FirstRand Limited · JSE:FSR
FirstRand — H1 2010 Earnings Presentation
80 slides from FirstRand's earnings presentation, February 2010
Slide 1: FirstRand Limited results for the six months ended 31 December 2009
FirstRand Limited results for the six months ended 31 December 2009
Slide 2: Introduction
Introduction Sizwe Nxasana
Slide 3: Macro remains challenging
Macro remains challenging • Weak GDP growth • Continuing job losses • Lower interest rates • High levels of consumer leverage, but some de-risking taking place • Corporate sector cautious about recovery • Recovery in equity markets
Slide 4: High-level impact on performance
High-level impact on performance – Negative balance sheet growth – Lower growth in transaction volumes – Negative endowment effect + Reduction in retail bad debts + Level of losses from legacy portfolios reducing + Increase in fees earned on investment business
Slide 5: Despite challenges, profitability improving
Despite challenges, profitability improving Normalised earnings* R millions 6 000 5 990 5 953 ROE = 17% 5 000 5 319 1% 4 576 4 605 4 445 4 000 79% 3 000 2 575 2 000 1 000 0 Dec '06 Jun '07 Dec '07 Jun '08 Dec '08 Jun '09 Dec '09 * December 2006 to December 2007 normalised earnings exclude contributi
Slide 6: Franchises show mixed performance year on year but trend positive
Franchises show mixed performance year on year but trend positive year-on-year, Profit before tax 6 months 6 months Change 6 months Change R millions illi t Dec to D ’09 t Jun to J ’09 (6 /6 ) (6m/6m) t Dec to D ’08 ( / ) (y/y) FNB 2 895 2 185 32% 2 875 1% FNB Africa 643 564 14% 658 (2%) RMB
Slide 7: Financial review
Financial review Johan Burger g
Slide 8: FirstRand Group key financial ratios
FirstRand Group key financial ratios Dec ’09 09 Dec ’08 08 Change Normalised earnings (R millions) 4 605 4 576 1% Diluted normalised EPS (cents) 81.7 81.2 1% Normalised return on equity (%) 17 17 − Normalised net asset value per share (cents) 1 005 950 6% Di id d per share Dividend h ((cents)
Slide 9: Market recovery, strong operational performance
Market recovery, strong operational performance Dec Dec R millions Change Performance driven by: ’09 09 ’08 08 Momentum 530 444 19% • Value of new business holding up FNB Insurance 191 144 33% • Positive mortality experience Group operating profit 721 588 23% • Improved markets Investment inco
Slide 10: Banking Group key financial ratios
Banking Group key financial ratios Dec ’09 Dec ’08 Change Normalised earnings (R millions) 4 038 4 149 (3%) Return on equity (%) 17 18 Return on assets (%) 1.26 1.23 Credit loss ratio (%) 1.51 1.64 Cost to income ratio – normalised (%) 55 5 55.5 52 9 52.9 Tier 1 capital ratio* (%) 12.7 11.
Slide 11: Normalised income statement shows improving trend
Normalised income statement shows improving trend R millions Dec ’09 Dec ’08 Change Net interest income 8 628 8 828 (2%) Bad debts (3 225) (3 693) (13%) Net interest income after impairments 5 403 5 135 5% Non interest income 12 537 10 920 15% Operating expenses (11 751) (10 438) 13% Indir
Slide 12: Net interest income
Net interest income
Slide 13: Bad debt unwind drives recovery in retail
Bad debt unwind drives recovery in retail NII after impairments Net interest income after bad debts Dec ’09 09 Dec ’08 08 Change R millions Bad de HomeLoans (138) (705) (80%) ebt decrease WesBank 779 109 >100% Card 92 (18) (>100%) FNB Africa 745 736 1% Endowme Other consumer banking 853 1 01
Slide 14: Corporate and commercial net interest income reflects endowment
Corporate and commercial net interest income reflects endowment Net interest income after bad debts Dec ’09 Dec ‘08 Change R millions End dowment FNB Commercial 1 191 1 761 (32%) FNB Corporate 313 212 48% de Bad debt ecrease RMB 5 (113) (>100%) Ba increase ad debt WesBank 42 332 (87%) p Corp
Slide 15: Advances growth reflects tough cycle
