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FIRSTRAND LIMITED - Unaudited interim results and cash dividend declaration for the six months ended 31 December 2018

Release Date: 12/03/2019 08:30
Code(s): FSR FSRP     PDF:  
 
Wrap Text
Unaudited interim results and cash dividend declaration for the six months ended 31 December 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)



UNAUDITED INTERIM RESULTS AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 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 unaudited condensed consolidated financial results of FirstRand Limited based on International Financial Reporting Standards (IFRS) for the
six months ended 31 December 2018. The primary results and accompanying commentary are based 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 145 and 146 of the Analysis of financial results booklet on www.firstrand.co.za. Commentary is based on normalised results,
unless otherwise indicated.



FINANCIAL HIGHLIGHTS

IFRS 9 and IFRS 15 were adopted effective 1 July 2018 and the statement of financial position at 1 July 2018 was restated. Other comparatives were not restated, as
allowed by IFRS 9 and IFRS 15. The income statement and statement of comprehensive income for the six months to December 2017 and the year ended 30 June 2018
and earnings-related ratios were not restated. The column headings indicate the basis of presentation.

                                                                                                                  Group (including Aldermore)

                                                                                           Six months ended                                 Year ended          As at
                                                                                             31 December                                       30 June         1 July

                                                                                            2018               2017                               2018           2018
R million                                                                                 IFRS 9             IAS 39        % change             IAS 39         IFRS 9

Earnings performance
Basic and diluted normalised earnings per share (cents)                                    237.8              222.1               7              470.8
Normalised earnings                                                                       13 342             12 461               7             26 411
Normalised net asset value per share (cents)                                             2 202.2            2 014.2               9            2 157.9        2 060.1
Ordinary dividend per share (cents)                                                        139.0              130.0               7              275.0          275.0
ROE (%)                                                                                     22.3               22.5                               23.0
Basic and diluted headline earnings per share (cents)                                      237.9              224.2               6              472.7
Basic and diluted earnings per share (cents) - IFRS                                        280.5              227.3              23              473.3
Net asset value per share (cents) - IFRS                                                 2 202.8            2 014.1               9            2 157.9        2 060.1



The effective date of the Aldermore acquisition was 1 April 2018. 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. No other adjustments relating to the Aldermore acquisition, e.g.
costs associated with the amortisation of intangible asset identified on acquisition, have been made.

                                                                                                                 Group (excluding Aldermore)

                                                                                          Six months ended                              Year ended          As at
                                                                                            31 December                                    30 June         1 July

                                                                                           2018             2017                              2018           2018
R million                                                                                IFRS 9           IAS 39        % change            IAS 39         IFRS 9

Advances (net of credit impairment)                                                   1 000 505          927 732               8           957 810        950 159
Deposits                                                                              1 154 181        1 040 042              11         1 094 270      1 095 066


"FirstRand produced quality topline growth and a superior ROE despite a very challenging operating environment.

FNB's results were impressive - earnings increased 13% on the back of strong growth in customers, transactional volumes, advances and deposits.

RMB's portfolio delivered high quality earnings from both its domestic and rest of Africa activities.

WesBank remained resilient despite competitive pressures and low vehicle sales.

As expected, Aldermore continued to enhance group earnings and ROE.

These results demonstrate the effectiveness of FirstRand's strategy and consistent focus on delivering 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 in 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.

The macroeconomic environments in most of the jurisdictions in which the group operates remained challenging in the period to December 2018. Globally it was a mixed
picture with growth slowing in the euro zone, Japan, China and a few emerging economies. Although economic activity in the US remained relatively robust, US financial
markets came under pressure and global financial conditions tightened. The US Federal Reserve has subsequently been more measured in statements relating to rate
increases.

Although global growth remained fairly supportive of commodity prices, tightening financial conditions and increased geopolitical uncertainty resulted in increased risk
aversion and reduced capital flows to emerging economies. The South African Reserve Bank (SARB) increased interest rates, which attracted capital inflows or, at least,
reduced the pace of outflows, as domestic policy uncertainty and political instability continued to weigh on GDP growth, and investor and consumer sentiment.

South African economic activity slowed in the second half of 2018, with rising CPI inflation, moderating wage inflation and elevated personal income taxes constraining
real income (and, by implication, consumer spending) growth. Further pressure was added by rising inflation and slightly higher debt servicing costs after the SARB
increased the repo rate to 6.75% in November 2018.

Low business confidence continues to impact the corporate investment cycle, whilst the government's growing debt burden means the fiscus remains unable to increase
spending in order to boost investment activity.

Similar themes played out in the rest of the sub-Saharan region. Regional economic activity was extremely subdued due to South African macroeconomic weakness,
although the outlook for Botswana was assisted by high diamond prices and the implementation of further structural reforms. The Nigerian economy continues to recover
from its recession and the macroeconomic outlook is improving on the strength of supportive oil prices.

In the UK, the macros continued to be impacted by the uncertain political outcomes relating to its exit from the European Union (which is likely to formally take effect at
the end of March 2019). Notwithstanding this uncertainty, consumer demand and house prices held up reasonably well and the Bank of England is expected to join the
US Federal Reserve and other developed markets in gradually tightening monetary policy.



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. Its approach is to build an integrated financial services value proposition, underpinned by leading digital and data platforms and capabilities.

Group earnings are significantly tilted towards South Africa and are mainly generated by FirstRand's large lending and transactional franchises, which have resulted in
deep and loyal customer bases. Many of the expected competitive and regulatory pressures will, however, target these traditional banking operations, particularly the
transactional activities, and the group remains focused on protecting that large and profitable revenue stream.

At the same time, FirstRand is working hard to find other sources of capital-light revenues and its strategy to deliver integrated financial services to the group's 8.2
million customers in South Africa is gaining traction. This approach, which is underpinned by the disciplined allocation of financial resources and enabled by disruptive
digital and data platforms, allows FirstRand to better optimise the franchise value of its broader portfolio.

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

In the UK, FirstRand recently acquired Aldermore Group plc (Aldermore), a UK specialist lender. It is still in the process of integrating MotoNovo, a leading second-hand
vehicle finance business the group has operated in the UK for the past nine years, into Aldermore. Once the integration is complete, additional value for shareholders will
be extracted over the medium to longer term through introducing FirstRand's successful financial resource management methodology and unlocking synergies between
MotoNovo and Aldermore.



OVERVIEW OF RESULTS

Despite the challenging macroeconomic backdrop, FirstRand's portfolio of businesses produced quality topline growth. The group continued to strengthen its balance
sheet and protect its return profile. Normalised earnings for the six months ended 31 December 2018 increased 7% with a normalised ROE of 22.3%.

Certain strategic actions taken to expedite the execution of group strategy in the last six to 12 months have resulted in some changes to the composition of earnings at
an operating business level. Although these do not impact like-for-like comparisons at a group level, they are material when assessing the breakdown of sources of
normalised earnings from the portfolio and include the following:

- DirectAxis, previously reported as part of WesBank's earnings, has been moved into a personal loans cluster within FNB, alongside the FNB loans business. This will
  allow faster execution of collaboration between FNB and DirectAxis across products and channels, including core transactional accounts where penetration is currently
  low.
- MotoNovo, the UK-based vehicle finance business, was also previously reported under WesBank's results, however, until the integration with Aldermore is completed,
  the total operational performance of MotoNovo will reside in the London branch. This performance is therefore currently reflected, for the first time, in the results of
  FCC/Group Treasury (GTSY) and is completely stripped out of WesBank's performance.
- Following the finalisation of the transaction with Discovery, the Discovery card business has been moved out of FNB into GTSY.


A further component of the performance of GTSY was the approximately R730 million of interest not earned on the capital deployed to purchase Aldermore. In the prior
year, this capital provided a return to GTSY which was not repeated in the current reporting period.

In addition, FCC's performance was negatively affected by the central credit overlay releases in the prior period of >R110 million, the first-time inclusion of the
amortisation of intangible assets associated with the acquisition of Aldermore of R218 million, and an increase in operational expenses.

The table below reflects these structural changes in the breakdown of sources of normalised earnings.


SOURCES OF NORMALISED EARNINGS

                                                                                  Six months ended 31 December                                      Year ended 30 June

                                                                         2018                  %        2017                %                          2018               %
R million                                                              IFRS 9        composition      IAS 39      composition       % change         IAS 39     composition

FNB                                                                     8 665                 65       7 668               61             13         15 865              60
- FNB SA*                                                               8 354                          7 506                                         15 592
- FNB Africa*                                                             311                            162                                            273
RMB*                                                                    3 321                 25       3 154               25              5          7 353              28
WesBank*                                                                  957                  7         952                8              1          1 854               7
Aldermore                                                               1 037                  8           -                -              -            276               1
FCC                                                                      (468)                (4)        864                7          (>100)         1 414               5
- MotoNovo                                                                271                            432                                            734
- FCC (includes Group Treasury) and other*,**,#                          (739)                           432                                            680
NCNR preference dividend                                                 (170)                (1)       (177)              (1)            (4)          (351)             (1)
Normalised earnings                                                    13 342                100      12 461              100              7         26 411             100

*  31 December 2017 and 30 June 2018 figures have been restated to reflect the changes in the composition of earnings at an operating business level, as described
   above, as well as for Group Treasury reallocations.
** Includes FirstRand Limited (company).
#  Includes capital endowment, the impact of accounting mismatches and interest rate, foreign currency liquidity and management.



FNB's results reflect another strong operating performance from its domestic franchise, driven by healthy 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. The performance of FNB's
rest of Africa portfolio continued to improve.

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

The group's performance to December 2018 includes a full six-month post-tax earnings contribution of R1 037 million from Aldermore. There was, however, no
contribution from Aldermore in the comparative period, therefore the commentary below excludes the consolidated Aldermore operational results, except where explicitly
stated otherwise.

