Firstrand Limited · JSE:FSR
Firstrand — FirstRand Bank — Debt Investor Presentation (October 2025)
39 slides from Firstrand's debt investor presentation, Oct 7, 2025
Slide 1: Financial and Strategic Update
FINANCIAL AND STRATEGIC UPDATE for the year ended 30 June 2025
Slide 2: Agenda
Agenda 2 Markos Davias Bank overview and financial performance FirstRand Chief Financial Officer Macroeconomic themes Bhulesh Singh Funding, liquidity and capital management FirstRand Group Treasurer South African financial market developments
Slide 3: Bank Overview and Financial Performance
BANK OVERVIEW AND FINANCIAL PERFORMANCE for the year ended 30 June 2025
Slide 4: FirstRand Bank is a wholly owned subsidiary of FirstRand Limited
FirstRand Bank is a wholly owned subsidiary of FirstRand Limited 4 Listed holding company (FirstRand Limited, JSE: FSR) Other wholly owned subsidiaries of FirstRand Limited 100% FirstRand EMA Holdings DEBT ISSUER FirstRand Bank Limited (FRB) (Pty) Ltd (FREMA) SA banking Broader Africa DIVISIONS Firs
Slide 5: FRB is a significant contributor to the group's financial position
FRB is a significant contributor to the group’s financial position 5 Other group legal entities* 28% Other group Group legal entities* 41% Group normalised normalised assets net asset 59% FRB value 72% FRB 2% 3% 3% Other group legal entities* 35% South Africa FRB Group Broader Africa geographical no
Slide 6: SA banking business remains underpin to Group's growth
SA banking business remains underpin to Group’s growth 6 SOUTH AFRICA BROADER AFRICA UK Platform-enabled integrated financial Build competitive advantage services providing ecosystems that London Branch supports and scale to deliver economic create long-term value for clients and RMB’s broader Afric
Slide 7: The bank supports the group's broader Africa strategy
The bank supports the group’s broader Africa strategy 7 SOUTH AFRICA BROADER AFRICA UK Platform-enabled integrated financial Build competitive advantage services providing ecosystems that London Branch supports and scale to deliver economic create long-term value for clients and RMB’s broader Africa
Slide 8: The bank has a UK branch enabling access to sources of capital and liquidity
The bank has a UK branch enabling access to sources of capital and liquidity for broader Africa customers and the Bank 8 SOUTH AFRICA BROADER AFRICA UK Platform-enabled integrated financial Build competitive advantage services providing ecosystems that London Branch supports and scale to deliver eco
Slide 9: Key performance metrics
Key performance metrics 9 Normalised earnings Cost-to-income ratio Deposit franchise R27.3bn 53.2% R1 156bn (2024: R24.7bn) 11% (2024: 55.2%) 200 bps (2024: R1 076bn) 7% CET1 ratio Return on equity Normalised net asset value 13.3% 22.6% R127.4bn (2024: 12.4%) 90 bps (2024: 22.6%) (2024: R114.4
Slide 10: Origination philosophy and mix anchored to growth and risk-adjusted returns
Origination philosophy and mix anchored to growth and risk-adjusted returns 10 • Continue to pursue good-quality credit and protect customer franchise whilst maintaining risk-adjusted returns through the cycle • Track record of disciplined allocation and pricing of capital, funding and liquidity, an
Slide 11: Overall credit outcomes of origination approach
Overall credit outcomes of origination approach 11 Centre 1% • Credit loss ratio at 113 bps near the mid point of 3% the bank’s TTC range (of 100 bps to 130 bps): 33% FNB retail – Retail CLR shifted back into its TTC range, with RMB 35% Core 3% 2%* lending household pressures showing some signs o
Slide 12: FRB has maintained balance sheet strength
FRB has maintained balance sheet strength 12 ACTUAL TREND Assets in marketable format R550 billion Marketable liquid assets driven by growth in reserves, short dated HQLA Liquid assets as % of total assets 29.5%* Higher following increase in liquid assets LCR: 133% The bank’s liquidity position rema
Slide 13: Macroeconomic Themes
@® FirstRand Bank MACROECONOMIC THEMES