Advances growth reflects tough cycle Balance sheet Strategic, market & Normalised change operational changes change E l Euroloans ▲2% Corporate Reverse repos ▲4% ▼11 % ▲9% R118 billion Money market ▲5% Netting (LROS) ▲9% Commercial ▲5% Netting (LROS) ▲2% ▲7% R27 billion Retail ▼1% Market activity re
Slide 16: Margin hit by endowment, but partly offset by asset pricing
Margin hit by endowment, but partly offset by asset pricing Percentage of average interest-earning banking assets % D ’08 normalised Dec li d 5 17 5.17 Asset price movement 0.50 Capital and deposit endowment effect (0 91) (0.91) Retail deposit pricing (0.04) Wholesale liquidity pricing (0 05) (0.05)
Slide 17: Asset re-pricing strategies start to impact positively
Asset re-pricing strategies start to impact positively Percentage of average interest-earning banking assets % D ’08 normalised Dec li d 5 17 5.17 Asset price movement 0.50 Capital and deposit endowment effect (0 91) (0.91) Retail deposit pricing (0.04) Wholesale liquidity pricing (0 05) (0.05) BSM
Slide 18: Re-pricing strategies executed across retail and corporate segment
Re-pricing strategies executed across retail and corporate segment • Investment banking SA spreads Dec ’09 Dec ’08 (listed bonds vs government benchmarks)* AAA rated 0.59 0.54 AA rated 1.96 1.76 A rated 2.67 2.25 • HomeLoans • Discount rate to prime reduced • W B k WesBank • Discount rate to prime r
Slide 19: Endowment impact significant
Endowment impact significant Percentage of average interest-earning banking assets % D ’08 normalised Dec li d 5 17 5.17 Asset price movement 0.50 Capital and deposit endowment effect (0 91) (0.91) Retail deposit pricing (0.04) Wholesale liquidity pricing (0 05) (0.05) BSM hedges 0.35 Dec ’09 normal
Slide 20: R577 million per basis points
R577 million per 100 basis points Prime rate (%) 16.0 Endowm Average Prime ment bookk* = R65bn rate t 15.5% 15 5% 14.0 12.0 Average Prime rate 10.6% n 10.0 8.0 Jun '08 Dec '08 Jun '09 Dec '09 Pi Prime * Endowment book size and sensitivity per 100 basis points as at December 2009
Slide 21: Funding also impacted margin
Funding also impacted margin Percentage of average interest-earning banking assets % D ’08 normalised Dec li d 5 17 5.17 Asset price movement 0.50 Capital and deposit endowment effect (0 91) (0.91) Retail deposit pricing (0.04) Wholesale liquidity pricing (0 05) (0.05) BSM hedges 0.35 Dec ’09 normal
Slide 22: Lengthening the funding term profile increased liquidity costs
Lengthening the funding term profile increased liquidity costs 59% ec ’09 09 20% Dec De 21% 62% cc’08 08 18% Dec Dec 20% 0% 10% 20% 30% 40% 50% 60% 70% Short Term Medium Term Long Term Increased liquidity buffers by R7 billion
Slide 23: All term funding more expensive
All term funding more expensive Li idi premium Liquidity i spread d curve y 1.4 1.40 1.2 1.20 % above JIBAR 1.0 1.00 0.8 0.80 Average term 9 months – 15 bps increase 0.6 0.60 0.4 0.40 0.2 0.20 - 10 m 11 m 12 m 18 m 24 m 36 m 48 m 60 m 4m 5m 6m 7m 8m 9m 4m 5m 6m 7m 8m 9m 10m 11m 12m 18m 24m 36m 48m 6
Slide 24: Bad debts
Bad debts
Slide 25: Bad debts have peaked, but NPLs sticky
Bad debts have peaked, but NPLs sticky 6.0 2.0 1.8 5.6 56 5.4 18 1.8 5.0 1.6 1.4 1.5 1.4 4.0 4.2 1.3 1.3 1.2 3.4 1.0 1.1 3.0 Long-run expected loss: 0.9 1.0 2.8 2.9 2.6 0.8 0.8 0.8 20 2.0 2.3 0.5 0.4 0.6 1.5 0.3 1.5 0.4 1.0 1.2 1.1 0.2 0.0 0.0 Jun '99 Jun '00 Jun '01 Jun '02 Jun '03 Jun '04 Jun '05
Slide 26: NPLs remain sticky despite inflow decline
NPLs remain sticky despite inflow decline NPL D ’09 Dec J ’09 Jun D ’08 Dec Percentage of advances Retail 7.43 8.15 6.19 - Residential mortgages 8.71 9.21 6.79 - Credit card 8.50 12.31 13.26 - Vehicle and asset finance (SA) 5.14 5.63 4.15 Wholesale* 2.72 2.29 1.72 Total NPL ratio 5.42 5.64 4.21 * In
Slide 27: Retail NPL flows decline
Retail NPL flows decline R millions Retail NPL quarterly flows 4 000 3 000 2 000 1 000 0 -1 000 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
Slide 28: All retail lending books improving and corporate more robust than expected
