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BARCLAYS AFRICA GROUP LIMITED - Audited condensed consolidated financial results for the reporting period ended 31 December 2013.

Release Date: 11/02/2014 08:30
Code(s): BGA     PDF:  
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Audited condensed consolidated financial results
for the reporting period ended 31 December 2013.

Barclays Africa Group Limited
(formerly Absa Group Limited)
Authorised financial services and 
registered credit provider (NCRCP7)
Registration number: 1986/003934/06
Incorporated in the Republic of South Africa
JSE share code: BGA
ISIN: ZAE000174124
(Barclays Africa Group, BAGL or the Group)
Audited condensed consolidated financial results
for the reporting period ended 31 December 2013.

A full set of audited annual consolidated financial statements is available from 11 February 2014 on request at the
registered address of the Group.

These audited condensed consolidated financial results were prepared by Barclays Africa Group Financial 
Control under the direction and supervision of the Financial Director, D W P Hodnett CA(SA).

Date of publication: 11 February 2014


Consolidated salient features                                                                                                                                                                                                                         
                                                                                2013      2012(1)    Change %   
  Statement of comprehensive income (Rm)                                                                        
  Revenue                                                                     59 406       54 976           8   
  Operating expenses                                                          33 420       30 329          10   
  Profit attributable to ordinary equity holders                              11 981        9 999          20   
  Headline earnings(2)                                                        11 843       10 419          14   
  Statement of financial position                                                                               
  Loans and advances to customers (Rm)                                       605 337      566 262           7   
  Total assets (Rm)                                                          959 599      898 371           7   
  Deposits due to customers (Rm)                                             588 011      543 101           8   
  Loans-to-deposits ratio (%)                                                   88,3         87,1               
  Financial performance (%) (3)                                                                                     
  Return on average equity                                                      15,5         14,1               
  Return on average assets                                                      1,29         1,17               
  Pro forma return on average risk-weighted assets(4)                           2,18         2,09               
  Operating performance (%)                                                                                     
  Net interest margin on average interest-bearing assets(3)                     4,48         4,28               
  Impairment losses on loans and advances as % of average loans
  and advances to customers(3)                                                  1,20         1,60               
  Non-performing loans as % of gross loans and advances to 
  customers(3)                                                                   4,7          5,9               
  Non-interest income as % of revenue                                           45,5         46,7               
  Cost-to-income ratio                                                          56,3         55,2               
  JAWS                                                                          (2,1)         0,0               
  Effective tax rate, excluding indirect taxation                               28,9         29,2               
  Share statistics (million)(5)                                                                                 
  Pro forma number of ordinary shares in issue                                 847,8        847,8               
  Pro forma number of ordinary shares in issue (excluding 
  treasury shares)                                                             847,3        847,2               
  Pro forma weighted average number of ordinary shares in issue 
  (excluding treasury shares)                                                  847,3        847,1               
  Pro forma diluted weighted average number of ordinary shares in 
  issue (excluding treasury shares)                                            848,0        848,7               
  Share statistics (cents)(5)                                                                                   
  Pro forma headline earnings per ordinary share                             1 397,7      1 229,9          14   
  Pro forma diluted headline earnings per ordinary share                     1 396,6      1 227,6          14   
  Pro forma basic earnings per ordinary share                                1 414,0      1 180,4          20   
  Pro forma diluted earnings per ordinary share                              1 412,9      1 178,2          20   
  Dividend per ordinary share relating to income for the 
  reporting period                                                               820          684          20   
  Dividend cover (times)                                                         1,7          1,8               
  Special dividend per ordinary share                                            708            -         100   
  Pro forma net asset value per ordinary share                                 9 125        9 100           -   
  Pro forma tangible net asset value per ordinary share                        8 745        8 740           -   
  Capital adequacy (%)(3)                                                                                       
  Barclays Africa Group(6)                                                      15,6         17,4             
  Absa Bank Limited                                                             15,6         17,5             
  Off-statement of financial position (Rm)                                                                      
  Assets under management and administration                                 263 775      246 950           7   
  Financial Services                                                         183 491      197 682          (7)  
  Money market                                                                57 093       57 824          (1)  
  Non-money market                                                           126 398      139 858         (10)  
  Corporate, Investment Bank and Wealth (CIBW)                                80 284       49 268          63   

Notes
(1)Restated, refer to note 23 for reporting changes.  
(2)After allowing for R294 million (2012: R295 million) profit attributable to preference equity holders of Absa Bank
   Limited.
(3)These ratios are unaudited.
(4)The pro forma historical risk-weighted assets (“RWAs”) of the Group are restated for purpose of RoRWA and include 
   the RWAs of Barclays Africa Limited as if they had always been a part of the Group’s RWAs. This does not alter any 
   submissions made to the South African Reserve Bank (“SARB”).
(5)The pro forma per ordinary share metrics provided above include the ordinary shares issued on 31 July 2013 in consideration
   for the acquisition of Barclays Africa Limited as if the ordinary shares had always been in issue. The provision of
   these metrics in no way impacts the legal effective date of the ordinary share issue.
(6)This ratio has not been restated for the Barclays Africa Limited acquisition.


Condensed consolidated statement of financial position
as at 31 December                                          
                                                                        2013      2012(1)                 2011(1)   
                                                                    (Audited)    (Audited)    Change     (Audited)  
                                                           Note           Rm           Rm          %           Rm   
  Assets                                                                                                            
  Cash, cash balances and balances with central banks                 50 130       44 770         12       44 779   
  Statutory liquid asset portfolio                                    62 055       63 020        (2)       57 473   
  Loans and advances to banks                                         79 971       62 511         28       75 782   
  Trading portfolio assets                                            87 034       87 324          -       84 742   
  Hedging portfolio assets                                             3 357        5 456        (38)       4 313   
  Other assets                                                        15 829       17 579        (10)      18 124   
  Current tax assets                                                     529          376         41          344   
  Non-current assets held for sale                            1        4 814        4 052         19           35   
  Loans and advances to customers                             2      605 337      566 262          7      542 127   
  Reinsurance assets                                                     870        1 003        (13)       1 009   
  Investment securities                                               33 083       30 913          7       28 082   
  Investments in associates and joint ventures                           694          569         22          420   
  Investment properties                                                1 089        1 220        (11)       2 839   
  Property and equipment                                              10 679        9 624         11        9 642   
  Goodwill and intangible assets                                       3 141        3 048          3        2 282   
  Deferred tax assets                                                    987          644         53          669   
  Total assets                                                       959 599      898 371          7      872 662   
  Liabilities                                                                                                       
  Deposits from banks                                                 69 064       41 424         67       44 636   
  Trading portfolio liabilities                                       51 477       51 734          -       55 997   
  Hedging portfolio liabilities                                        2 391        3 855        (38)       2 456   
  Other liabilities                                                   19 775       20 410         (3)      17 298   
  Provisions                                                           2 460        2 280          8        2 258   
  Current tax liabilities                                                173           29       >100          301   
  Non-current liabilities held for sale                       1        1 651        1 480         12            -   
  Deposits due to customers                                   5      588 011      543 101          8      503 408   
  Debt securities in issue                                    6       97 829      106 804         (8)     128 883   
  Liabilities under investment contracts                              19 773       18 768          5       19 922   
  Policyholder liabilities under insurance contracts                   3 958        3 550         11        3 183   
  Borrowed funds                                              7       16 525       18 777        (12)      14 999   
  Deferred tax liabilities                                             1 311        1 714        (24)       1 283   
  Total liabilities                                                  874 398      813 926          7      794 624   
  Equity                                                                                                            
  Capital and reserves                                                                                              
  Attributable to ordinary equity holders:                                                                          
  Share capital                                                        1 695        1 694          -        1 693   
  Share premium                                                        4 474        5 336        (16)       5 151   
  Retained earnings                                                   64 701       64 898          -       60 244   
  Other reserves                                                       6 447        5 168         25        3 486   
                                                                      77 317       77 096          -       70 574   
  Non-controlling interest - ordinary shares                           3 240        2 705         20        2 820   
  Non-controlling interest - preference shares                         4 644        4 644          -        4 644   
  Total equity                                                        85 201       84 445          1       78 038   
  Total liabilities and equity                                       959 599      898 371          7      872 662   

Note
(1)Restated, refer to note 23 for reporting changes.


Condensed consolidated statement of comprehensive income
for the reporting period ended 31 December                                                                                                          
                                                                                      2013       2012(1)             
                                                                                  (Audited)    (Audited)   Change   
                                                                         Note           Rm           Rm         %   
                                                                                                                    
  Net interest income                                                               32 351       29 302        10   
  Interest and similar income                                             8.1       60 232       57 297         5   
  Interest expense and similar charges                                    8.2      (27 881)     (27 995)        -   
  Impairment losses on loans and advances                                 3.1       (6 987)      (8 855)       21   
  Net interest income after impairment losses on loans and advances                 25 364       20 447        24   
  Non-interest income                                                               27 055       25 674         5   
  Net fee and commission income                                                     18 554       17 383         7   
  Fee and commission income                                               9.1       21 348       20 096         6   
  Fee and commission expense                                              9.2       (2 794)      (2 713)       (3)  
  Net insurance premium income                                                       5 686        5 618         1   
  Net insurance claims and benefits paid                                            (2 819)      (2 719)       (4)   
  Changes in investment and insurance contract liabilities                          (2 457)      (1 707)      (44)  
  Gains and losses from banking and trading activities                    9.3        4 361        4 535        (4)  
  Gains and losses from investment activities                             9.4        2 831        1 735        63   
  Other operating income                                                               899          829         8                                                                                                                  
  Operating income before operating expenditure                                     52 419       46 121        14   
  Operating expenditure                                                            (34 453)    (31 185)       (10)  
  Operating expenses                                                     10.1      (33 420)    (30 329)       (10)  
  Other impairments                                                      10.2          (33)       (132)        75   
  Indirect taxation                                                                 (1 000)       (724)       (38)  
  Share of post-tax results of associates and joint ventures                           130          249       (48)  
  Operating profit before income tax                                                18 096       15 185        19   
  Taxation expense                                                                  (5 222)      (4 439)      (18)  
  Profit for the reporting period                                                   12 874       10 746        20   
  Profit attributable to:                                                                                           
  Ordinary equity holders                                                           11 981        9 999        20   
  Non-controlling interest - ordinary shares                                           599          452        33   
  Non-controlling interest - preference shares                                         294          295         -   
                                                                                    12 874       10 746        20   
  Earnings per share:                                                                                               
  Pro forma basic earnings per share (cents per share)                             1 414,0      1 180,4        20   
  Pro forma diluted earnings per share (cents per share)                           1 412,9      1 178,2        20

Note
(1)Restated, refer to note 23 for reporting changes.   


Condensed consolidated statement of comprehensive income
for the reporting period ended 31 December 
                                                                                                         2013      2012(1)              
                                                                                                     (Audited)    (Audited)    Change   
                                                                                            Note           Rm           Rm          %   
                                                                                                                                        
  Profit for the reporting period                                                                      12 874       10 746         20   
  Other comprehensive income                                                                                                            
  Items that will not be reclassified to the profit or loss 
  component of the statement of comprehensive income                                 
  Movement in retirement benefit fund assets and liabilities                                             (324)        (88)     >(100)   
  Decrease in retirement benefit surplus                                                                  (92)        (71)       (30)  
  Increase in retirement benefit deficit                                                                 (229)        (59)     >(100)   
  Deferred tax                                                                                             (3)         42      >(100)                                                                                                                                      
  Total items that will not be reclassified to the profit or loss
  component of the statement of comprehensive income                                                     (324)         (88)    >(100)   
  Items that are or may be subsequently reclassified to the profit or loss component                                                   
  of the statement of comprehensive income                                                                                             
  Foreign exchange differences on translation of foreign operations                                     2 986          338       100   
  Movement in cash flow hedging reserve                                                                (1 822)         405     >(100)   
  Fair value (losses)/gains arising during the reporting period                                          (903)       2 650     >(100)                                                                                                                                                                                                                                                                           
  Amount removed from other comprehensive income and recognised in the profit or loss
  component of the statement of comprehensive income                                                   (1 629)      (2 088)       22              
  Deferred tax                                                                                            710         (157)     >100   
  Movement in available-for-sale reserve                                                                  107        1 318       (92)  
  Fair value gains arising during the reporting period                                                    131        1 739       (92)                                                                                                                                                                                                                                                                                
  Amortisation of government bonds - release to the profit or loss component of the
  statement of comprehensive income                                                                       10            10         -   
  Deferred tax                                                                                           (34)         (431)       92                                                                                                                                         
  Total items that are or may be subsequently reclassified to the profit or loss 
  component of the statement of comprehensive income                                                   1 271         2 061       (38)                                                                                     
  Total comprehensive income for the reporting period                                                 13 821        12 719         9   
  Total comprehensive income attributable to:                                                                                           
  Ordinary equity holders                                                                             12 610        11 848         6   
  Non-controlling interest - ordinary shares                                                             917           576        59   
  Non-controlling interest - preference shares                                                           294           295         -   
                                                                                                      13 821        12 719         9   
Note
(1)Restated, refer to note 23 for reporting changes.


Condensed consolidated statement of changes in equity
for the reporting period ended 31 December                                                                                                                                                                                                                                
                                                                                                        2013                                             
                                                                                                    (Audited)                                            
                                                                               Capital and                                             
                                                                                  reserves           Non-           Non-               
                                                                              attributable    controlling    controlling               
                                                                               to ordinary     interest -     interest -               
                                                                                    equity       ordinary     preference       Total   
                                                                                   holders         shares         shares      equity   
                                                                                        Rm             Rm             Rm          Rm                                                                                                                                       
  Balance at the beginning of the reporting period                                  77 096          2 705          4 644      84 445   
  Total comprehensive income for the reporting period                               12 610            917            294      13 821   
  Profit for the reporting period                                                   11 981            599            294      12 874   
  Other comprehensive income                                                           629            318              -         947   
  Dividends paid during the reporting period                                       (11 602)          (346)          (294)    (12 242)  
  Accounting adjustments related to business combinations under                                                                        
  common control(1)                                                                   (443)             -              -        (443)  
  Purchase of Group shares in respect of equity-settled share-based                                                                    
  payment schemes                                                                      (76)             -              -         (76)  
  Elimination of the movement in treasury shares held by Group entities               (279)             -              -        (279)  
  Movement in share-based payment reserve                                               11              -              -          11   
  Transfer from share-based payment reserve                                            (38)             -              -         (38)  
  Transfer to share capital and share premium                                           38              -              -          38   
  Value of employee services                                                            11              -              -          11  
  Movement in general credit risk reserve                                                -              -              -           -   
  Transfer from retained earnings                                                     (220)             -              -        (220)  
  Transfer to credit risk reserve                                                      220              -              -         220     
  Movement in foreign insurance subsidiary regulatory reserve                            -              -              -           -   
  Transfer from retained earnings                                                       (3)             -              -          (3)  
  Transfer to foreign insurance subsidiary regulatory reserve                            3              -              -           3   
  Share of post-tax results of associates and joint ventures                             -              -              -           -   
  Transfer from retained earnings                                                     (130)             -              -        (130)  
  Transfer to associates’ and joint ventures’ reserve                                  130              -              -         130   
  Acquisition of non-controlling interest and related-transaction costs(2)             101            (36)             -          65   
  Transaction costs related to shares issued on the acquisition of                                                                     
  Barclays Africa Limited                                                             (101)             -              -        (101)  
  Balance at the end of the reporting period                                        77 317          3 240          4 644      85 201   
                                                                                                                                       
Notes
(1)The excess of the purchase price over BAGL’s share of the net assets of Barclays Africa Limited, acquired on 31
   July 2013, is accounted for as a deduction against share premium. The purchase price was applied retrospectively, resulting
   in the deemed excess of the purchase price over the historical carrying values of the underlying net assets of Barclays
   Africa Limited being similarly included within share premium. This application results in a net movement recognised in
   share premium for each retrospective reporting period to date of acquisition.
(2)During the current reporting period, the Group increased its shareholding in National Bank of Commerce Limited
  (Tanzania) (“NBC”) from 55% to 66%. This increased shareholding was driven by a rights issue made by NBC. The Group
   exercised its rights, together with a portion of the rights relating to non-controlling shareholders. The shareholders that 
   did not take up their portion of the rights issue were granted a one-year option to acquire such shares from Barclays
   Africa Group Limited.
(3) All movements are reflected net of taxation.   

   
Condensed consolidated statement of changes in equity                                                                                
for the reporting period ended 31 December
                                                                                                  2012(1)                                            
                                                                                                 (Audited)                                           
                                                                              Capital and                                            
                                                                                 reserves           Non-           Non-              
                                                                             attributable    controlling    controlling              
                                                                              to ordinary     interest -     interest -              
                                                                                   equity       ordinary     preference      Total   
                                                                                  holders         shares         shares     equity   
                                                                                       Rm             Rm             Rm         Rm                                                                                                                                  
  Balance at the beginning of the reporting period as previously reported          62 308          1 453          4 644     68 405   
  Restatements(1)                                                                   8 266          1 367              -      9 633   
  Restated balance at the beginning of the reporting period                        70 574          2 820          4 644     78 038   
  Total comprehensive income for the reporting period                              11 848            576            295     12 719   
  Profit for the reporting period                                                   9 999            452            295     10 746   
  Other comprehensive income                                                        1 849            124              -      1 973   
  Dividends paid during the reporting period                                       (5 069)          (597)          (295)    (5 961)  
  Accounting adjustments related to business combinations under                                                                      
  common control(2)                                                                   (89)             -              -        (89)  
  Transfer from retained earnings                                                    (346)             -              -       (346)  
  Transfer to share premium                                                           257              -              -        257   
  Purchase of Group shares in respect of equity-settled share-based                                                                  
  payment schemes                                                                    (211)             -              -       (211)  
  Elimination of the movement in treasury shares held by Group entities                30              -              -         30   
  Movement in share-based payment reserve                                              13              -              -         13   
  Transfer from share-based payment reserve                                          (110)             -              -       (110)  
  Transfer to share capital and share premium                                         110              -              -        110   
  Value of employee services                                                           13              -              -         13  
  Zambia regulatory requirements transfer                                               -              -              -          -   
  Transfer to retained earnings                                                       150              -              -        150   
  Transfer from general credit risk reserve                                          (150)             -              -       (150)
  Movement in general credit risk reserve                                               -              -              -          -   
  Transfer from retained earnings                                                     (54)             -              -        (54)  
  Transfer to general credit risk reserve                                              54              -              -         54 
  Movement in insurance contingency reserve(3)                                          -              -              -          -   
  Transfer to retained earnings                                                       324              -              -        324   
  Transfer from insurance contingency reserve                                        (324)             -              -       (324)    
  Movement in foreign insurance subsidiary regulatory reserve                           -              -              -          -   
  Transfer from retained earnings                                                     (13)             -              -        (13)  
  Transfer to foreign insurance subsidiary regulatory reserve                          13              -              -         13   
  Share of post-tax results of associates and joint ventures                            -              -              -          -   
  Transfer from retained earnings                                                    (249)             -              -       (249)  
  Transfer to associates’ and joint ventures’ reserve                                 249              -              -        249   
  Increase in the interest of non-controlling equity holders                            -             35              -         35   
  Disposal of interest in subsidiary without loss of control                            -           (129)             -       (129)  
  Restated balance at the end of the reporting period                              77 096          2 705          4 644     84 445   
                                                                                                                                     
Notes
(1)Restated, refer to note 23 for reporting changes.
(2)The excess of the purchase price over BAGL’s share of the net assets of Barclays Africa Limited, acquired on 31
   July 2013, is accounted for as a deduction against share premium. The purchase price was applied retrospectively resulting
   in the deemed excess of the purchase price over the historical carrying values of the underlying net assets of Barclays
   Africa Limited being similarly included within share premium. This application results in a net movement recognised in
   share premium for each retrospective reporting period to date of acquisition.
(3)This reserve is no longer required due to a change in the Financial Services Board regulations. 
(4)All movements are reflected net of taxation. 