Total group NII increased 8% (20% including Aldermore), underpinned by strong growth in deposits of 11% (+29% including Aldermore) and solid advances growth of
9% (+28% including Aldermore), offset by negative capital and deposit endowment impact given the lower average interest rates in the reporting period. Lending margins
at FNB benefited from lower funding costs, although FNB's deposit margins decreased due to the negative endowment impact, competitive pressures and strong growth
in lower-margin deposit products. Lending margins at RMB were supported by higher-yielding transactions and core advances growth of 10% was achieved despite
ongoing competition and the continued discipline in origination to preserve returns. WesBank's retail VAF margins were also impacted by competitive pressures and mix
change in new business. Aldermore's margins remained resilient despite increased competition.

Group NIR increased 7% (8% including Aldermore) and reflects strong fee and commission income growth of 12% supported by higher volumes across FNB's digital and
electronic channels and increased customer numbers. Insurance revenue increased 7%, benefiting from strong volume growth of 5% and 11%, respectively, in funeral
and credit life policies at FNB, resulting in the in-force annual premium equivalent (APE) increasing 37% period-on-period. Fee, commission and insurance income
represents 84% of group operational NIR. As expected, RMB's private equity realisations were slightly lower than the comparative period.

Total cost growth of 10% (16% including Aldermore) 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. Overall operating cost growth was negatively impacted by 1% due to
the amortisation of the intangible assets following the Aldermore acquisition. The group's cost-to-income ratio increased from 51.7% to 52.4%.

FirstRand adopted IFRS 9* on 1 July 2018 and (as permitted under the accounting standard) did not restate prior period financial information. As a result, the credit
performance commentary below covers the period from 1 July 2018 to 31 December 2018, for comparability purposes (as December 2017 results were prepared on an
IAS 39 basis).

IFRS 9 had a material impact on the increase in non-performing loans (NPLs) due to:

- the inclusion of interest in suspense (ISP) in NPLs;
- the lengthening of the write-off period from six months to 12 months for retail unsecured loans; and
- a more stringent definition of customer rehabilitation which results in customers staying in NPLs for longer (technical cures).


* For detailed information, refer to the IFRS 9 financial instruments transition report on the group's website, www.firstrand.co.za/InvestorCentre/Pages/ifrs9transition.aspx


In addition, IFRS 9 required FirstRand to move to a forward-looking impairment model from a point-in-time model under IAS 39. This results in earlier recognition of credit
impairments and a significant increase in total balance sheet impairments.

NPLs increased 15% (16% including Aldermore) or R5.0 billion (R5.1 billion including Aldermore) since 1 July 2018 as shown in the table below.

                                                                                                                                                                      Percentage
                                                                                                                                                                           point
                                                                                                                                                                    contribution
                                                                                                                                                                      to overall
                                                                                                                                                                             NPL
                                                                                                                                     R million        % change          increase

Operational NPLs                                                                                                                         2 752              11                 8
Restructured debt review (D7)                                                                                                              121               3                 -
Definition of rehabilitation (technical cures)                                                                                             258               7                 1
Lengthening of write-off period                                                                                                          1 943               -                 6
Total                                                                                                                                    5 074              15                15


Operational NPLs reflect strong book growth, especially in certain unsecured portfolios. IFRS 9-related changes accounted for approximately 7% growth in NPLs, driven
mainly by the lengthening of the write-off period. This performance is within expectations and trend rate, given growth in underlying advances.

The adoption of IFRS 9 did not result in a material increase in the income statement credit impairment charge during the period under review.

The group's credit loss ratio of 96 bps (86 bps including Aldermore) increased 19% (excluding Aldermore) on the back of strong advances growth, but remains below the
group's through-the-cycle range of 100 - 110 bps. Most of the group's lending books are trending in line with expectations.

The credit impairment charge was driven by the following factors:

- an increase in FNB card, reflecting new business strain, particularly on the back of cross-sell and up-sell strategies;
- higher operational NPLs in personal loans, but in line with expectations, given the strong book growth in the prior year and in the six-month period to December 2018.
  The charge benefited from active collection strategies;
- a lower charge in residential mortgages, reflecting muted NPL formation on the back of conservative credit extension, and the benefit of a strong collections
  performance;
- an improvement in WesBank's SA VAF charge, benefiting from tightening appetite in higher-risk origination, specifically in the self-employed and small business
  segments;
- a moderate improvement in MotoNovo's impairment charge, reflecting the benefit of risk cuts over the last 24 months;
- FNB commercial NPLs increased 17% driven by higher collateralised agricultural and commercial property finance portfolios;
- an increase in corporate NPLs due to the migration of certain secured counterparties, with a normalisation of the credit charge in the current period; and
- some improvement in the credit performance in the rest of Africa portfolio, reflecting the benefit of proactive provisioning in the prior financial year, although ongoing
  tough macros in some jurisdictions the group operates in resulted in a 9% increase in NPLs since 1 July 2018.


Overall portfolio provisions were flat, with an increase in retail portfolio impairments reflective of ongoing book growth offset by a migration of certain wholesale exposures
into NPL status.


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's pre-tax profits increased 12% to R12.5 billion, driven by another strong performance from its South African business, which grew pre-tax profits 12%. The
turnaround in the rest of Africa portfolio continued. PBT for FNB's rest of Africa businesses improved 21%. FNB produced an ROE of 42.2%.


FNB FINANCIAL HIGHLIGHTS

                                                                              Six months ended                                           Year ended                  As at
                                                                                31 December                                                 30 June                 1 July

                                                                               2018                  2017                                      2018                   2018
R million                                                                    IFRS 9                IAS 39               % change             IAS 39                 IFRS 9

Normalised earnings                                                           8 665                 7 668                     13             15 865
Normalised profit before tax                                                 12 512                11 137                     12             22 814
- South Africa                                                               11 650                10 425                     12             21 669
- Rest of Africa                                                                862                   712                     21              1 145
Total assets                                                                461 389               431 409                      7            447 946                442 646
Total liabilities                                                           454 868               419 359                      8            426 472                426 484
Stage 3/NPLs as a % of advances (%)                                            5.59                  3.50                                      3.80                   4.85
Credit loss ratio (%)                                                          1.50                  1.38                                      1.36
ROE (%)                                                                        42.2                  38.6                                      38.8
ROA (%)                                                                        3.78                  3.61                                      3.62
Cost-to-income ratio (%)                                                       51.0                  52.1                                      52.0
Advances margin (%)                                                            4.26                  4.12                                      4.20


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 (subscale) and start-up businesses, such as Mozambique, Zambia, Tanzania and Ghana.

Whilst the portfolio has shown some recovery in the period under review, with losses reducing in the start-up subsidiaries, its performance continues to be impacted by
tough macros and ongoing investment in the organic build-out strategies.



SEGMENT RESULTS

                                                                                                                                                                      Year
                                                                                                                               Six months ended                      ended
                                                                                                                                 31 December                       30 June

                                                                                                                                2018        2017           %          2018
R million                                                                                                                     IFRS 9      IAS 39      change        IAS 39

Normalised PBT
Retail                                                                                                                         7 272       6 561          11        13 739
Commercial                                                                                                                     4 378       3 864          13         7 930
Rest of Africa                                                                                                                   862         712          21         1 145
Total FNB                                                                                                                     12 512      11 137          12        22 814


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

%                                                                                                                                                    FNB SA Rest of Africa

PBT growth                                                                                                                                              12              21
Cost increase                                                                                                                                           10               4
Advances growth                                                                                                                                         10               6
Deposit growth                                                                                                                                          11               8
Stage 3/NPLs as a % of advances                                                                                                                       5.27            7.88
Credit loss ratio                                                                                                                                     1.49            1.60
Cost-to-income ratio                                                                                                                                  48.9            66.0
Operating jaws                                                                                                                                         2.2             2.5


Despite the negative endowment impact due to lower average interest rates in the period, FNB's total NII increased 11%, driven by strong volume growth in both
advances (+9%) and deposits (+11%).

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                                                                                                                      10           21.6            9             24.8
- Consumer                                                                                                                   5            4.4            5              2.1
- Premium                                                                                                                   13           17.2           10             21.2
- DirectAxis                                                                                                                 -              -           11              1.5
Commercial                                                                                                                  12           25.8           11              9.6
FNB Africa                                                                                                                   8            3.0            6              3.0
Total FNB                                                                                                                   11           50.4            9             37.4


FNB continued to see strong growth in deposits in both retail and commercial, driven by historic customer growth together with specific strategies to gather cash
investment balances.

The mix of FNB's advances growth reflects its targeted, segment-specific origination strategies. The focus has been to lend to main-banked clients, creating a strong
reinforcement to the transactional relationship. Growth in both the premium and consumer segments was driven by unsecured lending origination. In consumer, this was
on the back of writing back to credit appetite after severe risk cuts in previous periods. The very strong growth in premium personal loans was driven by:

- FNB's strategy to displace other providers of credit to its main-banked client base;
- upward migration of customers from consumer to premium; and
- leveraging digital platforms for origination based on customer behaviour.


DirextAxis, which has been transferred from WesBank to FNB, has performed well on the back of strong advances growth of 11%.

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

                                                                                                                                     As at                           As at
                                                                                                                                 31 December                        1 July

                                                                                                                               2018          2017          %          2018
R million                                                                                                                    IFRS 9        IAS 39     change        IFRS 9

Residential mortgages                                                                                                        25 448        23 811          7        24 677
Card                                                                                                                          4 707         4 803         (2)        4 712
Personal loans                                                                                                                7 732         6 965         11         7 045
Retail other                                                                                                                  2 816         3 076         (8)        2 801


                                                                                                                                          Premium advances

                                                                                                                                     As at                           As at
                                                                                                                                 31 December                        1 July

                                                                                                                               2018          2017          %          2018
R million                                                                                                                    IFRS 9        IAS 39     change        IFRS 9

Residential mortgages                                                                                                       185 036       174 893          6       180 953
Card                                                                                                                         20 092        16 002         26        18 093
Personal loans                                                                                                               12 340         7 597         62        10 153
Retail other                                                                                                                 14 166        12 025         18        13 103


                                                                                                                                        Commercial advances

                                                                                                                                     As at                           As at
                                                                                                                                 31 December                        1 July

                                                                                                                               2018          2017          %          2018
R million                                                                                                                    IFRS 9        IAS 39     change        IFRS 9

Advances                                                                                                                     97 546        87 900         11        94 558


The strength and quality of FNB's transactional franchise is clearly demonstrated in the strong NIR growth of 11%, resulting from good growth in customers (total up 4%
to 8.2 million) and transaction volumes. Customer growth per segment is shown in the table below. Approximately half of the growth in premium resulted from upward
migration from consumer.


