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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2018
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
Registration No. 1969/017128/06
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
(“Standard Bank Group” or “the group”)
Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at
31 March 2018
In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to
banks and Directive 4/2014, Directive 11/2015 and Directive 1/2018 issued in terms of
section 6(6) of the Banks Act (Act No. 94 of 1990), minimum disclosure on the capital
adequacy of the group and its leverage ratio is required on a quarterly basis. This disclosure
is in accordance with Pillar 3 of the Basel III accord.
Standard Bank Group capital adequacy and leverage ratio
March 2018 (Rm)
Qualifying capital Transitional(1) Fully loaded(2)
Ordinary share capital and premium 18 248 18 248
Ordinary shareholders' reserves(3) 128 935 128 935
Qualifying Common Equity Tier I non-controlling interest 5 334 5 334
Regulatory deductions against Common Equity Tier I capital (23 446) (28 469)
Common Equity Tier I capital 129 071 124 048
Unappropriated profit (9 178) (9 178)
Common Equity Tier 1 capital excl. unappropriated profit 119 893 114 870
Qualifying other equity instruments 5 742 5 742
Qualifying Tier I non-controlling interest 576 576
Tier I capital excl. unappropriated profit 126 211 121 188
Qualifying Tier II subordinated debt 16 418 16 418
General allowance for credit impairments 2 326 4 762
Tier II capital 18 744 21 180
Total regulatory capital excl. unappropriated profit 144 955 142 368
March 2018 (Rm)
Minimum capital requirement Transitional(1) Fully loaded(2)
Credit risk 72 377 72 377
Counterparty credit risk 3 015 3 015
Equity risk in the banking book 742 742
Market risk 7 186 7 186
Operational risk 17 256 17 256
Investments in financial entities 4 795 4 668
Total minimum regulatory capital requirement(4) 105 371 105 244
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.3 15.0
Tier I capital adequacy ratio (%) 13.3 12.8
Common Equity Tier I capital adequacy ratio (%) 12.7 12.1
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.4 16.0
Tier I capital adequacy ratio (%) 14.3 13.8
Common Equity Tier I capital adequacy ratio (%) 13.6 13.1
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 126 211 121 188
Tier I capital (incl. unappropriated profit) (Rm) 135 389 130 366
Total exposures (Rm) 1 690 832 1 685 809
Leverage ratio (excl. unappropriated profits, %) 7.5 7.2
Leverage ratio (incl. unappropriated profits, %) 8.0 7.7
Note:
1 Represents International Financial Reporting Standards (IFRS) 9 transition impact as allowed by
the South African Reserve Bank (SARB).
2 Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact).
3 Including unappropriated profits.
4 Measured at 11.13% in line with transitional requirements and excludes any bank-specific capital
requirements. There is currently no requirement for the countercyclical buffer add-on in South Africa.
The impact on the group’s countercyclical buffer requirement from other jurisdictions in which the
group operates, is insignificant (buffer requirement of 0.0002%).
The Standard Bank of South Africa Limited (SBSA) and its subsidiaries capital adequacy and leverage ratio
March 2018 (Rm)
Qualifying capital Transitional(1) Fully loaded(2)
Ordinary share capital and premium 43 698 43 698
Ordinary shareholders' reserves(3) 47 056 47 056
Regulatory deductions against Common Equity Tier I capital (13 181) (15 259)
Common Equity Tier I capital 77 573 75 495
Unappropriated profit (5 837) (5 837)
Common Equity Tier 1 capital excl. unappropriated profit 71 736 69 658
Qualifying other equity instruments 3 544 3 544
Tier I capital excl. unappropriated profit 75 280 73 202
Qualifying Tier II subordinated debt 15 470 15 470
General allowance for credit impairments 832 2 786
Tier II capital 16 302 18 256
Total regulatory capital excl. unappropriated profit 91 582 91 458
March 2018 (Rm)
Minimum capital requirement Transitional(1) Fully loaded(2)
Credit risk 48 842 48 842
Counterparty credit risk 2 766 2 766
Equity risk in the banking book 445 445
Market risk 4 919 4 919
Operational risk 10 371 10 371
Investments in financial entities 1 022 1 022
Total minimum regulatory capital requirement(4) 68 365 68 365
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 14.9 14.9
Tier I capital adequacy ratio (%) 12.3 11.9
Common Equity Tier I capital adequacy ratio (%) 11.7 11.3
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.9 15.8
Tier I capital adequacy ratio (%) 13.2 12.9
Common Equity Tier I capital adequacy ratio (%) 12.6 12.3
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 75 280 73 202
Tier I capital (incl. unappropriated profit) (Rm) 81 117 79 039
Total exposures (Rm) 1 409 358 1 407 280
Leverage ratio (excl. unappropriated profits, %) 5.3 5.2
Leverage ratio (incl. unappropriated profits, %) 5.8 5.6
Note:
1 Represents IFRS 9 transition impact as allowed by the SARB.
2 Represents fully loaded ECL accounting results (full IFRS 9 impact).
3 Excluding unappropriated profits.
4 Measured at 11.13% in line with transitional requirements and excludes any bank-specific capital
requirements. There is currently no requirement for the countercyclical buffer add-on in South Africa.
The impact on the group’s countercyclical buffer requirement from other jurisdictions in which the
group operates, is insignificant (buffer requirement of 0.0002%).
Liquidity coverage ratio disclosure
In terms of the Basel III requirements in Directive 11/2014 issued in terms of section 6(6) of
the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum
disclosure on the liquidity coverage ratio (LCR) of the group and SBSA Solo entity on a
quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord.
The LCR is designed to promote short-term resilience of the 1-month liquidity profile, by
ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential
outflows in a stressed environment. The minimum regulatory requirement for 2018 is 90%
and will increase by a further 10% on 1 January 2019 to reach the full 100% requirement.
Standard Bank
Group Consolidated SBSA Solo
31 March 2018 31 March 2018
Rm Rm
Total high quality liquid assets 247 835 172 089
Net cash outflows 195 600 158 982
LCR (%) 126.7 108.2
Minimum requirement (%) 90.0 90.0
Note:
1. Only banking and/or deposit taking entities are included. The group data represent consolidation
of the relevant individual net cash outflows and the individual HQLA portfolios, where surplus
HQLA holding in excess of the minimum requirement of 90% have been excluded from the
aggregated HQLA number in the case of all Africa Regions entities.
2. The above figures reflect the simple average of 90 days of daily observations over the previous
quarter ended 31 March 2018 for SBSA including SBSA Isle of Man branch, Stanbic Bank
Ghana, Stanbic Bank Uganda, Stanbic IBTC Bank Nigeria, Standard Bank Namibia, Standard
Bank Isle of Man Limited and Standard Bank Jersey Limited. The remaining Africa Regions
banking entities results are based on the average of the month-end data points at 31 January
2018, 28 February 2018 and 31 March 2018. The figures are based on the regulatory
submissions to the South African Reserve Bank.
The information contained in this announcement has not been reviewed and reported on by the group's
external auditors.
Johannesburg
23 May 2018
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
Deutsche Securities (SA) Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 23/05/2018 03:42:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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