All retail lending books improving and corporate more robust than expected Bad debts 6 months 6 months 6 months Percentage of average advances to Dec ’09 to Jun ’09 to Dec ’08 Retail 2.08 2.97 2.63 - Residential mortgages g g 1.17 1.77 1.48 - Credit card 8.14 12.51 9.77 - Vehicle and asset finance (
Slide 29: Alignment of credit strategy with macro view and risk appetite
Alignment of credit strategy with macro view and risk appetite 180 bps His storical band Targetted band b d 30 bps
Slide 30: HomeLoans' new credit origination strategies improving quality of business written
HomeLoans’ new credit origination strategies improving quality of business written H HomeLoans L vintage i t analysis l i 15% 10% 5% 0% 200606 200609 200612 200703 200706 200709 200712 200803 200806 200809 200812 200903 200906 200909 Time since registration: 3 6 12 months
Slide 31: WesBank's new credit origination strategies improving quality of business written
WesBank’s new credit origination strategies improving quality of business written 15% W B k retail WesBank t il vintage i t analysis l i 10% 5% 0% 200606 200609 200612 200703 200706 200709 200712 200803 200806 200809 200812 200903 200906 200909 Time since registration: 3 6 12 months
Slide 32: Non interest revenue
Non interest revenue
Slide 33: NIR driven by organic growth and turnaround
NIR driven by organic growth and turnaround R millions Dec ’09 Dec ’08 Change Client activities/primary markets 11 493 10 964 5% - Transactional T ti l iincome 8 555 7 964 7% - Annuity fair value income 1 469 1 343 9% - Operational associates income 422 434 (3%) - Other primary income 1 047
Slide 34: Reasonable growth in transactional volumes despite tough conditions
Reasonable growth in transactional volumes despite tough conditions Transactional revenue R millions 7% 2009 breakdown by franchise* 7 500 5 000 2 500 FNB FNB Af Africa i RMB W B k WesBank 0 Dec '08 Dec '09 * Excluding Corporate Centre
Slide 35: Sustained performance from lending business dampened by lower market activity
Sustained performance from lending business dampened by lower market activity Fair value annuity revenue R millions 1 500 9% R millions Dec ’09 Dec ’08 Change Annuity 1 469 1 343 9% - Lending 1 092 868 26% 1 000 - Client flows 377 475 (21%) Client flows flo s 377 475 (21%) - Forex 209 286
Slide 36: Turnaround in risk income
Turnaround in risk income Fair value risk R millions 1 000 R millions Dec ’09 Dec ’08 Change g Risk 439 (767) (>100%) 500 (>100%) - Equities q 127 ((1 101)) ((>100%)) - Commodities 22 91 (76%) 0 - Interest rates 226 384 (41%) - Credit 35 (336) (>100%) - Forex 29 195 (85%) - 500 -1 000 De
Slide 37: Private equity reflecting current cycle
Private equity reflecting current cycle R millions Dec ’09 Dec ’08 Change Annuity income 229 431 (47%) p Realisations and impairments ((233)) 882 ((>100%)) Total private equity income (4) 1 313 (>100%) Unrealised profits at R1.5 billion (Dec ’08: R1 billion)
Slide 38: Costs
Costs
Slide 39: Slowing top line and variable & investment costs impact cost to income ratio
Slowing top line and variable & investment costs impact cost to income ratio R millions 25 000 60% 7% 20 000 50% Top line CAGR 16% 15 5 000 Costs CAGR 15% 40% 13% 30% 10 000 20% 5 000 10% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Costs Top line Cost to income ratio Top line and costs ar
Slide 40: But normalised cost growth below inflation
But normalised cost growth below inflation R millions 14 000 (2%) (2%) 12 000 (8%) 1% 11 751 10 000 10 543 10 438 8 000 6 000 4 000 2 000 0 As per Fund liabilities New Revenue Comparable Normalised normalised subsidiaries related cost base cost Dec '08 i income and d expansion i expenses D '09 Dec s
Slide 41: Results in a nutshell
Results in a nutshell
Slide 42: Operational performance reflects underlying franchise strength
Operational performance reflects underlying franchise strength Profit before tax R millions 7 000 10% 6 000 8% 5 955 5 421 5 000 (19%) 18% 9% (19%) 12% 4 000 3 000 Market FirstRand specific 2 000 1 000 0 Dec 08 Endowment Decrease in Private equity q y Legacy g y Other Organic g Dec 09 bad debts port