CUSTOMERS

                                                                                                                                                                    Growth in
                                                                                                                                                                     customer
                                                                                                                                                                      numbers
Customer segment                                                                                                                                                            %

Consumer                                                                                                                                                                    1
Premium                                                                                                                                                                    20
Commercial                                                                                                                                                                  5


NIR growth was driven by strong growth in transactional volumes across all segments. Premium saw strong growth in card transactional volumes, lending NIR and digital
volumes, as can be seen in the table below.



CHANNEL VOLUMES

                                                                                                                                                                         Year
                                                                                                                                 Six months ended                       ended
                                                                                                                                   31 December                        30 June
                                                                                                                                                                %
Thousands of transactions                                                                                                          2018        2017        change        2018

ATM/ADT                                                                                                                         130 558     121 389             8     243 023
Internet banking                                                                                                                102 756     104 024            (1)    205 200
Banking app                                                                                                                     111 687      73 590            52     164 018
Mobile (excluding prepaid)                                                                                                       21 845      22 776            (4)     43 716
Point-of-sale merchants                                                                                                         291 172     246 532*           18     496 673
Card swipes                                                                                                                     441 154     391 426*           13     785 405

* The December 2017 numbers for point of sale have been split out into point-of-sale merchants and card swipes. The numbers have been restated due to a refinement
  in methodology.


Cost growth continues to trend above inflation at 9%, but is in line with expectations given the level of ongoing investment in platform technology, the insurance, WIM and
rest of Africa growth strategies, and above-inflation wage settlements. Despite these pressures, given the strong topline growth, FNB achieved positive jaws and the
cost-to-income ratio improved to 51.0% (December 2017: 52.1%).

FNB recorded an increase of 19% in NPLs since 1 July 2018, in part reflecting the impact of the adoption of IFRS 9 (extension of write-off periods) for unsecured
advances and more stringent rehabilitation rules).

Operational NPLs in the retail books have increased 10% since 1 July 2018, in line with expectations given strong book growth in unsecured lending, whilst residential
mortgage NPLs reflect a muted increase of 2% since 1 July 2018, given ongoing disciplined origination and a strong collections performance.

NPLs in the commercial book have increased 17% since 1 July 2018, reflecting the expected residual pressure in the agricultural sector given the drought in certain
parts of the country over the last three years, with an improved credit impairment charge from the rest of Africa portfolio given proactive provisioning in the prior financial
year.

Overall provisioning levels have remained robust with the performing book coverage ratio constant at 1.83% (1 July 2018: 1.85%) and the total impairment coverage
ratio remaining stable at 83.2% (1 July 2018: 84.2%).

Insurance revenue increased 12%, benefiting from good volume growth of 5% and 11% in funeral and credit life policies, respectively. New business APE increased 49%
compared to December 2017 and was achieved across all portfolios.



NEW BUSINESS APE

                                                                                                                                                    Six months ended
                                                                                                                                                      31 December
                                                                                                                                                                            %
R million                                                                                                                                       2018        2017       change

Core life products                                                                                                                               466         326           43
Underwritten products                                                                                                                            142          93           53
Credit life                                                                                                                                      396         253           57
Total new business APE                                                                                                                         1 004         672           49


This resulted in the life insurance in-force policy book growing 14% and in-force APE growing 37% compared to the prior period. Claims paid over the period increased
35%, in line with the growth in the in-force book, impacted by higher sums assured and changes in lapse rules that were implemented in October 2017. The change in
lapse rules was implemented to provide customers with an improved insurance experience in line with FNB's vision to better protect them.

During the current investment cycle, customers opted for lower-risk, fixed income funds, which resulted in FNB Horizon AUM declining 9% to R3.3 billion, whilst the
Ashburton Stable Income fund grew from R4.3 billion to R8.1 billion over the same period. Share trading and stockbroking assets under execution reduced 25% to R57.4
billion, driven by market movement and internal portfolio integration.

Assets under administration on the linked investment service provided (LISP) platform increased from R14.9 billion to R16.3 billion, and customers on the platform
increased to 31 924 with sales through banker and digital channels now enabled via phase one of robo-advice. Trust assets under administration also showed good
growth from R36.9 billion to R37.9 billion, particularly in the philanthropy trust offering. Private client-managed share portfolio AUM remained stable at R44 billion. Assets
under advice amounted to R64.1 billion, including net inflows of R2 billion for the year.



WIM ASSETS

                                                                                                                                       As at                          As at
                                                                                                                                   31 December                       1 July

                                                                                                                                    2018       2017           %        2018
R million                                                                                                                         IFRS 9     IAS 39      change      IFRS 9

FNB Horizon Series AUM                                                                                                             3 307      3 646          (9)      3 588
Assets under advice                                                                                                               64 077     61 131           5      66 812
Assets under administration                                                                                                       16 317     14 915*          9      16 408*
Trust assets under administration                                                                                                 37 893     36 945           3      37 906
Assets under management                                                                                                           43 765     43 650           -      46 775
Assets under execution                                                                                                            57 367     76 098         (25)     70 693

* Restated due to a portion of the business moving to Ashburton Investments.



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, a competitive transactional banking platform 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

                                                                             Six months ended                                             Year ended                 As at
                                                                               31 December                                                   30 June                1 July

                                                                              2018                  2017                                        2018                  2018
R million                                                                   IFRS 9                IAS 39               % change               IAS 39                IFRS 9

Normalised earnings                                                          3 321                 3 154                      5                7 353
Normalised profit before tax                                                 4 725                 4 471                      6               10 387
- South Africa                                                               3 762                 3 604                      4                8 613
- Rest of Africa*                                                              963                   867                     11                1 774
Total assets                                                               505 557               460 844                     10              453 084               453 141
Total liabilities                                                          497 492               451 128                     10              442 516               442 855
Stage 3/NPLs as a % of advances (%)                                           0.98                  0.35                                        0.85                  0.92
Credit loss ratio (%)                                                         0.15                     -                                        0.08
ROE (%)                                                                       20.5                  22.9                                        25.3
ROA (%)                                                                       1.36                  1.40                                        1.64
Cost-to-income ratio (%)                                                      45.7                  46.5                                        43.8

* Includes in-country and cross-border activities.


RMB's diversified portfolio delivered a solid performance, with pre-tax profits increasing 6% to R4.7 billion. The ROE of 20.5% reflects RMB's high-quality earnings and
solid operational leverage and was lower than in the comparative period, due to higher capital levels supporting current strong growth in advances and the impact of the
sovereign downgrade in November 2017. RMB remains disciplined in its financial resource allocation to ensure preservation of returns and has maintained strong credit
provisioning levels.

RMB continues to focus on growing its corporate and institutional client base and revenue pools, which resulted in strong contributions from investment banking and
advisory activities, and solid corporate and transactional banking earnings. In addition, ongoing cost discipline supported continued investment into the enhancement and
transformation of core platforms. The period-on-period performance was impacted by lower private equity realisations.

The rest of Africa portfolio remains key to RMB's growth strategy. The portfolio produced pre-tax profits of R963 million, up 11% on the prior period, which contributed
20% of RMB's overall pre-tax profits. This performance was supported by investment banking, corporate and transactional banking and flow trading activities.

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
                                                                                                                                 Six months ended                         ended
                                                                                                                                   31 December                          30 June

                                                                                                                                      2018       2017            %         2018
R million                                                                                                                           IFRS 9     IAS 39       change       IAS 39

Investment banking and advisory                                                                                                      2 250      1 992           13        4 762
Corporate and transactional banking                                                                                                  1 113      1 012           10        1 977
Markets and structuring                                                                                                                853        787            8        1 616
Investing                                                                                                                              471        595          (21)       2 516
Investment management                                                                                                                   36         26           38           57
Other                                                                                                                                    2         59          (97)        (541)
Total RMB                                                                                                                            4 725      4 471            6       10 387

* To improve peer group comparability, core activities now include the associated endowment earned on capital invested net of group cost allocations. Comparatives
  have been restated accordingly.


The investment banking and advisory activities delivered strong growth in an environment characterised by low corporate confidence, subdued economic activity and
a constrained credit cycle, which resulted in some normalisation of the credit charge. However, the franchise continued to deliver solid lending income from prior-year
advances growth and resilient fee income from structuring and arranging mandates both locally and in the rest of Africa. This performance was also underpinned by
higher-margin balance sheet growth, both domestically and cross-border.

RMB's corporate and transactional franchise continued to focus on leveraging its platforms to grow product offerings locally and in the rest of Africa. The results were
underpinned by higher transactional volumes, average deposit balances and good demand for working capital solutions. The global foreign exchange business benefited
from increased client volumes and margins in certain jurisdictions in the rest of Africa.

Markets and structuring delivered an improved performance, driven by a solid performance in soft commodities and the non-repeat of an isolated operational event in the
hard commodities portfolio. The credit trading portfolio produced solid growth, although this was somewhat offset by a softer performance in fixed income. Foreign
exchange activities in SA and the rest of Africa were resilient.

Investing activities produced satisfactory results off a high base, with the level of realisations in the private equity portfolio down marginally period-on-period. This trend is
expected to continue in the second half of the year. Given the macroeconomic environment and the significant realisations in prior periods, annuity earnings have also
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 additional investments, which will contribute to earnings growth in future periods, were made
during the period.

Other activities primarily benefited from the reduction of losses in the legacy portfolios, which was offset by increased costs associated with continued investment in the
markets infrastructure platform.



WESBANK

Following the structural changes outlined earlier, WesBank now represents the group's activities in instalment credit, fleet management and related services in the retail,
commercial and corporate segments of South Africa.

The restructuring allows WesBank to focus on protecting and growing its unique and long-standing model of partnering with leading motor manufacturers, suppliers and
dealer groups. This gives WesBank a market-leading point-of-sale presence.



