FirstRand : Bank annual report – June 2021

2021

annual report

for the year ended 30 June

about this report

This report covers the audited financial results of FirstRand Bank based on International Financial Reporting Standards (IFRS) for the year ended 30 June 2021.

Section A of this report includes an overview of the bank, including:

• a simplified group structure; and
• corporate governance.

An overview of the group's strategy and a detailed analysis of financial results for the year ended 30 June 2021 are provided in section B.

The audited annual financial statements are contained in section C and supplementary information in section D.

1929/001225/06

Certain entities within the FirstRand group are authorised financial services and credit providers. This analysis is available on the group's website: www.firstrand.co.za

Email questions to [e-mail]

contents

a

Overview of FirstRand Bank

Performance highlights	A02
Track record	A03
Simplified group structure	A04
Group vs bank	A05
Foreign branches and representative offices	A06
Corporate governance	A07
Board of directors	A09

b

Analysis of financial results

Overview of results	B02
Review of operations	B19
Income statement analysis	B43
Financial resource management	B93
Presentation and reconciliations	B107
c
Annual financial statements
Directors' responsibility statement and approval of	C03
the annual financial statements
Audit committee report	C05
Company secretary's certification	C06
Directors' report	C07
Independent auditors' report	C08
Accounting policies	C15
Income statement	C65
Statement of other comprehensive income	C66
Statement of financial position	C67
Statement of changes in equity	C68
Statement of cash flows	C70
Notes to the annual financial statements	C71
d
Supplementary information
Company information	D02
Listed financial instruments of the bank	D03
Definitions	D05
Abbreviations	D06
Abbreviations of financial reporting standards	D07

FIRSTRAND BANK A01

DIVIDERNEEDEDED

a

Overview of

FirstRand Bank

A02 FIRSTRAND BANK Overview of results

FirstRand Bank (FRB or the bank) is a wholly owned subsidiary of FirstRand Limited (FirstRand or the group), which is listed on the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange (NSX). The bank provides a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products in certain international markets. The bank has three major divisions, which are separately branded: First National Bank (FNB), Rand Merchant Bank (RMB) and WesBank. FCC represents group-wide functions. FRB has branches in London, India and Guernsey, and representative offices in Kenya, Angola and Shanghai.

performance highlights

			normalised
Normalised earnings	Return on equity	earnings
R19.0bn	19.1%	R14.5bn
2020: R13.8bn	38%	2020: 14.6%
Net asset value		CET1 ratio
R105.3bn	14.5%	R4.7bn
2020: R94.3bn	12%	2020: 12.3% 220 bps

R418m

FIRSTRAND BANK A03

TRACK RECORD

Normalised earnings (R million)

and ROE (%)

CAGR 1%

22.2	23.4	23.7
				19.1
			14.6
	20 170	21 152
			19 032
18 089
	11 002	10 558	13 762
9 008		11 036
			3 473
9 081	9 168	10 594	10 289	7 996
17	18	19	20	21
 6 months to June	 6 months to December
ROE (%)

Normalised net

asset value (R million)

CAGR 6%

				105 253
		94 463	94 312
84 373	87 900
17	18	19	20	21

Note: 2017 and 2018 figures are based on IAS 39 and 2019 to 2021 figures on IFRS 9.