Wrap Text
Audited summary consolidated financial results
for the reporting period ended 31 December 2014
Barclays Africa Group Limited
Barclays Africa Group Limited Audited summary consolidated financial results
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 summary consolidated financial results for the reporting period ended 31 December 2014.
These audited summary consolidated financial results were prepared by Barclays Africa Group Financial Reporting under
the direction and supervision of the Deputy Chief Executive Officer and Group Financial Director, D W P Hodnett CA(SA).
Date of publication: 3 March 2015
Profit and dividend announcement
Salient features
- Diluted headline earnings per share (“HEPS”) increased 10% to 1 537,5 cents.
- Declared a total dividend per share (“DPS”) of 925 cents, up 13%.
- Rest of Africa headline earnings grew 14% to R2,0bn and South Africa rose 9% to R11,1bn.
- Return on equity (“RoE”) improved to 16,7% from 15,5%.
- Pre-provision profit increased 5% to R27,3bn.
- Revenue grew 6% to R63,1bn, as net interest income increased 10% and non-interest income rose 2%, while operating
expenses grew 7% to R35,8bn.
- Credit impairments fell 10% to R6,3bn, resulting in a 1,02% credit loss ratio from 1,20%.
- Barclays Africa Group Limited’s Common Equity Tier 1 (“CET 1”) of 11,9% remains above regulatory requirements and
our board targets.
Overview of results
Barclays Africa Group Limited’s headline earnings increased 10% to R13 032m from R11 843m. Diluted HEPS also grew 10% to
1 537,5 cents from 1 396,6 cents. The Group’s RoE improved to 16,7% from 15,5%, comfortably above its 13,5% cost of equity,
due to slightly higher leverage and a return on assets (“RoA”) of 1,33% from 1,29%. Barclays Africa declared a 13% higher
total ordinary DPS of 925 cents, given its strong CET 1 and internal capital generation. Its net asset value (“NAV”) per share
increased 7% to 9 762 cents.
Pre-provision profit increased 5% to R27,3bn, which was the largest driver of earnings growth. Non-interest revenue
growth of 2% dampened 10% higher net interest income, as the Group’s net interest margin (on average interest-bearing
assets) improved to 4,65% from 4,46%. Loans and advances to customers grew 5% to R636,3bn, while deposits due to customers
increased 6% to R624,9bn. Operating expenses grew 7%, so the Group’s cost-to-income ratio increased to 56,8% from 56,3%.
Credit impairments fell 10%, despite further improvement in non-performing loan (“NPL”) cover and portfolio provisions
increased to 0,70% of performing loans, from 0,64%. NPLs declined to 4,2% of gross loans and advances to customers from
4,7%.
Retail and Business Banking’s (“RBB”) headline earnings increased 9% to R8,3bn, due largely to lower credit impairments.
Headline earnings from Wealth, Investment Management and Insurance (“WIMI”) decreased 3% to R1,4bn, while Corporate
and Investment Bank (“CIB”) grew 16% to R3,9bn.
Rest of Africa revenue rose 9% to account for 19% of the total and its headline earnings contributed 15% of the Group’s after
increasing 14%. The Barclays Africa Limited acquisition was earnings accretive, increasing the Group’s 2014 HEPS by 0,6%.
Operating environment
Global growth recovered steadily in 2014, supported by developed market economies, particularly the United States of America ("US"),
while emerging market growth slowed. As a result, central banks generally maintained their accommodative monetary policy stance.
South Africa’s economic growth moderated to 1,5% in 2014 from 2,2%, given subdued demand from key trading partners, protracted
industrial action in some sectors and electricity supply constraints. Household consumption growth slowed further in 2014. Consumer
appetite for credit waned and credit extension to households fell to 3,4% from 8,3%. The rand depreciated over the year, reaching
a low of 11,76 to the US$ in December after starting the year at 10,48. Growth in the Barclays Africa markets outside South Africa
moderated to an estimated 3,5%, given a more adverse external environment. In spite of resilient economic growth in several of these
countries, fiscal pressures continued to build in a number of markets and rating agencies reacted with a mix of outlook or rating
downgrades.