WESBANK FINANCIAL HIGHLIGHTS

                                                                              Six months ended                                               Year ended                 As at
                                                                                31 December                                                     30 June                1 July

                                                                                 2018                  2017                                        2018                  2018
R million                                                                      IFRS 9                IAS 39               % change               IAS 39                IFRS 9

Normalised earnings                                                               957                   952                      1                1 854
Normalised profit before tax                                                    1 361                 1 353                      1                2 643
Total assets                                                                  139 567               138 935                      -              142 104               140 734
Total liabilities                                                             137 854               138 035                      -              139 643               139 713
Stage 3/NPLs as a % of advances (%)                                              5.57                  4.75                                        5.15                  5.31
Credit loss ratio (%)                                                            1.25                  1.41                                        1.47
ROE (%)                                                                          19.6                  18.3                                        17.4
ROA (%)                                                                          1.33                  1.34                                        1.27
Cost-to-income ratio (%)                                                         48.0                  46.2                                        46.6
Net interest margin (%)                                                          3.30                  3.41                                        3.31


On a like-for-like basis, with DirectAxis and MotoNovo excluded, normalised earnings increased marginally to R957 million (2017: R952 million) and the business
delivered an ROE of 19.6% and an ROA of 1.33%. Both the retail and corporate VAF businesses had a challenging six months and, in the face of increasing competition,
focused on protecting the origination franchise and return profile through disciplined risk appetite. WesBank's operating model and relationships strengthened with new
partnerships with KTM, Harley Davidson, Triumph and Vespa.


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



BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                                                                   Year
                                                                                                                                     Six months ended             ended
                                                                                                                                       31 December              30 June

                                                                                                                                  2018      2017          %        2018
R million                                                                                                                       IFRS 9    IAS 39     change      IAS 39

Normalised PBT
VAF                                                                                                                              1 361     1 353          1       2 643
- Retail SA*                                                                                                                     1 171     1 155          1       2 235
- Corporate and commercial                                                                                                         190       198         (4)        408

Total WesBank                                                                                                                    1 361     1 353          1       2 643

* Includes MotoVantage.

The performance of the SA retail VAF business benefited from improved impairment levels, down from 1.80% in the prior period to 1.48%. The corporate VAF business,
however, saw a deterioration in credit quality emanating from stress in the transport, mining and construction sectors.

NPLs increased 4% since 1 July 2018, impacted by protracted collection timelines and more customers opting for debt review. In addition, as previously disclosed,
higher-than-expected NPLs in the self-employed and small business segments resulting from operational issues with some scorecards, including third-party data quality,
continued to play out in the reporting period.

Advances in retail VAF grew period-on-period, but margin pressure continued, partly due to increased competitive activity and WesBank's current focus on originating
lower-risk business, which is generally written at lower margins, and a new business origination mix change from fixed to floating-rate business. The full maintenance
leasing (FML) book continued to perform well on the back of meaningful deals signed during the reporting period partly offset by ongoing cost drag.

Total WesBank NIR growth - mainly insurance and fleet revenues - continues, based on new deals written, however, rental revenues benefited from growth of >11% in
the full maintenance leasing book.

WesBank continues to control operational expenditure and invest in process improvements, and whilst the cost-to-income ratio has decreased due to topline pressure,
cost growth is tracking at less than inflation.



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 31 December 2018,
Aldermore had 243 000 customers with advances of £9.4 billion and £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 mortgages. 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 eight 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 differentiated customer proposition.


ALDERMORE FINANCIAL HIGHLIGHTS

                                                                                              Six months                  Year
                                                                                                   ended                 ended                                   As at
                                                                                             31 December               30 June                                  1 July

                                                                                                    2018                  2018                                    2018
R million                                                                                         IFRS 9                IAS 39            % change              IFRS 9

Normalised earnings                                                                                1 037                   276                   -
Normalised profit before tax                                                                       1 369                   549                   -
Total assets                                                                                     204 084               189 867                   7             189 734
Total liabilities                                                                                189 338               176 089                   8             176 100
Stage 3/NPLs as a % of advances (%)                                                                 1.02                  0.38                                    1.05
Credit loss ratio (%)                                                                               0.23                  0.12
ROE (%)*                                                                                            16.0                  12.1
ROA (%)*                                                                                            1.05                  0.80
Cost-to-income ratio (%)                                                                            47.3                  52.5
Net interest margin (%)                                                                             3.43                  3.15

* In rand terms.


BREAKDOWN OF PROFIT CONTRIBUTION BY ACTIVITY

                                                                                                                                                Six months             Year
                                                                                                                                                     ended            ended
                                                                                                                                               31 December          30 June*

                                                                                                                                                      2018             2018
R million                                                                                                                                           IFRS 9           IAS 39

Normalised PBT
Asset finance                                                                                                                                          461              220
Invoice finance                                                                                                                                        119               54
SME commercial mortgages                                                                                                                               378              160
Buy-to-let mortgages                                                                                                                                 1 075              433
Residential mortgages                                                                                                                                  337              154
Central functions                                                                                                                                   (1 001)            (472)
Total Aldermore                                                                                                                                      1 369              549

* Reflects three months' contribution from 1 April 2018.

In the six-month period, Aldermore delivered a strong operational performance, characterised by:

- advances growth of 5% to £9.4 billion;
- customer deposits of £8 billion, up 3%;
- statutory PBT of £74.7 million;
- ROE of 15.8% and an ROA of 1.04% in pound terms; and
- NII of £159 million.



MOTONOVO

MotoNovo profits declined 40% in pound terms to £20.6 million period-on-period. MotoNovo's performance was negatively impacted by:

- lower net interest margins due to funding cost pressures;
- lower new business origination (-18%) in pound terms due to risk cutbacks and competitors benefiting from relatively lower funding costs; and
- ongoing investment drag of findandfundmycar.com, and the costs associated with the terminated diversification strategies.


The MotoNovo VAF impairment charge increased 6% in pound terms as new business focused on lower-risk segments, and legacy business already written matures.



ASHBURTON INVESTMENTS

The asset management activities of the group are represented by Ashburton Investments (Ashburton), which was launched in 2013 as part of FirstRand's strategy to
access broader financial services profit pools.

Ashburton'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's AUM decreased 2.6% period-on-period from R101 billion to R98 billion. Whilst there were good flows into the fixed income range due to the market cycle
and the strong performance in this range, this was offset by outflows in the offshore multi-asset range as well as structured products. These products are in the process
of being restructured to further align to client needs in current markets. The private markets business continues to deliver inflows 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

                                                                                      Six months ended 31 December                                       Year ended 30 June

                                                                              2018                  %       2017              %                            2018                %
R million                                                                   IFRS 9        composition     IAS 39    composition      % change            IAS 39      composition

Retail                                                                       6 604                 49      6 127             49             8            12 449               47
- FNB*                                                                       5 513                         4 886                                         10 155
- WesBank                                                                      820                           809                                          1 560
- MotoNovo                                                                     271                           432                                            734
Commercial                                                                   3 289                 25      2 925             24            12             6 004               23
- FNB                                                                        3 152                         2 782                                          5 710
- WesBank                                                                      137                           143                                            294
Corporate and investment banking                                             3 321                 25      3 154             25             5             7 353               28
- RMB*                                                                       3 321                         3 154                                          7 353
Aldermore**                                                                  1 037                  8          -              -             -               276                1
Other                                                                         (909)                (7)       255              2         (>100)              329                1
- FCC (including Group Treasury) and consolidation adjustments                (739)                          432                                            680                                                                  
- NCNR preference dividend                                                    (170)                         (177)                                          (351)

Normalised earnings                                                         13 342                100     12 461            100             7            26 411              100

*  Includes rest of Africa.
** After the dividend on the contingent convertible securities of R115 million at 30 June 2018.



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 (RWA)
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

Capital and leverage ratios as at 31 December 2018 are summarised below.

                                                                                                                                             Capital                     Leverage

%                                                                                                                                  CET1        Tier 1         Total         Total

Regulatory minimum*                                                                                                                 7.5           9.0          11.3           4.0
Internal target                                                                                                             10.0 - 11.0         >12.0         >14.0          >5.0
FirstRand group actual**                                                                                                           12.0          12.6          14.8           7.4
FirstRand Bank actual**                                                                                                            13.1          13.6          16.9           7.2

*  Excluding the bank-specific capital requirements, but including the countercyclical buffer requirement for the group.
** Includes the transitional Day 1 impact of IFRS 9. Ratios include unappropriated profits. FirstRand Bank includes foreign branches.

The group's Common Equity Tier 1 (CET1) ratio was 12.0% at 31 December 2018 (June 2018: 11.5%; December 2017: 14.0%). The period-on-period movement in the
CET1 position is unpacked as follows:

- June 2018 vs December 2017: 240 bps decrease due to the acquisition of Aldermore.
- December 2018 vs June 2018: 50 bps increase as a result of:
  - ongoing net internal capital generation;
  - once-off Discovery card transaction;
  - inclusion of minority capital previously excluded; and
  - successful optimisation strategies, e.g. securitisation structures.
  This was partly offset by the Day 1 transitional impact of IFRS 9 (c.12 bps) on 1 July 2018 and RWA growth tracking asset growth.


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, as well as macroeconomic conditions and outlook.

The group continues to actively manage its capital composition and, to this end, issued its first Basel III-compliant Additional Tier 1 (AT1) instrument (R2.3 billion) in the
domestic market. It follows the successful issuance of FirstRand Bank's inaugural $500 million Tier 2 bond in the international markets. 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 AT1 and 
Tier 2 capital instruments in the domestic and/or international markets. This will ensure sustainable support for ongoing growth initiatives and redemption of existing capital
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 high-quality liquid assets (HQLA) that is 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 liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) as at 31 December 2018 are summarised below.

                                                                                                                                        LCR                      NSFR

%                                                                                                                                  Group        Bank*       Group        Bank*

Regulatory minimum                                                                                                                    90          90          100         100
Actual                                                                                                                               122         130          112         110
Average available HQLA (billion)                                                                                                     216         200          n/a         n/a

* Excludes foreign branches.



