FirstRand : 2021 FirstRand report to society

2021

report to society

Introduction: report	Deploying the group's balance
purpose, group profile	sheet to drive economic
and operating context	growth and inclusion

How the group's products and	Treating	Addressing	Providing an	A CSI strategy	Managing the
transactional platforms deliver financial	customers	transformation and	enabling environment	designed to contribute	group's environmental
inclusion to broader society	fairly	employment equity	for employees	to upliftment	impact

CONTENTS

Report purpose	1
Foreword	2
Group profile	3
Macroeconomic context	6
Role of financial institutions in society	7
FirstRand's ambition to deliver shared prosperity frames
its contract with society	9
The United Nations Principles for Responsible Banking	10
Governance structures and processes	16
MAKING PROGRESS
Deploying the group's balance sheet to drive economic
growth and inclusion	17
How the group's products and transactional platforms
deliver financial inclusion to broader society	41
Treating customers fairly	57

REPORT PURPOSE

FirstRand Limited's (FirstRand's or the group's) purpose is to build a future of shared prosperity through enriching the lives of its customers,

employees and the societies it serves.

FIRSTRAND

Addressing transformation and employment equity	63
Providing an enabling environment for employees	73
A CSI strategy designed to contribute to upliftment	85
Managing the group's environmental impact	95
External assurance statement	117

Feedback on this report can be sent to: [e-mail]

This is the foundation to a sustainable future and will preserve the group's enduring promise to create long-term value and superior returns for its shareholders.

Whilst FirstRand's Annual Integrated Report focuses on the group's financial and operational performance, the Report to Society aims to provide deeper insight into the societal impact of that performance. FirstRand continues to refine its thinking and processes to better determine and measure this societal impact.

This report covers the FirstRand group including its subsidiaries. The report links to the Annual Integrated Report and the TCFD Report (https:// www.firstrand.co.za/investors/annual-reporting/). All reported data is for the year ended 30 June 2021, unless indicated otherwise. Information in the profiled case studies may relate to events and initiatives that occurred after 30 June 2021 but before the issue date of this report.

SOCIETY TO REPORT | GROUP

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Introduction: report	Deploying the group's balance
purpose, group profile	sheet to drive economic
and operating context	growth and inclusion

How the group's products and	Treating	Addressing	Providing an	A CSI strategy	Managing the
transactional platforms deliver financial	customers	transformation and	enabling environment	designed to contribute	group's environmental
inclusion to broader society	fairly	employment equity	for employees	to upliftment	impact

FOREWORD

FirstRand is dedicated to delivering shared prosperity, encompassing a blend of financial and societal value for a broad set of stakeholders,

including society at large.

Across our portfolio, applying a shared prosperity lens to our strategic formulation and execution, we leverage FirstRand's infrastructure, networks and financial capacity to achieve scalable and high-impact financial and societal outcomes.

The group's balance sheet alone has the heft to drive profound societal change. By way of example, home ownership is a major enabler of intergenerational wealth creation, as high levels of home ownership have proven to

in enhanced levels of education and financial well-being. The group is putting its balance sheet to work in this very important asset and we are particularly focused on growing affordable housing book to help low-income customers. We are also committed to supporting the growth ambitions of small medium-sized enterprises, as this sector represents an important engine for productive capital formation, leading to urgently required economic growth and job creation.

This Report to Society details many examples of how our businesses are intentionally tackling a wide array of societal challenges. At the same time the group remains focused on driving economic growth and superior returns for shareholders. These two ambitions are mutually inclusive.

We believe our pursuit of shared prosperity is distinctive. Combined with our track record of innovation, we are confident that this will form

SOCIETY TO REPORT | GROUP FIRSTRAND

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Introduction: report	Deploying the group's balance
purpose, group profile	sheet to drive economic
and operating context	growth and inclusion

How the group's products and	Treating	Addressing	Providing an	A CSI strategy	Managing the
transactional platforms deliver financial	customers	transformation and	enabling environment	designed to contribute	group's environmental
inclusion to broader society	fairly	employment equity	for employees	to upliftment	impact

GROUP PROFILE

FirstRand is a portfolio of integrated financial

services businesses operating in South Africa, certain markets in sub-Saharan Africa

and the UK.

Many of these businesses are leaders in their respective segments and markets, and offer a broad range of transactional, lending, investment and insurance products and services.

The group's strategy in its domestic market is to deliver platform-based integrated financial services to customers. In the rest of Africa, the group is focused on growing its presence in

certain key markets where it believes it can build competitive advantage and scale over time. The UK operations present an opportunity to build a more valuable business in a large market with lower risk. Consistent execution on strategy and a disciplined approach to allocating scarce financial resources have delivered a long track record of superior economic profits, returns and dividends to shareholders.

SOCIETY TO REPORT | GROUP FIRSTRAND

For a detailed review of the operations refer to the Annual Integrated Report.

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Introduction: report	Deploying the group's balance
purpose, group profile	sheet to drive economic
and operating context	growth and inclusion

How the group's products and	Treating	Addressing	Providing an	A CSI strategy	Managing the
transactional platforms deliver financial	customers	transformation and	enabling environment	designed to contribute	group's environmental
inclusion to broader society	fairly	employment equity	for employees	to upliftment	impact

GROUP PROFILE CONTINUED

The group has a multi-brand strategy, with a number of leading customer-facing businesses in the portfolio

Retail and		Corporate and		Instalment		UK specialist lender		Asset management
commercial bank		investment bank		and finance provider

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.

RMB represents the group's activities in the corporate and investment banking segments in South Africa and the broader African continent. Its strategy leverages a strong origination franchise, a leading market-making and distribution offering, a strong private equity track record and a growing transactional platform.

WesBank represents the group's activities in instalment credit, fleet management and insurance in the retail, commercial and corporate segments of South Africa. WesBank has

1. unique and long-standing model of partnering with leading motor manufacturers, suppliers and dealer groups.

Aldermore represents the group's activities in the UK. It has a clear strategy of offering simple financial products and solutions

to meet the needs of underserved small and medium-sized enterprises (SMEs), as well as homeowners, professional landlords, vehicle owners and savers.

Ashburton Investments represents FirstRand's asset management activities. Ashburton has an active investment management strategy spanning traditional and alternative investments as well as unique on-balance sheet opportunities.

SOCIETY TO REPORT | GROUP FIRSTRAND

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