FirstRand Limited · JSE:FSR
FirstRand — FY2006 Earnings Presentation
16 slides from FirstRand's earnings presentation, Sep 23, 2006
Slide 1: Financial review annexure
Financial review annexure FIRSTRAND —— Banking Group ——
Slide 2: Net asset value growth
Net asset value growth R ’mil 35000 Excluding R3 billion non-cumulative non-redeemable preference shares and R1 billion redeemable preference shares 30000 25000 CAGR 23% ROE: 28% 20000 ROE: 28% 15000 10000 5000 0 June '02 June '03 June '04 June '05 June '06 Re-invested and increased returns
Slide 3: Normalised vs Headline
Normalised vs Headline R ’mil June ‘06 June ‘05 % Banking group headline earnings 7 049 5 656 25 Adjusted for: Private equity realisations 219 406 Banking group normalised headline earnings 7 268 6 062 20
Slide 4: Portfolio quality: Retail
Portfolio quality Retail Post IFRS Pre IFRS Pre IFRS R 'mil June ’06 June ’06 June ’05 Advances 112 058 111 452 80 541 NPL 1 682 1 682 1 035 I/s charge R 677 591 226 *Bad debt % 0.70 0.62 0.32 * Calculated as a percentage of average advances Increased provisions driven by higher HomeLoans and Card
Slide 5: Portfolio quality: Retail continued
Portfolio quality Retail continued June ’06 June ’05 Home Loans % % - Arrears 6.60 4.78 - NPL 0.86 0.71 - Loan To Book Value 77.7 77.9 - Loan to Market Value 51.0 50.8 Credit Card - Arrears 9.89 10.2 - NPL 5.49 3.90
Slide 6: Portfolio quality: Commercial
Portfolio quality Commercial Post IFRS Pre - IFRS Pre - IFRS R 'mil June ’06 June ’06 June ’05 Advances 17 276 17 396 13 943 NPL 415 415 402 I/s charge R 41 41 59 *Bad debt % 0.26 0.26 0.48 * Calculated as a percentage of average advances Provision percentage decreased due to lower bad debt and high
Slide 7: Portfolio quality: WesBank
Portfolio quality WesBank Post IFRS Pre - IFRS Pre - IFRS R 'mil June ’06 June ’06 June ’05 Advances 79 604 80 156 63 318 NPL 945 945 550 I/s charge R 633 618 316 *Bad debt % 0.89 0.86 0.56 * Calculated as a percentage of average advances Lower realisations due to more stable new car prices
Slide 8: Portfolio quality: Wholesale
Portfolio quality Wholesale Post IFRS Pre - IFRS Pre - IFRS R 'mil June ’06 June ’06 June ’05 Advances 68 775 68 775 64 753 NPL 944 944 977 I/s charge R 13 13 (11) *Bad debt % 0.02% 0.02% (0.01%) * Calculated as a percentage of average advances 55% of the portfolio is investment grade - based on int
Slide 9: HomeLoan arrears and non performing loans will normalise
HomeLoan arrears and non performing loans will normalise Total arrears 12% NPL's 10% Arrears 8% 6% 4% 2% NPL five year average 2% 0% Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06
Slide 10: Card arrears and non performing loans will normalise
Card arrears and non performing loans will normalise Total arrears 16% NPL's 14% Arrears 12% 10% 8% NPL five year average 6.5% 6% 4% 2% 0% Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06
Slide 11: Key income statement credit impairment ratios by segment
Key income statement credit impairment ratios by segment Percentage of average advances June ’06 June ’05 Portfolio Specific Total Portfolio Specific Total % % % % % % FNB 0.02 0.50 0.52 0.01 0.28 0.29 WesBank 0.14 0.72 0.86 0.00 0.56 0.56 RMB* 0.00 0.00 0.00 0.00 0.00 0.00 Africa 0.00 0.50 0.50 0.2
Slide 12: Key income statement credit impairment ratios by product
Key income statement credit impairment ratios by product Percentage of average advances June ’06 June ’05 Portfolio Specific Total Portfolio Specific Total % % % % % % FNB 0.02 0.50 0.52 0.01 0.28 0.29 - HomeLoans (0.01) 0.19 0.18 0.00 (0.01) (0.01) - Card 0.18 3.18 3.36 0.12 2.23 2.35 - Wealth 0.09
Slide 13: Effective direct tax rate
Effective direct tax rate 30% 27.3% 24.8% 15% 0% 2005 2006
Slide 14: Movement in jaws explained
Movement in jaws explained Date RWA Total Capital Total R’ billion R’ billion capital ratio 30/6/05 191 022 26 361 13.8% • Growth in assets, particularly • Appropriation of home loans and instalment monthly profits finance • Flow-back from • BEE share trust loan securitisation structures restructure
Slide 15: Capital invested across the brands
Capital invested across the brands R ’bn FNB 100 +37% 90 80 70 WesBank +24% 60 RMB 50 40 30 20 June '05 Oct '05 Feb '06 June '06 Growth in RWA of 31%
Slide 16: Strong annuity income, but taking on more risk
Strong annuity income, but taking on more risk 100% 100% 9% 7% 5% 80% 80% 36% 45% 60% 60% 70% 4% 5% 40% 40% 51% 20% 20% 43% 25% 0% 0% 1992 2005 2006 Annuity New annuity Risk based Fee income