Slide 43: Capital
Capital
Slide 44: Banking Group's capital position remains robust
Banking Group’s capital position remains robust FRBH Tier 1% Total % FRBH capital adequacy (%) 14.34 Capital adequacy ratio 12.19 14.34 12.97 2 15 2.15 Regulatory minimum 7.00 9.50* 0.9 1.89 0.86 Target 10.00 12.00 – 13.50 FRB Tier 1% Total % 11.29 10 22 10.22 Capital adequacy ratio 10.55 12.83 Regu
Slide 45: Momentum further strengthens capital position
Momentum further strengthens capital position R millions CAR cover (times) 9 000 2.1 2.0 x CAR 8 000 2.0 7 000 1.9 1.8 x CAR 1.8 6 000 17 1.7 5 000 1.6 4 000 1.5 3 000 1.4 1.4 x CAR 1.3 2 000 12 1.2 1 000 1.1 0 1.0 Dec '08 Jun '09 Dec '09 Dec '08 Jun '09 Dec '09 CAR Excess
Slide 46: Banking ROEs continue to recover
Banking ROEs continue to recover 30% 20% 10% Jun '04 Jun '05 Jun '06 Jun '07 Jun '08 Jun '09 Dec '09 Return on equity (actual) Return on equity (adjusted for the cycle) Average cost of equity Average ROE through the cycle
Slide 47: Momentum continues to produce premium returns
Momentum continues to produce premium returns 35% 30% 30% 25% 25% 24% 23% 22% 15% 20% 13% 10% 12% 9% 15% 10% 15% 13% 12% 12% 13% 5% 0% Jun '06 Jun '07 Jun '08 Jun '09 * Dec '09 Weighted average cost of capital Value added * Annualised return
Slide 48: Operating review
Operating review Sizwe Nxasana
Slide 49: FNB delivers good returns despite tough environment
FNB delivers good returns despite tough environment Profit before tax Characterised by: R millions 4 000 + Improving bad debts ROE = 31% + Turnaround in HomeLoans 3 500 + Transactional volumes still 1% 3 000 growing, but mix changing 2 500 32% + Customers up 5% + Retail deposits still growing 2 000
Slide 50: Positive trend in FNB HomeLoans
Positive trend in FNB HomeLoans Profit before tax* (R millions) 6m to Dec ’08 6m to Jun ’09 6m to Dec ’09 FNB HomeLoans (977) (777) (289) • Year-on-year improvement of R688 million – mainly attributed to: • Reduction in bad debt charge • 23% reduction in costs • Improved margins 3,500 250 80% 0 8% 0
Slide 51: Credit origination strategies = better quality of new business
Credit origination strategies = better quality of new business • Retail • Selectively pro-active pro active in certain low risk sub segments • New business mix migrated to lower risk • R4.8 billion new business written (down 25% y/y, but sales up 52% compared to six months to June 2009) FNB HomeLoan
Slide 52: Retail has repriced = future margin benefit
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Weighted Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 di Aug-08 New Registered Business Sep-08 Oct-08 Nov-08 FNB HomeLoans W i ht d average discount Dec-08 Jan-09 Feb-09 Total Book i Mar-09 Apr-09 t tto prime May
Slide 53: FNB focus on cost containment
FNB focus on cost containment • Total cost increase limited to 2% • 3% decrease in headcount, resulting in only 2% staff cost increase • Process and system efficiencies • g initiatives Various cost cutting • Converted paper statements to e-mail • 28% reduction in electricity consumption • Premises c
Slide 54: FNB Africa performance reflects investment strategy
FNB Africa performance reflects investment strategy Profit before tax R millions Characterised by: y 700 (2%) + Good performances from Namibia and Swaziland 600 14% + Ongoing investment in 500 Zambia and Mozambique s bsidiaries subsidiaries 400 + Overall success of credit 300 strategies + Bancassura
Slide 55: RMB rebounds
RMB rebounds Profit before tax Characterised by: R millions 2 500 + Turnaround in Equity Trading + Deal flow and pipeline remained intact 2 000 + Lower level of losses from (26%) legacy portfolios 1 500 – Lower profits from IBD and >100% FICC 1 000 – No major private equity realisations 500 0 Dec '0
Slide 56: RMB divisional performance