REGULATORY UPDATE

The Draft Financial Sector Laws Amendment Bill was published for comment by National Treasury in October 2018. In order to support the pending resolution framework,
the bill proposes the necessary amendments to various acts, including the Insolvency Act, South African Reserve Bank Act, Banks Act, Mutual Banks Act, Competition
Act, Financial Markets Act and Insurance Act, with a view to strengthening the ability of the SARB to manage the orderly resolution or winding down of a failing financial
institution with minimum disruption to the broader economy. One of the key amendments included in the bill is the establishment of the Corporation of Deposit Insurance
(CoDI) designed to protect depositors' funds and enhance financial stability.

The bill is awaiting promulgation by parliament before it is enacted, but in the interim, the relevant regulators are continuously engaging with industry to continue working
on the design and finalisation of the outstanding elements of the resolution framework.



DIVIDEND STRATEGY

Given the group's high return profile and strong capital generation, the board has maintained the dividend cover at 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

Given 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 low commodity prices and a further
slowdown in global growth, means that domestic economic activity will remain under pressure for the rest of 2019. Against this backdrop, private sector activities, such
as corporate investment and household consumption, will remain subdued.

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 performance will be impacted in the second half of
the year, given the very high level of private equity realisations in the base of the six months to June 2018.

With regard to the rest of Africa, there are signs that economic activity is improving in some of the other sub-Saharan African countries in which FirstRand operates, and
the group expects its portfolio to continue to show an incrementally improved performance.

Given the macro uncertainty in the UK and ongoing investment costs into systems and processes, including MotoNovo's integration, Aldermore's growth trajectory is
expected to slow marginally.

The group continues to target real growth in earnings (defined as real GDP plus CPI) and superior returns. Given the base effect created by the high level of private equity
realisations in the second half of last year, delivering real growth in earnings in the short term will be challenging, however, the current return profile of the group is
expected to remain resilient.



DISCOVERY CARD

FirstRand received the final consideration for the Discovery card transaction on 21 November 2018, with a resultant after-tax profit for the group of approximately R2.3 billion, 
which was included in attributable earnings for the period under review. However, given the non-operational nature of the profit, it was excluded from headline and normalised earnings.

At 31 December 2018, FCC included Discovery card advances with a gross value of R4.3 billion, which will be transferred at carrying value.



FNB SWAZILAND

A minority interest in FNB Swaziland will be offered to local investors through a listing on the Swaziland Stock Exchange in the second half of the 2019 financial year.



EVENTS AFTER REPORTING PERIOD

The directors are not aware of any material events that have occurred between the date of the statement of financial position and the date of this report.



BOARD CHANGES

Changes to the directorate are outlined below.

                                                             Effective date
Appointments

M Vilakazi          COO and executive director               1 July 2018
LL von Zeuner       Independent non-executive director       1 February 2019

Change in designation

JP Burger           Non-executive director                   1 September 2018
JJ Durand           Alternate non-executive director         3 September 2018



CASH DIVIDEND DECLARATIONS

Ordinary shares

The directors declared a gross cash dividend totalling 139.0 cents per ordinary share out of income reserves for the six months ended 31 December 2018.



DIVIDENDS

Ordinary shares

                                                                       Six months ended
                                                                         31 December

Cents per share                                                         2018          2017

Interim (declared 11 March 2019)                                       139.0         130.0


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

Last day to trade cum-dividend                                           Tuesday 2 April 2019
Shares commence trading ex-dividend                                    Wednesday 3 April 2019
Record date                                                               Friday 5 April 2019
Payment date                                                              Monday 8 April 2019


Share certificates may not be dematerialised or rematerialised between Wednesday, 3 April 2019, and Friday, 5 April 2019, both days inclusive.

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

For South African shareholders who are subject to DWT, the net interim dividend after deducting 20% tax will be 111.20000 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:
28 February 2017 - 28 August 2017                                                                                                                                    393.6
29 August 2017 - 26 February 2018                                                                                                                                    386.2
27 February 2018 - 27 August 2018                                                                                                                                    378.3
28 August 2018 - 25 February 2019                                                                                                                                    381.7



WR JARDINE                                          AP PULLINGER                                              C LOW

Chairman                                            CEO                                                       Company secretary


11 March 2019



STATEMENT OF HEADLINE EARNINGS - IFRS

                                                                                                   Six months ended                                           Year ended
                                                                                                     31 December                                                 30 June

                                                                                                     2018                 2017                                      2018                                                                                                                                        
R million                                                                                          IFRS 9               IAS 39           % change                 IAS 39

Profit for the period                                                                              16 337               13 396                 22                 28 144
NCNR preference shareholders and contingent convertible securities                                   (168)                (177)                (5)                  (466)
Non-controlling interests                                                                            (437)                (470)                (7)                (1 132)
Earnings attributable to ordinary equityholders                                                    15 732               12 749                 23                 26 546
Adjusted for                                                                                       (2 388)                (176)              >100                    (37)
Gain on investment activities of a capital nature                                                  (1 928)*                (31)                                      (29)
(Gain)/loss on disposal of available-for-sale assets                                                    -                  (22)                                       91
Gain on disposal of non-private equity associates                                                  (1 082)*                  -                                         -
Gain on disposal of investments in subsidiaries                                                         -                  (97)                                      (97)
Gain on disposal of property and equipment                                                            (70)                 (27)                                      (63)
Fair value movement on investment properties                                                            -                   (4)                                      (29)
Transfer from foreign currency translation reserve                                                      -                    -                                       108
Impairment of goodwill                                                                                  -                    -                                        12
Impairment of assets in terms of IAS 36                                                                 -                    -                                        41
Gain from a bargain purchase                                                                            -                    -                                       (42)
Other                                                                                                   -                  (30)                                      (31)
Tax effects of adjustments                                                                            692*                  13                                         -
Non-controlling interests adjustments                                                                   -                   22                                         2

Headline earnings                                                                                  13 344               12 573                  6                 26 509

* Includes the impact of the gain on the Discovery transaction of c.R3 billion (c.R2.3 billion after tax).



RECONCILIATION FROM HEADLINE TO NORMALISED EARNINGS

                                                                                                   Six months ended                                           Year ended
                                                                                                     31 December                                                 30 June

                                                                                                     2018                 2017                                      2018
                                                                                                   IFRS 9               IAS 39            % change                IAS 39
R million                                                                                                                                            

Headline earnings                                                                                  13 344               12 573                   6                26 509
Adjusted for                                                                                           (2)                (112)                (98)                  (98)
TRS and IFRS 2 liability remeasurement*                                                                64                 (137)                                      (54)
Treasury shares**                                                                                     (14)                   8                                        18
IAS 19 adjustment                                                                                     (52)                 (56)                                     (109)
Private equity-related#                                                                                 -                   73                                        47

Normalised earnings                                                                                13 342               12 461                   7                26 411

*  The group uses a TRS with external parties to economically hedge itself against the exposure to changes in the FirstRand share price associated with the group's long-
   term incentive schemes.
   The TRS is accounted for as a derivative in terms of IFRS, with the full fair value change recognised in NIR.
   In the current period, FirstRand's share price increased R1.67 and during the prior period increased by R20.10.
   This results in mark-to-market volatility period-on-period being included in the group's IFRS attributable earnings. The normalised results reflect the adjustment to
   normalise this period-on-period IFRS fair value volatility from the TRS.
** Includes FirstRand shares held for client trading activities.
#  Realisation of private equity subsidiaries net of private equity-related goodwill and other asset impairments.


BASIS OF PRESENTATION

FirstRand prepared its unaudited condensed consolidated interim financial report in accordance with:
- International Financial Reporting Standard, IAS 34 Interim Financial Reporting;
- framework concepts and the recognition and measurement requirements of IFRS;
- interpretations issued by the IFRS Interpretation Committee (IFRS-IC);
- Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council;
- SAICA Financial Reporting Guides as issued by the Accounting Practices Committee;
- the JSE Listings Requirements; and
- requirements of the Companies Act no. 71 of 2008.


The condensed consolidated interim report for the six months ended 31 December 2018 have not been audited or independently reviewed by the group's external
auditors.

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

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

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


ACCOUNTING POLICIES

The accounting policies applied in the preparation of the condensed consolidated interim financial report are in terms of IFRS and are consistent with those applied for the
year ended 30 June 2018, except for the adoption of certain IFRS that became effective in the current year.

The condensed consolidated interim financial report is 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.

IFRS 9 - Financial Instruments (IFRS 9) and IFRS 15 - Revenue from Contracts with Customers (IFRS 15) became effective in the current year. IFRS 9, which replaces IAS 39
- Financial Instruments: Recognition and Measurement (IAS 39), had the most significant impact on the group. IFRS 9 introduced a principle-based approach for classifying
  financial assets based on the entity's business model and changed the way impairments are calculated on financial assets at amortised cost from the incurred loss model
  to the expected loss model.

IFRS 15, which contains a single model that is applied when accounting for contracts with customers, replaced revenue recognition guidance previously included IAS 18
- Revenue (IAS 18) and IFRIC 13 - Customer Loyalty Programmes (IFRIC 13).

The adoption of IFRS 9 and IFRS 15 impacted the group's results on the date of initial adoption, being 1 July 2018. FirstRand prepared an IFRS 9 Transitional Report, on
which a reasonable assurance audit report was provided by the external auditors. The IFRS 9 Transitional Report is available on www.firstrand.co.za/InvestorCentre/IFRS 9.

No other new or amended IFRS become effective for the six months ended 31 December 2018 that impacted the group's reported earnings, financial position or reserves,
or the accounting policies.



NORMALISED RESULTS

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

All normalised entries, as included for the year ended 30 June 2018, remain unchanged following the adoption of IFRS 9, except for the reclassification of an impairment
on a restructured advance. Before the adoption of IFRS 9, gross advances and impairment of advances included an amount in respect of a wholesale advance that was
restructured to an equity investment. The restructure resulted in the group obtaining significant influence over the counterparty and an investment in associate was
recognised. However, for normalised reporting, the amount was classified as an advance rather than an investment in an associate. Given that sufficient time has elapsed
since the restructure, credit risk is now considered insignificant. The exposure is therefore deemed an equity investment rather than an advance and therefore, on
adoption of IFRS 9, the amount is no longer adjusted for normalised reporting.