Group performance
Statement of financial position
Total Group assets increased 3% to R991,4bn at 31 December 2014, predominantly due to 5% higher loans and advances to
customers and 9% growth in investment securities, while loans and advances to banks declined 10%.
Loans and advances to customers
Gross loans and advances to customers increased 5% to R652,5bn. Excluding property loans, gross loans and advances to
customers grew 11%. Retail Banking South Africa’s gross loans rose 2% to R373,5bn, given 10% growth in credit cards and
9% higher instalment credit agreements, while mortgages decreased 2%, in part due to lower NPLs given strong
collections. Business Banking South Africa’s gross loans were flat at R63,0bn, despite 9% lower commercial property finance
("CPF"), as overdrafts and term loans grew 6% and 8% respectively. RBB Rest of Africa’s gross loans increased 8% to R41,8bn,
with 17% higher retail loan sales. CIB’s gross loans increased 13% to R162,9bn, given strong growth in corporate overdrafts,
term loans and Rest of Africa lending.
Funding
The Group maintained its strong liquidity position, growing deposits due to customers 6% to R624,9bn and improving its
loans-to-deposits ratio to 87,1% from 88,3%. Deposits due to customers contributed 80% to total funding from 78%.
Retail Banking South Africa maintained its leading market share, increasing deposits 11% to R150,4bn. Business Banking South
Africa’s deposits grew 10% to R96,8bn, with 48% higher savings and transmission deposits. CIB’s deposits increased 2% to
R316,5bn, as 3% higher cheque account and 56% higher foreign currency deposits offset lower fixed and notice deposits.
Net asset value
The Group’s NAV rose 7% to R82,7bn, as it generated a profit of R13,2bn in the period, from which it paid R7,4bn in
dividends. The Group’s NAV per share also grew 7% to 9 762 cents.
Capital to risk-weighted assets
The Group’s risk-weighted assets ("RWA") increased 10% to R618bn at 31 December 2014, largely due to growth in loans and
advances to customers. Capital levels remain strong and above both board targets and regulatory requirements. Barclays Africa
Group Limited’s CET 1 and Tier 1 capital adequacy ratios were 11,9% and 12,7% respectively (from 12,1% and 13,0%). The
Group generated 2,2% of CET 1 internally during the period. Its total capital ratio was 14,4%, which remains above the
board target of 12,5% to 14,0%. Declaring a total DPS of 925 cents for the period - a dividend cover of 1,7 times - was well
considered, based on the Group’s strong capital position, internal capital generation, strategy and growth plans.
Statement of comprehensive income
Net interest income
Net interest income increased 10% to R35 601m from R32 351m, with average interest-bearing assets growing 6%. The Group’s
net interest margin improved to 4,65% from 4,46%. Loan mix and pricing had a four basis point ("bps") negative impact, due to
a higher proportion of CIB lending. The deposit margin widened 14 bps, given an increase in retail deposits bps and less
reliance on more expensive wholesale funding. Higher South African interest rates increased the endowment contribution on
deposits and equity by four bps. The benefit from structural hedging declined five bps, although R1 494m was released to the
income statement. The cash hedging reserve decreased to R0,35bn after tax from R0,6bn. Although Rest of Africa’s margin
remains well above South Africa’s, declining rates, increased competition and regulatory changes meant it contributed six bps
less to the Group margin. Changing the funding model for foreign currency loans added four bps to the total margin, with a
concomitant reduction in non-interest income, while other hedging gains and treasury activities added eight bps.
Impairment losses on loans and advances
Credit impairments improved 10% to R6 290m from R6 987m, resulting in a 1,02% credit loss ratio from 1,20%. Total NPL
cover improved further to 43,0% from 41,8%. Balance sheet portfolio provisions increased 14% to R4,4bn, or 0,70% of
performing loans from 0,64%. Group NPLs declined 7% to R27,4bn or 4,2% of gross customer loans and advances from 4,7%.
