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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2018
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
(“Standard Bank Group” or “the group”)
Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at
30 September 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
September 2018 (Rm)
Transitional(1) Fully
loaded(2)
Ordinary share capital and premium 17 790 17 790
Ordinary shareholders' reserves(3) 137 350 137 350
Qualifying Common Equity Tier I non-controlling interest 5 335 5 335
Regulatory deductions against Common Equity Tier I capital (26 805) (31 073)
Common Equity Tier I capital 133 670 129 402
Unappropriated profit (10 578) (10 578)
Common Equity Tier 1 capital excl. unappropriated profit 123 092 118 824
Qualifying other equity instruments 5 742 5 742
Qualifying Tier I non-controlling interest 387 387
Tier I capital excl. unappropriated profit 129 221 124 953
Qualifying Tier II subordinated debt 14 954 14 954
General allowance for credit impairments 2 545 5 383
Tier II capital 17 499 20 337
Total regulatory capital excl. unappropriated profit 146 720 145 290
September 2018 (Rm)
Transitional(1) Fully
loaded(2)
Credit risk 79 402 79 402
Counterparty credit risk 2 856 2 856
Equity risk in the banking book 702 702
Market risk 6 892 6 892
Operational risk 17 802 17 802
Investments in financial entities 5 142 4 963
Total minimum regulatory capital requirement(4) 112 796 112 617
September 2018 (Rm)
Transitional(1) Fully loaded(2)
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 14.5 14.4
Tier I capital adequacy ratio (%) 12.8 12.4
Common Equity Tier I capital adequacy ratio (%) 12.2 11.8
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.6 15.4
Tier I capital adequacy ratio (%) 13.8 13.4
Common Equity Tier I capital adequacy ratio (%) 13.2 12.8
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 129 221 124 953
Tier I capital (incl. unappropriated profit) (Rm) 139 799 135 531
Total exposures (Rm) 1 803 261 1 799 148
Leverage ratio (excl. unappropriated profits, %) 7.2 6.9
Leverage ratio (incl. unappropriated profits, %) 7.8 7.5
Note:
(1) Represents IFRS 9 transition impact as allowed by the SARB.
(2) Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact).
(3) Including unappropriated profits.
(4) Measured at 11.14% in line with Basel III 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 0.0136%).
The Standard Bank of South Africa Limited (SBSA) and its
subsidiaries capital adequacy and leverage ratio
September 2018 (Rm)
Transitional(1) Fully
loaded(2)
Ordinary share capital and premium 44 448 44 448
Ordinary shareholders' reserves(3) 48 719 48 719
Regulatory deductions against Common Equity Tier I capital (12 996) (15 075)
Common Equity Tier I capital 80 171 78 092
Unappropriated profit (7 515) (7 515)
Common Equity Tier 1 capital excl. unappropriated profit 72 656 70 577
Qualifying other equity instruments 3 544 3 544
Tier I capital excl. unappropriated profit 76 200 74 121
Qualifying Tier II subordinated debt 13 451 13 451
General allowance for credit impairments 675 2 629
Tier II capital 14 126 16 080
Total regulatory capital excl. unappropriated profit 90 326 90 201
September 2018 (Rm)
Transitional(1) Fully
loaded(2)
Credit risk 50 084 50 084
Counterparty credit risk 2 424 2 424
Equity risk in the banking book 369 369
Market risk 4 378 4 378
Operational risk 10 665 10 665
Investments in financial entities 1 412 1 412
Total minimum regulatory capital requirement(4) 69 332 69 332
September 2018 (Rm)
Transitional(1) Fully loaded(2)
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 14.5 14.5
Tier I capital adequacy ratio (%) 12.2 11.9
Common Equity Tier I capital adequacy ratio (%) 11.7 11.3
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.7 15.7
Tier I capital adequacy ratio (%) 13.4 13.1
Common Equity Tier I capital adequacy ratio (%) 12.9 12.5
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 76 200 74 121
Tier I capital (incl. unappropriated profit) (Rm) 83 715 81 636
Total exposures (Rm) 1 442 615 1 440 537
Leverage ratio (excl. unappropriated profits, %) 5.3 5.1
Leverage ratio (incl. unappropriated profits, %) 5.8 5.7
Note:
(1) Represents IFRS 9 transition impact as allowed by the SARB.
(2) Represents fully loaded ECL accounting results (full IFRS 9 impact).
(3) Including unappropriated profits.
(4) Measured at 11.14% in line with Basel III 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 0.0081%).
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 30 calendar day 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
30 September 2018 30 September 2018
Rm Rm
Total HQLA 267 148 171 934
Net cash outflows 212 966 157 473
LCR (%) 125.4 109.2
Minimum requirement (%) 90.0 90.0
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 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 92 days of daily observations over the previous
quarter ended 30 September 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 July 2018,
31 August 2018 and 30 September 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
27 November 2018
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
J P Morgan Equities South Africa Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 27/11/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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