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


CONDENSED CONSOLIDATED INCOME STATEMENT - IFRS

                                                                           Six months ended                         Year ended
                                                                             31 December                               30 June

                                                                            2018                2017                      2018
R million                                                                 IFRS 9              IAS 39    % change        IAS 39

Net interest income before impairment of advances                         30 126              23 734          27        49 098
Impairment and fair value of credit of advances                           (5 021)             (4 052)         24        (8 567)
Net interest income after impairment of advances                          25 105              19 682          28        40 531
Non-interest revenue                                                      23 513              21 389          10        44 193
Income from operations                                                    48 618              41 071          18        84 724
Operating expenses                                                       (26 811)            (23 708)         13       (48 462)
Net income from operations                                                21 807              17 363          26        36 262
Share of profit of associates after tax                                      401                 283          42           519
Share of profit of joint ventures after tax                                   86                 210         (59)          390
Income before tax                                                         22 294              17 856          25        37 171
Indirect tax                                                                (795)               (478)         66        (1 077)
Profit before tax                                                         21 499              17 378          24        36 094
Income tax expense                                                        (5 162)             (3 982)         30        (7 950)
Profit for the period                                                     16 337              13 396          22        28 144
Attributable to
Ordinary equityholders                                                    15 732              12 749          23        26 546
NCNR preference shareholders and contingent convertible securities           168                 177          (5)          466
Equityholders of the group                                                15 900              12 926          23        27 012
Non-controlling interests                                                    437                 470          (7)        1 132
Profit for the period                                                     16 337              13 396          22        28 144
Earnings per share (cents)
- Basic                                                                    280.5               227.3          23         473.3
- Diluted                                                                  280.5               227.3          23         473.3
Headline earnings per share (cents)
- Basic                                                                    237.9               224.2           6         472.7
- Diluted                                                                  237.9               224.2           6         472.7


CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - IFRS

                                                                                                    Six months ended                                         Year ended
                                                                                                      31 December                                               30 June

                                                                                                         2018                 2017                                 2018
R million                                                                                              IFRS 9               IAS 39          % change             IAS 39

Profit for the period                                                                                  16 337               13 396                22             28 144
Items that may subsequently be reclassified to profit or loss
Cash flow hedges                                                                                           77                  (99)            (>100)               185
Gains arising during the period                                                                           500                  139              >100                283
Reclassification adjustments for amounts included in profit or loss                                      (393)                  (7)             >100                (26)
Deferred income tax                                                                                       (30)                (231)              (87)               (72)
FVOCI reserve/available-for-sale financial assets                                                         (13)                 (86)              (85)              (650)
Losses arising during the period                                                                          (21)                 (85)              (75)            (1 009)
Reclassification adjustments for amounts included in profit or loss                                        (1)                 (22)              (95)                91
Deferred income tax                                                                                         9                   21               (57)               268
Exchange differences on translating foreign operations                                                    353                 (856)            (>100)             1 175
Gain/(losses) arising during the period                                                                   353                 (856)            (>100)             1 175
Share of other comprehensive income/(loss) of associates and joint ventures after tax and
non-controlling interests                                                                                  29                   54               (46)               (72)
Items that may not subsequently be reclassified to profit or loss
Remeasurements on defined benefit post-employment plans                                                   (33)                 (43)              (23)                38
(Losses)/gains arising during the period                                                                  (47)                 (60)              (22)                43
Deferred income tax                                                                                        14                   17               (18)                (5)

Other comprehensive gain/(loss) for the period                                                            413               (1 030)            (>100)               676
Total comprehensive income for the period                                                              16 750               12 366                35             28 820
Attributable to
Ordinary equityholders                                                                                 16 139               11 729                38             27 217
NCNR preference shareholders and contingent convertible securities                                        168                  177                (5)               466
Equityholders of the group                                                                             16 307               11 906                37             27 683
Non-controlling interests                                                                                 443                  460                (4)             1 137
Total comprehensive income for the period                                                              16 750               12 366                35             28 820



CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - IFRS

                                                                                               As at 31 December                     As at 30 June        As at 1 July

                                                                                                2018                  2017                    2018                2018
R million                                                                                     IFRS 9                IAS 39                  IAS 39              IFRS 9

ASSETS
Cash and cash equivalents                                                                     87 450                65 805                  96 024              96 024
Derivative financial instruments                                                              35 725                53 586                  42 499              42 499
Commodities                                                                                   17 815                15 489                  13 424              13 424
Investment securities                                                                        224 126               188 840                 208 937             211 674
Advances                                                                                   1 172 544               927 732               1 121 227           1 113 398
- Advances to customers                                                                    1 111 824               874 476               1 065 997           1 058 168
- Marketable advances                                                                         60 720                53 256                  55 230              55 230
Accounts receivable                                                                           10 346                 9 443                   9 884               8 847
Current tax asset                                                                              1 096                   356                     378                 850
Non-current assets and disposal groups held for sale                                               -                   498                     112                 112
Reinsurance assets                                                                               130                   133                      84                  84
Investments in associates                                                                      5 626                 5 726                   5 537               5 343
Investments in joint ventures                                                                  1 818                 1 946                   1 726               1 726
Property and equipment                                                                        17 815                17 859                  17 936              17 936
Intangible assets                                                                             10 744                 1 663                  10 847              10 847
Investment properties                                                                            814                   675                     754                 754
Defined benefit post-employment asset                                                             36                     5                      36                  36
Deferred income tax asset                                                                      3 408                 1 936                   2 884               4 017
Total assets                                                                               1 589 493             1 291 692               1 532 289           1 527 571
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                                        6 056                15 266                   9 999               9 999
Derivative financial instruments                                                              41 949                58 102                  50 954              50 954
Creditors, accruals and provisions                                                            19 832                16 449                  19 620              19 700
Current tax liability                                                                            773                   415                     438                 438
Deposits                                                                                   1 338 621             1 040 042               1 267 448           1 268 244
Employee liabilities                                                                           9 034                 8 270                  11 534              11 534
Other liabilities                                                                              5 758                 6 511                   6 989               6 989
Policyholder liabilities                                                                       4 764                 4 315                   4 593               4 593
Additional Tier 1 and Tier 2 liabilities                                                      28 053                20 048                  28 439              28 439
Deferred income tax liability                                                                  1 318                   958                   1 477               1 466
Total liabilities                                                                          1 456 158             1 170 376               1 401 491           1 402 356
Equity
Ordinary shares                                                                                   56                    56                      56                  56
Share premium                                                                                  8 017                 7 985                   7 994               7 994
Reserves                                                                                     115 488               104 912                 112 975             107 490
Capital and reserves attributable to ordinary equityholders                                  123 561               112 953                 121 025             115 540
Contingent convertible securities                                                              1 250                     -                   1 250               1 250
NCNR preference shares                                                                         4 519                 4 519                   4 519               4 519
Capital and reserves attributable to equityholders of the group                              129 330               117 472                 126 794             121 309
Non-controlling interests                                                                      4 005                 3 844                   4 004               3 906
Total equity                                                                                 133 335               121 316                 130 798             125 215
Total equities and liabilities                                                             1 589 493             1 291 692               1 532 289           1 527 571



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

                                                                                                                                   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 2017                                                       56           7 960            8 016             (761)            158                9            (715)              1 690           462            100 025           100 868               4 519                  3 781                 117 184
Net proceeds of issue of share capital and premium                               -               -                -                -               -                -               -                   -             -                  -                 -                   -                     23                      23
Disposal of subsidiaries                                                         -               -                -                -               -                -               -                   -             -                  -                 -                   -                    (27)                    (27)
Movement in other reserves                                                       -               -                -                -               -                -               -                   -           238               (180)               58                   -                    (79)                    (21)
Ordinary dividends                                                               -               -                -                -               -                -               -                   -             -             (7 629)           (7 629)                  -                   (289)                 (7 918)
Preference dividends                                                             -               -                -                -               -                -               -                   -             -                  -                 -                (177)                     -                    (177)
Transfer (to)/from general risk reserves                                         -               -                -                -               -                -               -                   -            (8)                 8                 -                   -                      -                       -
Changes in ownership interest of subsidiaries                                    -               -                -                -               -                -               -                   -             -               (103)             (103)                  -                    (25)                   (128)
Movement in treasury shares                                                      -              25               25                -               -                -               -                   -             -                (11)              (11)                  -                      -                      14
Total comprehensive income for the period                                        -               -                -              (43)            (99)               -             (86)               (841)           49             12 749            11 729                 177                    460                  12 366
Balance as at 31 December 2017                                                  56           7 985            8 041             (804)             59                9            (801)                849           741            104 859           104 912               4 519                  3 844                 121 316
Balance as at 1 July 2018                                                       56           7 994            8 050             (723)            343                4          (1 361)              2 832           599            111 281           112 975               5 769                  4 004                 130 798
Restatements for IFRS 9 and IFRS 15                                              -               -                -                -               -                -           1 361                   -            87             (6 933)           (5 485)                  -                    (98)                 (5 583)
Balance as at 1 July 2018 restated                                              56           7 994            8 050             (723)            343                4               -               2 832           686            104 348           107 490               5 769                  3 906                 125 215
Net proceeds of issue of share capital and premium                               -               -                -                -               -                -               -                   -             -                  -                 -                   -                    (15)                    (15)
Disposal of subsidiaries                                                         -               -                -                -               -                -               -                   -             -                  -                 -                   -                      -                       -
Movement in other reserves                                                       -               -                -                -               -                1               -                   -           (42)                33                (8)                  -                     17                       9
Ordinary dividends                                                               -               -                -                -               -                -               -                   -             -             (8 134)           (8 134)                  -                   (346)                 (8 480)
Preference dividends                                                             -               -                -                -               -                -               -                   -             -                  -                 -                (168)                     -                    (168)
Transfer to/(from) general risk reserves                                         -               -                -                -               -                -               -                   -          (125)               125                 -                   -                      -                       -
Changes in ownership interest of subsidiaries                                    -               -                -                -               -                -               -                   -             -                (14)              (14)                  -                      -                     (14)
Movement in treasury shares                                                      -              23               23                -               -                -               -                   -             -                 15                15                   -                      -                      38
Total comprehensive income for the period                                        -               -                -              (33)             77                -               -                 346            17             15 732            16 139                 168                    443                  16 750
Balance as at 31 December 2018                                                  56           8 017            8 073             (756)            420                5               -               3 178           536            112 105           115 488               5 769                  4 005                 133 335