RMB divisional performance • Investment Banking Division • Good performance given base and slowdown in corporate activity • Significant transactions concluded and pipeline maintained • Progress in corridor strategies encouraging and partnerships delivering • CCB co-operation • FirstRand India • FICC
Slide 57: RMB divisional performance
RMB divisional performance • Private Equity* • No major realisations (Dec ’08: R1 016m) • Equity accounted earnings R217m (Dec ’08: R311m) • Unrealised value R1 517m (Dec ’08: R993m) • Portfolio in good shape • Equity Trading • Returns to profitability • Good fees from agency businesses • Local trad
Slide 58: WesBank: Earnings recovery underway
WesBank: Earnings recovery underway Normalised profit before tax* Characterised by: R millions 600 + Re-pricing resulted in better interest margin 500 + Reduction in retail bad debt >100% charge 400 + Good cost control + Turnaround at Carlyle 300 93% – Advances book continued to 200 contract, but sh
Slide 59: Provisions… the cycle plays out
Provisions… the cycle plays out • Retail arrears and repossessions well down off peak • Corporate provisions increasing increasing, but confined to certain segments and approaching peak • Gradual unwind of bad debts expected Corporate Motor 900 3.5% 900 3.5% 800 800 3.0% 3.0% 700 700 2.5% 2.5% 600 6
Slide 60: Cost containment remains an imperative
Cost containment remains an imperative • 0% cost growth in core business • Cost and efficiency wins • Headcount reduction (9%) • Restructure of Motor division • Rationalisation of ‘bricks and mortar’ representation • High focus on discretionary spend • WesBank’s total costs negatively impacted year-
Slide 61: OUTsurance performance impacted by international investment
OUTsurance performance impacted by international investment Profit before tax R millions Characterised by: 600 • Strong domestic operational 500 performance 400 • Lower investment income following drop in interest rates 300 • Pre-tax profit down 1% due to 200 start-up losses in Australian 100 ventur
Slide 62: Momentum – solid core operational performance
Momentum – solid core operational performance Characterised by: Normalised earnings R millions o s + Market recovery resulted in 1 200 increased fees on investment business 1 000 + New business margin maintained 15% at 2.2% 800 + Strong performance from FNB Life 600 + 1% growth in expenses + A Annua
Slide 63: Unpacking the increase in earnings
Unpacking the increase in earnings Normalised earnings 15% R millions 1 000 1,000 +2% -13% 950 +28% 2% (13%) 28% 5% +5% -3% 900 5% (3%) 850 850 850 800 740 -4% (4%) 750 740 700 650 600 550 500 Dec '08 New Markets g Margins Tax FNB Investment Dec '09 business and Insurance income strain experience
Slide 64: Recurring savings and RA business remain under pressure due to cycle
Recurring savings and RA business remain under pressure due to cycle API New commission dispensation R millions +5% -1% 700 638 -13% 600 6% -6% +5% -13% 500 237 -25% -23% 400 -16% -27% 133 +27% -7% 300 200 +21% +15% 268 -6% -8% 100 0 Dec '07 Jun '08 Dec '08 Jun '09 Dec '09 Endowments RA's Risk
Slide 65: Return on EV reflects strong operational and investment market performance
Return on EV reflects strong operational and investment market performance R millions Embedded value profit 19 000 1 078 (338) 18 000 17 835 1 009 17 000 16 086 16 000 15 000 14 000 13 000 12 000 Jun '09 Operations Market conditions Dividends Dec '09
Slide 66: Strategy & prospects
Strategy & prospects Sizwe Nxasana
Slide 67: FirstRand's refocused strategy (South Africa)
FirstRand’s refocused strategy (South Africa) • Group’s portfolio already has • Diverse revenue streams • Strong operating franchises • Asset origination and distribution capabilities • Building blocks for access to profit pools in SA financial services • Increase organic growth opportunities that c
Slide 68: Opportunities in the insurance and investment space
