FIRSTRAND NORTH AMERICAN INVESTOR ROADSHOW

May 2015

Conversion rates at 30 June 2014:Income statement: USD1 = ZAR10.38, balance sheet: USD1 = ZAR10.63

Introducing FirstRand – financial position and track record

Sources: FirstRand, I-Net

NORMALISED EARNINGS – YEAR ENDED 30 JUNEZAR million

2

8 283

10 117

12 730

15 420

18 663

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2010 2011 2012 2013 2014

21%

FINANCIAL HIGHLIGHTSfor the year ended 30 June 2014

ZAR million

USD million

Total assets 945 535 88 950

Normalised net asset value 81 590 7 675

Normalised earnings 18 663 1 798

Normalised ROE 24.2%

Capital adequacy – CET1 ratio 13.9%

KEY OPERATING STATISTICSfor the year ended 31 December 2014 Dec 2014

Employees 39 508

Physical representation points 874

ATMs 7 089

Card-acceptance point-of-sale devices 125 960

• Be the African financial services provider of choice

• Broaden financial services proposition in South Africa (not only banking)

• Build meaningful in-country franchises in chosen markets in the rest of Africa

• Underpinned by our commitment to:

Our growth strategy

Create long-term franchise value

Deliver superiorand sustainable

economic returns within acceptable levels of volatility

Maintain balance sheet strength

BE THE AFRICAN FINANCIAL SERVICES GROUP OF CHOICE

3

Our unique operating model

Group-wide functions Retail and commercial bank Corporate and investment bank Instalment finance Investment management

Listed holding company (FirstRand Limited, JSE: FSR)

4

How we operationalise FirstRand’s strategic objectives

STRATEGIC FRAMEWORK

FIRSTRAND PHILOSOPHY

PERFORMANCE MANAGEMENT FRAMEWORK

RISK MANAGEMENT FRAMEWORK

FINANCIAL RESOURCE MANAGEMENT FRAMEWORK

Str

atco

Cus

tod

ians

hip

man

dat

e

Exe

cutio

n th

roug

h op

erat

ing

fran

chis

es

Owner-manager culture Innovation Entrepreneurship

Financial services in Africa

Franchise value Superior returnsBalance sheet

strength

5

Portfolio provides sustainability through diversification

* Based on gross revenue (excl. FCC).† Based on normalised earnings (excl. FCC, FirstRand company, NCNR preference dividends and consolidation adjustments.)

FirstRand

87%

2% 11%

South Africa

International

Rest of Africa and corridors

Geography*

58%26%

16%

Franchise†

WesBank

FNB

RMB55%

20%

25%

Segment†Retail

Commercial

Corporate and investment banking

Products*

Retail

Commercial

CIB

FNB Africa

6

Net interest income (NII) = 53% Non-interest revenue (NIR) = 47%

28%

6% 5% 5% 5% 4%

30%

4% 4% 3% 4%

1% 1%

Client franchises are significant

Lending

Gro

up T

reas

ury

and

oth

er

FNB

Afr

ica

Dep

osits

Dep

osit

end

owm

ent

Cap

ital e

ndow

men

t

Transactional income*

Inve

stm

ent

ban

king

tr

ansa

ctio

nal i

ncom

e

Insu

ranc

e

Oth

er c

lient

**

Inve

stin

g

Flow

tra

din

g an

d r

esid

ual r

isk

CLIENT FRANCHISE = 94% RISK INCOME AND INVESTING = 6%

* From retail, commercial and corporate banking.** Includes WesBank associates.

Oth

er in

com

e

7

Balance sheet strength and disciplined financial resource allocation

FINANCIAL RESOURCE MANAGEMENT

CAPITALRISK APPETITE ALLOCATION

FUNDING AND LIQUIDITY

8

0%

2%

4%

6%

8%

10%

12%

14%

Column2 X Column1

Strong capital position and expansion buffer

13.1%*

13.8%

Regulatory Economic

R12.3bnsurplus

SARB end-state minimum

requirement8.5%

CET1 target range: 10% – 11%

Target

CET1 ratio

FSR management buffer 2.5%

Economic view of surplus excludes:• Volatile reserves (foreign currency translation

and available-for-sale reserves)• Ring-fenced capital• Known Basel III changes

0.7%

* Includes reissue of BEE shares in January 2015. 9

Pro-active countercyclical provisioning approach

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Dec 13 Dec 14

Portfolio impairments (R million)

Franchise portfolio impairments

Central overlay

Dec 14 Dec 13

Portfolio impairments as % of performing book

1.07% 0.97%

Bad debt charge (%) 0.86% 0.77%

Portfolio impairments (R million)

7 665 6 152

Franchise overlay

25%

10

998

1 621

2 822

3 645

4 383

18.0%

19.5%

22.3%23.4% 24.0%

0%

5%

10%

15%

20%

25%

-

1 000

2 000

3 000

4 000

5 000

Dec 10** Dec 11 Dec 12 Dec 13 Dec 14

NIACC ROE

Franchise has delivered superior shareholder value creation

NIACC* (R million)

* Net income after capital charge.** 2010 comparatives are for FirstRand Banking Group.

