Wrap Text
Investec Limited – Basel III disclosures at 30 June 2021
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 LEI: 2138007Z3U5GWDN3MY22
LEI: 213800CU7SM6O4UWOZ70
As part of the dual listed company structure, Investec plc and Investec Limited notify both the London Stock
Exchange and the JSE Limited of matters which are required to be disclosed under the Disclosure Guidance,
Transparency Rules (DTR) and Listing Rules of the Financial Conduct Authority and/or the JSE Listing
Requirements.
Accordingly, we advise of the following:
Investec Limited – Basel III disclosures at 30 June 2021
Capital disclosures
Investec Limited calculates capital resources and requirements at a group level using the Basel III framework,
as implemented in South Africa by the South African Prudential Authority, in accordance with the Bank’s Act
and all related regulations. Investec Limited continues to hold capital in excess of regulatory requirements and
board-approved minimum targets.
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2021 R'mn R'mn
Common equity tier 1 capital 44,317 43,792
Additional tier 1 capital 2,727 1,936
Tier 1 capital 47,044 45,728
Tier 2 capital 10,405 13,326
Total regulatory capital 57,449 59,054
Risk-weighted assets per risk type:
Credit risk 260,201 256,442
Counterparty credit risk 11,393 11,393
Credit valuation adjustment risk 6,523 6,523
Equity risk 24,301 9,542
Market Risk 6,120 3,422
Operational risk 26,832 22,193
Total risk-weighted assets 335,370 309,515
Total minimum capital requirement 36,891 34,047
Capital ratios
Common equity tier 1 ratio 13.2% 14.1%
Tier 1 ratio 14.0% 14.8%
Total capital adequacy ratio 17.1% 19.1%
Leverage ratio disclosures
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2021 R'mn R'mn
Tier 1 capital 47,044 45,728
Total exposure 618,715 584,373
Leverage ratio 7.6% 7.8%
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2021 R'mn R'mn
Common equity tier 1 capital 41,456 42,399
Additional tier 1 capital 2,733 1,937
Tier 1 capital 44,189 44,336
Tier 2 capital 10,467 13,326
Total regulatory capital 54,656 57,662
Risk-weighted assets per risk type:
Credit risk 259,476 256,126
Counterparty credit risk 11,393 11,393
Credit valuation adjustment risk 6,523 6,523
Equity risk 23,839 9,542
Market Risk 6,120 3,422
Operational risk 26,862 22,193
Total risk-weighted assets 334,183 309,199
Total minimum capital requirement 36,760 34,012
Capital ratios
Common equity tier 1 ratio 12.4% 13.7%
Tier 1 ratio 13.2% 14.3%
Total capital adequacy ratio 16.4% 18.6%
Leverage ratio disclosures
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2021 R'mn R'mn
Tier 1 capital 44,189 44,336
Total exposure 618,315 584,246
Leverage ratio 7.1% 7.6%
* Where: IBL is Investec Bank Limited consolidated. The information for Investec Limited includes the information for IBL.
Liquidity disclosures
Liquidity coverage ratio (LCR)
The objective of the 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.
With effect from 1 April 2020, the minimum LCR requirement in South Africa was reduced from 100% to 80%,
until such time as the South African Prudential Authority (PA) is of the view that the financial markets have
normalised post COVID-19. This applies for both Investec Bank Limited (IBL) (solo basis) and Investec Bank
Limited (IBL) consolidated group.
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. This disclosure is in accordance
with Pillar 3 of the Basel III liquidity accord, as specified by BCBS d400 (2017) and Directive D1/2018.
The following table sets out the LCR for IBL (solo basis) and IBL consolidated group for the quarter ending 30
June 2021:
IBL (solo basis) – Total IBL consolidated group – Total
weighted value weighted value
High quality liquid assets (HQLA) (R’mn) 97,587 99,249
Net cash outflows (R’mn) 65,633 62,895
Actual LCR 149.3% 158.5%
Required LCR 80%^ 80%^
^ - temporarily reduced from 100% by the PA.
The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2021 to 30 June 2021 for
IBL (solo basis). IBL consolidated group values use daily values for IBL (solo basis), while those for other group entities use the average
of April, May and June 2021 month-end values.
Net stable funding ratio (NSFR)
The objective of the NSFR is to promote the resilience of the banking sector by requiring banks to maintain a
stable funding profile in relation to the composition of their assets and off-balance sheet activities on an ongoing
structural basis. By ensuring that banks do not embark on excessive maturity transformation that is not
sustainable, the NSFR is intended to reduce the likelihood that disruptions to a bank's funding sources would
erode its liquidity position, increase its risk of failure and potentially lead to broader systemic risk.
The minimum NSFR requirement in South Africa is 100%. This applies to both IBL (solo basis) and IBL
consolidated group.
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 NSFR disclosure requirements. This disclosure is in accordance
with Pillar 3 of the Basel III liquidity accord, as specified by Directive 11/2015 and Directive 01/2018.
The following table sets out the NSFR for IBL (solo basis) and IBL consolidated group as at 30 June 2021:
IBL (solo basis) IBL consolidated group
Actual NSFR 114.7% 116.0%
Required NSFR 100% 100%
Further disclosures with respect to Investec Limited’s and Investec Bank Limited’s capital and liquidity will be
provided on the Investec website in due course as required by the relevant regulations.
30 July 2021
Sponsor: Investec Bank Limited
Date: 30-07-2021 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
