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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2021
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
Registration No. 1969/017128/06
JSE and A2X share code: SBK
NSX share code: SNB
ISIN: ZAE000109815
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
(“Standard Bank Group” or “the group”)
Basel III capital adequacy, leverage ratio and liquidity coverage ratio
disclosure as at 30 September 2021.
In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to
banks, 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
September 2021 (Rm)
Ordinary share capital and premium 18 016
Ordinary shareholders' reserves 171 176
Qualifying Common Equity Tier I non-controlling interest 8 009
Regulatory deductions against Common Equity Tier I capital (19 699)
Common Equity Tier I capital 177 502
Unappropriated profit (12 180)
Common Equity Tier 1 capital excl. unappropriated profit 165 322
Qualifying other equity instruments 9 328
Qualifying Tier I non-controlling interest 1 265
Tier I capital excl. unappropriated profit 175 915
Qualifying Tier II subordinated debt 21 463
General allowance for credit impairments 6 090
Tier II capital 27 553
Total regulatory capital excl. unappropriated profit 203 468
September 2021 (Rm)
Credit risk 111 424
Counterparty credit risk 7 553
Equity risk in the banking book 1 995
Market risk 9 167
Operational risk 20 514
Investments in financial entities 7 025
Total minimum regulatory capital requirement 2 157 678
September 2021
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.5
Tier I capital adequacy ratio (%) 13.4
Common Equity Tier I capital adequacy ratio (%) 12.6
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.4
Tier I capital adequacy ratio (%) 14.3
Common Equity Tier I capital adequacy ratio (%) 13.5
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 175 915
Tier I capital (incl. unappropriated profit) (Rm) 188 095
Total exposures (Rm) 2 340 444
Leverage ratio (excl. unappropriated profits, %) 7.5
Leverage ratio (incl. unappropriated profits, %) 8.1
Note:
1
Including unappropriated profits.
2 Measured at 12% and excludes confidential bank-specific capital requirements and the Pillar 2A buffer requirement that has
been temporarily removed in response to the Covid-19 pandemic. There is currently no requirement for the countercyclical
buffer add-on in South Africa or in other jurisdictions in which the group has significant exposures.
The Standard Bank of South Africa Limited (SBSA) and its
subsidiaries’ capital adequacy and leverage ratio
September 2021 (Rm)
Ordinary share capital and premium 49 313
1
Ordinary shareholders' reserves 54 686
Regulatory deductions against Common Equity Tier I capital (10 094)
Common Equity Tier I capital 93 905
Unappropriated profit (8 259)
Common Equity Tier 1 capital excl. unappropriated profit 85 646
Qualifying other equity instruments 8 778
Tier I capital excl. unappropriated profit 94 424
Qualifying Tier II subordinated debt 19 124
General allowance for credit impairments 3 150
Tier II capital 22 274
Total regulatory capital excl. unappropriated profit 116 698
September 2021 (Rm)
Credit risk 67 784
Counterparty credit risk 5 794
Equity risk in the banking book 876
Market risk 5 638
Operational risk 12 169
Investments in financial entities 1 426
Total minimum regulatory capital requirement 2 93 687
September 2021 (Rm)
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.6
Tier I capital adequacy ratio (%) 12.6
Common Equity Tier I capital adequacy ratio (%) 11.4
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.7
Tier I capital adequacy ratio (%) 13.7
Common Equity Tier I capital adequacy ratio (%) 12.5
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 94 424
Tier I capital (incl. unappropriated profit) (Rm) 102 683
Total exposures (Rm) 1 784 612
Leverage ratio (excl. unappropriated profits, %) 5.3
Leverage ratio (incl. unappropriated profits, %) 5.7
Note:
1 Including unappropriated profits.
2 Measured at 12.5% and excludes any confidential bank-specific capital requirements and the Pillar 2A buffer requirement that
has been temporarily removed in response to the Covid-19 pandemic. There is currently no requirement for the countercyclical
buffer add-on in South Africa or in other jurisdictions in which the group has significant exposures.
Liquidity Coverage Ratio (LCR)
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) on both a Standard Bank Group consolidated
as well as SBSA Solo entity level. 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 30-calendar day liquidity profile,
by ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential
outflows in a stressed environment.
In light of the effects of Covid-19 on the South African market, the SARB has amended the
minimum requirements relating to the liquidity coverage ratio (LCR) from 100% to 80%
(effective 1 April 2020) to provide temporary liquidity relief to banks, in line with the intention
of the Basel III LCR framework, and to promote continued provision of credit by banks. No
temporary relief has been applied to the net stable funding ratio (NSFR).
Standard Bank Group
Consolidated SBSA Solo
30 September 2021 30 September 2021
Rm Rm
Total HQLA 330 552 199 470
Net cash outflows 226 741 174 512
LCR (%) 145.8 114.3
Minimum requirement (%) 80.0 80.0
Note:
1. Only banking and/or deposit taking entities are included. The group data represents a
consolidation of the relevant individual net cash outflows and the individual HQLA portfolios,
where surplus HQLA holdings in excess of the minimum requirement of 80% have been excluded
from the aggregated HQLA figure in the case of all Africa Regions entities.
2. The above figures reflect the simple average of 92 days of daily observations over the quarter
ended 30 September 2021 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 as at 31 July 2021, 31 August
2021 and 30 September 2021. The figures are based on the regulatory submissions to the SARB.
3. The SBSA Solo disclosure excludes foreign branches.
Net Stable Funding Ratio
In terms of the Basel III requirements in Directive 8/2017 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 net stable funding ratio (NSFR) on both a Standard Bank Group
consolidated as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3
of the Basel III liquidity accord.
The objective of the Basel III Net stable funding ratio (NSFR) is to promote funding stability
and resilience in the banking sector by requiring banks to maintain a stable funding profile in
relation to the composition of assets and off-balance sheet activities.
Standard Bank Group
Consolidated SBSA Solo
30 September 2021 30 September 2021
Rm Rm
Available stable funding 1 371 848 930 534
Required stable funding 1 100 892 864 588
NSFR (%) 124.6 107.6
Minimum requirement (%) 100.0 100.0
The information contained in this announcement has not been reviewed and reported on by
the group's external auditors.
Johannesburg
23 November 2021
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
JP Morgan Equities South Africa Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 23-11-2021 09:00:00
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