Barclays Africa Group Limited - Basel III Pillar disclosure as at 31 March 2014 BARCLAYS AFRICA GROUP LIMITED ABSA BANK LIMITED (Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa) (Registration number: 1986/003934/06) (Registration number: 1986/004794/06) ISIN: ZAE000174124 ISIN: ZAE000079810 JSE share code: BGA JSE share code: ABSP, ABMN (Barclays Africa Group) (Absa Bank) BARCLAYS AFRICA GROUP LIMITED – BASEL III PILLAR 3 DISCLOSURE AS AT 31 MARCH 2014 The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks Act). Barclays Africa Group remains capitalised above the regulatory minimum requirements and above our board approved target ranges. As at 31 March 2014, Barclays Africa Group’s Common Equity Tier 1 ratio was 11.6%, Tier 1 ratio was 12.4% and Total Capital Adequacy ratio was 14.6%. The table below represents the capital position for Barclays Africa Group at 31 March 2014 and the comparatives at 31 December 2013. 1 1 31-Mar-2014 31-Dec-2013 Regulatory Capital Position (excluding unappropriated profit) Rm % Rm % Common Equity Tier 1 56 011 9.8% 56 829 10.1% Share capital and premium 6 341 6 168 Reserves 54 114 55 403 Non-controlling interest - ordinary shares 2 160 2 100 Deductions (6 604) (6 842) Additional Tier 1 capital 4 408 0.7% 4 855 0.9% Tier 1 capital 60 419 10.5% 61 684 11.0% Tier 2 capital 12 448 2.2% 14 330 2.6% Total capital 72 867 12.7% 76 014 13.6% Statutory Capital Position (including unappropriated profit) Common Equity Tier 1 66 666 11.6% 67 884 12.1% Tier 1 capital 71 074 12.4% 72 740 13.0% Total capital 83 522 14.6% 87 070 15.5% Board Approved Target Ranges Common Equity Tier 1 9.5% - 11.0% 9.5% - 11.0% 2 Tier 1 Capital 10.5% - 12.0% - Total Capital 12.5% - 14.0% 12.5% - 14.0% Page 1 of 3 31-Mar-2014 Minimum required capital Risk Weighted Assets (RWA) and Minimum Required RWA Pillar 1 Pillar 2a Total 3 Capital per Risk Type Per risk type 8% 2% 10% Rm Rm Rm Rm Credit risk 424 904 33 992 8 498 42 490 Counterparty credit risk 14 327 1 146 287 1 433 Equity investment risk 15 570 1 246 311 1 557 Market risk 14 691 1 175 294 1 469 Operational risk 79 235 6 339 1 585 7 924 Non-customer assets 25 024 2 002 500 2 502 Total RWA and minimum required capital 573 751 45 900 11 475 57 375 31-Dec-2013 Minimum required capital 3 RWA and Minimum Required Capital per Risk Type: RWA Pillar 1 Pillar 2a Total Per risk type 8% 1.5% 9.5% Rm Rm Rm Rm Credit risk 410 461 32 837 6 157 38 994 Counterparty credit risk 13 310 1 065 200 1 265 Equity investment risk 14 624 1 170 219 1 389 Market risk 17 079 1 366 256 1 622 Operational risk 79 235 6 339 1 188 7 527 Non-customer assets 26 224 2 098 393 2 491 Total RWA and Minimum Required Capital 560 933 44 875 8 413 53 288 Absa Bank Absa Bank remains capitalised above the regulatory minimum requirements, with Common Equity Tier 1 and Tier 1 ratios being within, and Total Capital Adequacy ratio being above, our board approved target ranges. As at 31 March 2014, Absa Bank’s Common Equity Tier 1 ratio was 10.4%, Tier 1 ratio was 11.3% and Total Capital Adequacy ratio was 14.4%. The table below represents the capital position for Absa Bank at 31 March 2014 and comparatives at 31 December 2013. 1 1 31-Mar-2014 31-Dec-2013 Regulatory Capital Position (excluding unappropriated profit) Rm % Rm % Common Equity Tier 1 39 014 9.4 39 234 9.7 Share capital and premium 13 766 13 768 Reserves 29 212 30 051 Deductions (3 964) (4 585) Additional Tier 1 capital 3 715 0.9 4 180 1.0 Tier 1 capital 42 729 10.3 43 414 10.7 Tier 2 capital 12 762 3.0 14 476 3.6 Total capital 55 491 13.3 57 890 14.3 Statutory Capital Position (including unappropriated profit) Common Equity Tier 1 43 444 10.4% 44 636 11.0% Tier 1 capital 47 159 11.3% 48 816 12.0% Total capital 59 921 14.4% 63 292 15.6% Board Approved Target Ranges Common Equity Tier 1 9.0% - 10.5% 9.0% - 10.5% Page 2 of 3 2 Tier 1 Capital 10.0% - 11.5% - Total Capital 12.0% - 13.5% 12.0% - 13.5% 31-Mar-2014 Minimum required capital Risk Weighted Assets (RWA) and Minimum Required RWA Pillar 1 Pillar 2a Total 3 Capital per Risk Type Per risk type 8% 2% 10% Rm Rm Rm Rm Credit risk 307 631 24 610 6 153 30 763 Counterparty credit risk 13 943 1 115 279 1 394 Equity investment risk 10 544 843 211 1 054 Market risk 13 554 1 084 271 1 355 Operational risk 57 431 4 594 1 149 5 743 Other 12 797 1 024 256 1 280 Total RWA and minimum required capital 415 900 33 270 8 319 41 589 31-Dec-2013 Minimum required capital 3 RWA and Minimum Required Capital per Risk Type RWA Pillar 1 Pillar 2a Total Per risk type 8% 1.5% 9.5% Rm Rm Rm Rm Credit risk 297 255 23 780 4 459 28 239 Counterparty credit risk 13 171 1 054 197 1 251 Equity investment risk 9 648 772 145 917 Market risk 16 163 1 293 242 1 535 Operational risk 57 431 4 595 861 5 456 Other 12 342 987 185 1 172 Total RWA and Minimum Required Capital 406 010 32 481 6 089 38 570 Notes: 1. The 31 March 2014 figures have not been audited. (31 December 2013 comparatives have been audited). 2. In addition to the 2013 board approved target ranges, Tier 1 board target ranges were approved for 2014. 3. The regulatory minimum Common Equity Tier 1 requirement as at 31 March 2014 is 5.5% (31 December 2013: 4.5%). Johannesburg 2 June 2014 Enquiries: Alan Hartdegen (+2711) 350-2598 E-mail: Alan.Hartdegen@barclaysafrica.com Lead Independent Sponsor: J.P. Morgan Equities South Africa Proprietary Limited Joint Sponsor: Absa Bank Limited Corporate and Investment Banking Division Page 3 of 3 Date: 02/06/2014 03:46:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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