Condensed consolidated statement of cash flows
for the reporting period ended 31 December
                                                                                       2013      2012(1)              
                                                                                   (Audited)    (Audited)    Change   
                                                                          Note           Rm           Rm          %                                                                                                                       
  Net cash generated from operating activities                                       18 035        5 199        >100   
  Net cash utilised in investing activities                                          (1 841)      (1 672)        (20)  
  Net cash utilised in financing activities                                         (14 616)      (2 045)      >(100)   
  Net increase in cash and cash equivalents                                            1 578       1 482           6   
  Cash and cash equivalents at the beginning of the reporting period                  13 985      12 163          15   
  Effect of exchange rate movements on cash and cash equivalents                         291         340         (14)  
  Cash and cash equivalents at the end of the reporting period                        15 854      13 985          13   
  Notes to the condensed consolidated statement of cash flows                                                         
  1. Cash and cash equivalents at the beginning of the                                                          
     reporting period                                                                                                    
     Cash, cash balances and balances with central banks(2)                           11 085       9 989          11   
     Loans and advances to banks(3)                                                    2 900       2 174          35   
                                                                                      13 985      12 163          15   
  2. Cash and cash equivalents at the end of the                                                                
     reporting period                                                                                                    
     Cash, cash balances and balances with central banks(2)                           12 653      11 085          14   
     Loans and advances to banks(3)                                                    3 201       2 900          10   
                                                                                      15 854      13 985          13   
                                                                                                                      
Notes
(1)Restated, refer to note 23 for reporting changes.
(2)Includes coins and bank notes, which are part of cash, cash balances and balances with central banks on the
   statement of financial position.
(3)Includes call advances, which are used as working capital of the Group and are a component of other advances
   within loans and advances to banks on the statement of financial position.


Condensed notes to the consolidated financial results
for the reporting period ended 31 December


1. Non-current assets and non-current liabilities held for sale

During the reporting period, the Group effected the following transfers to non-current assets and non-current
liabilities held for sale:

- Through the Retail and Business Banking (“RBB”) segment
    -In the Commercial Property Finance Equity (“CPF Equity”) division, investment properties in two of its
     wholly-owned subsidiaries, with a total carrying value of R212 million, were transferred to non-current 
     assets held for sale. The disposal of these properties is expected to take place during the 2014 reporting period.

- Through the Head office and Other segment
    -A number of assets classified as property and equipment within Corporate Real Estate Services have been 
     identified as held for sale. These assets have a total carrying value of R209 million. The disposal of the
     property and equipment is due to take place during 2014.

                                                                                                                                                               
2. Loans and advances to customers  
                                                           
                                                                       2013      2012(1)             
                                                                   (Audited)    (Audited)   Change   
                                                                         Rm           Rm         %                                                                                                    
 Cheque accounts                                                     34 768       34 282         1   
 Corporate overdrafts and specialised finance loans                   5 729        5 121        12   
 Credit cards                                                        37 500       33 504        12   
 Foreign currency loans                                              22 760       13 143        73   
 Instalment credit agreements                                        66 764       61 321         9   
 Gross advances                                                      81 248       74 049        10   
 Unearned finance charges                                           (14 484)     (12 728)      (14)  
 Reverse repurchase agreements                                        3 893        4 698       (17)  
 Loans to associates and joint ventures                              12 039       10 094        19   
 Microloans                                                           2 192        2 002         9   
 Mortgages                                                          276 253      282 778        (2)  
 Other advances(2)                                                   20 742       17 348        20   
 Overnight finance                                                   14 083       18 862       (25)  
 Personal and term loans                                             67 954       58 456        16   
 Preference shares                                                    8 945        6 342        41   
 Wholesale overdrafts                                                47 764       34 088        40   
 Gross loans and advances to customers                              621 386      582 039         7   
 Impairment losses on loans and advances (refer to note 3)          (16 049)    (15 777)        (2)  
                                                                    605 337      566 262         7 

Notes                                                                                                                                              
(1)Restated, refer to note 23 for reporting changes.                                                                                                                 
(2)Includes customer liabilities under acceptances working capital solutions and collateralised loans. 


Condensed notes to the consolidated financial results
for the reporting period ended 31 December                                                                                                    

3. Impairment losses on loans and advances                                               
                                                                                                2013                                                                         
                                                                                             (Audited)                                                                       
                                                          Retail     Business    
                                                         Banking      Banking         RBB        CIBW        CIBW      
                                                           South        South     Rest of       South     Rest of      
 Reconciliation of allowance for impairment               Africa       Africa      Africa      Africa      Africa      Other(1)      Total                       
 losses on loans and advances to customers                    Rm           Rm          Rm          Rm          Rm         Rm            Rm                                                                                                                                                                                                                                                    
 Balance at the beginning of the reporting period(2)      10 157        2 667       1 967         650         192        144        15 777   
 Net present value unwind on non-performing book              
 (refer to note 8.1)                                        (697)        (153)          -          (3)          -          2          (851)                                                                               
 Exchange differences                                          -            -         422           -           -          -           422   
 Amounts written off                                      (5 197)      (1 171)       (725)       (108)       (157)       (46)       (7 404)  
 Impairment raised - identified                            5 962          939         645          49         149         10         7 754   
 Impairment raised - unidentified                             87          107          56          95           6          -           351   
 Balance at the end of the reporting period               10 312        2 389       2 365         683         190        110        16 049   


                                                                                               2012(2)                                                                         
                                                                                             (Audited)                                                                       
                                                          Retail     Business    
                                                         Banking      Banking         RBB        CIBW        CIBW      
                                                           South        South     Rest of       South     Rest of      
 Reconciliation of allowance for impairment               Africa       Africa      Africa      Africa      Africa      Other(1)      Total                       
 losses on loans and advances to customers                    Rm           Rm          Rm          Rm          Rm         Rm            Rm  
 Balance at the beginning of the reporting period          9 327        1 923       2 167         566         163        125        14 271   
 Net present value unwind on non-performing book              
 (refer to note 8.1)                                        (956)         (60)          -          (5)          -          3        (1 018)                                                                              
 Exchange differences                                          -            -         (64)          -           2          -           (62)  
 Amounts written off                                      (5 456)        (849)       (831)        (33)          8         (3)       (7 164)  
 Impairment raised - identified                            7 068        1 688         651         108          19         19         9 553   
 Impairment raised - unidentified                            174          (35)         44          14           -          -           197   
 Balance at the end of the reporting period               10 157        2 667       1 967         650         192        144        15 777   
 
Notes                                                                                                                                              
(1)Includes Financial Services and Head office and Other.                                                                                                                 
(2)Restated, refer to note 23 for reporting changes.                                                                                                                     
                                                                                                                                                                            

3.1 Statement of comprehensive income charge                                                            
                                                                       2013         2012(1)          
                                                                   (Audited)    (Audited)        Change  
                                                                         Rm           Rm              %                                                                                                                         
 Impairments raised during the reporting period                       8 105        9 750            (17)  
 Identified impairments                                               7 754        9 553            (19)  
 Unidentified impairments                                               351          197             78   
 Recoveries of loans and advances previously written off             (1 118)        (895)           (25)  
                                                                      6 987        8 855            (21)  
Notes
(1)  Restated, refer to note 23 for reporting changes.


Condensed notes to the consolidated financial results
for the reporting period ended 31 December

4. Performing and non-performing loans                                                                                                                                     
                                                                                                   2013                                                                                                       
                                                                                                 (Unaudited)                                                                                                    
                                                        Performing loans                      Non-performing loans                                                      
                                                                         Coverage                               Coverage    Net total   
 Loans and advances to                         Exposure    Impairment       ratio     Exposure    Impairment       ratio     exposure   
 customers                                           Rm            Rm           %           Rm            Rm           %           Rm                                                                                                                                                                           
 RBB                                            439 283         3 431        0,78       28 110        11 635        41,4      452 327   
 Retail Banking South Africa                    343 500         2 726        0,79       19 576         7 586        38,8      352 764   
 Cheque accounts                                  2 006            31        1,54           96            56        58,3        2 015   
 Credit cards                                    25 147           402        1,60        1 931         1 272        65,9       25 404   
 Edcon portfolio                                  8 753           297        3,39        1 103           893        81,0        8 666   
 Instalment credit agreements                    63 156           286        0,45        1 359           629        46,2       63 600   
 Loans to associates and joint ventures          10 287             -           -            -             -           -       10 287   
 Mortgages                                      218 256         1 327        0,61       13 541         3 763        27,8      226 707   
 Personal and term loans                         15 895           383        2,41        1 546           973        63,0       16 085   
 Business Banking South Africa                   59 088           378        0,64        4 980         2 011        40,4       61 679   
 Cheque accounts                                 16 710           137        0,82          863           361        41,8       17 075   
 Commercial property finance                     29 906           125        0,42        2 844         1 235        43,4       31 390   
 Instalment credit agreements                       975             4        0,41          115           102        88,7          984   
 Loans to associates and joint ventures             559             -           -            -             -           -          559   
 Term loans                                      10 938           112        1,02        1 158           313        27,0       11 671   
 RBB Rest of Africa                              36 695           327        0,89        3 554         2 038        57,3       37 884   
 CIBW                                           152 574           270        0,18        1 190           603        50,7      152 891                                                                                                                                         
 CIBW South Africa                              131 417           230        0,18          787           453        57,6      131 521   
 CIBW Rest of Africa                             21 157            40        0,19          403           150        37,2       21 370                                                                                                                 
 Head office, inter-segment eliminations                                                         
 and Other                                          229           110       48,03            -             -           -          119   
                                                592 086         3 811        0,64       29 300        12 238        41,8      605 337   


                                                                                                   2012(1)                                                                                                       
                                                                                                 (Unaudited)                                                                                                    
                                                        Performing loans                      Non-performing loans                                                      
                                                                         Coverage                               Coverage    Net total   
 Loans and advances to                         Exposure    Impairment       ratio     Exposure    Impairment       ratio     exposure   
 customers                                           Rm            Rm           %           Rm            Rm           %           Rm                                                                                                                                                                           
 RBB                                            421 685         2 501        0,59       32 535        12 289        37,8      439 429   
 Retail Banking South Africa                    331 779         1 610        0,49       24 076         8 547        35,5      345 698   
 Cheque accounts                                  1 868             4        0,21           96            68        70,8        1 892   
 Credit cards                                    21 362           324        1,52        1 839         1 231        66,9       21 646   
 Edcon portfolio                                  9 806           102        0,04            -             -           -        9 704   
 Instalment credit agreements                    56 715           293        0,52        1 790           895        50,0       57 317   
 Loans to associates and joint ventures           8 393             -           -            -             -           -        8 393   
 Mortgages                                      218 275           821        0,38       18 798         5 353        28,5      230 899   
 Personal and term loans                         15 360            66        0,43        1 553         1 000        64,4       15 847   
 Business Banking South Africa                   60 476           422        0,70        5 600         2 245        40,1       63 409   
 Cheque accounts                                 17 571            96        0,55          859           337        39,2       17 997   
 Commercial property finance                     30 382           229        0,75        3 222         1 340        41,6       32 035   
 Instalment credit agreements                     1 307            12        0,92          443           298        67,3        1 440   
 Loans to associates and joint ventures             627             -           -            -             -           -          627   
 Term loans                                      10 589            85        0,80        1 076           270        25,1       11 310   
 RBB Rest of Africa                              29 430           469        1,60        2 859         1 497        52,4       30 323   
 CIBW                                           125 536           204        0,16        1 499           638        42,6      126 193                                                                                                                                    
 CIBW South Africa                              111 917           154        0,14          879           496        56,4      112 146   
 CIBW Rest of Africa                             13 619            50        0,37          620           142        22,9       14 047                                                                                                                                         
 Head office, inter-segment eliminations
 and Other                                          764           125       16,23           20            20       100,0          640   
                                                547 985         2 830        0,52       34 054        12 947        38,0      566 262   
Note
(1)Restated, refer to note 23 for reporting changes.


Condensed notes to the consolidated financial results
for the reporting period ended 31 December

5. Deposits due to customers                                                                        
                                                   2013       2012(1)       
                                               (Audited)    (Audited)   Change      
                                                     Rm           Rm         %                                                                                                        
 Call deposits                                   52 843       56 667        (7)  
 Cheque account deposits                        174 686      170 915         2   
 Credit card deposits                             1 914        1 938        (1)  
 Fixed deposits                                 168 054      147 686        14   
 Foreign currency deposits                       17 456       12 253        42   
 Notice deposits                                 56 349       55 728         1   
 Other deposits(2)                               11 139        8 434        32   
 Repurchase agreements with non-banks             1 208        1 503       (20)  
 Savings and transmission deposits              104 362       87 977        19   
                                                588 011      543 101         8   
Notes                                                                                               
(1)Restated, refer to note 23 for reporting changes.                                                
(2)Includes partnership contributions received, deposits due on structured deals, preference investments on 
   behalf of customers and unclaimed deposits.                                       

   
6. Debt securities in issue                                                                         
                                                  2013      2012(1)       
                                              (Audited)    (Audited)   Change        
                                                    Rm           Rm         %                                                                                             
 Credit linked notes                             8 155        9 800       (17)  
 Floating rate notes                            44 719       52 639       (15)  
 Liabilities arising from securitised
 structured entities                               495        2 391       (79)  
 Negotiable certificates of deposit             20 494       17 575        17   
 Other debt securities in issue                     11            7        57   
 Promissory notes                                  935        1 378       (32)  
 Structured notes and bonds                      1 487        1 122        33   
 Senior notes                                   21 533       21 892        (2)  
                                                97 829      106 804        (8)  
Notes                                                                                               
(1)Restated, refer to note 23 for reporting changes.                                                                                                    


Condensed notes to the consolidated financial results
for the reporting period ended 31 December

7. Borrowed funds                                                                                                             
                                                                         2013       2012(1)       
                                                                     (Audited)    (Audited)   Change       
                                                                           Rm           Rm         %                                                                                                        
  Subordinated callable notes issued by Absa Bank Limited                                              
  The subordinated debt instruments listed below qualify as          
  secondary capital in terms of the                                  
  Banks Act, No 94 of 1990 (as amended).                                                                
  Interest rate                           Final maturity date                                                          
  8,80%                                   7 March 2019                  1 725        1 725         -   
  8,10%                                   27 March 2020                 2 000        2 000         -   
  10,28%                                  3 May 2022                      600          600         -   
  8,295%                                  21 November 2023              1 188        1 188         -   
  Three-month JIBAR + 2,10%               3 May 2022                      400          400         -   
  Three-month JIBAR + 1,95%               21 November 2022              1 805        1 805         -   
  Three-month JIBAR + 2,05%               21 November 2023              2 007        2 007         -   
  CPI-linked notes, fixed at the following coupon rates:                                             
  6,25%                                   31 March 2018                     -        1 886      (100)  
  6,00%                                   20 September 2019             3 000        3 000         -   
  5,50%                                   7 December 2028               1 500        1 500         - 
                                                                     
 Subordinated callable notes issued by other subsidiaries                                          
 United States dollar three-month Libor    29 April 2013                    -          136      (100)  
 Bank of Botswana certificate rate + 0,85% 30 October 2014                120          207       (42)  
 Ninety-one day Kenyan Government Treasury                               
 Bill rate + 0,60%                         19 November 2014               121           97        25   
 Ninety-one day Zambian Government Treasury                          
 Bill rate + 2,00%                         9 May 2015                      96           82        17   
 One-hundred and eighty-two day Kenyan Government                                                       
 Treasury Bill rate + 1,00%                14 July 2015                    90           73        23   
 11,50%                                    14 July 2015                   153          124        23   
 One-hundred and eighty-two day Zambian Government                                                  
 Treasury Bill rate + 2,50%                               
 (capped at 13,00% overall)                18 May 2016                     96           82        17   
 United States dollar three-month                                     
 LIBOR + 1,00%                             31 March 2018                   69           56        23   
 Accrued interest                                                       1 490        1 475         1   
 Fair value adjustment                                                     65          334       (81)  
                                                                       16 525       18 777       (12)              
Notes
(1)Restated, refer to note 23 for reporting changes.


8. Net-interest income                                                                    
                                                                 2013      2012(1)        
                                                             (Audited)    (Audited)    Change       
                                                                   Rm           Rm          %                                                                                                    
 8.1 Interest and similar income                                                                
 Interest and similar income is earned from:                                                    
 Cash, cash balances and balances with central banks              245          166         48   
 Fair value adjustments on hedging instruments                  3 803         (185)      >100   
 Investment securities                                          2 072        1 742         19   
 Loans and advances to banks                                    1 292        1 251         30   
 Loans and advances to customers                               50 697       48 161          5   
 Cheque accounts                                                3 143        3 022          4   
 Corporate overdrafts and specialised finance loans               123          484        (75)  
 Credit cards                                                   5 697        3 593         59   
 Foreign currency loans                                           275          288         (5)  
 Instalment credit agreements                                   5 841        5 585          5   
 Interest on impaired financial assets (refer to note 3)          851        1 018        (16)  
 Reverse repurchase agreements                                     12          (41)     >(100)   
 Loans to associates and joint ventures                           657          494         33   
 Microloans                                                       478          505         (5)  
 Mortgages                                                     19 642       20 986         (6)  
 Other loans and advances(2)                                      927          479         93   
 Overnight finance                                                786          814         (3)  
 Personal and term loans                                        9 073        8 244         10   
 Preference shares                                                484          485          -   
 Wholesale overdrafts                                           2 708        2 205         23   
 Other interest income(3)                                         385          578        (33)  
 Statutory liquid asset portfolio                               1 738        5 584        (69)  
                                                               60 232       57 297          5   
Notes                                                                                          
(1)Restated, refer to note 23 for reporting changes.                                            
(2)Includes items such as interest on factored debtors books.                                            
(3)Includes items such as overnight interest on contracts for difference as well as inter-segment 
   eliminations between”interest and similar income", "interest and similar income", "interest 
   expense and similar charges", "gains and losses from banking and trading activities" and "gains and
   losses from investment activities".

  
                                                                  2013      2012(1)        
                                                              (Audited)    (Audited)    Change         
                                                                    Rm           Rm          %
  8.2 Interest expense and similar charges                                                       
  Interest expense and similar charges are paid on:
  Borrowed funds                                                 1 358        1 400         (3)  
  Debt securities in issue                                       5 850        8 410        (30)  
  Deposits due to customers                                     21 568       19 207         12   
  Call deposits                                                  2 813        2 881         (2)  
  Cheque account deposits                                        3 120        3 288         (5)  
  Credit card deposits                                               8            9        (11)  
  Fixed deposits                                                 8 566        6 992         23   
  Foreign currency deposits                                        424          114       >100   
  Notice deposits                                                2 916        2 471         18   
  Other deposits due to customers                                1 103        1 053          5   
  Savings and transmission deposits                              2 618        2 399          9   
  Deposits from banks                                              590          656        (10)  
  Call deposits                                                    315          528        (40)  
  Fixed deposits                                                   274          103       >100   
  Other deposits from banks                                          1           25        (96)  
  Fair value adjustments on hedging instruments                    500         (999)      >100   
  Interest incurred on finance leases                               19           51        (63)  
  Other interest expense(2)                                     (2 004)        (730)     >(100)   
                                                                27 881       27 995          -   
Notes
(1)Restated, refer to note 23 for reporting changes.
(2)Includes items such as inter-segment eliminations between "interest and similar income", "interest 
   expense and similar charges", "gains and losses from banking and trading activities" and "gains and
   losses from investment activities".


