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FIRSTRAND LIMITED - Trading statement - financial impact of Discovery card transaction

Release Date: 22/02/2019 13:47
Code(s): FSR FSRP     PDF:  
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Trading statement - financial impact of Discovery card transaction

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


Shareholders were previously advised that FirstRand received the final consideration for the
Discovery Card transaction (the Discovery transaction) on 21 November 2018, with a resultant profit
for the group of approximately R2.3 billion.

In terms of International Financial Reporting Standards (IFRS), this profit will be included in
FirstRand's consolidated attributable earnings for the six-month period to 31 December 2018,
however, given the non-operational nature of the profit on the Discovery transaction, it will be
excluded from FirstRand's headline earnings (in terms of the South African Institute of Chartered
Accountants Circular 4/2018). It will also be excluded from normalised earnings, which the group
believes most accurately reflects its economic performance.

In terms of the Listings Requirements of the JSE Limited, an issuer is required to publish a trading
statement as soon as it becomes apparent that financial results (in this case earnings per share
(EPS) and earnings attributable to ordinary shareholders) for the next period to be reported on are
expected, with a reasonable degree of certainty, to differ by at least 20% from those of the previous
corresponding reporting period.

Accordingly, the table below provides guidance for the increases in the group's earnings attributable
to ordinary shareholders and basic earnings per share for the six months ended 31 December 2018.

                                      As reported for the            Guidance     Guidance increase
                                      six months ended 31    increase for the    for the six months
                                            December 2017    six months ended     ended 31 December
                                                                  31 December              2018 (%)

IFRS earnings attributable to                     12 749        2 805 - 3 060               22 - 24
ordinary shareholders (R

IFRS earnings per share – basic                    227.3        50.01 - 54.55               22 - 24

The estimate financial information on which this trading statement is based has not been reviewed or
reported on by the group's external auditors.

The group's interim results will be published on Tuesday 12 March 2019.

22 February 2019

RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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