20%

ROE

11

12

13

14

15

16

17

00 02 04 06 08 10 12 140

4

8

12

16

20

24

0

4

8

12

16

20

24

79 82 85 88 91 94 97 00 03 06 09 12 15

0.0

2.5

5.0

7.5

10.0

12.5

15.0

0.0

2.5

5.0

7.5

10.0

12.5

15.0

94 97 00 03 06 09 12 15-5

0

5

10

15

20

25

1995 1999 2003 2007 2011 2015 2019

SA’s economy facing headwindsHousehold and government income growth Inflation lifting from cyclical lows

Pro-cyclical monetary policy Constrained credit growth

%Money multiplier (12mma)Repo rate

Ratio

Gross disposable income of government InflationAvailable household resources

% %

Inflation target band

Sources: South African Reserve Bank, Bloomberg, FirstRand

%

% y/y

12

• Sub-par growth

• Structural constraints (incl. electricity, skills shortage, labour market rigidities)

• Faded commodity price tailwind

• Indebtedness

• Inflation lifting from cyclical lows

• Limited room for policy support

• Monetary policy constrained by inflation and (foreign) funding pressure

• Fiscal policy constrained by government indebtedness and ratings pressure

• Expect a gradual lift in interest rates

• Sovereign rating under pressure

• Tail risks remain high

Key themes for South Africa’s macroeconomic outlook

13

• Be the African financial services provider of choice

• Broaden financial services proposition in South Africa (not only banking)

• Build meaningful in-country franchises in chosen markets in the rest of Africa

• Underpinned by our commitment to:

Our growth strategy

Create long-term franchise value

Deliver superiorand sustainable

economic returns within acceptable levels of volatility

Maintain balance sheet strength

BE THE AFRICAN FINANCIAL SERVICES GROUP OF CHOICE

14

Banking revenues dominate mix – therein lies the growth opportunity…

Lending, transactionaland related endowment 72%

Group revenue split

Dec 14

Deposits and liabilities6%

Insurance 4%

FNB Africa 5%

Investing 4%

Other 9%

15

SOUTH AFRICA

CHALLENGEDominant domestic position constrains

ability to significantly outperform nominal GDP and regulatory pressures

RESPONSESAttack new profit pools, diversify,

disrupt through innovation, cross-sell, fix underperformers, efficiencies

InsuranceCorporate

transactionalAsset

management

Investment taking place now for medium- to long-term growth

… especially given dominant position of domestic banking franchise

Grow capital-light business lines ROE

16

Opportunity to further grow transactional franchise

70%

30%

Non-FNB FNB banked

Direct Axis336 763

accounts60%

40%

Non-FNB FNB banked

WesBankMotor681 675

accounts

70%

30%

Non-RMB RMB banked

Primary transactional relationshipRMB top 100

clients

17

• Utilise the capabilities of the South African franchise, particularly the domestic balance sheet, intellectual capital, international platforms and the existing operating footprint in the rest of Africa

• Effective in territories where a physical presence not yet established, e.g. RMB cross-border lending

• Rolling out RMB (CIB offering) in the established FNB subsidiaries

• Start an in-country franchise and grow organically (i.e. greenfields)

• Rolling out FNB SA innovations a priority

• RMB’s merchant banking licence in Nigeria providing some corporate and commercial banking opportunities

• Acquisitions where it makes commercial sense

Growing in new markets – focus on rest of Africa

Three pillars to execution

18

Growing regional presence

19

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Dec 10 Dec 11 Dec 12 Dec 13 Dec 14

Rest of Africa revenues growing across all franchises

22% CAGR.

Rest of Africa gross revenue* (R million)

** WesBank 2010 and 2011 rest of Africa revenues included in FNB figures in the graph above.

Note: All WesBank rest of Africa profits reported under FNB Africa in Analysis of financial results booklet.* Excludes FCC (including Group Treasury).

WesBank**FNB RMB

Overall subsidiaries ROE 21.6%, established subsidiaries ROE 30.8%

20

Rest of Africa still requires meaningful investment to buildin-country franchises

Multi-nationalInternational

In-country balance sheets and franchises

Using home-country resources to conduct cross-border activity

Execution needs to shift given limited runway

Remain disciplined in deployment of capital21

QUESTIONS?