  9. Non-interest income                                                             
                                                            2013      2012(1)       
                                                        (Audited)    (Audited)   Change        
                                                              Rm           Rm         %                                                                                         
  9.1 Fee and commission income                                                           
  Asset management and other related fees                    160          158         1   
  Consulting and administration fees                         661          566        17   
  Credit-related fees and commissions                      15 145       14 439        5   
  Cheque accounts                                          3 598        3 589         -   
  Credit cards(2)                                          1 226          655        87   
  Electronic banking                                       4 129        4 093         1   
  Other credit-related fees and commissions(3)             3 889        3 614         8   
  Savings accounts                                         2 303        2 488        (7)  
  Insurance commission received                            1 315        1 147        15   
  Investment banking fees                                    255          252         1   
  Merchant income                                          2 197        2 034         8   
  Other fee and commission income                            203          258       (21)  
  Pension fund payment services                                -          122      (100)  
  Trust and other fiduciary services                       1 412        1 120        26   
  Portfolio and other management fees                      1 144          870        32   
  Trust and estate income                                    268          250         7                                                                                     
                                                          21 348       20 096         6   
  9.2 Fee and commission expense                                                          
  Cheque processing fees                                    (150)       (161)         7   
  Insurance commission paid                               (1 001)       (945)        (6)  
  Other fee and commission expenses                       (1 298)     (1 198)        (8)  
  Transaction-based legal fees                              (115)       (209)        45   
  Trust and other fiduciary service fees                     (88)        (73)       (21)   
  Valuation fees                                            (142)       (127)       (12)  
                                                          (2 794)     (2 713)        (3)                                                                                        
  Net fee and commission income                           18 554      17 383          7   
                                                                                          
Notes                                                                                          
(1)Restated, refer to note 23 for reporting changes.                                            
(2)Includes acquiring and issuing fees.                                            
(3)Includes service and credit-related fees and commissions on mortgage loans and foreign exchange 
   transactions”.                                                                                        

                                                                            
                                                                                 2013      2012(1)            
                                                                             (Audited)    (Audited)    Change              
                                                                                   Rm           Rm          %                                                                                                                                                          
 9.3 Gains and losses from banking and trading activities                                                           
 Net gains on investments                                                         312           93       >100       
 Debt instruments designated at fair value through profit or loss                 181          179          1       
 Equity instruments designated at fair value through profit or loss               141          (76)      >100       
 Available-for-sale unwind from reserves                                          (10)         (10)         -       
 Net trading result                                                             3 854        4 382        (12)      
 Net trading income excluding the impact of hedge accounting                    4 092        4 360         (6)      
 Ineffective portion of hedges                                                   (238)          22      >(100)       
 Cash flow hedges                                                                (234)          45      >(100)       
 Fair value hedges                                                                 (4)         (23)        83                                                                                                                                                         
 Other gains                                                                      195           60       >100       
                                                                                4 361        4 535        (4)      
 Net trading income excluding the impact of hedge accounting                    4 092        4 360        (6)      
 Gains/(losses) on financial instruments designated at fair value  
 through profit or loss                                                         1 126         (857)       >100       
 Net gains on financial assets designated at fair value through               
 profit or loss                                                                   125        1 129        (89)      
 Net gains/(losses) on financial liabilities designated at fair               
 value through profit or loss                                                   1 001       (1 986)      >100       
 Gains on financial instruments held for trading                                2 966        5 217        (43)      
 Other gains                                                                      195           60       >100       
 Gains/(losses) on financial instruments designated at fair value
 through profit or loss                                                           135           (3)      >100       
 Gains on financial instruments held for trading                                   60           63         (5)      
                                                                                                                                                   
Note                                                                                                                                             
(1)Restated, refer to note 23 for reporting changes. 
                                                                                            
                                                                                 2013       2012(1)               
                                                                             (Audited)    (Audited)    Change               
                                                                                   Rm           Rm          %                                                                                                                              
 9.4 Gains and losses from investment activities                                                                    
 Available-for-sale unwind from reserves                                            4            2        100       
 Net gains on investments from insurance activities                             2 803        1 686         66       
 Policyholder - insurance contracts                                               337          329          3       
 Policyholder - investment contracts                                            2 181        1 086       >100       
 Shareholder funds                                                                285          271          5       
 Other gains                                                                       24           47        (49)      
                                                                                2 831        1 735         63       
 Gains on investments from insurance activities                                 2 803        1 686         66       
 Gains on financial instruments designated at fair value through profit               
 or loss                                                                        2 805        1 687         66                                      
 Losses on financial instruments held for trading                                  (2)          (1)      (100)      
                                                                                                                                                   
Note                                                                                                                                             
(1)Restated, refer to note 23 for reporting changes.  
        

  10. Operating expenditure                                                                                                                        
                                                                               2013      2012(1)            
                                                                           (Audited)    (Audited)    Change           
                                                                                 Rm           Rm          %                                                                                                                                                    
  10.1 Operating expenses                                                                                         
  Amortisation of intangible assets                                             470          327         44       
  Auditors’ remuneration                                                        259          203         28       
  Cash transportation                                                           715          710          1       
  Depreciation                                                                1 641        1 593          3       
  Equipment costs                                                               391          382          2       
  Information technology(2)                                                   2 078        2 201         (6)      
  Investment properties charges - change in fair value                           33          408        (92)      
  Marketing costs                                                             1 355        1 137         19       
  Operating lease expenses on properties                                      1 309        1 010         30       
  Other operating expenses(3)                                                 2 913        2 404         21       
  Printing and stationery                                                       310          280         11       
  Professional fees(2)                                                        1 578          937         68       
  Property costs                                                              1 692        1 950        (13)      
  Staff costs                                                                17 593       15 787         11       
  Bonuses                                                                     1 679        1 210         39       
  Other staff costs(4)                                                        1 203          844         43       
  Salaries and current service costs on post-retirement benefits             13 942       13 008          7       
  Share-based payments                                                          428          469         (9)      
  Training costs                                                                341          256         33       
  Telephone and postage                                                       1 083        1 000          8       
                                                                             33 420       30 329         10       
Notes                                                                                                             
(1)Restated, refer to note 23 for reporting changes.                                                                                             
(2)‘Information technology’ and ‘professional fees’ include research and development costs 
   totalling R246 million (2012: R113 million).                                                    
(3)Includes fraud losses, travel and entertainment costs as well as administration fees related to
   the Edcon portfolio.                                                    
(4)Includes recruitment costs, membership fees to professional bodies, staff parking, redundancy 
   fees relating to rest of Africa, study assistance, staff relocation and refreshment costs.                                                    


                                                                 2013       2012(1)            
                                                             (Audited)    (Audited)    Change            
                                                                   Rm           Rm          %                                                                                                                                                         
 10.2 Other impairments                                                                             
 Financial instruments                                             28            7       >100       
 Other                                                              5          125        (96)      
 Computer software development costs                                -           95       (100)      
 Property and equipment                                             -           11       (100)      
 Goodwill                                                           -           18       (100)      
 Investments in associates and joint ventures                       2            -        100       
 Repossessed properties                                             3            1       >100                                                                                                           
                                                                   33          132        (75)      
Note
(1)Restated, refer to note 23 for reporting changes.


Condensed notes to the consolidated financial results
for the reporting period ended 31 December

11. Headline earnings                                                                2013                  2012(1)                        
                                                                                  (Audited)              (Audited)                        
                                                                                                                            Net(2)   
                                                                                Gross     Net(2)     Gross     Net(2)      change   
  Headline earnings                                                                Rm        Rm         Rm        Rm            %   
                                                                                                                                    
  Headline earnings is determined as follows:                                                                                       
  Profit attributable to ordinary equity holders                                         11 981                9 999           20   
  Total headline earnings adjustment:                                                      (138)                 420        >(100)   
  IFRS 3 - Goodwill impairment                                                      -         -         18        18        >(100)   
  IFRS 5 - Gains and losses on disposal of non-current assets held for sale      (171)     (138)         -         -        >(100)   
  IAS 16 and IAS 36 - loss/(profit) on disposal and impairment of property                                                 
  and equipment                                                                     5         4        (79)      (62)        >100                                              
  IAS 27 - Loss on disposal of subsidiary                                           8         8          -         -          100   
  IAS 28 and IFRS 11 - Headline earnings component of share of post-tax             -         -         (1)       (1)         100   
  results of associates and joint ventures                                                                                          
  IAS 36 - Impairment of investments in associates and joint ventures               2         2          -         -          100   
  IAS 36 and IAS 38 - Loss on disposal and impairment of intangible assets          1         -         98        70         (100)  
  IAS 39 - Release of available-for-sale reserves                                  10         7         10         7            -   
  IAS 39 - Disposal and impairment of available-for-sale assets                     6         4          -         -         >100   
  IAS 40 - Change in fair value of investment properties                          (29)      (25)       408       388        >(100)                                                                                                                                  
                                                                                         11 843               10 419           14   
Notes
(1)Restated, refer to note 23 for reporting changes.
(2)The net amount is reflected after taxation and non-controlling interest.
                                                                              
 
12. Dividends per share                                                                                                         
                                                                                                  2013         2012        
                                                                                              (Audited)    (Audited)    Change        
                                                                                                    Rm           Rm          %                                                                                                                                
 Dividends declared to ordinary equity holders                                                                                   
 Interim dividend (30 July 2013: 350 cents) (27 July 2012: 315 cents)                            2 514        2 262         11   
 Dividend paid on treasury shares - interim(1)                                                      (2)          (3)        33   
 Special dividend (30 July 2013: 708 cents)                                                      5 085            -        100   
 Dividend paid on treasury shares - special (1)                                                    (10)           -       (100)  
 Final dividend (11 February 2014: 470 cents) (12 February 2013: 369 cents)                      3 984        2 650         50  
 Dividend paid on treasury shares - final(1)                                                         -           (5)       100   
                                                                                                 7 587        4 904         55   
 Dividends declared to non-controlling preference equity holders                                                                 
 Interim dividend (30 July 2013: 2 999,4521 cents) (27 July 2012: 3 134,6575 cents)                148          155         (5)  
 Final dividend (11 February 2014: 2 979,3151 cents) (12 February 2013: 2 950,5479 cents)          147          146          1   
                                                                                                   295          301         (2)  
 Dividends paid to ordinary equity holders                                                                                       
 Final dividend (12 February 2013: 369 cents) (10 February 2012: 392 cents)                      2 650        2 815         (6)  
 Dividend paid on treasury shares - final(1)                                                        (5)          (5)         -   
 Interim dividend (30 July 2013: 350 cents) (27 July 2013: 315 cents)                            2 967        2 262         31   
 Dividend paid on treasury shares - interim(1)                                                      (2)          (3)        33   
 Special dividend (30 July 2013: 708 cents)(2)                                                   6 002            -        100   
 Dividend paid on treasury shares - special(1)                                                     (10)           -       (100)  
                                                                                                11 602        5 069       >100   
 Dividends paid to non-controlling preference equity holders                                                                     
 Final dividend (12 February 2013: 2 950,5479 cents) (10 February 2012: 2 827,2329 cents)          146          140          4   
 Interim dividend (30 July 2013: 2 999,4521 cents) (27 July 2013: 3 134,6575 cents)                148          155         (5)  
                                                                                                   294          295          -   
Notes                                                                                                                           
(1)The dividend paid on treasury shares are calculated on payment date.                                                            
(2)Dividend amount is calculated on the number of shares in issue, including the shares 
   issued on 31 July 2013 for consideration on the acquisition of Barclays Africa Limited.
 

Condensed notes to the consolidated financial results
for the reporting period ended 31 December


13. Acquisitions and disposals of businesses and other similar transactions                                                                                                                                                                                                                                                                                                                                                                 
Acquisition during the current reporting period                                                                                                                                                                                                                                                                                                                                                                                             
In 2012, Absa Group Limited announced its intention to conclude the strategic combination of Barclays’ Africa operations 
with the existing Absa Group operations.

Through the transaction, Absa Group Limited acquired 100% of the issued ordinary share capital of Barclays Africa Limited,
which was settled by the issuance of 129 540 636 Absa Group Limited ordinary shares. This increased Barclays Bank PLC’s 
shareholding in the Group from 55,5% to 62,3%. This transaction concluded on 31 July 2013 and was accompanied by the name 
change of Absa Group Limited to Barclays Africa Group Limited.  

The transaction is a business combination of entities under common control as defined in International Financial Reporting 
Standard 3: Business Combinations (“IFRS 3”). The Group elected, in accordance with IFRS 3 guidance and the Group’s and 
Barclays Group’s accounting policies, to account for the transaction in terms of predecessor accounting principles.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Accordingly, the Group’s comparative financial results have been restated as if Barclays Africa Limited was always part of 
the Group’s structure. 
                                                                                                                                                                                                                                                                                          
Disposals during the current reporting period                                                                                                                                                                                                                                                                                                                                                                                               
Barclays Africa Group through a wholly-owned subsidiary Absa Trading and Investment Solutions Proprietary Limited (“ATIS”) 
disposed of its 73,37% limited partnership interest in Absa Capital Private Equity Fund I (“ACPE Fund I”) to a syndicate 
led by HarbourVest Partners L.P. (“HarbourVest”), comprising funds managed by HarbourVest and Coller Capital Limited. 
                                                                                                                                                                                                                                                                                                                                                  
ACPE Fund I is a fully invested South African private equity fund established in 2008. The fund has exposure to the general 
industrials sector in sub-Saharan Africa. As a consequence of the sale, two materially insignificant wholly-owned subsidiaries 
of Barclays Africa Group, and the Investment Adviser, to the General Partner of ACPE Fund I, have been spun off to become a new
independent South African private equity fund manager, Rockwood Private Equity. As of 31 December 2012, the reported carrying 
value of BAGL’s interest in ACPE Fund I was R2,3 billion. 
 
During the current reporting period, the Group disposed of 100% of its investment in its wholly-owned subsidiary CMB Nominees 
Proprietary Limited effective 2 December 2013. This occurred as part of the disposal of the Custody and Trustee business, a 
division of Corporate, Investment Bank and Wealth. The total cash consideration received on disposal of the business was
R300 million.
                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Other similar transactions: additional interest in a subsidiary                                                                                                                                                                                                                                                                                                                                                                                     
During March 2013, the Group acquired additional shares in NBC for a purchase consideration of R368 million, after a rights issue 
by NBC, whereby the non-controlling interest did not take up any shares in terms of the rights issue. This increased the Group’s 
effective shareholding in NBC. The Group now holds 65,89% of the share equity in NBC. The carrying amount of the non-controlling 
shareholders’ interest in NBC on the date of acquisition was R354 million. A clawback option for the period of 12 months was 
granted to the non-controlling shareholders who were unable to subscribe for the shares at the date of the rights issue. The 
option grants the non-controlling shareholders the right to purchase their pro-rata portion of the shares from the Group at the 
original issue price plus interest at a market related rate.   

14. Related parties
Barclays Bank PLC owns 62,3% (2012: 55,5%) of the ordinary shares in the Group. The remaining 37,7% (2012: 44,5%) of the shares 
are widely held on the Johannesburg Stock Exchange Limited (“JSE”).
The following are defined as related parties of the Group:
- key management personnel (refer to note 14.1 and 14.2);
- the parent company (refer to note 14.3);
- fellow subsidiaries, associates and joint venture of the parent company (refer to note 14.4);
- subsidiaries and consolidated structured entities;
- associates, joint ventures and retirement benefit funds;
- an entity controlled/jointly controlled or significantly influenced by any individual referred to above;
- post-employment benefit plans for the benefit of employees or any entity that is a related party of the Group; and
- children and/or dependants and spouses or partners of the individuals referred to above.

14.1 Balances and transactions with key management personnel
Transactions with key management personnel
IAS 24 Related Party Disclosures (“IAS 24”), requires the identification of key management personnel, who are
individuals responsible for planning, directing and controlling the activities of the entity, including directors. Key
management personnel are defined as executive and non-executive directors and members of the Executive Committee (“Exco”).
Entities controlled by key management personnel are also considered to be related parties. A number of banking and insurance
transactions are entered into with key management personnel in the normal course of business, under terms that are no
more favourable than those arranged with third parties. These include loans, deposits and foreign currency transactions.
The related party transactions, outstanding balances at the reporting date, and related expenses and income with related
parties for the reporting period are as follows:


                                                    2013         2012              
                                                (Audited)    (Audited)    Change   
                                                      Rm           Rm          %                                                                                 
 Balances                                                                          
 Loans                                                45          455      >(100)   
 Deposits                                             12           15        (20)  
 Guarantees issued by the Group                       84          103        (18)  
 Other investments                                    34           40        (15)  
 Transactions                                                                      
 Interest income                                       4           45        (91)  
 Interest expense                                      1            1          -   
 Insurance premiums paid                            0,17         0,41        (59)  
 Insurance claims                                      -         0,08       (100)  
 Loans include mortgages, asset finance transactions, overdraft and other credit facilities. Loans to key management personnel
 are provided on the same terms and conditions as loans to employees of the Group, including interest rates and collateral 
 requirements. 
 
 Loans to key management personnel of Rnil (2012: Rnil) were written off as irrecoverable. Loans to entities controlled by key
 management personnel of Rnil (2012: Rnil) were written off as irrecoverable. 

 
                                                    2013         2012              
                                                (Audited)    (Audited)    Change   
                                                      Rm           Rm          %                                                                                   
 14.2 Key management personnel compensation                                        
 Directors                                                                         
 Post-employment benefit contributions                 1            1          -   
 Salaries and other short-term benefits               41           30         37   
 Share-based payments                                 25           32        (22)  
 Termination benefits                                  -           12       (100)  
                                                      68           75         (9)  
 Other key management personnel                                                    
 Post-employment benefit contributions                 3            2         50   
 Salaries and other short-term benefits               77           65         18   
 Share-based payments                                 48           47          2     
                                                     128          114         12  

                                                                          
                                                                 2013        2012(1)          
                                                             (Audited)      (Audited)      Change          
                                                                   Rm             Rm            %                                                                                                        
  14.3 Balances and transactions with parent company(2)                                             
  Balances                                                                                          
  Loans and advances to banks                                  39 223         35 537           10   
  Derivative assets                                            19 040         14 310           33   
  Nominal value of derivative assets                        1 042 021      1 399 103          (26)  
  Other assets                                                  1 556            668         >100   
  Investment securities                                           534            584           (9)  
  Deposits from banks                                         (22 404)       (12 244)         (83)  
  Derivative liabilities                                      (17 232)       (13 846)         (24)  
  Nominal value of derivative liabilities                  (1 183 511)    (1 213 065)           2   
  Other liabilities                                              (187)           (15)       >(100)   
  Borrowed funds                                                  (69)             -         (100)  
  Transactions                                                                                      
  Interest and similar income                                    (343)          (204)         (68)  
  Interest expense and similar charges                             65             87          (26)  
  Net fee and commission income                                     6            (18)        >100   
  Gains and losses from banking and trading activities            274           (158)        >100   
  Other operating income                                          (71)           (37)         (91)   
  Operating expenditure                                            48             55         >100   
  Dividends paid                                                7 469          2 819         >100   
                                                                                                          
Trade balances must be settled in accordance with market conventions applicable to the underlying transaction. Non-trade 
balances must be settled by the close of the month immediately following the month in which the transaction occurred. 
Further, settlement must be made in the currency required by the ultimate parent company. In exceptional cases it may be 
impractical or inefficient to settle balances monthly. In such cases, the unsettled balances must be explicitly agreed to 
on a monthly basis in writing and full settlement must be made at least quarterly.
                                              
There were no bad debt expenses and provisions for bad debts that related to balances and transactions with the parent company. 
                                             
Notes                                                                                                   
(1)Restated, refer to note 23 for reporting changes.                                                    
(2)Debit amounts are shown as positive, credit amounts are shown as negative. 

                                             
                                                                2013        2012(1)          
                                                            (Audited)      (Audited)      Change         
                                                                  Rm             Rm            %                                                                                                      
 14.4 Balances and transactions with fellow subsidiaries,                                          
 associates and joint ventures of the parent company(2),(3)                                        
 Balances                                                                                          
 Loans and advances to banks                                     863            391         >100   
 Derivative assets                                                 -             10         (100)  
 Nominal value of derivative assets                            2 650            426         >100   
 Other assets                                                    284             87         >100   
 Deposits from banks                                          (1 753)          (539)       >(100)   
 Derivative liabilities                                          (18)             -         (100)  
 Nominal value of derivative liabilities                      (2 132)             -         (100)  
 Other liabilities                                              (313)           (86)        (100)  
 Transactions                                                                                      
 Interest and similar income                                      (1)             -         (100)  
 Net fee and commission income                                   (30)            (7)       >(100)   
 Other operating income                                          (56)          (126)         (56)  
 Operating expenditure                                             2              3         >100   
Trade balances must be settled in accordance with market conventions applicable to the underlying transaction. Non-trade balances 
must be settled by the close of the month immediately following the month in which the transaction occurred. Further, settlement 
must be made in the currency required by the fellow subsidiary, associate or joint venture receiving the settlement. In 
exceptional cases it may be impractical or inefficient to settle balances monthly. In such cases, the unsettled balances must be 
explicitly agreed to on a monthly basis in writing, and full settlement must be made at least quarterly.
                                             
There were no bad debt expenses and provisions for bad debts that related to balances and transactions with the fellow subsidiaries,
associates and joint ventures of the parent company.                                              

Notes
(1)Restated, refer to note 23 for reporting changes. 
(2)Debit amounts are shown as positive, credit amounts are shown as negative. 
(3)Fellow subsidiaries, associates and joint ventures are those entities of Barclays Bank PLC.


15. Assets under management and administration                                                
                                                                2013         2012        
                                                            (Audited)    (Audited)    Change        
                                                                  Rm           Rm          %                                                                                                  
 Alternative asset management and exchange-traded funds       72 840       41 957         74   
 Deceased estates(1)                                           2 559        2 012         27   
 Other assets under management and administration             14 383       12 995         11   
 Participation bond schemes                                        -        2 184       (100)  
 Portfolio management                                         46 203       44 222          4   
 Private equity                                                    -          819       (100)  
 Trusts(1)                                                     4 472        3 783         18   
 Unit trusts                                                 123 318      138 978        (11)  
                                                             263 775      246 950          7   
Note                                                                                          
(1) Unaudited   

                                                                              
16. Financial guarantee contracts                                                             
                                                                2013         2012        
                                                            (Audited)    (Audited)    Change          
                                                                  Rm           Rm          %                                                                                                
 Financial guarantee contracts(1)                                243          146         66   

Note                                                                                          
(1) Financial guarantee contracts represent contracts where the Group undertakes to make specified payments to a counterparty, 
    should the counterparty suffer a loss as a result of a specified debtor failing to make payment when due in accordance with the
    terms of a debt instrument. This amount represents the maximum exposure, which is not necessarily the measurement recognised in
    the statement of financial position in accordance with International Financial Reporting Standards (IFRS). 

