FirstRand Namibia Ltd (Incorporated in the Republic of Namibia) (Registration number: 88/024) ISIN: NA0003475176 | Share Code (NSX): FNB (“FirstRand Namibia Ltd” or “the Company”) Consolidated group unaudited results and cash dividend declaration for the period ended 31 December 2022 Financial Highlights 31 December 31 December 30 June % Change 2022 2021 2022 unaudited unaudited audited Headline earnings per share (cents) 35.3% 318.2 236.3 484.5 Basic earnings per share (cents) 35.3% 318.2 235.2 483.0 Ordinary interim dividends per share- (cents) 37.1% 209.70 153.0 319.8 Special dividends per share- (cents) 186.85 Net asset value (NAV) (cents) 4.0% 2 346 2 255 2 355 Return on equity (%) 27.8 21.9 21.4 Cost to income ratio (%) 46.0 51.0 52.8 Credit loss ratio (%) 0.26 0.32 0.75 Headline Earnings (N$ million) 36.2% 842 618 1 269 Pre-provision profit (N$ million) 31.5% 1 311 997 1 963 Advances (net of credit impairments) (N$ million) 7.0% 33 250 31 070 31 963 Deposits (N$ million) 11.3% 39 192 35 189 37 114 Total risk-based capital adequacy ratio (FirstRand Namibia consolidated group) (%) 18.3% 20.4 21.2 Group financial performance FirstRand Namibia’s earnings for the six months ended 31 December 2022 increased 36% to N$845 million, a performance that is testament to the quality of its operating businesses, driven by FNB and RMB. Pre-provision profits grew 32% to N$1 311 million from N$997 million, income from operations increased 21% to N$2 388 million and the group produced N$396 million of economic profit, or net income after cost of capital (NIACC), which is one of the group’s key performance indicators. We delivered strong revenue growth of 21%. The credit loss ratio decreased year on year to 26 bps and continued cost containment resulting in our headline earnings increasing by 36% to N$842 million. The group’s return on equity (ROE) increased to 27.8% (2021: 21.9%). The six months to December 2022 saw more relief from the COVID19 related restrictions. Thus the prior year still had increased impairments and reduced volumes and hence the opening up to the increased performance for 2022. As a result of that base effect, the group’s profit before tax increased with 37%. FirstRand Namibia has delivered an 8.2% compound annual growth rate (CAGR) in profit before tax since December 2019. Net interest income increased 26% to N$1 328 million from N$1 051 million. Average interest-bearing assets increased by 7%, driven by average advances being up 6% vs PSCE for 4.2% in December 2022. Interest earned on advances grew with 33% whereas interest on investments also increased by 28%. Deposits grew by 11% and totaled N$39 billion (2021: N$35 billion). Deposit holders earned N$551 million (2021: N$328 million) in interest across all deposit accounts for the period. Non-interest revenue (NIR) increased with 12%, to N$1 120 million from N$998 million and accounted for 45% (2021: 48.7% ) of total revenue because net interest income grew faster with the hike in interest rates. Net fee and commission income grew 10% to N$981 million, representing 88% of total NIR. Net fee and commission income increase is primarily a result of an increase in volumes while the average price increase was only 4.7%, well below the inflation average of 6.9%. Dividend declaration Notice is hereby given that a total cash dividend of 396.55 cents per share (number 59) for the six months ended 31 December 2022 (made up of interim ordinary dividend of 209.70 cents and a special dividend of 186.85 cents) was declared on 8 February 2023. The last day to trade shares on a cum dividend basis will be on 24 March 2023 and the first day to trade ex-dividend will be 27 March 2023. The record date will be 31 March 2023 and the payment date 21 April 2023. Prospects The outlook for the global economy is particularly ambiguous. Global geopolitical events are concerning and sharp moves in commodity prices and potential supply interruptions are difficult to assess. Furthermore, dramatic increases in inflation are being felt across most economies, prompting most rapid monetary policy tightening in decades. Against this global backdrop, we expect Namibia’s economy to grow 4.1% in 2022. Growth over the forecast horizon will be supported by tourism recovery, investments in renewable energy infrastructure projects, mining investments and higher SACU revenues. Sectoral differences are likely to remain significant, with high commodity prices boosting parts of the mining sector, while households face steep increases in fuel, food and other important necessities. Based on these assumptions, and excluding further major unforeseen political, macroeconomic, or regulatory developments, our expectation for FY 2023 is as follows: • We expect healthy revenue growth, with net-interest income growing with double digits. • Given rising policy rates and inflationary pressures, our credit loss ratio is likely to increase, to the upper half of our through-the-cycle target range. • We expect above inflationary operating expense growth, still resulting in positive operating JAWS (ratio of growth income vs growth in expenses) and growth in pre-provision profits. Our cost-to-income ratio is expected to improve further in the financial year 2023. Short form announcement This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the unaudited condensed consolidated financial results booklet and does not contain full or complete details. Any investment decision should be based on the full announcement accessible from Tuesday, 01 March 2023, via the NSX link https://senspdf.jse.co.za/documents/2023/nsx/isse/fnb/FNB31Dec22.pdf and will also be available on our website at https://www.fnbnamibia.com.na/about-fnb/index.html This announcement is not reviewed or audited. P Grüttemeyer (Chairman), OLP Capelao, J Coetzee, C Dempsey (Chief Executive), LD Kapere, MJ Lubbe*, R Makanjee**, IN Nashandi, ON Shikongo, E van Zyl *South African with Namibian Permanent Residence ** South African Company Secretary: N Makemba Registered office: @ Parkside, 130 Independence Avenue, P O Box 195, Windhoek, Namibia, Registration No. 88/024, ISIN Code: NA0003475176, NSX Share Code: FNB. By order of the Board 1 March 2023 Transfer secretary: Transfer Secretaries (Pty) Ltd, 4 Robert Mugabe Avenue, P O Box 2401, Windhoek, Namibia, Registration No. 93/713. Sponsor: Cirrus Securities (Pty) Ltd, 35 Schanzen Road, Windhoek, P O Box 27, Windhoek, Namibia, Registration No. 98/463.