Slide 14: Transmission of global and domestic macro themes into business
Transmission of global and domestic macro themes into business 14 Global fracturing and reduced capital inflows • Elevated sovereign risk premia and lower capital flows • Widening term bond spreads and impacting COE • Increasingly difficult and expensive to access hard currency Structurally higher i
Slide 15: In SA debt sustainability needs to be actively managed
In SA debt sustainability needs to be actively managed with good micro and macroeconomic policy 15 SA debt to GDP projections % GDP • Structurally weak GDP growth constraining the 100% tax base 90% Fiscal space is limited • Spending on consumptive activities remains high 80% • Reforms to lift econom
Slide 16: Inflation target change to 3% an important monetary policy reform
Inflation target change to 3% an important monetary policy reform to lower benchmark rates and lift investment 16 SA repo rate and inflation forecasts Two-year ahead inflation expectations % y/y% 16 Forecast 10 Trade unions 14 Inflation 9 12 8 10 7 SA repo rate Businesses 8 6 6 5 Analysts 4 4 2 3 0
Slide 17: Efforts to lift growth and stabilise fiscus
Efforts to lift growth and stabilise fiscus are focussed on criminal justice, governance and growth reforms 17 Business Leadership SA reform tracker 2025 – 2026 Estimated contribution of certain structural reforms to potential real GDP growth 100% % 3.5 90% 80% 0.2 3.0 0.3 70% 2.5 0.6 60% 2.0 50% 0.
Slide 18: Energy sector reforms a necessary condition for higher growth
Energy sector reforms a necessary condition for higher growth - 2023 crunch has been dealt with, focus shifts to transmission 18 SA energy production outlook GWh per month by technology 24 000 Forecast 20 000 16 000 12 000 8 000 Expansion of transmission infrastructure has become an important focus
Slide 19: Rail and port logistics reforms are improving volumes off a low base
Rail and port logistics reforms are improving volumes off a low base – now 11 private sector operators approved 19 SA annual average freight tonnages Total cargo handles at ports SA annual average monthly passenger journeys by type Thousands of tonnes/month Thousands of tonnes Thousands 20 000 60 00
Slide 20: Exiting the FATF grey list expected to be a key marker
Exiting the FATF grey list expected to be a key marker for institutional and governance reform progress (hopefully in October) 20 SA Worldwide Governance Index components (percentile) South Africa's World Bank Worldwide Governance Indicator 80 1 Voice and Accountability 68.6 Projection 70 0.9 0.8 60
Slide 21: Debt consolidation and reforms support case for single notch S&P upgrade
Debt consolidation combined with institutional reforms and lower inflation target support case for single notch S&P upgrade 21 SA debt to GDP ratio % Key ratings drivers: 90 • Governance reforms Forecast: BB 80 support institutional Positive BB- strength Positive 70 BB- • Inflation target change BB-
Slide 22: Funding, Liquidity and Capital
FUNDING, LIQUIDITY AND CAPITAL
Slide 23: Liquidity conditions
Liquidity conditions 23 Stylised view of liquidity transmission Short-term rates 10% 9% Savings flows, funding Liquidity transmission and 8% availability, scale and efficiency 7% willingness to invest 6% 5% SAGB Carry Policy Rate Financing spreads and repricing risks in 4% 3m JIBAR Tbill key markets
Slide 24: Liquidity management
Liquidity management 24 FRB funding composition FRB maturity profile R billion 2% 30 5% 11% 27% 25 20 10% 2025 15 14% 10 31% Deposit franchise 72% 5 0 Retail Commercial CIB 25 27 29 31 33 35 37 39 41 43 45 47 49 FI deposits and facilities Debt securities Other AT1 and Tier 2 capital Senior debt Seni
Slide 25: FRB comfortably exceeds LCR and NSFR minimum requirements
FRB comfortably exceeds LCR and NSFR minimum requirements 25 % 2025 2024 • The bank manages excess liquidity through LCR 100 deployment primarily into central bank deposits, Regulatory minimum 100 Actual 133 121 repo markets, treasury bills and bonds Average available HQLA (R billion) 439 380 NSFR •