                                       
17. Commitments                                                                               
                                                                2013         2012        
                                                            (Audited)    (Audited)    Change         
                                                                  Rm           Rm          %                                                                                      
 Authorised capital expenditure                                                               
 Contracted but not provided for(1)                              745          578         29   
 Operating lease payments due(2)                                                               
 No later than one year                                          847          936        (10)  
 Later than one year and no later than five years              1 521        1 948        (22)  
 Later than five years                                           296          365        (19)  
                                                               2 664        3 249        (18)  
 Sponsorship payments due(3)                                                                   
 No later than one year                                          272          289         (6)  
 Later than one year and no later than five years                541          884        (39)  
                                                                 813        1 173        (31)  
Notes                                                                                         
(1) The Group has capital commitments in respect of computer equipment and property development. Management is confident that future
    net revenue and funding will be sufficient to cover these commitments.                                        
(2) The operating lease commitments comprise a number of separate operating leases in relation to property and equipment, none of 
    which is individually significant to the Group. Leases are negotiated for an average term of three to five years and rentals are 
    renegotiated annually.                                        
(3) The Group has sponsorship commitments in respect of sports, arts and culture.

                                        
18. Contingencies                                                                             
                                                                 2013      2012(1)        
                                                             (Audited)    (Audited)    Change         
                                                                   Rm           Rm          %                                                                                           
  Guarantees(2)                                                21 215       19 348         10   
  Irrevocable debt facilities(3)                               49 609       48 107          3   
  Irrevocable equity facilities(3)                                400          543        (26)  
  Letters of credit                                             6 402        7 080        (10)  
  Other contingencies                                           5 674        4 328         31   
                                                               83 300       79 406          5   
Notes
(1)Restated, refer to note 23 for reporting changes.
(2)Guarantees include performance and payment guarantee contracts.
(3)Irrevocable facilities are commitments to extend credit where the Group does not have the right to terminate the
   facilities by written notice. Commitments generally have fixed expiry dates. Since commitments may expire without being
   drawn upon, the total contract amounts do not necessarily represent future cash requirements.                                                                                                


19. Segment reporting                                                                                
                                                                 2013       2012(1)            
                                                             (Audited)     (Audited)    Change             
                                                                   Rm            Rm          %
  19.1 Headline earnings contribution by segment                                               
  RBB                                                           7 999         5 668         41       
  Retail Banking South Africa                                   4 941         3 626         36       
  Home Loans                                                      876          (992)      >100       
  Vehicle and Asset Finance                                     1 127           847         33       
  Card                                                          1 980         1 888          5       
  Personal Loans                                                  385           587        (34)      
  Retail Bank                                                     573         1 296        (56)      
  Business Banking South Africa                                 1 710         1 042         64       
  RBB Rest of Africa                                            1 348         1 000         35       
  CIBW                                                          3 017         3 146         (4)      
  CIBW South Africa                                             2 561         2 682         (5)      
  CIBW Rest of Africa                                             456           464         (2)      
  Head office, inter-segments eliminations and Other             (543)          340      >(100)       
  Total banking                                                10 473         9 154         14       
  Financial Services                                            1 370         1 265          8       
  Headline earnings                                            11 843        10 419         14       

Note                                                                                              
(1)Restated, refer to note 23 for reporting changes.                                                 


                                                                    2013      2012(1)            
                                                                (Audited)    (Audited)    Change            
                                                                      Rm           Rm          %                                                                                                          
 19.2 Total revenue(2) by segment                                                                      
 RBB                                                              43 968       40 205          9       
 Retail Banking South Africa                                      27 295       25 451          7       
 Home Loans                                                        3 815        4 210         (9)      
 Vehicle and Asset Finance                                         3 206        3 055          5       
 Card                                                              7 656        5 313         44       
 Personal Loans                                                    1 892        2 010         (6)      
 Retail Bank                                                      10 726       10 863         (1)       
 Business Banking South Africa                                     8 377        8 030          4       
 RBB Rest of Africa                                                8 296        6 724         23       
 CIBW                                                             11 648       10 491         11       
 CIBW South Africa                                                 8 759        8 043          9       
 CIBW Rest of Africa                                               2 889        2 448         18       
 Head office, inter-segments eliminations and Other                 (577)         249      >(100)       
 Total banking                                                    55 035       50 945          8       
 Financial Services                                                4 367        4 031          8       
 Total revenue                                                    59 402       54 976          8       
                                                                                                        
Notes                                                                                                              
(1)Restated, refer to note 23 for reporting changes.                                                               
(2)Revenue includes net interest income and non-interest income.                                                                                                       

                                                                                  
                                                                   2013        2012(1)            
                                                               (Audited)      (Audited)    Change             
                                                                     Rm             Rm          %                                                                                                                        
 19.3 Internal total revenue(2) by segment                                                          
 RBB                                                             (8 536)       (9 272)          8       
 Retail Banking South Africa                                    (10 801)      (10 778)          -       
 Home Loans                                                     (11 482)      (12 082)          5       
 Vehicle and Asset Finance                                       (3 675)       (3 453)         (6)      
 Card                                                            (1 291)         (860)        (50)      
 Personal Loans                                                    (504)         (523)          4       
 Retail Bank                                                      6 151          6 140          -       
 Business Banking South Africa                                    1 776          1 406         26       
 RBB Rest of Africa                                                 489            100       >100       
 CIBW                                                            11 187         10 379          8       
 CIBW South Africa                                               11 223         10 453          7       
 CIBW Rest of Africa                                                (36)           (74)        51       
 Head office, inter-segments eliminations and Other              (2 173)          (669)     >(100)       
 Total banking                                                      478            438          9       
 Financial Services                                                (478)          (438)        (9)      
 Total internal revenue                                               -              -          -       
                                                   
Notes 
(1)Restated, refer to note 23 for reporting changes. 
(2)Revenue includes net interest income and non-interest income.

                                                                                                    
                                                                2013          2012(1)            
                                                            (Audited)        (Audited)    Change            
                                                                  Rm               Rm          %                                                                                                      
 19.4 Total assets by segment                                                                 
 RBB                                                         742 110           668 793         11       
 Retail Banking South Africa                                 531 517           516 692          3       
 Home Loans                                                  221 876           227 138         (2)      
 Vehicle and Asset Finance                                    80 590            72 391         11       
 Card                                                         47 312            43 659          8       
 Personal Loans                                               13 436            13 318          1       
 Retail Bank                                                 168 446           160 373          5             
 Business Banking South Africa                                98 423            86 972         13       
 RBB Rest of Africa                                          112 170            65 129         72       
 CIBW                                                        542 366           502 413          8       
 CIBW South Africa                                           492 369           469 616          5       
 CIBW Rest of Africa                                          49 997            32 797         52       
 Head office, inter-segments eliminations and Other         (357 998)         (303 755)       (18)      
 Total banking                                               926 478           867 451          7       
 Financial Services                                           33 121            30 920          7       
 Total assets                                                959 599           898 371          7       
                                                                                                      
Note
(1)Restated, refer to note 23 for reporting changes.
                                                    

                                                               2013           2012(1)            
                                                           (Audited)         (Audited)    Change             
                                                                 Rm                Rm          %                                                                                                     
 19.5 Total liabilities by segment                                                                   
 RBB                                                        720 344           652 357         10       
 Retail Banking South Africa                                524 116           510 884          3       
 Home Loans                                                 220 712           227 919         (3)      
 Vehicle and Asset Finance                                   78 718            70 850         11       
 Card                                                        44 499            41 099          8       
 Personal Loans                                              13 051            12 731          3       
 Retail Bank                                                167 136           158 285          6       
 Business Banking South Africa                               96 558            85 976         12       
 RBB Rest of Africa                                          99 670            55 497         80       
 CIBW                                                       534 559           494 656          8       
 CIBW South Africa                                          487 211           464 706          5       
 CIBW Rest of Africa                                         47 348            29 950         58       
 Head office, inter-segments eliminations and Other        (408 743)         (359 309)       (14)      
 Total banking                                              846 161           787 704          7       
 Financial Services                                          28 238            26 222          8       
 Total liabilities                                          874 398           813 926          7       
                                                                                                     
Note
(1)Restated, refer to note 23 for reporting changes. 


20. Fair value of assets and liabilities not held at fair value
The table below summarises the carrying amounts and fair values of those assets and liabilities not held at fair
value:
                                                                            2013                     2012(1)                   
                                                                    Carrying                  Carrying                 
                                                                       value    Fair value       value    Fair value   
                                                                          Rm            Rm          Rm            Rm                                                                                                                         
 Financial assets                                                                                                      
 Balances with other central banks                                     7 350         7 350       6 061         6 061   
 Balances with the SARB                                               12 417        12 417      12 339        12 339   
 Coins and bank notes                                                 12 652        12 652      11 085        11 085   
 Money market assets                                                   1 939         1 939          36            36   
 Cash, cash balances and balances with central banks                  34 358        34 358      29 521        29 521   
 Loans and advances to banks                                          73 831        73 831      52 846        52 864   
 Other assets                                                         13 486        13 486      15 324        15 324   
 Retail Banking South Africa                                         352 764       352 602     346 698       353 021   
 Cheque accounts                                                       2 015         2 015       1 907         1 907   
 Credit cards                                                         34 071        34 071      31 350        31 350   
 Instalment credit agreements                                         63 600        63 297      57 305        58 758   
 Loans to associates and joint ventures                               10 287        10 287       8 393         8 393   
 Mortgages                                                           226 706       226 771     230 880       236 750   
 Personal and term loans                                              16 085        16 161      15 863        15 863   
 Business Banking South Africa                                        60 971        61 141      62 390        63 295   
 Cheque accounts                                                      17 075        17 075      17 997        17 997   
 Commercial property finance                                          30 682        30 852      31 016        31 921
 Instalment credit agreements                                            984           984       1 441         1 441
 Loans to associates and joint ventures                                  559           559         627           627      
 Term loans                                                           11 671        11 671      11 309        11 309   
 RBB Rest of Africa                                                   37 884        37 884      30 322        30 322   
 CIBW                                                                143 053       137 249     115 270       115 270   
 CIBW South Africa                                                   121 683       115 879     101 223       101 223   
 CIBW Rest of Africa                                                  21 370        21 370      14 047        14 047   
 Head office, inter-segment eliminations,                                119           119         640           640   
 Financial Services and Other                                                                                          
 Loans and advances to customers - net of impairment losses          594 791       588 995     554 320       562 548   
 Investment securities                                                   726           726         471           471   
 Total assets                                                        717 192       711 396     652 582       661 616   
 Financial liabilities                                                                                                 
 Deposits from banks                                                  59 744        56 532      30 292        30 295   
 Other liabilities                                                    15 765        15 297      16 935        16 935   
 Call deposits                                                        52 843        52 843      56 667        56 667   
 Cheque account deposits                                             174 606       174 606     170 854       170 854   
 Credit card deposits                                                  1 914         1 914       1 937         1 937   
 Fixed deposits                                                      151 795       151 837     130 587       131 028   
 Foreign currency deposits                                            17 456        17 456      12 253        12 253   
 Notice deposits                                                      56 348        56 350      55 728        55 935   
 Other deposits                                                       10 822        10 822       8 008         8 008   
 Savings and transmission deposits                                   104 362       104 362      87 977        87 977   
 Deposits due to customers                                           570 146       570 190     524 011       524 659   
 Debt securities in issue                                             94 286        94 324     103 606       103 606   
 Borrowed funds                                                       16 525        17 069      17 999        19 284   
 Total liabilities                                                   756 466       753 412     692 843       694 779   

Note
(1)Restated, refer to note 23 for reporting changes.

21. Fair value hierarchy disclosures
21.1 Valuation methodology
The table below shows the Group’s assets and liabilities that are recognised and subsequently measured at fair value
and are analysed by 
valuation techniques. The classification of assets and liabilities is based on the lowest level input that is
significant to the fair value 
measurement in its entirety. 
                                                                                          2013                                                   
                                                                  Valuations                                               
                                                                        with     Valuations      Valuations                
                                                                reference to       based on    based on un-                
                                                                  observable     observable      observable                
                                                                      prices         inputs          inputs                
                                                                  Level 1(1)     Level 2(1)      Level 3(2)        Total   
  Recurring fair value measurements                                       Rm             Rm              Rm           Rm                                                                                                                           
  Financial assets                                                                                                         
  Cash, cash balances and balances with central banks                  7 976          7 796               -       15 772   
  Statutory liquid asset portfolio                                    62 055              -               -       62 055   
  Loans and advances to banks                                              -          6 140               -        6 140   
  Trading and hedging portfolio assets                                36 263         52 011           1 037       89 311   
  Debt instruments                                                    24 049            530             873       25 452   
  Derivative assets                                                        -         46 796             164       46 960   
  Commodity derivatives                                                    -            253               -          253   
  Credit derivatives                                                       -            258              11          269   
  Equity derivatives                                                       -            760               -          760   
  Foreign exchange derivatives                                             -          7 053              39        7 092   
  Interest rate derivatives                                                -         38 472             114       38 586   
  Equity instruments                                                  12 176             77               -       12 253   
  Money market assets                                                     38          4 608               -        4 646   
  Other assets                                                             -              1              16           17   
  Loans and advances to customers                                          -          4 069           6 477       10 546   
  Investment securities                                               21 232          7 156           3 969       32 357   
  Total financial assets                                             127 526         77 173          11 499      216 198   
  Financial liabilities                                                                                                    
  Deposits from banks                                                      -          9 320               -        9 320   
  Trading and hedging portfolio liabilities                            3 741         49 578             549       53 868   
  Derivative liabilities                                                   -         49 578             549       50 127   
  Commodity derivatives                                                    -            161               -          161   
  Credit derivatives                                                       -            478              45          523   
  Equity derivatives                                                       -          1 607             306        1 913   
  Foreign exchange derivatives                                             -          7 755              57        7 812   
  Interest rate derivatives                                                -         39 577             141       39 718   
  Short positions                                                      3 741              -               -        3 741   
  Other liabilities                                                        -             36               -           36   
  Deposits due to customers                                                -         10 725           7 138       17 863   
  Debt securities in issue                                                 -          3 508              35        3 543   
  Liabilities under investment contracts                                   -         19 773               -       19 773   
  Borrowed funds                                                           -              -               -            -   
  Total financial liabilities                                          3 741         92 940           7 722      104 403   
  Non-financial assets                                                                                                     
  Investment properties                                                    -              -           1 089        1 089   
  Trading and hedging portfolio assets                                                                                     
  Commodities                                                          1 080              -               -        1 080   
  Non-recurring fair value measurements                                                                                    
  Non-current assets held for sale                                     2 424          1 297           1 093        4 814   
  Non-current liabilities held for sale                                  975            175             501        1 651   

Notes
(1)The nature of the valuation techniques is summarised in note 21.2.
(2)The nature of the valuation techniques is summarised in note 21.3.


                                                                                   Group                                                   
                                                                                  2012(1)                                                   
                                                              Valuations                                               
                                                                    with     Valuations      Valuations                
                                                            reference to       based on    based on un-                
                                                              observable     observable      observable                
                                                                  prices         inputs          inputs                
                                                              Level 1(2)      Level 2(2)      Level 3(3)       Total   
  Recurring fair value measurements                                   Rm             Rm              Rm           Rm                                                                                                                      
  Financial assets                                                                                                     
  Cash, cash balances and balances with central banks              7 391          7 123               -       14 514   
  Statutory liquid asset portfolio                                63 017              3               -       63 020   
  Loans and advances to banks                                          -          9 647               -        9 647   
  Trading and hedging portfolio assets                            30 236         61 078             952       92 266   
  Debt instruments                                                23 742              -             873       24 615   
  Derivative assets                                                   16         52 161              79       52 256   
  Commodity derivatives                                                1            604               -          605   
  Credit derivatives                                                   -            152              43          195   
  Equity derivatives                                                  15            966               5          986   
  Foreign exchange derivatives                                         -          5 823               1        5 824   
  Interest rate derivatives                                            -         44 616              30       44 646   
  Equity instruments                                               6 473            141               -        6 614   
  Money market assets                                                  5          8 776               -        8 781   
  Other assets                                                         -              1              16           17   
  Loans and advances to customers                                      -          5 523           6 419       11 942   
  Investment securities                                           11 103         12 866           6 473       30 442   
  Total financial assets                                         111 747         96 241          13 860      221 848   
  Financial liabilities                                                                                                
  Deposits from banks                                                 82         11 050               -       11 132   
  Trading and hedging portfolio liabilities                        4 965         50 550              74       55 589   
  Derivative liabilities                                              43         50 550              74       50 667   
  Commodity derivatives                                                5            169               -          174   
  Credit derivatives                                                   -            188              24          212   
  Equity derivatives                                                   -          1 756              26        1 782   
  Foreign exchange derivatives                                        38          5 591               -        5 629   
  Interest rate derivatives                                            -         42 846              24       42 870   
  Short positions                                                  4 922              -               -        4 922   
  Other liabilities                                                    -              1              16           17   
  Deposits due to customers                                            -         11 417           7 672       19 089   
  Debt securities in issue                                             -          3 011             187        3 198   
  Liabilities under investment contracts                               -         18 768               -       18 768   
  Borrowed funds                                                     778              -               -          778   
  Total financial liabilities                                      5 825         94 797           7 933      108 572   
  Non-financial assets                                                                                                 
  Investment properties                                                -              -           1 220        1 220   
  Trading and hedging portfolio assets                                                                                 
  Commodities                                                        514              -               -          514   
  Non-recurring fair value measurements                                                                                
  Non-current assets held for sale                                 2 226            379           1 447        4 052   
  Non-current liabilities held for sale                                -          1 274             206        1 480   

Notes
(1)Restated, refer to note 23 for reporting changes.
(2)The nature of the valuation techniques is summarised in note 21.2.
(3)The nature of the valuation techniques is summarised in note 21.3.


21.1.1 Fair value measurement and valuation processes

Financial assets and financial liabilities
The Group has an established control framework with respect to the measurement of fair values. The framework includes
a valuation committee and an Independent Valuation Control (“IVC”) team, which is independent of front office
management.

The valuation committee is responsible for overseeing the valuation control process and will therefore consider the
appropriateness of valuation techniques and inputs for fair value measurement.

The IVC team independently verifies the results of trading and investment operations and all significant fair value
measurements. The team sources independent data from various external sources as well as internal risk areas when
performing independent price verification for all fair value positions. IVC assesses and documents the inputs obtained from
independent sources to measure fair value to support conclusions that such valuations are in accordance with IFRS and
internal valuation policies.

The valuation committee which, comprises representatives from senior management, will formally approve valuation
policies and any changes to valuation methodologies. Significant valuation issues are reported to the Group Audit and
Compliance Committee.

Investment properties
Where possible the fair value of the Group’s investment property has been determined on the basis of a valuation
carried out on the respective dates by independent valuators not related to the business. Where the Group’s internal
valuations are different to that of the external valuers, detailed procedures are performed to substantiate any differences. The
IVC team independently verifies the procedures performed by front office and considers the appropriateness of any
differences to external valuations. The fair value was determined based on the most appropriate methodology applicable to the
relevant investment property. Methodologies include the market comparable approach that reflects recent transaction
prices for similar properties, discounted cash flows and income capitalisation methodologies. In estimating the fair value
of the properties, the highest and best use of the properties is taken into account.

21.1.2 Significant transfers between levels
During the reporting period trading portfolio assets to the value of R237 million as well as trading portfolio
liabilities of R165 million were transferred from Level 2 to Level 3. The transfers relate to equity securities for which there
are no longer a quoted price in an active market and for which the significant inputs to determine the fair value have
become unobservable.

21.2 Valuation techniques using observable inputs
Level 1
Assets and liabilities valued with reference to unadjusted quoted prices for identical assets or liabilities in active
markets where the quoted price is readily available and the price represents actual and regularly occurring market
transactions on an arm’s length basis.

Level 2
Assets and liabilities valued using inputs other than quoted prices as described above for Level 1 but which are
observable for the asset or liability, either directly or indirectly.

