FirstRand : annual integrated report 2021

This integrated report describes the operational and financial performance and activities of FirstRand Limited (FirstRand or the group) for the year ended 30 June 2021.

The group continues to present both new and existing content in an accessible and diagrammatical style.

OF PARTICULAR NOTE:

In the CEO's report, there is a detailed unpack of the group's strategy across jurisdictions. There is also an explanation of its platform enablement journey, including an example of a customer ecosystem.

Infographics on pages 08 to 11 demonstrate how the operations of the group positively impact a broad range of stakeholders.

The commentary and financial results in the chairman's, CEO's and CFO's reports, and the operational reviews are based on the normalised results of the group. The normalised results have been derived from the IFRS financial results. A detailed description of the differences between normalised and IFRS results and detailed reconciliation between normalised and IFRS results are provided on pages 178 to 183.

1966/010753/06. Certain entities within the FirstRand group are authorised financial services and credit providers. This report is available on the group's website: www.firstrand.co.za/investors/annual-reporting/

Email questions to investor.relations@firstrand.co.za

About the group

FirstRand's integrated reporting framework

Measuring social impact

Review of operations

Simplified group structure

Five-year review - normalised

Ethical foundation and culture

Board of directors

Large exposures committee

Directors' affairs and governance

Risk, capital management and

Information technology risk and

Social, ethics and transformation

Responsible corporate citizenship

Independent assurance report on selected

non-financial information to the directors

of FirstRand Limited

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FirstRand group summary consolidated financial statements

Directors' responsibility statement and

approval of the summary consolidated

Independent auditors' report on the summary

consolidated financial statements

Company secretary's certification

Summary consolidated financial statements

Selected notes to the summary consolidated

Definitions, abbreviations and

Analysis of ordinary shareholders

Analysis of B preference shareholders

Performance on the JSE

Listed financial instruments of the group

Notice of annual general meeting

02 FIRSTRAND GROUP

integrated reporting suite

ANNUAL INTEGRATED REPORT

Describes the operational and financial performance and activities of the group.

It includes the chairman's, CEO's and CFO's reports, operational reviews, King IV corporate governance disclosures, group summary consolidated statements and notice of the annual general meeting.

ANNUAL FINANCIAL STATEMENTS

ANALYSIS OF FINANCIAL RESULTS AND RESULTS PRESENTATION

Cover the audited summary consolidated financial results of the group based on International Financial Reporting Standards (IFRS) and provide an in-depth analysis of the group's financial results, presented on a normalised basis as the group believes this most accurately reflects its economic performance. The analysis of financial results and results presentation are provided for interim and year-end results.

BASEL PILLAR 3 DISCLOSURE

In accordance with the Basel Committee on Banking Supervision (BCBS) Pillar 3 framework and Regulation 43 of the amended Regulations relating to Banks, the group is required to publish standardised disclosure templates that provide users with key quantitative and qualitative information that is comparable and consistent. Reports are provided on a biannual basis.

MATERIAL RISK FACTORS

In terms of the JSE Listings Requirements, FirstRand is required to disclose risk factors in terms of paragraph 7.F.7 (description of material risks which are specific to the issuer, its industry and/or its securities).

REPORT TO SOCIETY

Provides deeper insight into the social impact of the group's operational and financial performance.

The remuneration report details FirstRand's remuneration philosophy and policy, and how they were implemented in the current year. Disclosures are aligned to the requirements of section 64C of the Banks Act, the FSB's Principles for Sound Compensation Practices and its Implementation Standards , the BCBS's Pillar 3 disclosure requirements standard - updated framework (December 2018) and Directive 1/2019 issued by the Prudential Authority, and the recommended practices of King IV, where appropriate.

The Task Force on Climate-related Financial Disclosures (TCFD) was constituted by the Financial Stability Board (FSB) in response to the Paris Agreement. Through recommendations for clear, comparable and consistent information, it promotes transparent disclosure of climate risks and opportunities. FirstRand is a TCFD signatory, and this report represents the group's first TCFD disclosure. This disclosure will enable stakeholders to understand and track FirstRand's progress against its climate roadmap and approach to climate risks and opportunities, as well as short-, medium- and long-term targets.

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