INVESTEC LIMITED - Investec (comprising Investec plc and Investec Limited) Basel III disclosures at 31 December 2017

Investec (comprising Investec plc and Investec Limited) – Basel III disclosures at 31 December 2017

Investec Limited                                                     Investec plc
Incorporated in the Republic of South Africa                         Incorporated in England and Wales
Registration number 1925/002833/06                                   Registration number 3633621
JSE share code: INL                                                  LSE share code: INVP
NSX share code: IVD                                                  JSE share code: INP
BSE share code: INVESTEC                                             ISIN: GB00B17BBQ50
ISIN: ZAE000081949

Investec (comprising Investec plc and Investec Limited) – Basel III disclosures at 31 December 2017

31 January 2018
Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. The group holds
capital in excess of regulatory requirements targeting a minimum common equity tier one capital ratio above
10% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc
and Investec Limited.

                                               Investec                 Investec
                                                 plc*^     IBP*^        Limited*     IBL*º
As at 31 December 2017                         GBP 'mn    GBP 'mn        R'mn        R'mn


Common equity tier 1 capital                     1,578      1,645          32,347    34,168

Additional tier 1 capital                         274        200            2,917       767

Tier 1 capital                                   1,852      1,845          35,264    34,935

Tier 2 capital                                    393        473           12,680    13,997

Total regulatory capital                         2,245      2,318          47,944    48,932

Risk-weighted assets per risk type:
Credit risk                                     10,816     10,583         264,728   259,699
Counterparty credit risk                          579        588            6,244     6,262
Credit valuation adjustment risk                  112        112            2,894     2,912
Equity risk                                         74         74          27,758    25,974
Market Risk                                      1,173      1,149           5,173     3,875
Operational risk                                 2,087      1,656          31,687    22,207
Total risk-weighted assets                      14,841     14,162         338,484   320,929

Total minimum capital requirement                 1,187      1,133         36,387    34,500

Capital ratios
Common equity tier 1 ratio                       10.6%      11.6%            9.6%    10.6%
Tier 1 ratio                                     12.5%      13.0%           10.4%    10.9%
Total capital ratio                              15.1%      16.4%           14.2%    15.2%


Leverage ratio disclosures
                                               Investec                 Investec
                                                 plc*^     IBP*^        Limited*     IBL*
As at 31 December 2017                         GBP 'mn    GBP 'mn         R'mn       R'mn


Tier 1 capital                                    1,852      1,845         35,264    34,935
Total exposure                                   19,974     19,613        488,886   461,387
Leverage ratio                                    9.3%       9.4%            7.2%      7.6%

* Where: IBP is Investec Bank plc consolidated and IBL is Investec Bank Limited consolidated. The information for Investec plc includes
the information for IBP. The information for Investec Limited includes the information for IBL.

^ The capital adequacy disclosures above follow Investec's normal basis of presentation so as to show a consistent basis of calculation
across the jurisdictions in which the group operates. For Investec plc and IBP this does not include the deduction of foreseeable
dividends when calculating CET1 capital as required under the Capital Requirements Regulation and EBA technical standards and in
line with Investec’s normal basis of presentation includes unaudited profits for the current quarter. If unaudited profits are excluded from
the capital information, Investec plc’s and IBP’s common equity tier 1 and total capital ratios would be 37bps and 34bps lower
respectively.

º IBL’s capital information includes unappropriated profits. If unappropriated profits are excluded from capital information, all IBL’s capital
ratios would be 13bps lower.


Liquidity coverage ratio disclosure

The objective of the liquidity coverage ratio (LCR) is to promote the short-term resilience of the liquidity risk
profile of banks by ensuring that they have sufficient high quality liquid assets to survive a significant stress
scenario lasting 30 calendar days.

Investec Bank Limited (solo basis) and Investec Bank Limited Consolidated Group
The minimum LCR requirement in South Africa was 80% throughout 2017, increasing by 10% each year to
100% on 1 January 2019.
In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990),
banks are directed to comply with the relevant LCR disclosure requirements, as set out in Directive 6/2014
and Directive 11/2014. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord.
The following table sets out the LCR for Investec Bank Limited (solo basis) and Investec Bank Consolidated
Group as at 31 December 2017:

                                                     Investec Bank Limited Solo –                                      Investec Bank Limited
                                                     Total weighted value                                         Consolidated Group – Total
R’mn                                                                                                                          weighted value

High quality liquid assets (HQLA)                                                     75,603                                          76,144

Net cash outflows                                                                     57,244                                          53,265

Actual LCR (%)                                                                       132.4%                                          130.4%

Required LCR (%)                                                                        80%                                              80%


The values in the table are calculated as the simple average of 92 calendar daily values over the period 1 October 2017 to 31
December 2017 for Investec Bank Limited (IBL) bank solo. Investec Bank Limited consolidated group values use daily values for IBL
bank solo, while those for other group entities use the average of October, November, December 2017 month-end values.

Investec plc, Investec Bank plc (solo basis)
On 1 October 2015 under European Commission Delegated Regulation 2015/61, the LCR became the
PRA’s primary regulatory reporting standard for liquidity. The LCR is a Pillar 1 metric to which the PRA apply
Pillar 2 add-ons. The LCR is being introduced on a phased basis, and the PRA has opted to impose higher
liquidity coverage requirements during the phased-in period than the minimum required by CRD IV. From 1
January 2017, UK banks were required to maintain a minimum of 90%, rising to 100% on 1 January 2018.
The published LCR excludes Pillar 2 add-ons.

For Investec plc and Investec Bank plc (solo basis), the LCR is calculated using our own interpretations of
the EU Delegated Act. The reported LCR may change over time with regulatory developments.

The LCR reported to the PRA at 31 December 2017 was 380% for Investec plc and 443% for Investec Bank
plc (solo basis).

Johannesburg and London
31 January 2018
Sponsor: Investec Bank Limited

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