Slide 26: Capital position remains solid and well above internal target
Capital position remains solid and well above internal target 26 CET1 ratio* % 16 CET1 accretion: +116 bps 15 (179 bps) 14 300 bps (5 bps) (74 bps) 13.3 13 50 bps 12.4 12 11 10 2024 Earnings Ordinary Other** RWA RWA optimisation 2025 dividend * Includes unappropriated profits. ** Includes FCTR, othe
Slide 27: Regulatory changes impacting the bank
Regulatory changes impacting the bank 27 Effective date Final Basel reforms 1 July 2025 • Revised approaches for: Output floor for RWA: • Credit risk – standardised and internal-ratings based approaches 1 July 2025: 60% • Market risk and credit valuation adjustment 1 January 2026: 65% • Operational
Slide 28: South African Financial Market Developments
SOUTH AFRICAN FINANCIAL MARKET DEVELOPMENTS
Slide 29: ZARONIA update
ZARONIA update 29 Recent achievements Expected next steps • Market Practitioners Group (MPG) • Term rate investigations completed fallback published • Commencement of regulatory and supervisory programme • ZARONIA* first derivatives commenced • Legislative proposal for “tough legacy” positions final
Slide 30: Total loss absorbing stack – capital and Flac to be managed holistically
Total loss absorbing stack – capital and Flac to be managed holistically 30 For illustrative purposes, excludes institution-specific requirements and management buffer • Flac requirement anchored to RWA 23% 23% • Management buffer and Pillar 2B impacts 3% institution-specific minimum Flac 5% 33.33%
Slide 31: Flac across the industry
Flac across the industry 31 Estimated Flac issuance* • Flac issuance required for designated institutions R billion subject to open resolution 350 • Issuance required from the ultimate holding company 300 R298 billion • Implementation: 1 January 2026 with a 4-year transition from 2028 250 80 • Resol
Slide 32: Conclusion
@® FirstRand Bank CONCLUSION
Slide 33: In summary…
In summary… 33 • South Africa continues to make progress on key initiatives • Market functioning • Economic reforms • Growth reforms • Progress on fiscal discipline • Significant progress on FATF requirements • Delicate geopolitical environment • Basel reforms implemented and incorporated in capital
Slide 34: Annexures
@® FirstRand Bank ANNEXURES
Slide 35: FRB credit ratings
FRB credit ratings 35 SOUTH AFRICA FIRSTRAND BANK LIMITED SOVEREIGN RATINGS CREDIT RATINGS* FOREIGN CURRENCY LOCAL AND FOREIGN CURRENCY Long-term/ Long-term/ Long-term Standalone outlook outlook national scale credit rating** S&P BB-/Positive BB-/Positive zaAA+ bbb- Moody’s Ba2/Stable Baa3/Stable Aa
Slide 36: SARB market practitioners' group (MPG) timeline
SARB market practitioners’ group (MPG) timeline (published 15 August 2025) 36 January No new JIBAR – requires that across the We are here market spectrum, the ability to reference ZARONIA is in place. This is preceded by End Q3 2024 ‘ZARONIA first’. S2 • Cash market fallback methodology agreed • Ter
Slide 37: Summary of recommended ZARONIA conventions
Summary of recommended ZARONIA conventions 37 Convention Derivatives market Bond market Money market Loan market Market alignment Calculation method Daily overnight compounded Daily overnight compounded Daily overnight compounded Daily overnight compounded Lookback 0 business days 5 business days
Slide 38: Important notice
Important notice 38 The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or law or an offer or solicitation of an offer to buy or sell securities or financial instruments or any advice or recommendation to buy such
Slide 39: Important notice (continued)
Important notice (continued) 39 The information in this presentation is given in confidence and the recipients of this presentation should not engage in any behaviour which would or might amount to market abuse for the purpose of Regulation (EU) 596/2014 (the Market Abuse Regulation). This presentat
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