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Basel III Pillar 3 disclosure as at 31 March 2016
BARCLAYS AFRICA GROUP LIMITED ABSA BANK LIMITED
(Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06) (Registration number: 1986/004794/06)
ISIN: ZAE000174124 ISIN: ZAE000079810
JSE share code: BGA JSE share code: ABSP
(Barclays Africa Group) (Absa Bank)
BARCLAYS AFRICA GROUP LIMITED – BASEL III PILLAR 3 DISCLOSURE AS AT 31 MARCH 2016
The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks
Act).
1) Capital Adequacy
Barclays Africa Group Limited
Barclays Africa Group Limited remains capitalised above the regulatory minimum requirements, with Tier 1 and Total Capital
Adequacy ratios being within our board approved target capital ranges and Common Equity Tier 1 marginally above the board
approved target capital ranges. As at 31 March 2016, Barclays Africa Group Limited’s Common Equity Tier 1 ratio was 11.6%,
Tier 1 ratio was 12.1% and Total Capital Adequacy ratio was 14.0%.
The table below represents the capital position for Barclays Africa Group Limited at 31 March 2016 and the comparatives at
31 December 2015.
31 Mar 2016(1) 31 Dec 2015(1)
Regulatory Capital Position (excluding unappropriated profit) Rm % Rm %
Common Equity Tier 1 75 841 10.8% 77 640 11.0%
Share capital and premium 6 026 5 941
Reserves 71 966 72 568
Non-controlling interest - ordinary shares 2 219 2 556
Deductions (4 370) (3 425)
Additional Tier 1 capital 4 003 0.6% 4 413 0.7%
Tier 1 capital 79 844 11.4% 82 053 11.7%
Tier 2 capital 13 427 1.9% 13 302 1.9%
Total capital 93 271 13.3% 95 355 13.6%
Statutory Capital Position (including unappropriated profit):
Common Equity Tier 1 81 008 11.6% 83 913 11.9%
Tier 1 capital 85 011 12.1% 88 326 12.6%
Total capital 98 438 14.0% 101 628 14.5%
Board Approved Target Ranges(2)
Common Equity Tier 1 9.5% - 11.5% 9.5% - 11.5%
Tier 1 Capital 10.5% - 12.5% 10.5% - 12.5%
Total Capital 13.0% - 15.0% 12.5% - 14.5%
31 Mar 2016(1)
RWA Minimum required capital
Risk Weighted Assets (RWA) and Minimum Required Capital per Risk Per risk Pillar 1 Pillar 2a Total
Type (3): type 8% 1.75% 9.75%
Rm Rm Rm Rm
Credit risk 514 091 41 127 8 997 50 124
Counterparty credit risk 21 198 1 696 371 2 067
Equity investment risk 10 939 875 192 1 067
Market risk 26 405 2 112 462 2 574
Operational risk 98 668 7 894 1 726 9 620
Non-customer assets 29 620 2 370 518 2 888
Total RWA and minimum required capital 700 921 56 074 12 266 68 340
31 Dec 2015(1)
RWA Minimum required capital
Per risk Pillar 1 Pillar 2a Total
type 8% 2% 10%
RWA and Minimum Required Capital per Risk Type(3): Rm Rm Rm Rm
Credit risk 515 695 41 255 10 314 51 569
Counterparty credit risk 24 083 1 927 482 2 409
Equity investment risk 9 574 766 191 957
Market risk 25 012 2 001 500 2 501
Operational risk 98 668 7 894 1 973 9 867
Non-customer assets 29 631 2 370 593 2 963
Total RWA and Minimum Required Capital 702 663 56 213 14 053 70 266
Absa Bank Limited and its subsidiaries(4)
Absa Bank Limited remains capitalised above the regulatory minimum requirements and within our board approved target
capital ranges. As at 31 March 2016, Absa Bank Limited’s Common Equity Tier 1 ratio was 10.5%, Tier 1 ratio was 11.1% and
Total Capital Adequacy ratio was 13.6%.
The table below represents the capital position for Absa Bank Limited at 31 March 2016 and comparatives at
31 December 2015.
31 Mar 2016(1) 31 Dec 2015(1)
Regulatory Capital Position (excluding unappropriated profit) Rm % Rm %
Common Equity Tier 1 49 417 9.9% 49 806 10.1%
Share capital and premium 21 768 21 758
Reserves 31 324 30 766
Deductions (3 675) (2 718)
Additional Tier 1 capital 2 769 0.6% 3 234 0.6%
Tier 1 capital 52 186 10.5% 53 040 10.7%
Tier 2 capital 12 685 2.5% 12 677 2.6%
Total capital 64 871 13.0% 65 717 13.3%
Statutory Capital Position (including unappropriated profit):
Common Equity Tier 1 52 541 10.5% 52 174 10.5%
Tier 1 capital 55 310 11.1% 55 407 11.2%
Total capital 67 995 13.6% 68 084 13.8%
Board Approved Target Ranges(2)
Common Equity Tier 1 9.0% - 10.5% 9.0% - 10.5%
Tier 1 Capital 10.0% - 11.5% 10.0% - 11.5%
Total Capital 12.5% - 14.0% 12.0% - 13.5%
31 Mar 2016(1)
RWA Minimum required capital
Risk Weighted Assets (RWA) and Minimum Required Per risk Pillar 1 Pillar 2a Total
Capital per Risk Type(3): type 8% 1.75% 9.75%
Rm Rm Rm Rm
Credit risk 367 195 29 376 6 426 35 802
Counterparty credit risk 20 674 1 654 362 2 016
Equity investment risk 3 178 254 56 310
Market risk 22 176 1 774 388 2 162
Operational risk 68 005 5 440 1 190 6 630
Non-customer assets 17 092 1 367 299 1 666
Total RWA and minimum required capital 498 320 39 865 8 721 48 586
31 Dec 2015(1)
RWA Minimum required capita
Per risk Pillar 1 Pillar 2a Total
type 8% 2% 10%
RWA and Minimum Required Capital per Risk Type(3): Rm Rm Rm Rm
Credit risk 361 993 28 959 7 240 36 199
Counterparty credit risk 23 339 1 867 467 2 334
Equity investment risk 3 556 285 71 356
Market risk 20 539 1 643 411 2 054
Operational risk 68 005 5 440 1 360 6 800
Non-customer assets 17 361 1 389 347 1 736
Total RWA and Minimum Required Capital 494 793 39 583 9 896 49 479
2) Leverage ratio
The leverage ratio framework is complementary to the risk-based capital framework and is a non-risk based contingency
measure to restrict the build-up of excessive leverage in the banking sector.