21.3 Valuation techniques using unobservable inputs
Level 3
Assets and liabilities valued using inputs that are not based on observable market data (unobservable data) such as an
entity’s own assumptions about assumptions of market participants in pricing the asset or liability.

21.4 Fair value adjustments
The main valuation adjustments required to arrive at a fair value are described below:
Bid-offer valuation adjustments
For assets and liabilities where the Group is not a market maker, mid prices are adjusted to bid and offer prices
respectively. Bid-offer adjustments reflect expected close out strategy and, for derivatives, the fact that they are managed
on a portfolio basis. The methodology for determining the bid-offer adjustment for a derivative portfolio will generally 
involve netting between long and short positions and the bucketing of risk by strike and term in accordance with hedging strategy. 
Bid-offer levels are derived from market sources, such as broker data. For those assets and liabilities where the Group is a market
maker and has the ability to transact at, or better than, mid-price (which is the case for certain equity, bond and vanilla 
derivative markets), the mid-price is used, since the bid-offer spread does not represent a transaction cost.

Uncollateralised derivative adjustments
A fair value adjustement is incorporated into uncollateralised derivative valuations to reflect the impact on fair value of 
counterparty credit risk, the Group's own credit quality, as well as the cost of funding across all asset classes. 

Model valuation adjustments
Valuation models are reviewed under the Group’s model governance framework. This process identifies the assumptions
used and any model limitations (for example, if the model does not incorporate volatility skew). Where necessary, fair
value adjustments will be applied to take these factors into account. Model valuation adjustments are dependent on the size
of portfolio, complexity of the model, whether the model is market standard and to what extent it incorporates all
known risk factors. All models and model valuation adjustments are subject to review on at least an annual basis. 

21.5 Third-party credit enhancements
There were no significant liabilities measured at fair value and issued with inseparable third-party credit
enhancements. 

21.6 Movements on assets and liabilities subsequently measured at fair value using valuations based on unobservable
inputs (Level 3)
A reconciliation of the opening balances to closing balances for all movements on Level 3 assets and liabilities is
set out below:


                                                                                            2013                                                                             
                                                          Trading and                                                                         
                                                              hedging                Loans and                                                
                                                            portfolio     Other    advances to    Investment    Investment     Total assets   
                                                               assets    assets      customers    securities    Properties    at fair value   
                                                                   Rm        Rm             Rm            Rm            Rm               Rm                                                                                                                                                
 Opening balance at the beginning of the reporting period         952        16          6 419         6 473         1 220           15 080   
 Movement in other comprehensive income                             -         -              -            20             -               20   
 Net interest income                                               55         -            346         (461)             -             (60)   
 Other income                                                       -         -              -             -            58               58   
 Gains and losses from banking and trading activities            (165)        -            203            92             -              130   
 Gains and losses from investment activities                        -         -           (99)             8            21             (70)   
 Purchases                                                         13         -            767         1 475             5            2 260   
 Sales                                                              -         -           (45)       (3 165)           (6)          (3 216)   
 Issues                                                             -         -              -             5             -                5   
 Settlements                                                        -         -          (987)         (579)             -          (1 566)   
 Transferred to/(from) assets                                    (55)         -          (127)            48         (209)            (343)   
 Movement in/(out) of Level 3(1)                                  237         -              -            53             -              290   
 Closing balance at the end of the reporting period             1 037        16          6 477         3 969         1 089           12 589   


                                                                                              2012(2)                                                                             
                                                          Trading and                                                                         
                                                              hedging                Loans and                                                
                                                            portfolio     Other    advances to    Investment    Investment     Total assets   
                                                               assets    assets      customers    securities    Properties    at fair value   
                                                                   Rm        Rm             Rm            Rm            Rm               Rm                                                                                                                                          
 Opening balance at the beginning of the reporting period       1 156        16          6 832         6 186         2 839           17 029   
 Movement in other comprehensive income                             -         -              -             -             -                -   
 Net interest income                                                -         -             11            33             -               44   
 Gains and losses from banking and trading activities              54         -            742           471             -            1 267   
 Gains and losses from investment activities                        -         -              -         (216)         (400)            (616)   
 Other comprehensive income                                         -         -              -             -             -                -   
 Purchases                                                         30         -            632           117           202              981   
 Sales                                                           (40)         -          (869)          (10)          (43)            (962)   
 Issues                                                            37         -            154             -             -              191   
 Settlements                                                    (108)         -        (1 083)         (108)             -          (1 299)   
 Transferred to/(from) assets                                       -         -              -             -       (1 378)          (1 378)   
 Movement in/(out) of Level 3                                   (177)         -              -             -             -            (177)   
 Closing balance at the end of the reporting period               952        16          6 419         6 473         1 220           15 080   

Notes
(1) Refer to note 21.1.2.
(2) Restated, refer to note 23 for reporting changes.


21.6 Movements on assets and liabilities subsequently measured at fair value using valuations based on unobservable
inputs (Level 3) (continued)
                                                                                                  2013                                                                     
                                                              Trading and                                                                 
                                                                  hedging                                         Debt            Total   
                                                                portfolio          Other    Deposits due    securities      liabilities   
                                                              liabilities    liabilities    to customers      in issue    at fair value   
                                                                       Rm             Rm              Rm            Rm               Rm                                                                                                                                            
 Opening balance at the beginning of the reporting period              74             16           7 672           187            7 949   
 Movement in other comprehensive income                                 -              -               -             -                -   
 Net interest income                                                    -              -               9             -                9   
 Other income                                                           -                              -             -                -   
 Gains and losses from banking and trading activities                 306              -             153         (152)              307   
 Gains and losses from investment activities                            -              -             (1)             -              (1)   
 Purchases                                                              7              -              27             -               34   
 Sales                                                                (3)              -             427             -              424   
 Issues                                                                 -              -               -             -                -   
 Settlements                                                            -           (16)         (1 149)             -          (1 165)   
 Transferred to/(from) liabilities                                      -              -               -             -                -   
 Movement in/(out) of Level 3                                         165              -               -             -              165   
 Closing balance at the end of the reporting period                   549              -           7 138            35            7 722   


                                                                                                  2012(1)                                                                     
                                                              Trading and                                                                 
                                                                  hedging                                         Debt            Total   
                                                                portfolio          Other    Deposits due    securities      liabilities   
                                                              liabilities    liabilities    to customers      in issue    at fair value   
                                                                       Rm             Rm              Rm            Rm               Rm                                                                                                                                          
 Opening balance at the beginning of the reporting period             184             16           7 612           209            8 021   
 Movement in other comprehensive income                                 -              -               -             -                -   
 Net interest income                                                    -              -               -             -                -   
 Gains and losses from banking and trading activities                   -              -             735             7              742   
 Gains and losses from investment activities                            -              -               -             -                -   
 Other comprehensive income                                             -              -               -             -                -   
 Purchases                                                             28              -               -             -               28   
 Sales                                                                  -              -             920             -              920   
 Issues                                                                 3              -          (1 595)          (29)          (1 621)   
 Settlements                                                           (6)             -               -             -               (6)   
 Transferred to/(from) liabilities                                     15              -               -             -               15   
 Movement in/(out) of Level 3                                        (150)             -               -             -             (150)   
 Closing balance at the end of the reporting period                    74             16           7 672           187            7 949

Note
(1)Restated, refer to note 23 for reporting changes. 


21.7 Unrealised gains and losses on Level 3 positions
The total unrealised gains and losses for the reporting period on Level 3 positions held at the reporting date are set
out below:


                                                                                          2013                                                                                            
                                                                                       (Audited)                                                                                          
                                               Trading and                                                                                        
                                                   hedging                Loans and                                Non-current                    
                                                 portfolio     Other    advances to    Investment    Investment    assets held     Total assets   
                                                    assets    assets      customers    securities    Properties       for sale    at fair value   
                                                        Rm        Rm             Rm            Rm            Rm             Rm               Rm                                                                                                                                                                 
 Gains and losses from banking and trading
 activities                                            337         -          (136)             -             -              -              201   
 

                                                                                           2012(1)                                                                                            
                                                                                         (Audited)                                                                                          
                                               Trading and                                                                                        
                                                   hedging                Loans and                                Non-current                    
                                                 portfolio     Other    advances to    Investment    Investment    assets held     Total assets   
                                                    assets    assets      customers    securities    Properties       for sale    at fair value   
                                                        Rm        Rm             Rm            Rm            Rm             Rm               Rm                                                                                                                                                     
 Net interest income                                     -         -             29             7             -              -               36   
 Gains and losses from banking and trading     
 activities                                             30         -            437           584             -              -            1 051   
 Gains and losses from investment activities             -         -              -          (215)            -              -             (215)  
                                                        30         -            466           376             -              -              872   

                                                                                                                                     
                                                                                             2013                                                                      
                                                                                           (Audited)                                                                   
                                                          Trading and                                                                  
                                                              hedging                                         Debt             Total   
                                                            portfolio          Other    Deposits due    securities    liabilities at   
                                                          liabilities    liabilities    to customers      in issue        fair value   
                                                                   Rm             Rm              Rm            Rm                Rm                                                                                                                                         
 Gains and losses from banking and trading             
 activities                                                     (311)              -               1             -             (310)   
                                                           

                                                                                             2012 (1)                                                                      
                                                                                            (Audited)                                                                   
                                                         Trading and                                                                  
                                                             hedging                                         Debt             Total   
                                                           portfolio          Other    Deposits due    securities    liabilities at   
                                                         liabilities    liabilities    to customers      in issue        fair value   
                                                                  Rm             Rm              Rm            Rm                Rm                                                                                                                                      
 Gains and losses from banking and trading 
 activities                                                       (1)             -            (735)            -              (736)  
                                                                     
Note
(1)Restated, refer to note 23 for reporting changes.


21.8 Unrecognised (losses)/gains as a result of the use of valuation models using unobservable inputs
The amount that has yet to be recognised in the statement of comprehensive income that relates to the difference
between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation
models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, is as follows:

                                                                               2013       2012(1)   
                                                                           (Audited)    (Audited)  
                                                                                 Rm           Rm   
                                                                                                   
 Opening balance at the beginning of the reporting period                       (93)         (51)   
 New transactions                                                                17           38   
 Amounts recognised in the profit or loss component of the statement               
 of comprehensive income during the reporting period                             (9)         (80)                    
 Closing balance at the end of the reporting period                             (85)         (93)  


21.9 Sensitivity analysis of valuations using unobservable inputs
As part of the Group’s risk management processes, stress tests are applied on the significant unobservable parameters
to generate a range of potentially possible alternative valuations. The assets and liabilities that most impact this
sensitivity analysis are those with the more illiquid and/or structured portfolios. The stresses are applied independently
and do not take account of any cross correlation between separate asset classes that would reduce the overall effect on
the valuations.

A significant parameter has been deemed to be one which may result in a charge to the profit or loss section of the
statement of comprehensive income, or a change in the fair value asset or liability of more than 10% or the underlying
value of the affected item. This is demonstrated by the following sensitivity analysis which includes reasonable range of
possible outcomes:
                                                     
                                                                        2013
                                                                      (Audited)
                                               Potential effect recorded        Potential effect recorded                   
                                                  in profit or loss               directly in equity                   
                                               Favourable    Unfavourable      Favourable    Unfavourable   
                                                       Rm              Rm              Rm              Rm                                                                                                     
  Trading and hedging portfolio assets                 43              43               -               -   
  Other assets                                          2               2               -               -   
  Loans and advances to customers                   1 202             159               -               -   
  Investment securities                               355             355               -               -   
  Investment properties                                 2               2               -               -   
  Trading and hedging portfolio liabilities            13               5               -               -   
  Other liabilities                                     -               -               -               -   
  Deposits due to customers                           224             223               -               -   
  Debt securities in issue                              -               -               -               -   
                                                    1 841             789               -               -   
                                                      

                                                                        2012(1)
                                                                      (Audited)
                                                Potential effect recorded       Potential effect recorded                   
                                                   in profit or loss                directly in equity                   
                                               Favourable    Unfavourable      Favourable    Unfavourable   
                                                       Rm              Rm              Rm              Rm                                                                                                           
  Trading and hedging portfolio assets                126             113               -               -   
  Loans and advances to customers                     264             326               -               -   
  Investment securities                             1 527           1 735               5               4   
  Trading and hedging portfolio liabilities            51              51               -               -   
  Other liabilities                                     5               2               -               -   
  Deposits due to customers                           122             122               -               -   
  Debt securities in issue                             59              59               -               -   
                                                    2 154           2 408               5               4  
Note
(1)Restated, refer to note 23 for reporting changes.

21.10 Sensitivity analysis of valuations using unobservable inputs 
The following table reflects how the unobservable parameters were changed in order to evaluate the sensitivities of
Level 3 assets and liabilities:


                                                                                                 Positive/(negative) variance   
  Instrument                                      Parameter                                      in parameters                                                                                                                                 
  Credit derivatives                              Credit spreads                                 100/(100) bps                  
  Equity derivatives                              Volatilities                                   10/(10)%                       
  Foreign currency options                        Volatilities                                   10/(10)%                       
  Foreign currency swaps and foreign 
  interest rate products                          Basis risk and yield curve                     100/(100) bps                  
  Loans and advances designated at fair 
  value through profit or loss                    Credit spreads                                 100/(100) bps                  
  Investment securities (private equity, 
  property equity investments                     Future earnings and marketability discounts    15/(15)%                       
  and other)                                                                                                                    
                                                  Comparator multiples                                                          
                                                  Discount rates                                                                
  Structured notes and deposits designated at 
  fair value through profit or loss               Yield curve                                    100/(100) bps                                                                               
  Investment properties                           Selling price per unit                         15/(15)%                       
                                                  Selling price escalations per year                                            
                                                  Rental income per unit                                                        
                                                  Rental escalations per year                                                   
                                                  Expense ratios                                                               
                                                  Vacancy rates                                                                 
                                                  Income capitalisation rates                                                   
                                                  Risk adjusted rates                                                           


21.11 Measurement of financial instruments at Level 2
The table below sets out information about the valuation techniques used at the end of the reporting period in
measuring financial instruments categorised as Level 2 in the fair value hierarchy.
                                                                                                                         Fair value of   
                                                                                                                       asset/liability   
Category of asset/liability        Valuation techniques applied               Significant observable inputs                         Rm
Cash, cash balances and            Discounted cash flow                       Underlying price of market                         7 796
balances with central bank                                                    traded instruments and interest rates
                                                                                                                                                                                                                              
Loans and advances to banks        Discounted cash flow                       Interest rate curves, money                        6 140   
                                                                              market curves                                                               
Trading and hedging                                                         
portfolio                                                                                                                                                                      
assets                                                                                                                                                                                             
Debt instruments                   Discount cash flow                         Underlying price of market                           530
                                                                              traded instruments and interest rates                   
Derivative assets                                                                                                               46 796   
Commodity derivatives              Discounted cash flow model,                Spot price (physical or futures),                    253 
                                   option pricing models, futures             interest rates, volatility
                                   pricing model, ETF model                                                                        
Credit derivatives                 Discounted cash flow model,                Interest rate, recovery rate, credit                 258
                                   credit default swap model                  spread, quanto ratio                
                                   (hazard rate model)                            
Equity derivatives                 Discounted cash flow model,                Spot price, interest rate,                           760
                                   option pricing models, futures             volatility, dividend stream                
                                   pricing model                            
Foreign exchange derivatives       Discounted cash flow model,                Spot price, interest rate,                         7 053
                                   option pricing models                      volatility                                  
Interest rate derivatives          Discounted cash flow model,                Interest rate curves, repo curves,                38 472
                                   option pricing models                      money market curves, volatility           
                                                                              
Equity instruments                 Net asset value                            Underlying price of market traded                     77
                                                                              instruments                              
Money market assets                Discounted cash flow                       Money market rates and interest rates              4 608   
                                                               
Loans and advances to              Discounted cash flow                       Interest rate curves, money                        4 069   
customers                                                                     market curves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Investment securities              Listed equity - is valued at the last      The underlying price of the market                 7 156   
                                   market bid price. Unlisted equity is       traded instrument                                                                          
                                   valued at par. Other items are valued                                                                                                                                    
                                   utilising discounted cash flow models.                                                                                                                                   
Deposits from banks                Discounted cash flow                       Interest rate curves and money                     9 320   
                                                                              market curves                                                                               
Trading and hedging portfolio liabilities
                                                                                                                                                                             
Derivative liabilities                                                                                                         49  578                                                                              49 578   
Commodity derivatives              Discounted cash flow model, option         Spot price (physical or futures),                    161
                                   pricing models, futures pricing            interest rates, volatility                             
                                   model, etf model                                                                                                                                                         
Credit derivatives                 Discounted cash flow model, credit         Interest rate, recovery rate,                        478 
                                   default swap model (hazard rate model)     credit spread, quanto ratio                                
Equity derivatives                 Discounted cash flow model, option         Spot price, interest rate,                         1 607
                                   pricing models, futures pricing model      volatility, dividend stream                                 
Foreign exchange derivatives       Discounted cash flow model, option         Spot price, interest rate,                         7 755
                                   pricing models                             volatility                                                  
Interest rate derivatives          Discounted cash flow model, option         Interest rate curves, repo curves,                39 577
                                   pricing models                             money market curves, volatility                                                                                                                                                                                                                                        
Other liabilities                  Discounted cash flow                       The underlying price of the market                    36   
                                                                              traded instrument, as well as                                                               
                                                                              interest rate curves and money                                                              
                                                                              market curves                                                                               
Deposits due to customers          Discounted cash flow                       Interest rate curves and money                    10 725   
                                                                              market curves                                              
Debt securities in issue           Discounted cash flow                       The underlying price of the market                 3 508   
                                                                              traded instrument and interest rate curves                 
Liabilities under investment       Discounted cash flow                       The underlying price of the market                19 773   
contracts                                                                     traded instrument and interest rate curves                                                  


21.12  Measurement of financial instruments at Level 3
The table below sets out information about significant unobservable inputs used at the end of the reporting period
in measuring financial instruments categorised as Level 3 in the fair value hierarchy.


                                                                                                     Fair value                                                                                                                                                                                                                          
                                                                        Range of estimates           measurement                  Fair value of   
Category of asset/      Valuation               Significant             utilised for the             sensitivity to the         asset/liability   
liability               techniques applied      unobservable inputs     unobservable inputs          unobservable inputs                     Rm   
                                                                                                                                                  
Loans and advances      Discounted cash flow,   Credit ratings          Credit spreads vary          The sensitivity of the               6 477   
to customers            and dividend yield                              between 1,35%                fair value measurement                       
                        models                                          and 7,5%                     is dependent on the                          
                                                                                                     unobservable inputs.                         
                                                                                                     Significant changes to                       
                                                                                                     the unobservable                             
                                                                                                     inputs in isolation will                     
                                                                                                     have either a positive                       
                                                                                                     or negative impact on                        
                                                                                                     the fair value.                     