*  Other reserves include FVOCI.
** The current amount for NCNR preference shares is R4 519 million and R1 250 million for the contingent convertible securities.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - IFRS

                                                                                             Six months ended                     Year ended
                                                                                               31 December                           30 June

                                                                                               2018                2017                 2018
R million                                                                                    IFRS 9              IAS 39               IAS 39

Cash generated from operating activities
Interest and fee commission receipts                                                         70 366              58 490              124 420
Trading and other income                                                                      1 250               1 410                4 693
Interest payments                                                                           (28 994)            (19 724)             (40 941)
Other operating expenses                                                                    (22 326)            (19 182)             (37 177)
Dividends received                                                                            2 151               2 889                5 649
Dividends paid                                                                               (8 302)             (7 806)             (15 387)
Dividends paid to non-controlling interests                                                    (346)               (289)                (923)
Taxation paid                                                                                (5 209)             (4 113)              (9 414)
Cash generated from operating activities                                                      8 590              11 675               30 920
Movement in operating assets and liabilities
Liquid assets and trading securities                                                        (15 291)            (21 231)             (27 540)
Advances                                                                                    (43 186)            (42 808)             (90 785)
Deposits                                                                                     60 667              61 484              126 565
Movement in accounts receivable and creditors                                                  (869)             (1 150)                (990)
Employee liabilities                                                                         (5 663)             (4 902)              (5 220)
Other operating liabilities                                                                  (9 832)             (4 947)              (3 774)
Net cash generated from operating activities                                                 (5 584)             (1 879)              29 176
Cash flows from investing activities
Acquisition of investments in associates                                                        (73)               (176)                (308)
Proceeds on disposal of investments in associates                                             1 164                  11                2 276
Acquisition of investments in joint ventures                                                    (44)               (354)                (361)
Acquisition of investments in subsidiaries                                                        -                   -               (9 634)
Proceeds on disposal of investments in subsidiaries                                               -                 212                  212
Acquisition of property and equipment                                                        (1 730)             (1 934)              (3 577)
Proceeds on disposal of property and equipment                                                  500                 218                  519
Acquisition of intangible assets and investment properties                                     (271)               (101)                (586)
Proceeds on disposal of intangible assets and investment properties                               -                   -                    8
Proceeds on disposal of non-current assets held for sale                                        326                 219                  219
Net cash outflow from investing activities                                                     (128)             (1 905)             (11 232)
Cash flows from financing activities
Proceeds from the issue of other liabilities                                                  1 126                 656                1 673
Redemption of other liabilities                                                              (3 970)                  -                 (862)
Proceeds from the issue of additional Tier 1 and Tier 2 liabilities                           2 265               2 750                9 823
Repayment of additional Tier 1 and Tier 2 liabilities                                        (2 701)             (1 629)              (1 272)
Acquisition of additional interest in subsidiaries from non-controlling interests               (14)                (23)                 (45)
Issue of share of additional interest in subsidiaries from non-controlling interests            (15)                 23                   14
Net cash inflow/(outflow) from financing activities                                          (3 309)              1 777                9 331
Net increase in cash and cash equivalents                                                    (9 021)             (2 007)              27 275
Cash and cash equivalents at the beginning of the year                                       96 024              68 483               68 483
Effect of exchange rate changes on cash and cash equivalents                                    447                (671)                 266
Cash and cash equivalents at the end of the period                                           87 450              65 805               96 024
Mandatory reserve balances included above*                                                   27 521              25 919               26 303

* 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.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 December 2018 IFRS 9

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

Net interest income before impairment of advances                      29 406            -          -                682            -                -                -                 38      30 126
Impairment charge                                                      (5 021)           -          -                  -            -                -                -                  -      (5 021)
Net interest income after impairment of advances                       24 385            -          -                682            -                -                -                 38      25 105
Total non-interest revenue                                             21 561           17         14               (682)           -                -            3 080                 10      24 000
- Operational non-interest revenue                                     21 080           17          8               (682)           -                -            3 080                 10      23 513
- Share of profit of associates and joint ventures after tax              481            -          6                  -            -                -                -                  -         487

Income from operations                                                 45 946           17         14                  -            -                -            3 080                 48      49 105
Operating expenses                                                    (26 729)         (17)         -                  -           72                -                -               (137)    (26 811)
Income before tax                                                      19 217            -         14                  -           72                -            3 080                (89)     22 294
Indirect tax                                                             (795)           -          -                  -            -                -                -                  -        (795)
Profit before tax                                                      18 422            -         14                  -           72                -            3 080                (89)     21 499
Income tax expense                                                     (4 475)           -          -                  -          (20)               -             (692)                25      (5 162)
Profit for the period                                                  13 947            -         14                  -           52                -            2 388                (64)     16 337
Attributable to
NCNR preference shareholders and contingent convertible
securities                                                               (168)           -          -                  -            -                -                -                  -        (168)
Non-controlling interests                                                (437)           -          -                  -            -                -                -                  -        (437)
Ordinary equityholders of the group                                    13 342            -         14                  -           52                -            2 388                (64)     15 732
Headline and normalised earnings adjustments                                -            -        (14)                            (52)               -           (2 388)                64      (2 390)
Normalised earnings attributable to ordinary equityholders of the
group                                                                  13 342            -          -                  -            -                -                -                  -      13 342

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 December 2017 IAS 39

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

Net interest income before impairment of advances                      24 565            -          -               (878)           -                -                -                 47     23 734
Impairment charge                                                      (4 052)           -          -                  -            -                -                -                  -     (4 052)
Net interest income after impairment of advances                       20 513            -          -               (878)           -                -                -                 47     19 682
Total non-interest revenue                                             20 002          201         (8)               878            -              (97)             211                695     21 882
- Operational non-interest revenue                                     19 514          201        (13)               878            -              (97)             211                695     21 389
- Share of profit of associates and joint ventures after tax              488            -          5                  -            -                -                -                  -        493

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

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2018 IAS 39

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

Net interest income before impairment of advances                      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
NCNR preference shareholders and contingent convertible
securities                                                               (466)             -          -                  -             -                -                -                -          (466)
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 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2018

                                                                                                           IFRS 9

                                                                                                               Treasury
R million                                                                                    Normalised          shares*        IFRS

ASSETS
Cash and cash equivalents                                                                        87 450               -       87 450
Derivative financial instruments                                                                 35 725               -       35 725
Commodities                                                                                      17 815               -       17 815
Investment securities                                                                           224 147             (21)     224 126
Advances                                                                                      1 172 544               -    1 172 544
- Advances to customers                                                                       1 111 824               -    1 111 824
- Marketable advances                                                                            60 720               -       60 720
Accounts receivable                                                                              10 346               -       10 346
Current tax asset                                                                                 1 096               -        1 096
Non-current assets and disposal groups held for sale                                                  -               -            -
Reinsurance assets                                                                                  130               -          130
Investments in associates                                                                         5 626               -        5 626
Investments in joint ventures                                                                     1 766              52        1 818
Property and equipment                                                                           17 815               -       17 815
Intangible assets                                                                                10 744               -       10 744
Investment properties                                                                               814               -          814
Defined benefit post-employment asset                                                                36               -           36
Deferred income tax asset                                                                         3 408               -        3 408
Total assets                                                                                  1 589 462              31    1 589 493
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                                           6 056               -        6 056
Derivative financial instruments                                                                 41 949               -       41 949
Creditors, accruals and provisions                                                               19 832               -       19 832
Current tax liability                                                                               773               -          773
Deposits                                                                                      1 338 621               -    1 338 621
Employee liabilities                                                                              9 034               -        9 034
Other liabilities                                                                                 5 758               -        5 758
Policyholder liabilities                                                                          4 764               -        4 764
Additional Tier 1 and Tier 2 liabilities                                                         28 053               -       28 053
Deferred income tax liability                                                                     1 318               -        1 318
Total liabilities                                                                             1 456 158               -    1 456 158
Equity
Ordinary shares                                                                                      56               -           56
Share premium                                                                                     8 056             (39)       8 017
Reserves                                                                                        115 418              70      115 488
Capital and reserves attributable to ordinary equityholders                                     123 530              31      123 561
Contingent convertible securities                                                                 1 250                        1 250
NCNR preference shares                                                                            4 519               -        4 519
Capital and reserves attributable to equityholders of the group                                 129 299              31      129 330
Non-controlling interests                                                                         4 005               -        4 005
Total equity                                                                                    133 304              31      133 335
Total equities and liabilities                                                                1 589 462              31    1 589 493

* FirstRand shares held for client trading activities.


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

                                                                                              IAS 39

                                                                                                  Treasury
R million                                                                      Normalised           shares*        IFRS

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

* FirstRand shares held for client trading activities.


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

                                                                                              IAS 39

                                                                                                  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
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
Additional Tier 1 and 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                                                   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 equities and liabilities                                                  1 532 310              (21)   1 532 289

* FirstRand shares held for client trading activities.