Opportunities in the insurance and i investment t t space • Momentum already unlocking more opportunities in traditional markets • Product and channel diversification • Momentum also sees opportunities in new segments • Lower end through FNB Life • Looking at other distribution models • Asset manage
Slide 69: Opportunities in retail space
Opportunities in retail space • Leverage off FNB’s continued investment in footprint and innovation • Utilising telecommunications and cellphone platforms • Growing electronic customer channels • Mass segment a key area of growth for FNB • Easy Plan • Continued focus on deposit franchise • WesBank’s
Slide 70: Opportunities in the corporate and investment banking space
Opportunities in the corporate and i investment banking b ki space • Integrate CIB approach to grow in corporate space • Aligned Ali d FNB C Corporate t with ith RMB and d iintegrated t t d client li t coverage tteam • Enhanced service offering • Improve our share of revenues across corporate and in
Slide 71: Update on international strategy
Update on international strategy • Operate in markets that strengthen the Group’s position as a leading African financial services group – key growth markets are: • Nigeria • Staffing Nigeria rep office • Investigating g g acquisition q opportunities pp • Zambia • Tanzania • Awaiting regulatory appr
Slide 72: In summary – FirstRand's growth driven by
In summary – FirstRand’s growth driven by • The short term recovery story • Unwind of the cycle will positively impact earnings to 2011 • Reducing negative impact of legacy portfolios • Medium term • Subdued GDP recovery expected to put pressure on top line growth • Continued focus on unlocking syne
Slide 73: Prospects for the next six months
Prospects for the next six months • Modest return to g growth in domestic economy y • Advances growth will be low, but at better margins • Bad debt charge will continue to reduce, positively impacting FNB and WesBank • RMB expected to benefit from re-base effect • Recovery in equity markets underpin
Slide 74: Annexure
Annexure FIRSTRAND
Slide 75: Inflation: The MPC's dilemma
Inflation: The MPC’s dilemma % 0.4 0.2 0.0 -0.2 Excess No demand -0.4 -0.6 supply pp y capacity = pull inflation p pressures -0.8 Estimated output gap Forecast -1 1.0 0 Mar 10 Mar 11 Mar 12 Jun 10 Jun 11 Jun 12 Dec 09 Sep 10 Dec 10 Sep 11 Dec 11 Sep 12 Dec 12 But cost-push pressures: • Eskom • Wage
Slide 76: Households: The balance sheet constraint
Households: The balance sheet constraint United States South Africa 2003 = 100 2003 = 100 130 260 240 120 220 110 200 180 100 160 -33% -16% 90 140 120 80 -35% 100 -39% 70 80 '03 '04 '05 '06 '07 '08 '09 '03 '04 '05 '06 '07 '08 '09 R l equities Real iti R lh Real house prices i Real equities Real hous
Slide 77: Debt service cost dynamics
Debt service cost dynamics Debt to disposable income Prime rate % % 90 30 80 2 25 Post- inf lation targeting trend 70 Post- 20 inf lation targeting trend 60 15 50 10 40 5 30 0 80 84 88 92 96 00 04 08 80 84 88 92 96 00 04 08 Sources: FirstRand, INet
Slide 78: High income groups under pressure
High income groups under pressure Household debt to disposable income % % 180 16 Debt to disposable income 160 14 Debt Servicing Costs (rhs) 140 12 120 10 100 8 80 6 60 4 40 20 2 0 0 SA income bands Source: BMR UNISA, FirstRand
Slide 79: Reconciliation of bank normalised earnings (2009)
Reconciliation of bank normalised earnings (2009) Non Dec ’09 Dec ‘09 effective Other † N Normalised li d Att ib t bl Attributable hedges** Net interest income 8 628 (185) - 8 443 Bad debts (3 225) - - (3 225) Net interest income after impairments 5 403 (185) - 5 218 Non interest income* 12 537 185
Slide 80: Reconciliation of bank normalised earnings (2008)
Reconciliation of bank normalised earnings (2008) Dec ’08 Non effective Motor One Dec ’08 Other † Oth Normalised hedges** Finance Attributable Net interest income 8 828 304 - - 9 132 Bad debts (3 693) - - - (3 693) Net interest income after 5 135 304 - - 5 439 impairments Non interest income* 10 920