Investment securities  Discounted cash flows,   Weighted average cost     Discount rates between     The sensitivity of the fair          3 969   
                       third party valuations,  of capital, EBITDA        9,7% and 18%, multiples    value measurement is dependent                                                                                                                                                                                                                                                     
                       earnings before          multiples, liquidity      between 5,5 and 6,1        on the unobservable inputs.                                                                                                                                                                                                                                           
                       interest, tax,           discounts, minority                                  Significant changes to                                                                                                                                                                                                                                                        
                       depreciation and         discounts, capitalisation                            the unobservable inputs in                                                                                                                                                                                                                                                            
                       amortisation             rates                                                isolation will have either                                                                                                                                                                                                                                                                       
                       ("EBITDA") multiples,                                                         a positive or negative                                                                                                                                                                                                                                                                   
                       income capitalisation                                                         impact on value.                                                                                                                                                                                                                                                                    
                       valuations, net asset                                                                                                                                                                                                                                                                                                                             
                       value models                                                                                                    
   
Trading and hedging portfolio assets                                                                                                                                                                                                                                                                                                               
Debt instruments       Discounted               Credit spreads used in     0% to 3,5%                The sensitivity of                     873   
                       cash flows               the calculation of the                               the fair value                                                                                     
                                                counterparty credit risk                             measurement is dependent                                                                       
                                                adjustment                                           on the unobservable inputs.                                                                    
                                                                                                     Significant changes to                                                                                                 
                                                                                                     the unobservable                                                                                                       
                                                                                                     inputs in isolation will                                                                                               
                                                                                                     have either a positive                                                                                                 
                                                                                                     or negative impact on
                                                                                                     fair value
Derivative assets                                                                                                                          164   
Credit derivatives     Discounted cash flow      Illiquid credit curves,  0% to 3,5%                The sensitivity of the fair             11
                       model, credit default     recovery rates, quanto                             value measurement is
                       swap model (hazard        ratio                                              dependent on the
                       rate model)                                                                  unobservable inputs.                                           
                                                                                                    Significant changes to                                                                                                                                                                                                        
                                                                                                    the unobservable                                                                                                                                                                                                               
                                                                                                    inputs in isolation will                                                                                                                                                                                                       
                                                                                                    have either a positive                                                                                                                                                                                                         
                                                                                                    or negative impact on                                                                                                                                                                                                       
                                                                                                    fair value                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                          
Equity derivatives     Discounted cash flow       Volatility, dividend    16,9% to 37,2%            The sensitivity of the fair              -   
                       model, option pricing      streams >3 years                                  value measurement is                                                                                                                                                                                                            
                       models, futures                                                              dependent on the                                                                                                                                                                                      
                       pricing model                                                                unobservable inputs.                                                                                                                                                                                           
                                                                                                    Significant changes to                                                                                                                                                                            
                                                                                                    the unobservable                                                                                                                                                                                  
                                                                                                    inputs in isolation will                                                                                                                                                                          
                                                                                                    have either a positive     
                                                                                                    or negative impact on      
                                                                                                    fair value                 

Foreign exchange       Discounted cash flow       African basis           -2,5% to 1,7%             The sensitivity of the fair             39   
derivatives            model, option pricing      curves > 1 year                                   value measurement is                                                                                                                                                                                                                                    
                       models                                                                       dependent on the                                                                                                                                                                                                             
                                                                                                    unobservable inputs.                                                                                                                                                                              
                                                                                                    Significant changes to                                                                                                                                                                            
                                                                                                    the unobservable                                                                                                                                                                                  
                                                                                                    inputs in isolation will   
                                                                                                    have either a positive     
                                                                                                    or negative impact on      
                                                                                                    fair value                              
                                                                                                                                                                                                                                                                                                                                                                                        
Interest rate          Discounted cash flow       Interest rates          -1,5% to 8,3%             The sensitivity of the fair            114   
derivatives            model, option pricing      (Zar-swap-spread                                  value measurement is                                                                                                                                                                                                                                            
                       models                     curves. Zar-real                                  dependent on the                                                                                                                                                                                                                     
                                                  <1 year. Zar-mm-                                  unobservable inputs.                                                                                                                                                                                                           
                                                  fundingSpr >5                                     Significant changes to                                                                                                                                                                                                     
                                                  years, repo curves                                the unobservable                                                                                                                                                                                                                  
                                                  > 1 year)                                         inputs in isolation will                                                                                                                                                                                               
                                                                                                    have either a positive                                                                                                                                                                                        
                                                                                                    or negative impact on                                                                                                                                                                                         
                                                                                                    fair value                                                                                                    
Deposits due to        Discounted cash flow       ZAR MM funding         0,85% to 1,2%              The sensitivity of the fair          7 138   
customers                                         spread greater                                    value measurement is                                
                                                  than 5 years                                      dependent on the                                    
                                                                                                    unobservable inputs.                                                                                  
                                                                                                    Significant changes to                                                                                                                                                                                                            
                                                                                                    the unobservable                                                                                                                                                                                                                  
                                                                                                    inputs in isolation will                                                                                                                                                                                                          
                                                                                                    have either a positive                                                                                                                                                                                                            
                                                                                                    or negative impact on                                                         
                                                                                                    fair value                                                                                                                                                                   
Debt securities        Discounted cash flow       Credit spread         10 to 20 bps                The sensitivity of the fair             35                                                                                                                                                                                                         
in issue                                                                                            value measurement is       
                                                                                                    dependent on the           
                                                                                                    unobservable inputs.       
                                                                                                    Significant changes to     
                                                                                                    the unobservable           
                                                                                                    inputs in isolation will   
                                                                                                    have either a positive     
                                                                                                    or negative impact on      
                                                                                                    fair value                                                                                                                                                                                                                                                                                               
Trading and hedging portfolio liabilities                                                                                                                                                                                
Derivative liabilities                                                                                                                    549   
Credit derivatives     Discounted cash            Illiquid              0% to 3,5%                  The sensitivity of the fair            45   
                       flow model,                credit curves,                                    value measurement is                                                                                                                                                                                                               
                       credit default             recovery rates,                                   dependent on the                                                                                                                                                                                                                         
                       swap model                 quanto ratio                                      unobservable inputs.                                                                                                                                                                                                               
                       (hazard rate                                                                 Significant changes to                                                                                                                                                                                                  
                       model)                                                                       the unobservable                                                                                                                                                                                                  
                                                                                                    inputs in isolation will                                                                                                                                                                                    
                                                                                                    have either a positive     
                                                                                                    or negative impact on      
                                                                                                    fair value                                                                                       
Equity derivatives     Discounted cash            Volatility,           16,9% to 37,2%              The sensitivity of the fair           306   
                       flow model,                dividend streams                                  value measurement is                                                                                                                                                                                                                       
                       option pricing             > 3 years                                         dependent on the                                                                                                                                                                                                                     
                       models, futures                                                              unobservable inputs.                                                                                                                                                                                                           
                       pricing model                                                                Significant changes to                                                                                                                                                                                                       
                                                                                                    the unobservable                                                                                                                                                                                               
                                                                                                    inputs in isolation will                                                                                                                                                                                       
                                                                                                    have either a positive     
                                                                                                    or negative impact on      
                                                                                                    fair value                  
Foreign exchange       Discounted cash            African basis          -2,5% to 1,7%              The sensitivity of the fair            57
derivatives            flow model,                curves > 1 year                                   value measurement is                    
                       option pricing                                                               dependent on the                                                                                                                                                                                                                                             
                       models                                                                       unobservable inputs.                                                                                                                                                                                                                                 
                                                                                                    Significant changes to                                                                                                                                                                                                           
                                                                                                    the unobservable                                                                                                                                                                                                                 
                                                                                                    inputs in isolation will                                                                                                                                                                                                         
                                                                                                    have either a positive                                                                                                                                                                                                           
                                                                                                    or negative impact on      
                                                                                                    fair value                                                                                
Interest rate          Discounted cash            Interest rates        -1,5% to 8,3%               The sensitivity of the fair          141   
derivatives            flow model, option         (Zar-swap-spread                                  value measurement is                                                                                                                                                                                                                     
                       pricing models             curves. Zar-real                                  dependent on the                                                                                                                                                                                                          
                                                  <1 year. Zar-mm-                                  unobservable inputs.                                                                                                                                                                                          
                                                  fundingspr >5                                     Significant changes to                                                                                                                                                                                        
                                                  years, repo curves                                the unobservable                                                                                                                                                                                              
                                                  > 1 year)                                         inputs in isolation will                                                                                                                                                                                      
                                                                                                    have either a positive                                                                                                                                                                      
                                                                                                    or negative impact on                                                                                                                                                                                                                                                 
                                                                                                    fair value  


21.3 Measurement of non-financial assets and liabilities at Level 3
The tabel below sets out information about significant unobservable inputs used at the end of the reporting period
in measuring non-financial assets and liabilities categorised as Level 3 in the fair value hierachy
                                                                                                     Fair value      
                                                                                                     measurement     
                                                                           Range of estimates        sensitivity to        Fair value of 
Category of asset/          Valuation              Significant             utilised for the          the unobservable      asset/liability
Liability                   Techniques applied     unobservable inputs     unobservable inputs       inputs                Rm
Investment                  Discounted cash                                The sensitivity of the                          1089                                                        
properties                  flow                                           fair value                                     
                                                                           measurement is                      
                                                                           dependent on the 
                                                                           unobservable inputs.    
                                                                           Significant changes to  
                                                                           the unobservable
                                                                           inputs in isolation will
                                                                           have either a positive  
                                                                           or negative impact on   
                                                                           fair value
                            Estimated of periods    2-7 years
                            in which rental units
                            will be disposed of
                            Selling price           0% - 6%
                            escalation per year
                            Rental escaltion per    0% - 10%
                            year
                            Expense ratios          22% - 75%
                            Vacancy rates           2% - 15%
                            Income capitalisation   10% - 12%
                            rate
                            Risk adjusted           14% - 16%
                            discount rates

 22. Offsetting financial assets and financial liabilities                                                                                                                                                                                                                                                                                                                                                                
    In accordance with IAS 32 Financial Instruments: Presentation ("IAS 32"), the Group reports financial assets and financial
    liabilities, on a net basis on the statement of financial position only if there is a legally enforceable right 
    to set off the recognised amounts and there is intention to settle on a net basis, or to realise the asset and 
    settle the liability simultaneously. Where relevant, the Group reports   derivative financial instruments and 
    reverse repurchase and repurchase agreements and other similar secured lending and borrowing agreements on a net
    basis. 

    The following table shows the impact of netting arrangements on the statement of financial position for recognised 
    financial assets and liabilities that are reported net on the statement of financial position and those derivative 
    financial instruments and reverse repurchase and repurchase agreements and other similar lending and borrowing 
    agreements that are subject to enforceable master netting arrangements or similar agreements which did not qualify 
    for presentation on a net basis. The table also shows potential netting not recognised on the statement of financial
    position that results from arrangements that do not meet all the IAS 32 netting criteria, because there is no 
    intention to net settle or realise simultaneously, and related financial collateral that mitigates credit risk.

    The net amounts presented are not intended to represent the Group’s actual credit exposure as a variety of credit 
    mitigation strategies are employed in addition to netting and collateral arrangements.                                                                                                                                                                                                     


                                                                             2013                                                                                                                    
                                                        Amounts subject to enforceable netting arrangements                                                                                                               
                                   Effects of netting on statement of                                                                                                           
                                   financial position                                     Related amounts not set off                                                             
                                                                       Net                                             Amounts                   
                                                                   amounts                                         not subject                   
                                                               reported on                                                  to          Total   
                                                                       the                                         enforceable            per   
                                                                 statement   Offsetting                                netting      statement   
                                         Gross      Amounts   of financial    financial        Financial       Net    arrange-   of financial   
                                       amounts   set off(1)    position(2)  instruments    collateral(3)    amount    ments(4)    position(5)   
                                            Rm           Rm             Rm           Rm               Rm        Rm          Rm             Rm   
                                                                                                                                                
 Derivative financial assets            46 278       (1 667)        44 611      (37 580)          (3 981)    3 050       2 372         46 983   
 Reverse repurchase agreements
 and other similar secured lending      36 515      (14 419)        22 096            -          (22 096)        -         745         22 841   
 Total assets                           82 793      (16 086)        66 707      (37 580)         (26 077)    3 050       3 117         69 824   
 Derivative financial liabilities      (46 835)         550        (46 285)      37 580              256    (8 449)     (3 842)       (50 127)  
 Repurchase agreements and other 
 similar secured borrowing             (18 263)           -        (18 263)           -           18 263         -        (312)       (18 575)  
 Total liabilities                     (65 098)         550        (64 548)      37 580           18 831    (8 449)      4 154        (68 702)  
 
Notes
(1)Amounts offset for derivative financial liabilities includes cash collateral netted of R1 117 million 
  (2012: R2 332 million). Amounts offset for reverse repurchase agreements relates to a short sale financial liability of
   R14 419 million (2012: R11 424 million). No other significant recognised financial assets and liabilities
   were offset on the statement of financial position.
(2)Net amounts reported on the statement of financial position comprises exposure that has been netted on the
   statement of financial position in compliance with IAS 32 (net exposure) and exposures that are subject to legally enforceable
   netting arrangements, but have not been netted on the statement of financial position.
(3)Financial collateral excludes over collateralisation amounts, which are measured at fair value and are in
   excess of the net statement of financial position exposure.
(4)In certain jurisdictions a contractual right of set-off is subject to uncertainty under laws of the jurisdiction
   and therefore netting is not applied and the amounts are classed as not subject to legally enforceable netting
   arrangements.
(5)Total per statement of financial position is the sum of ‘net amounts reported in the statement of financial
   position’ which are subject to enforceable netting arrangements and ‘amounts not subject to enforceable netting arrangements’.
   

                                                                   2012(1)                                                                                                                  
                                                                 Amounts subject to enforceable netting arrangements                                                                                                               
                                            Effects of netting on statement of                                                                                                            
                                            financial position                                      Related amounts not set off                                                             
                                                                    Net                                                 Amounts                   
                                                                amounts                                             not subject                   
                                                            reported on                                                      to           Total   
                                                                    the                                             enforceable             per   
                                                              statement     Offsetting                                  netting       statement   
                                       Gross     Amounts   of financial      financial        Financial       Net      arrange-    of financial   
                                     amounts  set off(2)    position(3)    instruments    collateral(4)    amount      ments(5)     position(6)   
                                          Rm          Rm             Rm             Rm               Rm        Rm            Rm              Rm   
                                                                                                                                                  
Derivative financial assets           53 962      (3 997)        49 965        (43 678)          (3 152)    3 135         2 332          52 297   
Reverse repurchase agreements
and other similar secured lending     30 054     (11 424)        18 630              -          (18 630)        -            89          18 719   
Total assets                          84 016     (15 421)        68 595        (43 678)         (21 782)    3 135         2 421          71 029   
Derivative financial liabilities     (49 153)      1 666        (47 487)        43 678              169    (3 640)      (3 180)         (50 667)  
Repurchase agreements and other 
similar secured borrowing            (15 207)          -        (15 207)             -           15 207         -             -         (15 207)  
Total liabilities                    (64 360)      1 666        (62 694)        43 678           15 376    (3 640)       (3 180)        (65 874)  


Offsetting and collateral arrangements                                                                                                                                                                           
Derivative assets and liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Credit risk is mitigated where possible through netting arrangements, such as the International Swaps and Derivative Association
("ISDA") Master Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the
same counterparty can be offset and close-out netting applied across all outstanding transactions covered by the agreements if 
an event of default or other predetermined events occur. Financial collateral (cash and non-cash) is also obtained, often daily, 
for the net exposure between counterparties where possible to further mitigate credit risk.
   
Repurchase and reverse repurchase agreements and other similar secured lending and borrowing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Credit risk is mitigated where possible through netting arrangements such as global master repurchase agreements and global master 
securities lending agreements whereby all outstanding transactions with the same counterparty can be offset and close-out netting 
applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur. 
Financial collateral is obtained and typically comprises highly liquid securities which are legally transferred and can be 
liquidated in the event of counterparty default.                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Notes
(1)Restated, refer to note 23 for reporting changes. Recent developments in considering the impact of the amended IAS
   32 offsetting requirements resulted in a change to the approach followed for variation margin on SAFEX and Yield-X
   futures and options. The various margin on these contracts are considered a daily settlement of a derivative exposure as
   opposed to collateral that is offset against the derivative value. As a result, these contracts are excluded from the scope
   of the offsetting requirements in IAS 32 and the IFRS 7 offsetting disclosures. The change in approach has been applied
   retrospectively and only impacts the disclosure provided in the above note.
(2)Amounts offset for derivative financial liabilities includes cash collateral netted of R2 332 million.  
   Amounts offset for reverse repurchase agreements relates to a short sale financial liability of R11 424 million.  
   No other significant recognised financial assets and liabilities were offset in the statement of financial position.
(3)Net amounts reported on the statement of financial position comprises exposure that has been netted on the
   statement of financial position in compliance with IAS 32 (net exposure) and exposures that are subject to legally enforceable
   netting arrangements but have not been netted on the statement of financial position.
(4)Financial collateral excludes over collateralisation amounts, which are measured at fair value and are in
   excess of the net statement of financial position exposure.
(5)In certain jurisdictions a contractual right of set-off is subject to uncertainty under laws of the jurisdiction
   and therefore netting is not applied and the amounts are classed as not subject to legally enforceable netting
   arrangements.
(6)Total per statement of financial position is the sum of ‘net amounts reported on the statement of financial
   position’ which are subject to enforceable netting arrangements and ‘amounts not subject to enforceable netting arrangements’.
   

23. Reporting changes 
The financial reporting changes that impact the comparative reporting periods of the Group’s results for the reporting
period ending 31 December 2013 are driven by:
1. The implementation of new International Financial Reporting Standards (“IFRS”), specifically IFRS 10 Consolidated
Financial Statements (“IFRS 10”) and IAS 19 Employee Benefits (amended 2011) (“IAS 19R”). All other amendments to IFRS effective 
for the current reporting period have had no significant impact on the Group’s reported results, however, disclosures have been
updated to reflect the impact of the amendments.
   
2. Certain changes in internal accounting policies.

3. The acquisition of 100% of the issued ordinary share capital of Barclays Africa Limited, previously a fellow
subsidiary of BAGL, with a shared parent company Barclays Bank PLC. The Group accounted for this transaction in accordance with the
Group’s and Barclays Group accounting policy in respect of business combinations under common control, which resulted in the
restatement of the financial performance of comparative reporting periods.
 
4.Business portfolio changes between operating segments including the allocation of elements of the Head office segment to business 
segments.

The Barclays Africa Limited acquisition and the implementation of new IFRS impact the net financial results of the
Group. The changes in the Group’s internal accounting policy impacts the individual lines on which the income or costs are
accounted for but not the net financial results of the Group. The inter-segmental changes for Head office allocations
and portfolio changes affect the reported results of the individual businesses in the segment report, but have no impact
on the Group’s primary statements.
 
23.1 Accounting policy changes due to new IFRS
IFRS 10 and IAS 19R became effective for annual periods beginning on or after 1 January 2013 and resulted in
restatement of the Group’s results for the reporting period ended 31 December 2011 and 2012. 

IFRS 10
IFRS 10 replaces the requirements of IAS 27 Consolidated and Separate Financial Statements and SIC 12 Consolidation -
Special Purpose Entities. The standard introduces new criteria to determine whether entities in which the Group has
interests should be consolidated. Implementation of this new standard results in the Group consolidating a small number of
entities that were previously not consolidated and deconsolidating a small number of entities that were previously
consolidated.

IAS 19R
IAS 19R amends the requirements of IAS 19 Employee Benefits. The standard introduces a number of changes relating to
defined benefit plans. For the Group, the main impacts of implementing IAS 19R were the removal of the recognition of
expected returns on plan assets within profit or loss in favour of interest income on plan assets being recognised in
profit or loss at the rate used to discount the pension fund obligation and the recognition of interest cost on reserves
owing to members in profit or loss. In addition, some benefits previously classified as short-term benefits are reclassified
as long-term benefits.

23.2 Internal accounting policy changes
The Group elected to make internal accounting policy changes set out below, involving classification of items between
statement of comprehensive income lines. These have no impact on the net earnings of the Group.  To ensure
comparability, the comparative reporting periods have been restated. 

The Group elected to change its accounting policy in terms of best practice and to better align with 
Barclays’ internal accounting policies in terms of:
-‘ Collection costs’ - costs incurred in the follow up and collection of outstanding and overdue balances,
previously recognised as part of ‘operating expenses’ and fee expenses, within ‘net fee and commission income’, have been
reclassified to recoveries within the ‘impairment losses on loans and advances’ line in the statement of comprehensive
income.

-‘Association costs’, - defined as costs incurred through the Group’s association with leading inter-change
agents resulting in a reclassification of certain costs from ‘operating expenses’ to ‘net fee and commission income’.

The Group elected to amend the disclosure of rental income from investment properties held in one of the Group’s
wholly-owned subsidiaries. This change resulted in a grossing up of income recognised in ‘other operating income’ and an
equal movement in ‘operating expenses’.

23.3 Acquisition of Barclays Africa Limited
In 2012, Absa Group Limited announced its intention to conclude the strategic combination of Barclays’ Africa
operations with the existing Absa Group operations.

Through the transaction, Absa Group Limited acquired 100% of the issued ordinary share capital of Barclays Africa
Limited, which was settled by the issuance of 129 540 636 Absa Group Limited ordinary shares. This increased Barclays Bank
Plc’s shareholding in the Group from 55,5% to 62,3%. This transaction concluded on 31 July 2013 and was accompanied by
the name change of Absa Group Limited to Barclays Africa Group Limited.

The transaction is a business combination of entities under common control as defined in International Financial
Reporting Standard 3: Business Combinations (“IFRS 3”). The Group elected, in accordance with IFRS 3 guidance and the Group’s
and Barclays Group’s accounting policies, to account for the transaction in terms of predecessor accounting principles.

Accordingly, the Group’s comparative financial results have been restated as if Barclays Africa Limited was always
part of the Group’s structure.