The table below represents the capital position for Barclays Africa Group Limited at 31 March 2016 and the comparatives at
31 December 2015.
Barclays Africa Group Limited
31 Mar 2016 (1) 31 Dec 2015(1)
Tier 1 Capital (excluding unappropriated profit) (Rm) 79 844 82 053
Tier 1 Capital (including unappropriated profit) (Rm) 85 011 88 326
Total Exposures (Rm) 1 321 314 1 318 677
Leverage Ratio (excluding unappropriated profit) 6.0% 6.2%
Leverage Ratio (including unappropriated profit) 6.4% 6.7%
Minimum Required Leverage Ratio 4.0% 4.0%
Board Target Leverage Ratio (> or =) 4.5% (> or =) 4.5%
Absa Bank Limited and its subsidiaries
31 Mar 2016(1) 31 Dec 2015(1)
Tier 1 Capital (excluding unappropriated profit) (Rm) 52 186 53 040
Tier 1 Capital (including unappropriated profit) (Rm) 55 310 55 407
Total Exposures (Rm) 1 127 047 1 113 924
Leverage Ratio (excluding unappropriated profit) 4.6% 4.8%
Leverage Ratio (including unappropriated profit) 4.9% 5.0%
Minimum Required Leverage Ratio 4.0% 4.0%
Board Target Leverage Ratio (> or =)4.5% (> or =) 4.5%
3) Liquidity Coverage Ratio
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 (HQLA) to survive a significant stress scenario lasting 30 calendar
days. The LCR requirement, from 1 January 2015, was 60% and will increase by 10% per year to 100% on 1 January 2019.
The requirement for 2016 is 70%.
The LCR is calculated as the value of HQLA divided by total net cash outflows. HQLA are the value of assets that can be
easily and immediately converted into cash. Net cash outflows are calculated according to the scenario parameters outlined by
regulations.
Absa Bank Limited successfully applied for a committed liquidity facility from the South African Reserve Bank under guidance
note 8 of 2014 and 5 of 2015, which is included in HQLA for LCR purposes from January 2016.
Barclays Africa Group Limited
Barclays Africa Group Limited holds HQLA in excess of the regulatory minimum requirement. The table below represents the
average LCR for Barclays Africa Group Limited(6) at 31 March 2016 and the comparatives at 31 December 2015(5):
31 Mar 2016(1) 31 Dec 2015(1)
High Quality Liquid Assets (Rm) 131 963 110 009
Net Cash Outflows (Rm) 165 001 157 340
Liquidity Coverage Ratio 80.0% 69.9%
Required Liquidity Coverage Ratio 70.0% 60.0%
Absa Bank Solo
Absa Bank Solo holds HQLA in excess of the regulatory minimum requirement. The table below represents the average LCR
for the bank at 31 March 2016 and the comparatives at 31 December 2015(5):
31 Mar 2016(1) 31 Dec 2015(1)
High Quality Liquid Assets (Rm) 120 428 101 578
Net Cash Outflows (Rm) 150 253 145 031
Liquidity Coverage Ratio 80.2% 70.0%
Required Liquidity Coverage Ratio 70.0% 60.0%
Notes:
1. The 31 March 2016 figures have not been audited. (31 December 2015 comparatives have been audited).
2. Board approved target ranges include unappropriated profit.
3. The regulatory minimum Common Equity Tier 1 requirement as at 31 March 2016 was 6.25% (31 December 2015: 6.50%).
4. Absa Bank Limited includes subsidiary undertakings, special purpose entities, joint ventures, associates and offshore
holdings.
5. The values disclosed represent the simple average of the relevant 3 month-end data points.
6. Only banking and/or deposit taking entities are included. The group data represents an aggregation of the relevant
individual net cash outflows and HQLA portfolios. Surplus HQLA holdings in excess of the minimum requirement have
been excluded from the aggregated HQLA number for all non-South African banking entities.
Johannesburg
27 May 2016
Enquiries:
Alan Hartdegen
(+2711) 350-2598
E-mail: Alan.Hartdegen@barclaysafrica.com
Lead Independent Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
Joint Sponsor:
Corporate and Investment Bank – a division of Absa Bank Limited
Date: 27/05/2016 02:12:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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