tax             17 744           880          8 050           1 731        5 612                -        (1 031)          32 986             171        33 157
Total assets                 351 978        49 959        386 780          45 872      214 222                -       168 934        1 217 745             (38)    1 217 707
Total liabilities            333 698        49 982        377 349          43 634      207 809                -        88 051        1 100 523               -     1 100 523



CONTINGENCIES AND COMMITMENTS (AUDITED)
as at 30 June

R million                                                                                                2018                   2017            % change

Contingencies and commitments
Guarantees (endorsements and performance guarantees)                                                   36 977                 34 006                   9
Letters of credit                                                                                      10 681                  6 731                  59
Total contingencies                                                                                    47 658                 40 737                  17
Irrevocable commitments                                                                               126 631                119 325                   6
Committed capital expenditure                                                                           2 915                  3 936                 (26)
Operating lease commitments                                                                             3 588                  3 779                  (5)
Other                                                                                                     166                    306                 (46)
Contingencies and commitments                                                                         180 958                168 083                   8
Legal proceedings
There are a number of legal or potential claims against the group, the outcome of
which cannot at present be foreseen. These claims are not regarded as material either
on an individual or a total basis.
Provision made for liabilities that are expected to materialise.                                          181                    129                  40
Commitments
Commitments in respect of capital expenditure and long-term investments approved
by the directors                                                                                        2 915                  3 936                 (26)




EVENTS AFTER REPORTING PERIOD (AUDITED)

DISCOVERY CARD

Subsequent to the year end, the group concluded a transaction with Discovery, through the issuance of preference shares, for the ultimate transfer and disposal of its
remaining effective 25.01% interest in Discovery Card and Discovery Bank respectively. The consideration of this transaction is R1.8 billion, which together with the
preference share issuance of R1.3 billion in 2016, results in a total value unlock for FirstRand shareholders of approximately R3 billion. This transaction is expected to be
concluded during the financial year ending 30 June 2019.

At 30 June 2018, FNB includes Discovery Card advances with a gross value of R4.3 billion which will also be transferred at carrying value.



FNB SWAZILAND

During the next financial year, a minority interest in FNB Swaziland will be offered to local investors through a listing.


NUMBER OF ORDINARY SHARES IN ISSUE
for the year ended 30 June

                                                                                                                 2018                                2017

                                                                                                     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
Less: treasury shares                                                                          (1 045 515)                      -         (311 919)                     -
- Shares for client trading*                                                                   (1 045 515)                      -         (311 919)                     -

Number of shares in issue (after treasury shares)                                           5 608 442 486           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
Less: treasury shares                                                                          (1 363 218)                      -       (1 480 934)                     -
- Shares for client trading*                                                                   (1 363 218)                      -       (1 480 934)                     -

Basic and diluted weighted average number of shares in issue                                5 608 124 783           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

WR Jardine (chairman), AP Pullinger (CEO), HS Kellan (financial director), M Vilakazi (COO with effect from 1 July 2018), JP Burger (non-executive with effect from
1 September 2018), MS Bomela, HL Bosman, JJ Durand (alternate with effect from 3 September 2018), GG Gelink, NN Gwagwa, F Knoetze, RM Loubser, PJ Makosholo,
TS Mashego, EG Matenge-Sebesho, AT Nzimande, T Winterboer



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, Johannesburg 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
Deloitte Place
The Woodlands
20 Woodlands Drive
Woodmead, Sandton
2052



5 September 2018

Date: 06/09/2018 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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