23.3 Impact of the reporting changes on the Group’s results
Condensed consolidated statement of financial position as at 31 December 2011

                                                                                 IFRS       
                                                                      As   accounting     Barclays                           BAGL      
                                                              previously       policy       Africa   Acquisition    consolidation         BAGL
                                                             reported(1)      changes      Limited    accounting      adjustments     restated
                                                                     Rm          Rm(2)          Rm            Rm               Rm           Rm                                                                                                                                                      
  Assets                                                                                                                                                                                               
  Cash, cash balances and balances with central banks            26 997           444      17 338              -                -       44 779   
  Statutory liquid asset portfolio                               57 473             -           -              -                -       57 473   
  Loans and advances to banks                                    57 499             1      18 282              -                -       75 782   
  Trading portfolio assets                                       84 623            71          48              -                -       84 742   
  Hedging portfolio assets                                        4 299             -          14              -                -        4 313   
  Other assets                                                   14 730          (137)      3 531              -                -       18 124   
  Current tax assets                                                288             -          56              -                -          344   
  Non-current assets held for sale                                   35             -           -              -                -           35   
  Loans and advances to customers                               504 925          (986)     38 188              -                -      542 127   
  Loans to Absa Group companies                                       -             -         256              -            (256)            -   
  Reinsurance assets                                              1 009             -           -              -                -        1 009   
  Investment securities                                          21 182         4 308       2 592              -                -       28 082   
  Investments in associates and joint ventures                      420             -           -              -                -          420   
  Subsidiaries                                                        -             -           -         18 330          (18 330)           -   
  Investment properties                                           2 839             -           -              -                -        2 839   
  Property and equipment                                          7 996             -       1 646              -                -        9 642   
  Goodwill and intangible assets                                  2 135             -         147              -                -        2 282   
  Deferred tax assets                                               269             -         400              -                -          669   
  Total assets                                                  786 719         3 701      82 498         18 330          (18 586)     872 662   
  Liabilities                                                                                                                                    
  Deposits from banks                                            38 339            67       6 231             (1)               -       44 636   
  Trading portfolio liabilities                                  55 960             -          37              -                -       55 997   
  Hedging portfolio liabilities                                   2 456             -           -              -                -        2 456   
  Other liabilities                                              14 695           (24)      2 627              -                -       17 298   
  Provisions                                                      1 710             -         548              -                -        2 258   
  Current tax liabilities                                           267             -          34              -                -          301   
  Non-current liabilities held for sale                               -             -           -              -                -            -   
  Deposits due to customers                                     440 960           507      61 941              -                -      503 408   
  Debt securities in issue                                      130 262        (1 394)         15              -                -      128 883   
  Liabilities under investment contracts                         15 233         4 689           -              -                -       19 922   
  Loans from Group companies                                          -             -         256              -            (256)            -   
  Policyholder liabilities under insurance contracts              3 183             -           -              -                -        3 183   
  Borrowed funds                                                 14 051             -         948              -                -       14 999   
  Deferred tax liabilities                                        1 198           (41)        125              1                -        1 283   
  Total liabilities                                             718 314         3 804      72 762              -            (256)      794 624   
  Equity                                                                                                                                         
  Capital and reserves                                                                                                                           
  Attributable to ordinary equity holders of the Group:                                                                                          
  Ordinary share capital                                          1 434             -         195            259            (195)        1 693   
  Ordinary share premium                                          4 676             -         539         18 071         (18 135)        5 151   
  Retained earnings                                              53 813          (103)      6 534              -                -       60 244   
  Other reserves                                                  2 385             -       1 101              -                -        3 486   
                                                                 62 308          (103)      8 369         18 330          (18 330)      70 574   
  Non-controlling interest - ordinary shares                      1 453             -       1 367              -                -        2 820   
  Non-controlling interest - preference shares                    4 644             -           -              -                -        4 644   
  Total equity                                                   68 405          (103)      9 736         18 330          (18 330)      78 038   
  Total liabilities and equity                                  786 719          (138)     82 498         18 330          (18 586)     872 662   

Notes
(1) Column refers to amounts published on 12 February 2013.
(2) Included in these adjustments is the impact of IAS 19 reflecting a credit on ‘others assets’ of R138 million, a
    debit on ‘deferred tax liabilities’ of R39 million and a debit on ‘retained earnings’ of R99 million. The remaining
    adjustments relate to the implementation of IFRS 10.
    

23.3 Impact of the reporting changes on the Group’s results (continued)
Condensed consolidated statement of financial position as at 31 December 2012


  
                                                                                 IFRS       
                                                                     As    accounting    Barclays    Acquisition             BAGL      
                                                             previously        policy      Africa     accounting    consolidation         BAGL
                                                            reported(1)       changes     Limited        entries      adjustments     restated                                                                                                                                             
                                                                     Rm          Rm(2)         Rm             Rm               Rm           Rm
  Assets                                                                                                                                         
  Cash, cash balances and balances with central banks            26 221           326      18 223              -                -       44 770   
  Statutory liquid asset portfolio                               63 020             -           -              -                -       63 020   
  Loans and advances to banks                                    44 649             2      17 942              -             (82)       62 511   
  Trading portfolio assets                                       87 203           114          29              -             (22)       87 324   
  Hedging portfolio assets                                        5 439             -          17              -                -        5 456   
  Other assets                                                   14 189             -       3 617              -            (227)       17 579   
  Current tax assets                                                304            (1)         73              -                -          376   
  Non-current assets held for sale                                4 052             -           -              -                -        4 052   
  Loans and advances to customers                               528 191          (863)     38 934              -                -      566 262   
  Loans to Group companies                                            -             -         537              -            (537)            -   
  Reinsurance assets                                              1 003             -           -              -                -        1 003   
  Investment securities                                          20 555         5 069       5 289              -                -       30 913   
  Investments in associates and joint ventures                      569             -           -              -                -          569   
  Subsidiaries                                                        -             -           -         18 330          (18 330)           -   
  Investment properties                                           1 220             -           -              -                -        1 220   
  Property and equipment                                          8 397             -       1 227              -                -        9 624   
  Goodwill and intangible assets                                  2 561             -         487              -                -        3 048   
  Deferred tax assets                                               366             -         278              -                -          644   
  Total assets                                                  807 939         4 647      86 653         18 330         (19 198)      898 371   
  Liabilities                                                                                                                                    
  Deposits from banks                                            36 035           149       5 322              -             (82)       41 424   
  Trading portfolio liabilities                                  51 684             -          72              -             (22)       51 734   
  Hedging portfolio liabilities                                   3 855             -           -              -                -        3 855   
  Other liabilities                                              18 215           197       2 046              -             (48)       20 410   
  Provisions                                                      1 681             -         599              -                -        2 280   
  Current tax liabilities                                            59            (1)       (29)              -                -           29   
  Non-current liabilities held for sale                           1 480            (1)          -              -                -        1 480   
  Deposits due to customers                                     477 427           426      65 248              -                -      543 101   
  Debt securities in issue                                      108 044        (1 265)         25              -                -      106 804   
  Liabilities under investment contracts                         13 609         5 159           -              -                -       18 768   
  Loans from Group companies                                          -             -         716              -            (716)            -   
  Policyholder liabilities under insurance contracts              3 550             -           -              -                -        3 550   
  Borrowed funds                                                 17 907             -         870              -                -       18 777   
  Deferred tax liabilities                                        1 599            (4)        119              -                -        1 714   
  Total liabilities                                             735 145         4 661      74 988              -            (868)      813 926   
  Equity                                                                                                                                         
  Capital and reserves                                                                                                                           
  Attributable to ordinary equity holders:                                                                                                       
  Share capital                                                   1 435             -         195            259            (195)        1 694   
  Share premium                                                   4 604             -         796         18 071         (18 135)        5 336   
  Retained earnings                                              56 903           (13)      8 009              -                -       64 894   
  Other reserves                                                  3 941             -       1 227              -                -        5 166   
                                                                 66 883             -      10 227         18 330          (18 330)      77 096   
  Non-controlling interest - ordinary shares                      1 267             -       1 438              -                -        2 705   
  Non-controlling interest - preference shares                    4 644             -           -              -                -        4 644   
  Total equity                                                   72 794           (14)     11 665         18 330          (18 330)      84 445   
  Total liabilities and equity                                  807 939         4 647      86 653         18 330          (19 198)     898 371   

Note
(1) Column refers to the amounts published on 12 February 2013.
(2) Included in these adjustments is the impact of IAS 19 reflecting a credit on ‘others assets’ of R138 million, a
    debit on ‘deferred tax liabilities’ of R39 million and a debit on ‘retained earnings’ of R99 million. The remaining
    adjustments relate to the implementation of IFRS 10.
    

23.3 Impact of the reporting changes on the Group’s results (continued)
Condensed consolidated statement of comprehensive income for the reporting period ended 
31 December 2012

                                                                                                     BAGL                                       
                                                                                       IFRS    accounting     Barclays             BAGL         
                                                               As previously     accounting        policy       Africa    consolidation         BAGL   
                                                                 reported(1)         policy       changes      Limited      adjustments     restated             
                                                                          Rm      changes(2)           Rm           Rm               Rm           Rm                                                                                                                                                                                                
  Net interest income                                                  24 111          (119)            -        5 310                -       29 302       
  Interest and similar income                                          50 766          (167)            -        6 698                -       57 297       
  Interest expense and similar charges                                (26 655)           48             -       (1 388)               -      (27 995)       
  Impairments losses on loans and advances                             (8 290)            -          (188)        (377)               -       (8 855)       
  Net interest income after impairment losses on loans                 15 821          (119)         (188)       4 933                -       20 447       
  and advances                                                                                                                                             
  Non-interest income                                                  22 741           119           (54)       2 868                -       25 674       
  Net fee and commission income                                        15 435           (32)          (86)       2 066                -       17 383       
  Fee and commission income                                            17 936                           -        2 160                -       20 096       
  Fee and commission expense                                           (2 501)          (32)          (86)        (94)                -      (2 713)       
  Net insurance premium income                                          5 618             -             -            -                -        5 618       
  Net insurance claims and benefits paid                               (2 719)            -             -            -                -      (2 719)       
  Changes in investment contract and insurance liabilities               (980)         (727)            -            -                -      (1 707)       
  Gains and losses from banking and trading activities                  3 670           108             -          757                -        4 535       
  Gains and losses from investment activities                             963           773             -           (1)               -        1 735       
  Other operating income                                                  754            (3)           32           46                -          829                                                                                                                                                             
  Operating income before operating expenditure                        38 562             -          (242)       7 801                -       46 121       
  Operating expenses                                                  (26 693)          (91)          242      (4 643)                -      (31 185)      
  Operating expenses                                                  (25 874)          (91)          242      (4 606)                -      (30 329)      
  Other impairments                                                      (113)            -             -         (19)                -         (132)       
  Indirect taxation                                                      (706)            -             -         (18)                -         (724)
  Share of post-tax results of associates and joint ventures              249             -             -           -                 -          249
  Operating profit before income tax                                   12 118           (91)            -       3 158                 -       15 185       
  Taxation expense                                                     (3 377)           22             -      (1 084)                -       (4 439)      
  Profit for the reporting period                                       8 741           (69)            -       2 074                 -       10 746       
                                                                                                                                                           
Notes
(1) Column refers to the amounts published on 12 February 2013.
(2) Included in these adjustments is the impact of IAS 19, reflecting a debit on ‘operating expenses’ of R88 million,
    a debit on ‘taxation expenses’ of R22 million and a net credit on ‘movement in retirement benefit fund assets and
    liabilities’ with other comprehensive income of R158 million. The remaining adjustments relate to the implementation of IRFS
    10.


23.3 Impact of the reporting changes on the Group’s results (continued) 
Condensed consolidated statement of comprehensive income for the reporting period ended 
31 December 2012 (continued)

                                                                                        IFRS                     BAGL                                       
                                                                                  accounting     accounting     Barclays             BAGL         
                                                                As previously         policy         policy       Africa    consolidation        BAGL   
                                                                  reported(1)        changes        changes      Limited      adjustments    restated             
                                                                           Rm             Rm             Rm           Rm               Rm          Rm                                                                                                                                          
  Profit for the reporting period                                       8 741            (69)                      2 074                       10 746   
  Other comprehensive income                                                                                                                            
  Items that will not be reclassified to the profit or         
  loss component of the statement of comprehensive income                                         
  Movement in retirement benefit assets and liabilities                  (242)           158              -          (4)               -         (88)  
  Decrease in retirement benefit surplus                                 (279)           218              -         (10)               -         (71)   
  Increase in retirement benefit deficit                                  (59)                            -           -                -         (59)   
  Deferred tax                                                             96            (60)             -           6                -          42                                                                                                                                                                                                                                        
  Total items that will not be reclassified to the profit       
  or loss component of the statement                                     (242)           158              -          (4)               -         (88)  
  of comprehensive income                                                                                                                              
  Items that are or may be subsequently reclassified to 
  the profit or loss component                                                                  
  of the statement of comprehensive income                                                                                                             
  Foreign exchange differences on translation of foreign 
  operations                                                              140             -              -          198                -         338   
  Movement in cash flow hedging reserve                                   405             -              -            -                -         405   
  Fair value gains arising during the reporting period                  2 650             -              -            -                -       2 650   
  Amount removed from other comprehensive income and                                                               
  recognised in the profit or loss component of the                                                               
  statement of comprehensive income                                    (2 088)            -              -            -                -      (2 088)   
  Deferred tax                                                           (157)            -              -            -                -        (157)   
  Movement in available-for-sale reserve                                1 109             -              -          209                -       1 318   
  Fair value gains arising during the reporting period                  1 532             -              -          207                -       1 739   
  Amount removed from other comprehensive income and                                                               
  recognised in the profit or                                              10             -              -            -                -          10   
  loss component of the statement of comprehensive income                                                                                              
  Deferred tax                                                           (433)            -              -            2                -        (431)                                                                                                                                                        
  Total items that will or may be reclassified to the 
  profit or loss component of the statement of comprehensive 
  income                                                                1 654             -              -          407                -       2 061       
  Total comprehensive income for the reporting period                  10 153            89              -        2 477                -      12 719       
  Profit attributable to:                                                                                                                                  
  Ordinary equity holders of the Group                                  8 393           (69)             -        1 675                -       9 999       
  Non-controlling interest - ordinary shares                               53             -              -          399                -         452       
  Non-controlling interest - preference shares                            295             -              -            -                -         295       
                                                                        8 741           (69)             -        2 074                -      10 746       
  Total comprehensive income attributable to:                                                                                                              
  Ordinary equity holders of the Group                                  9 812            89              -        1 947                -      11 848       
  Non-controlling interest - ordinary share                                46             -              -          530                -         576       
  Non-controlling interest - preference shares                            295             -              -            -                -         295       
                                                                       10 153            89              -        2 477                -      12 719       

Note
(1) Column refers to the amounts published on 12 February 2013.
(2) Included in these adjustments is the impact of IAS 19, reflecting a debit on ‘operating expenses’ of R88 million,
    a debit on ‘taxation expenses’ of R22 million and a net credit on ‘movement in retirement benefit fund assets and
    liabilities’ with other comprehensive income of R158 million. The remaining adjustments relate to the implementation of IRFS
    10.

Profit and dividend announcement
for the reporting period ended 31 December
Salient features
- Diluted headline earnings per share (HEPS) increased 14% to 1 396,6 cents.
- Pre-provision profit increased 5% to R26 billion.
- Return on equity (RoE) increased to 15,5% from 14,1%.
- Declared a final dividend per share (DPS) of 470 cents, taking the total to 820 cents, up 20%.
- Paid a special DPS of 708 cents. 
- Revenue grew 8% to R59,4 billion.
- Net interest margin (on average interest-bearing assets) rose to 4,48% from 4,28%.
- Non-interest income increased 5% to R27,1 billion and accounted for 45,5% of total revenue.
- Operating expenses grew 10% to R33,4 billion, increasing the cost-to-income ratio to 56,3% from 55,2%.
- Loans and advances to customers grew 7% to R605,3 billion, while deposits due to customers increased 8% to R588,0
  billion.
- Credit impairments declined 21% to R7,0 billion, resulting in a 1,20% credit loss ratio from 1,60%.
- Non-performing loans (NPLs) improved to 4,7% of gross loans and advances to customers from 5,9%. Return on
  risk-weighted assets (RoRWA) increased to 2,18% and return on assets (RoA) improved to 1,29% from 2,09% and 1,17% respectively.
- Net asset value (NAV) per share increased to 9 125 cents, despite paying R11,6 billion in dividends during the
  period.
- Barclays Africa Group Limited’s Common Equity Tier 1 (CET1) capital adequacy ratio was 11,9%, well above regulatory
  requirements and ahead of our Board targets.
 
Overview of results
These are the first results for Barclays Africa Group Limited, incorporating Barclays Africa Limited and the
additional purchase consideration shares in issue. Barclays Africa Group Limited’s headline earnings increased 14% to R11 843
million from R10 419 million and attributable profit grew 20% to R11 981 million. Diluted HEPS also increased 14% to 1396,6
cents from 1 227,6 cents. The Group’s RoE improved to 15,5% from 14,1%, comfortably above its 13,0% cost of equity. A
total ordinary DPS of 820 cents was declared and a special DPS of 708 cents was paid, after considering regulatory
changes, the Group’s strong capital position, strategic plans and near-term business objectives.
 
Improved credit impairments, particularly in retail mortgages and commercial property finance, was the principal
reason for higher earnings. However, pre-provision profit increased 5% to R26,0 billion, as revenue growth improved in the
second half, while remaining below cost growth that included substantial investment spend. 

Retail and Business Banking’s (RBB) headline earnings increased 41% to R8,0 billion, due largely to lower credit
impairments. Financial Services’ headline earnings grew 8% to R1,4 billion, while Corporate, Investment Bank and Wealth’s
(CIBW) headline earnings decreased 4% to R3,0 billion.

Headline earnings from the acquired Barclays Africa Limited increased 14% to R1,923 million, largely due to 25% growth
in net interest income, which outweighed 62% higher credit impairments and 19% growth in operating expenses. The
acquisition was earnings accretive, adding 1,2% to the Group’s 2013 HEPS. 

Operating environment
Global growth recovered steadily in 2013, supported for the first time since the global financial crisis by developed
market economies while emerging markets’ growth slowed. Central banks maintained their accommodative monetary policy
stance, with some cutting interest rates and others injecting liquidity into the financial system. South Africa’s economic
growth remained modest and uneven, affected largely by subdued global demand and protracted industrial action in key
sectors. Household consumption growth slowed further in 2013, reflecting deteriorating household balance sheets, a
lacklustre job market, subdued confidence, rising inflation and moderating real wage growth. Consumer appetite for credit waned
as credit extension to households slowed from 10,0% at the beginning of 2013 to 5,5% in December. The rand exchange rate
depreciated throughout the year reaching a low of R/$10,53 in December after starting the year at R/$8,56. The South
African economy looks to have grown by about 2% in 2013.

Economic growth in the Barclays Africa Group markets outside South Africa remained resilient in 2013 at an estimated
6,3%, about half a percent stronger than that witnessed in 2012.

The economies were affected by a more adverse external environment on the back of rising financing costs, slow growth
in emerging markets and lower commodity prices. In spite of resilient economic growth in several countries, fiscal
pressures continued to build in a number of markets and rating agencies reacted with a mix of outlook and/or rating
downgrades.

Group performance
Statement of financial position
Total Group assets increased 7% to R959,6 billion at 31 December 2013, largely due to 7% growth in loans and advances
to customers and 28% higher loans and advances to banks.

Loans and advances to customers
Gross loans and advances to customers increased 7% to R621,4 billion. Retail Banking South Africa’s gross loans grew
2% to R363,1 billion, given 12% growth in credit cards and 10% higher instalment credit agreements, offset by 2% lower
mortgages. Business Banking South Africa’s gross loans decreased 3%, due to 3% lower commercial property finance. RBB Rest
of Africa’s gross loans grew 25% to R40,2 billion, largely due to rand depreciation. CIBW gross loans increased 21%,
given strong growth in foreign currency loans, corporate overdrafts and Rest of Africa lending.

Funding
The Group maintained its strong liquidity position, growing deposits due to customers 8% to R588,0 billion. Debt
securities in issue declined 8% to R97,8 billion. The funding tenor also remained robust with an average long-term funding
ratio of 24,3% for the period, from 26,5% in 2012. Deposits due to customers contributed 77,9% to total funding, while the
proportion of debt securities in issue dropped to 13,0% from 15,4%. Retail Banking South Africa maintained its leading
market share, increasing deposits 6% to R134,8 billion. Business Banking South Africa’s deposits grew 11%, largely due
to 57% growth in savings and transmission deposits. CIBW’s deposits increased 8%, due to 8% growth in fixed deposits and
59% higher Rest of Africa deposits. The Group’s loans-to-deposits ratio improved to 88,3% from 87,1%.