RECONCILIATION OF NORMALISED TO IFRS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 1 July 2018

                                                                                              IFRS 9

                                                                                                  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                                                             211 741              (67)     211 674
Advances                                                                        1 113 398                -    1 113 398
- Advances to customers                                                         1 058 168                -    1 058 168
- Marketable advances                                                              55 230                -       55 230
Accounts receivable                                                                 8 847                -        8 847
Current tax asset                                                                     850                -          850
Non-current assets and disposal groups held for sale                                  112                -          112
Reinsurance assets                                                                     84                -           84
Investments in associates                                                           5 343                -        5 343
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                                                           4 017                -        4 017
Total assets                                                                    1 527 592              (21)   1 527 571
EQUITY AND LIABILITIES
Liabilities
Short trading positions                                                             9 999                -        9 999
Derivative financial instruments                                                   50 954                -       50 954
Creditors, accruals and provisions                                                 19 700                -       19 700
Current tax liability                                                                 438                -          438
Deposits                                                                        1 268 244                -    1 268 244
Employee liabilities                                                               11 534                -       11 534
Other liabilities                                                                   6 989                -        6 989
Policyholder liabilities                                                            4 593                -        4 593
Additional Tier 1 and Tier 2 liabilities                                           28 439                -       28 439
Deferred income tax liability                                                       1 466                -        1 466
Total liabilities                                                               1 402 356                -    1 402 356
Equity
Ordinary shares                                                                        56                -           56
Share premium                                                                       8 056              (62)       7 994
Reserves                                                                          107 449               41      107 490
Capital and reserves attributable to ordinary equityholders                       115 561              (21)     115 540
Contingent convertible securities                                                   1 250                -        1 250
NCNR preference shares                                                              4 519                -        4 519
Capital and reserves attributable to equityholders of the group                   121 330              (21)     121 309
Non-controlling interests                                                           3 906                -        3 906
Total equity                                                                      125 236              (21)     125 215
Total equities and liabilities                                                  1 527 592              (21)   1 527 571

* FirstRand shares held for client trading activities.


Transition impact on IFRS consolidated financial position
as at 1 July 2018

                                                                                                                                          IFRS 9 adjustments

                                                               As reported                                                                                                       Restated              Total restated
                                                              30 June 2018                                                                                     Total IFRS 9   1 July 2018                       as at
R million                                                           IAS 39         Reclassification   Remeasurement    ECL impairment                  ISP      adjustments    for IFRS 9     IFRS 15     1 July 2018

ASSETS
Investment securities                                              208 937                    1 010           1 844              (117)                   -            2 737       211 674           -         211 674
Advances                                                         1 121 227                      (65)            238            (8 598)*                596           (7 829)    1 113 398           -       1 113 398
Accounts receivable                                                  9 884                   (1 010)              -               (27)                   -           (1 037)        8 847           -           8 847
Current tax asset                                                      378                        2              (8)              478                    -              472           850           -             850
Investments in associates and joint ventures                         7 263                       65               -              (259)                   -             (194)        7 069           -           7 069
Deferred income tax asset                                            2 884                       (2)           (382)            1 683                 (166)           1 133         4 017           -           4 017
Other financial assets                                             138 523                        -               -                 -                    -                -       138 523           -         138 523
Non-financial assets                                                43 193                        -               -                 -                    -                -        43 193           -          43 193
Total assets                                                     1 532 289                        -           1 692            (6 840)                 430           (4 718)    1 527 571           -       1 527 571
EQUITY AND LIABILITIES
Liabilities
Creditors, accruals and provisions                                  19 620                        -               -                 6                    -                6        19 626          74          19 700
Current tax liability                                                  438                        -               -                 -                    -                -           438           -             438
Deposits                                                         1 267 448                        -             796                 -                    -              796     1 268 244           -       1 268 244
Other liabilities                                                    6 989                        -               -                 -                    -                -         6 989           -           6 989
Deferred income tax liability                                        1 477                        -               -               (11)                   -             (11)         1 466           -           1 466
Other financial liabilities                                         79 393                        -               -                 -                    -                -        79 393           -          79 393
Non-financial liabilities                                           26 126                        -               -                 -                    -                -        26 126           -          26 126
Total liabilities                                                1 401 491                        -             796                (5)                   -              791     1 402 282          74       1 402 356
Equity
Ordinary shares                                                         56                        -               -                 -                    -                -            56           -              56
Share premium                                                        7 994                        -               -                 -                    -                -         7 994           -           7 994
Reserves                                                           112 975                        9             887            (6 737)                 430           (5 411)      107 564         (74)        107 490
Capital and reserves attributable to ordinary equityholders        121 025                        9             887            (6 737)                 430           (5 411)      115 614         (74)        115 540
Contingent convertible securities                                    1 250                        -               -                 -                    -                -         1 250           -           1 250
NCNR preference shares                                               4 519                        -               -                 -                    -                -         4 519           -           4 519
Capital and reserves attributable to equityholders of the
group                                                              126 794                        9             887            (6 737)                 430           (5 411)      121 383         (74)        121 309
Non-controlling interests                                            4 004                       (9)              9               (98)                   -              (98)        3 906           -           3 906
Total equity                                                       130 798                        -             896            (6 835)                 430           (5 509)      125 289         (74)        125 215
Total equities and liabilities                                   1 532 289                        -           1 692            (6 840)                 430           (4 718)    1 527 571           -       1 527 571

* Net of ISP of R2 241 million.


RECONCILIATION OF IFRS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 1 July 2018

                                                                                                                            Ordinary share capital and ordinary equityholders' funds

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

Balance as at 30 June 2018
IAS 39                                        8 050           (723)                 343              4       (1 361)        2 832                 599              111 281              112 975          5 769             4 004        130 798
Opening retained earnings
adjustment for IFRS 9                             -              -                    -              -        1 361             -                  87               (6 859)              (5 411)             -               (98)        (5 509)
Reclassification                                  -              -                    -              -        1 361             -                  84               (1 436)                   9              -                (9)             -
Remeasurement                                     -              -                    -              -            -             -                   -                  887                  887              -                 9            896
ECL impairment                                    -              -                    -              -            -             -                   3               (6 740)              (6 737)             -               (98)        (6 835)
ISP                                               -              -                    -              -            -             -                   -                  430                  430              -                 -            430
Opening retained earnings
adjustment for IFRS 15                            -              -                    -              -            -             -                   -                  (74)                 (74)             -                 -            (74)
Balance as at 1 July 2018                     8 050           (723)                 343              4            -         2 832                 686              104 348              107 490          5 769             3 906        125 215

* Other reserves include the FVOCI reserve.


FAIR VALUE MEASUREMENTS

Additional disclosures for level 3 financial instruments

Transfers between fair value hierarchy levels

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

                                                                                               As at 31 December 2018 IFRS 9

R million                                                 Transfers in      Transfers out      Reasons for significant transfer in

Level 1                                                          1 102                  -      It is the group's policy to classify debt investment securities qualifying as
                                                                                               HQLA, that are under the control of the Group Treasurer, as marketable
                                                                                               advances. The underlying debt securities held in this specific portfolio of
                                                                                               marketable advances are listed and actively traded. It is therefore more
                                                                                               appropriate to reflect these advances in level 1 of the fair value hierarchy.

Level 2                                                             37                  -      Investment securities, derivatives and other liabilities were transferred into
                                                                                               level 2 as the inputs used in determining their fair value became observable
                                                                                               during the period.

Level 3                                                              -             (1 139)     There were no transfers into level 3.

Total transfers                                                  1 139             (1 139)



                                                                                               As at 30 June 2018 IAS 39

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 12 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 year end the observability of volatilities used in determining
                                                                                               the fair value of certain over-the-counter options became unobservable
                                                                                               and resulted in the transfer into level 3 of the fair value hierarchy.

Total transfers                                                  1 135             (1 135)


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



CONTINGENCIES AND COMMITMENTS

                                                                                                          As at                                                       As at
                                                                                                      31 December                                                   30 June

                                                                                                     2018                  2017                                        2018
R million                                                                                          IFRS 9                IAS 39               % change               IAS 39

Contingencies and commitments
Guarantees (endorsements and performance guarantees)                                               38 000                35 028                      8               36 977
Letters of credit                                                                                   9 891                 8 329                     19               10 681
Total contingencies                                                                                47 891                43 357                     10               47 658
Irrevocable commitments                                                                           128 629               114 604                     12              126 631
Committed capital expenditure                                                                       1 981                 2 659                    (25)               2 915
Operating lease commitments                                                                         3 495                 3 742                     (7)               3 588
Other                                                                                                 141                   222                    (36)                 166
Contingencies and commitments                                                                     182 137               164 584                     11              180 958

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 raised for liabilities that are expected to materialise.                                    211                   183                     15                  181

Commitments

Commitments in respect of capital expenditure and long-term investments approved
by the directors.                                                                                   1 981                 2 659                    (25)               2 915



NUMBER OF ORDINARY SHARES IN ISSUE


                                                                                Six months ended 31 December                                    Year ended 30 June

                                                                         2018                                      2017                               2018

                                                                 IFRS 9            Normalised               IAS 39          Normalised           IAS 39        Normalised
Shares in issue
Opening balance as at 1 July                              5 609 488 001         5 609 488 001        5 609 488 001       5 609 488 001    5 609 488 001     5 609 488 001
Less: treasury shares                                          (325 902)                    -           (1 314 888)                 -        (1 045 515)                -
- Shares for client trading*                                   (325 902)                    -           (1 314 888)                 -        (1 045 515)                -

Number of shares in issue (after treasury shares)         5 609 162 099         5 609 488 001        5 608 173 113      5 609 488 001     5 608 442 486     5 609 488 001
Weighted average number of shares
Weighted average number of shares before
treasury shares                                           5 609 488 001         5 609 488 001        5 609 488 001      5 609 488 001     5 609 488 001     5 609 488 001
Less: treasury shares                                          (439 558)                    -           (1 656 596)                 -        (1 363 218)                -
- Shares for client trading*                                   (439 558)                    -           (1 656 596)                 -        (1 363 218)                -

Basic and diluted weighted average number of
shares in issue                                           5 609 048 443         5 609 488 001        5 607 831 405      5 609 488 001     5 608 124 783     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 (chief executive officer), HS Kellan (financial director), M Vilakazi (chief operating officer), MS Bomela, HL Bosman, JP Burger,
JJ Durand (alternate), GG Gelink, NN Gwagwa, F Knoetze, RM Loubser, PJ Makosholo, TS Mashego, EG Matenge-Sebesho, AT Nzimande, LL von Zeuner, 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 1820
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



12 March 2019

Date: 12/03/2019 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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