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NATURE OF BUSINESS

FirstRand Limited (“FirstRand”) is the holding company of the FirstRand Group of companies. These companies are engaged in diverse financial services activities in the areas of retail, corporate, investment and merchant banking, life and health insurance, employee benefits, short-term insurance and asset and property management. While the Group is predominantly South African based, it has operations in the neighbouring countries, the United Kingdom, the Middle East, Australia and India.

FirstRand is listed under “Financial – Banks (“FSR”)” on the Securities Exchange of the JSE Limited (“JSE”) and the Namibian Stock Exchange (“FSR”).

A simplified FirstRand Group organogram is shown here.

GROUP RESULTS

A general review of the financial results of the Group and the operations of its subsidiaries commences on here.

The financial results have been prepared in accordance with International Financial Reporting Standards.

Earnings

Headline earnings were as follows:

R million   2009   2008  
Banking Group   6 076   8 701  
Momentum Group   1 658   1 979  
Discovery Group   –   185  
FirstRand Limited   1   (14) 
Consolidation of treasury shares   (332)  (520) 
Dividend payment on non cumulative non redeemable preference shares   (464)  (409) 
Headline earnings   6 939   9 922  
Diluted headline earnings per share (cents)  133.1   187.8  


Dividends


Ordinary shares

The following ordinary cash dividends were declared in respect of the 2009 financial year:

Cents per share   2009   2008  
Interim (declared 9 March 2009)  34.00   44.25  
Final (declared 14 September 2009*)  22.00   38.25  
    56.00   82.50  

* The last day to trade in FirstRand shares on a cum-dividend basis in respect of the final dividend will be Friday 9 October 2009 and the first day to trade ex-dividend will be Monday 12 October 2009. The record date will be Friday 16 October 2009 and the payment date Monday 19 October 2009. No dematerialisation or rematerialisation of shares may be done during the period Monday 12 October 2009 and Friday 16 October 2009, both days inclusive.

Preference shares

“A” preference shares
Dividends on the “A” preference shares are calculated at a rate of 65% of the prime lending rate of First National Bank. No dividends were paid during the year. Dividends in respect of the prior year were as follows:

For the six months to 31 December 2007:   R1 473 060  
For the six months to 30 June 2008:   R1 040 335  

“B” preference shares
Dividends on the “B” and “B1” preference shares are calculated at a rate of 68% of the prime lending rate of First National Bank. The following dividends have been declared and paid:

    2009 2008
Cents per share   “B”   “B1”   “B”   “B1”  
Period 28 August 2007 – 25 February 2008           477.7   477.7  
Period 26 February 2008 – 25 August 2008           511.3   511.3  
Period 26 August 2008 – 23 February 2009   518.9   518.9          
Period 24 February 2009 – 31 August 2009   423.1   423.1          
Total   942.0   942.0   989.00   989.0