Net asset value
The Group’s NAV was flat at R77,3 billion, as it generated retained earnings of R11,4 billion in the period, which was
offset by paying R11,6 billion in dividends. The Group’s NAV per share was broadly flat at 9 125 cents.

Capital to risk-weighted assets
The Group’s risk-weighted assets were R560,9 billion at 31 December 2013, due to 7% growth in loans and advances to
customers and implementing Basel III from 1 January 2013, partially offset by various RWA optimisation initiatives.
Capital levels remain above Board targets and regulatory requirements. Barclays Africa Group Limited’s CET1 and Tier 1 capital
adequacy ratios were 11,9% and 13,0% respectively (from Absa Group’s 13,0% and 14,0%). The Group’s total capital ratio
was 15,6%, above our board target of 12,5% to 14,0%. 

The total DPS of 820 cents for the period and the R6 billion special dividend were well considered, based on the
Group’s strong capital position, internal capital generation, strategy and growth plans. 

After completing the Barclays Africa transaction, Barclays Africa Group Limited intends to establish a funding
programme to optimise the management of liquidity and capital requirements across the Group.

Statement of comprehensive income
Net interest income
Net interest income increased 10% to R32 351 million from R29 302 million, and average interest-bearing assets grew
6%. The net interest margin improved to 4,48% from 4,28%, largely due to including the Edcon portfolio for the full year,
CIBW’s improved margin and an increased proportion of higher margin Rest of Africa lending. The deposit margin
decreased, due to lower average rates and competition, and the contributions from hedging and the endowment also declined.

Impairment losses on loan and advances
Credit impairments fell 21% to R6 987 million from R8 855 million, resulting in a lower credit loss ratio of 1,20%
from 1,60%. Total NPL coverage improved further to 41,8% from 38,0%. Unidentified impairments and identified impairments
for performing loans increased 35% to R3,8 billion, which amounts to 0,64% of performing loans from 0,52% at 31 December
2012. 
RBB’s credit impairments dropped 23% to R6 678 million, a 1,50% credit loss ratio from 2,05%. Retail Banking South
Africa’s credit impairments fell 22% to R5 162 million, improving its credit loss ratio to 1,48% from 1,96%. As expected,
the credit loss ratio for secured loans improved, while those of unsecured loans increased off a low base. 

Home Loans credit impairments decreased 65% to R1 552 million from last year’s elevated R4 461 million. Mortgage NPLs
fell 28% to R13,5 billion, with a material improvement in the legal book. Mortgage coverage decreased to 27,8% from
28,5% reflecting a reduction in the legal book where cover is higher. Vehicle and Asset Finance’s credit loss ratio improved
to 0,80% from 1,08%, reflecting improved collections and lower NPLs. 

Despite consumers remaining under pressure, Personal Loans’ credit loss ratio was well within expectations at 6,23%
from 5,00%, given the focus on existing customers and on further improving this book’s risk profile. Card’s charge
increased to R1 903 million from R475 million, as the Edcon portfolio was included for a full year, from just two months in
2012. The credit impairment on the remaining Card book doubled to R811 million, which represents a 3,29% credit loss ratio
from 1,82%. The Edcon portfolio’s credit loss ratio increased to 11,86% from 9,56% in the first half, as its NPL cover
improved to 81%. 

Business Banking South Africa’s credit impairments decreased 42% to R896 million, improving its credit loss ratio to
1,43% from 2,37%, largely due to lower commercial property finance provisions off a high base. RBB Rest of Africa’s
credit impairments grew 7% to R620 million, due only to rand depreciation, as its credit loss ratio improved to 1,79% from
2,45%. While CIBW’s charge more than doubled, this included a large portfolio provision and its credit loss ratio was just
0,22%. 

Total NPLs have reduced by R4,8 billion to 4,7% of gross loans and advances to customers at 31 December 2013 from 5,9%
at 31 December 2012. Retail Banking South Africa’s NPLs fell 19% to R19,6 billion.

Non-interest income
Non-interest income increased 5% to R27 055 million from R25 674 million, with stronger growth in the second half. Net
fee and commission income rose 7% to R18,6 billion, largely due to 27% higher CIBW income and solid Financial Services
growth, while RBB increased 3%. 

Retail Banking SA’s non-interest income grew 4% to R11,2 billion. Excluding the Edcon portfolio it decreased 1%, due
to fewer transaction accounts and deliberately migrating customers to lower priced Value Bundles. These were partially
offset by strong growth in the Rewards programme, 8% growth in merchant income (to R2,2 billion) and 14% growth in Home
Loans’ non-interest revenue. 

Business Banking South Africa’s non-interest income grew 14% to R3,1 billion, predominantly due to a R320 million
positive swing in income from equities following valuation write downs in 2012. Net fee and commission income increased 2%
to R2,9 billion, reflecting 6% growth in electronic banking fees and 3% in cash fees that outweighed lower cheque payment
volumes. 

RBB Rest of Africa’s non-interest income grew 7% to R2 037 million, due to currency effects. Excluding Rand
depreciation it decreased 4%. Fees and commissions fell 2% due to removing credit life insurance fees and lower transaction
volumes in some markets. 

Financial Services’ revenue grew 8% to R4 367 million, as gross insurance premium income increased with 8% and fee
income from investments, Distribution and Fiduciary Services grew 13%. 

CIBW’s non-interest income increased 8% to R6 924 million, in part due to the sale of the Custody and Trustee
business, although Corporate electronic banking fees grew 8% and Investment Banking’s growth was strong. CIBW’s net trading
result decreased 3% to R3 993 million, reflecting difficult trading conditions in the second quarter and continued margin
pressure in fixed income and foreign exchange.

Operating expenses
Operating expenses grew 10% to R33 420 million from R30 329 million, which increased the Group’s cost-to-income ratio
to 56,3% from 55,2%. Excluding the Edcon portfolio, which was included for the full year, total costs grew 7%. Rand
depreciation against other currencies in Africa added almost 3% to expense growth.

Staff costs increased 11% to R17 593 million to account for 53% of the total. Salaries (and current service costs on
post-retirement benefits) grew 7%, due to slightly higher headcount, inflationary pressures and rand depreciation. Total 
incentives increased 25%, after a reduction in the previous year and a substantial recovery in RBB earnings.
 
Non-staff costs increased 9% to R15,8 billion. Optimising the Group’s property portfolio reduced property costs by 13%
to R1 692 million, while leveraging Barclays’ capabilities and systems, reduced information technology costs 6% to R2,1
billion. Total IT spend, including related staff, amortisation and depreciation, grew 8% to R6 414 million and
accounted for 19% of Group expenses. Amortisation of intangible assets grew 44%, reflecting increased investment in systems.

Professional fees grew 68% to R1 578 million, which included substantially higher strategic initiative spend on
project delivery and systems. Marketing costs grew 19% as the Group’s Prosper campaign was launched.

Retail Banking South Africa’s operating expenses increased 13%, or 6% excluding the Edcon portfolio. Business
Banking South Africa’s costs fell 7% due to a large decline in its Equities expenses. Excluding this, its costs increased
2%. Retail and Business Banking Rest of Africa’s costs increased 25%, largely due to rand depreciation. Financial
Services’ operating expenses grew 9%, reflecting its expansion into the rest of Africa and amortisation on new operating
systems. CIBW’s operating expenses increased 8% with continued investment in key growth areas.
 
Taxation
The Group’s taxation expense increased 18% to R5 222 million, slightly less than the growth in pre-tax profit,
resulting in a 28,9% effective tax rate, a decrease from 29,2% in 2012.

Segment performance
Retail Banking South Africa
Headline earnings increased 36% to R4 941 million due largely to 22% lower credit impairments. Home Loans’ earnings
increased by R1 868 million, as credit impairments fell sharply from 2012’s elevated charge. Vehicle and Asset Finance’s 33%
earnings growth to R1 127 million reflects solid 12% loan growth, lower credit impairments and cost containment. Total Card
earnings grew 5% to R1 980 million, largely due to including the Edcon portfolio for the full year. Personal Loans’
earnings decreased 34% to R385 million, given higher credit impairments off a low base and lower revenue. Retail Bank
earnings, fell 56% to R573 million given continued revenue pressure and higher operating costs. Retail Banking South Africa
accounted for 40% of Group headline earnings excluding head office, eliminations and other central items. Its cost-to-income
ratio increased to 53,4% from 50,8%, although its RoA improved to 0,98% from 0,74%.

Business Banking South Africa
Business Banking South Africa’s headline earnings increased 64% to R1 710 million, reflecting 24% growth in its core
franchise and significantly lower losses in its equity portfolio that has stabilised. Solid 14% non-interest income
growth, 7% lower operating costs and a 42% reduction in credit impairments were the key drivers. These offset a 1% decline in
net interest income, as its loans declined 3%. Business Banking South Africa generated 14% of Group headline earnings
in 2013. Its cost to income ratio improved significantly to 58,7% from 66,2%, which helped to increase its RoA to 1,91%
from 1,19%. 

Retail and Business Banking Rest of Africa
Retail and Business Banking Rest of Africa’s headline earnings increased 35% to R1 348 million, largely due to strong
30% growth in its net interest income. Rand depreciation accounted for over half of its earnings growth and 15% of its
cost growth. Non-interest income declined 4% on a constant currency basis. Retail and Business Banking Rest of Africa
constituted 11% of Group headline earnings. Its cost to income ratio increased to 62,6% from 62,0%, while its RoA declined
to 1,62% from 1,76%, in part due to rand depreciation increasing its asset base. 

Corporate, Investment Bank and Wealth
Headline earnings declined 4% to R3 017 million, reflecting a higher effective tax rate and non-recurring gains in
2012. Net revenue growth of 10% exceeded 8% cost growth to drive 9% higher pre-tax profits. Market’s total net revenue
increased slightly, despite difficult trading conditions in the second quarter and margin compression in some key products.
However, Investment Banking and Corporate’s net revenue grew 37% and 18% respectively. Private equity revenue declined
due to lower revaluations. The sale of investments reduced this portfolio 42% to R3,3 billion, which should improve
future returns. CIBW accounted for 24% of Group headline earnings in 2013. Its RoRWA declined to 1,9% from 2,2%, given lower
earnings and an increase in market risk risk-weighted assets on implementing Basel III.

Financial Services
Headline earnings grew 8% to R1 370 million, while net operating income (NOI) increased 10% to R1 724 million.
Investments’ headline earnings increased 23% to R412 million, as its revenue grew 14% to R1 032 million as a result of improved
margins. Life Insurance’s embedded value of new business increased 18% to R427 million, reflecting increased branch
sales and bank volumes. Rest of Africa profits more than doubled to R37 million. The revised Distribution operating model
resulted in this business achieving break even, while employee benefits’ turnaround saw its earnings more than treble to
R42 million. However, short-term insurance earnings dropped 39%, due to higher industry wide weather-related claims.
Financial Services accounted for 11% of Group headline earnings. Its RoE improved to 28,6% from 27,2%. 

Prospects
We expect a continuation of the recovery in the global economy during 2014 as uncertainty around United States Federal
Reserve tapering diminishes, fiscal headwinds abate, and monetary policy gains traction. We expect global GDP to expand
by 3,5% after growth of around 3% in the prior two years. Domestically, although we expect a modest recovery in GDP
growth to 2,7% in 2014, with the key risks being the impact on the consumer of higher inflation and policy rates, the
impact on the economy of labour strikes and the weak rand, and the impact on markets from global monetary policy. We see low
probability of GDP growth accelerating faster without major policy shifts, improved confidence levels, and/or an alleviation 
of binding energy and transportation infrastructure constraints.

We expect steady growth in the Barclays Africa Group markets beyond South Africa, with some of the countries being
among the fastest growing in the world. However, important challenges are emerging. More notably, infrastructure
constraints and/or lower commodity prices have led to cuts in our growth forecasts for some of the economies. Also, fiscal and
current account imbalances are emerging in many countries just as the US Federal Reserve is slowing its asset purchase
programme. Whilst there are important differences between countries, as a grouping we believe that economic growth can approach
6% again in 2014, last year, supported by investment in infrastructure and improving global growth prospects. On the
monetary policy front, these countries show little room for further monetary easing in 2014, with the bias being towards
raising interest rates in some markets.

Against this backdrop, we expect mid-single digit loan growth in South Africa this year. We will continue to focus on
operating costs, while investing for growth. In the next three years, we aim to reduce our cost to income ratio to the
low 50s and to improve our RoE to between 18% and 20%. We expect the rest of Africa to account for 20% to 25% of Group
revenue by 2016. 

Basis of presentation
The Group’s annual financial results have been prepared in accordance with the recognition and measurement
requirements of International Financial Reporting Standards (“IFRS”), interpretations issued by the IFRS Interpretations Committee
(“IFRS-IC”) the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by Financial Reporting Standards Council, the JSE Listings Requirements and the requirements
of the Companies Act. The principal accounting policies applied are set out in the Group’s most
recent annual consolidated financial statements. 

The information disclosed in the SENS is derived from the information contained in the audited annual
consolidated financial statements and does not contain full or complete disclosure details. Any investment decisions by
shareholders should be based on consideration of the audited annual consolidated financial statements available on
request. The presentation and disclosure complies with International Accounting Standard (IAS) 34.

The preparation of financial information requires the use of estimates and assumptions about future conditions. Use of
available information and application of judgement are inherent in the formation of estimates. The accounting policies
that are deemed critical to the Group’s results and financial position, in terms of the materiality of the items to
which the policy is applied, and which involve a high degree of judgement including the use of assumptions and estimation,
are impairment of loans and advances, goodwill impairment, valuation of financial instruments, impairment of
available-for-sale financial assets, impairment of investments in associates and joint ventures, deferred tax assets,
post-retirement benefits, provisions, share-based payments, liabilities arising from claims made under short-term insurance contracts,
liabilities arising from claims made under life-term insurance contracts, income taxes and offsetting of financial
assets and liabilities.

Accounting policies
The accounting policies applied in preparing the audited consolidated annual financial statements are the same as
those in place for the reporting period ended 31 December 2012. The new and amended standards that became effective for the
first time during the reporting period are specified in note 1.22 of the accounting policies contained in the most
recent annual consolidated financial statements. These changes can be summarised as:
- implementation of new IFRS standards specifically IFRS 10 Consolidated Financial Statements (“IFRS 10”) and IAS
  19 Employee Benefits (amended 2011) (“IAS 19R”); and
- certain changes in internal accounting policies. 

Change in accounting estimates
During the current year, the Group revised the estimated useful lives of computer equipment from 3 to 5 years to 4 to
6 years. This revision was done as a result of the requirement of IAS 16 to reassess the useful lives of property, plant
and equipment on an annual basis. This change in useful lives has brought the Group’s estimated useful lives of
computer equipment in line with the Barclays Plc estimated useful lives for computer equipment. The change in accounting
estimate has been accounted for prospectively in accordance with IAS 8.

Auditors report
Ernst & Young Inc. and PricewaterhouseCoopers Inc., Barclays Africa Group Limited’s independent auditors, have audited
the consolidated annual financial statements of Barclays Africa Group Limited from which management prepared the
condensed consolidated financial results. The auditors have expressed an unqualified audit opinion on the consolidated annual
financial statements. The condensed consolidated financial results comprise the condensed consolidated statement of
financial position at 31 December 2013, condensed consolidated statement of comprehensive income, condensed consolidated
statement of changes in equity and condensed consolidated statement of cash flows for the year then ended, and selected
explanatory notes, excluding items not indicated as audited. The audit report of the consolidated annual financial
statements is available for inspection at Barclays Africa Group Limited’s registered office.

The condensed consolidated financial results are extracted from audited information, but is not itself audited. The
directors take full responsibility for the preparation of the condensed consolidated financial results and the 
financial information has been correctly extracted from the underlying consolidated annual financial statements.

Events after the reporting period
The directors are not aware of any events occurring between the reporting date of 31 December 2013 and the date of
authorisation of these condensed consolidated financial results as defined in IAS 10 Events after the reporting period. 

On behalf of the board

W E Lucas-Bull                    M Ramos
Group Chairman                    Chief Executive Officer
Johannesburg
10 February 2014

Declaration of final ordinary dividend number 55
Shareholders are advised that an ordinary dividend of 470 cents per ordinary share was declared today, 11 February 2014, 
for the period ended 31 December 2013. The ordinary dividend is payable to shareholders recorded in the register of members 
of the Company at the close of business on 4 April 2014. The directors of Barclays Africa Group Limited confirm that the 
Group will satisfy the solvency and liquidity test immediately after completion of the dividend distribution.

The dividend will be subject to the new dividend tax that was introduced with effect from 1 April 2012. In accordance
with paragraphs 11.17 (a) (i) to (x) and 11.17 (c) of the JSE Listings Requirements, the following additional
information is disclosed:
- The dividend has been declared out of income reserves.
- The local dividend tax rate is fifteen per cent (15%).
- The gross local dividend amount is 470 cents per ordinary share for shareholders exempt from the dividend tax.
- The net local dividend amount is 399,50 cents per ordinary share for shareholders liable to pay for the dividend
  tax.
- Barclays Africa Group currently has 847 750 679 ordinary shares in issue (includes 437 896 treasury shares) 
- Barclays Africa Group Limited’s income tax reference number is 9150116714.

In compliance with the requirements of Strate, the electronic settlement and custody system used by the JSE Limited,
the following salient dates for the payment of the dividend are applicable:

Last day to trade cum dividend                        28 March 2014
Shares commence trading ex dividend                   31 March 2014
Record date                                            4 April 2014
Payment date                                           7 April 2014

Share certificates may not be dematerialised or rematerialised between Monday, 31 March 2014 and Friday, 4 April 2014,
both dates inclusive. 

On 7 April 2014 the dividend will be electronically transferred to the bank accounts of certificated shareholders who
use this facility.

In respect of those who do not, cheques dated 7 April 2014 will be posted on or about that date. The accounts of those
shareholders who have dematerialised their shares (which are held at their participant or broker) will be credited on 
7 April 2014.

On behalf of the board

N R Drutman
Company Secretary
Johannesburg
11 February 2014


Barclays Africa Group Limited is a company domiciled in South Africa. Its registered office is the 7th Floor, Absa
Towers West, 15 Troye Street, 
Johannesburg, 2001.

Administration and contact details

Barclays Africa Group Limited
Authorised financial services and registered credit provider (NCRCP7)
Registration number: 1986/003934/06 
Incorporated in the Republic of South Africa
JSE share code: BGA
Issuer code: AMAGB
ISIN: ZAE000174124

Registered office
7th Floor, Barclays Towers West
15 Troye Street, Johannesburg, 2001 
PO Box 7735, Johannesburg, 2000
Telephone: (+27 11) 350 4000
Email: groupsec@barclaysafrica.com

Board of directors
Group independent non-executive directors
C Beggs, Y Z Cuba, W E Lucas-Bull (Group Chairman), 
M J Husain, P B Matlare, T S Munday, S G Pretorius

Group non-executive directors
P A Clackson(1), MS Merson(1), A V Vaswani(2)

Group executive directors
D W P Hodnett (Deputy Executive Officer and Financial Director), 
M Ramos (Group Executive Officer)
  
Transfer secretary
South Africa
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Telephone: (+27 11) 370 5000
Telefax: (+27 11) 370 5271/2

ADR depositary
BNY Mellon
101 Barclay Street, 22W, New York, NY, 10286
Telephone: +1 212 815 2248

Auditors
PricewaterhouseCoopers Inc. 
Ernst & Young Inc.

Sponsors
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited
No 1 Fricker Road, Cnr. Hurlingham Road, 
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: (+27 11) 507 0300
Telefax: (+27 11) 507 0503 

Joint sponsor
Absa Bank Limited (acting through its 
Corporate and Investment Bank division)
15 Alice Lane, Sandton, 2196
 Private Bag X10056, Sandton, 2146
Telephone (+27 11) 895 6843
Telefax: (+27 11) 895 7809 

Shareholder contact information
Shareholder and investment queries about the 
Barclays Africa Group should be directed to the following areas:
Group Investor Relations
A M Hartdegen (Head Investor Relations) 
Telephone: (+27 11) 350 2598
Email: investorrelations@barclaysafrica.com

Company Secretary
N R Drutman
Telephone: (+27 11) 350 5347
Email: groupsec@absa.co.za

Other contacts
Group Finance
R Stromsoe (Head: Group Finance)
Telephone: (+27 11) 895 6365

Head office switchboard
Telephone: (+27 11) 350 4000

Notes
(1)British
(2)Singaporean

www.barclaysafrica.com

Date: 11/02/2014 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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