2021 - firstrand.co.za

1 2021. annual integrated report Owner-manager philosophy Innovation Entrepreneurship Franchise value about this report 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.

2 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.

3 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: Email questions to FirstRand annual integrated report 2021 01. contents FirstRand group FirstRand group summary About the group 03 consolidated financial statements Integrated highlights 04 Directors' responsibility statement and 123. approval of the summary consolidated FirstRand's integrated reporting framework 06 financial statements Measuring social impact 08 I ndependent auditors' report on the summary 124.

4 Chairman's report 12 consolidated financial statements CEO's report 18 Company secretary's certification 125. CFO's report 28 Summary consolidated financial statements 126. Selected notes to the summary consolidated 135. Review of operations financial statements FNB 48. Definitions, abbreviations and 169. RMB 54 supplementary information WesBank 58. Aldermore 61 Shareholders' information Simplified group structure 63 Analysis of ordinary shareholders 187. Five-year review normalised 64 Analysis of B preference shareholders 188.

5 Performance on the JSE 188. Corporate governance Company information 189. Governance outcomes 70. Listed financial instruments of the group 190. Ethical foundation and culture 71. Governance structure 72 Notice of annual general meeting 193. Board of directors 78. Board committees 87. Large exposures committee 87. D. irectors' affairs and governance 89. committee R. isk, capital management and 91. compliance committee I nformation technology risk and 94. governance committee Remuneration committee 97. Audit committee 105. ocial, ethics and transformation S 111.

6 Committee Responsible corporate citizenship 115. Stakeholder engagement 117. Independent assurance report on selected 118. non-financial information to the directors of FirstRand Limited 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.

7 ANNUAL FINANCIAL STATEMENTS. > FirstRand group audited consolidated annual financial statements > FirstRand Limited company audited 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.

8 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 (description of material risks which are specific to the issuer, its industry and/or its securities).

9 report TO SOCIETY. Provides deeper insight into the social impact of the group's operational and financial performance. REMUNERATION report . 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.

10 TCFD report . 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.