RBB’s credit impairments fell 10% to R6,0bn, a 1,32% credit loss ratio from 1,50%. Retail Banking South Africa’s
charge declined 7% to R4,9bn, as significantly lower mortgage credit impairments outweighed a 19% increase in Card.
Home Loans’ charge decreased 51% to R858m, a 0,38% credit loss ratio, given improved collections processes and the high
quality of new business written in recent years. Mortgage NPLs fell 24% or by R3,2bn to 4,5% of gross loans. NPL cover in
mortgages decreased to 25,3% from 27,8%, due to the 31% reduction in the legal book to R7,0bn. Vehicle and Asset Finance’s
("VAF") loss ratio increased to 1,02% from 0,90%, given higher cover on a performing book. VAF’s NPLs improved to 1,7% of
gross loans and its NPL cover declined to 46,1%, due to accelerating write-offs of aged legal accounts, which reduced the
book’s average age materially.
Credit card’s charge increased 19% to R2 262m from R1 903m, a 6,19% credit loss ratio from 5,63% in 2013 and 7,64% in the
first half. The Edcon portfolio’s charge declined 3% to R1 056m, an 11,50% credit loss ratio, after a far better second half.
The credit loss ratio for the remainder of the Card book was within expectation, given the operating environment and seasoning
of recent growth. Personal Loans’ credit loss ratio increased slightly to 6,50% from 6,23% reflecting improved NPL cover.
Business Banking South Africa’s credit impairments fell 36% to R527m, a 0,87% credit loss ratio from 1,34%, although its
performing loan cover increased further to 1,05%. A 73% lower charge for CPF was the main driver. RBB Rest of Africa’s credit
impairments decreased 2% in constant currency, improving its credit loss ratio to 1,75% from 1,86%. CIB’s 0,16% credit loss
ratio included a 45% lower charge in the Rest of Africa.
Non-interest income
Non-interest income increased 2% to R27 524m from R27 055m to account for 44% of total income. Rest of Africa growth
of 6% to R4,2bn, in part due to rand depreciation, exceeded South Africa’s 1% increase to R23,3bn.
Net fee and commission income rose 1% to R18,7bn, as credit-related fees and commissions increased 1% to R15,8bn.
Electronic banking fees grew 2% to R4,3bn, while merchant income rose 8% to R1,9bn and Trust and other fiduciary services
was flat at R1,4bn. Investment banking fees increased 22% to R0,3bn.
RBB’s non-interest income grew 4% to R16,9bn, 61% of the total. Retail Banking South Africa increased 2% to R11,5bn
and Business Banking South Africa 2% to R3,2bn. Retail Banking South Africa’s 18% growth in merchant acquiring turnover
offset lower customer numbers and transactions shifting to electronic channels and Value Bundles. Retail customer numbers
declined 0,2% in the second half, due to closing Sekulula accounts, which offset growth in the key middle and affluent
segments. Despite electronic banking fees and cash-related fees growing 4% and 5% respectively, migration to digital
channels, 2% lower customer numbers and declining cheque payment volumes constrained Business Banking South Africa’s
non-interest revenue growth to 2%. RBB Rest of Africa’s non-interest income rose 14% to R2,2bn, with rand depreciation and
higher card volumes outweighing pressure on fees and a non-recurring gain in the prior year.
WIMI’s non-interest income increased 2% to R4,6bn, with 1% growth in South Africa dampening the 36% rise in the Rest
of Africa. Net life premiums in South Africa grew 1%, while short-term insurance increased 6%.
CIB’s non-interest income decreased 9% to R6,2bn, largely due to changing its funding model for foreign currency loans
which reduced hedging revenue, negative revaluations and lower realisations in Private Equity and Infrastructure Investments
and subdued transactional income in Corporate. Overall Markets net revenue (including net interest income) grew 17% to R4,8bn,
including 36% higher Fixed Income and Credit, 22% growth in Rest of Africa and a 24% rise in Equities and Prime Services.
Margin compression outweighed 16% volume growth in Foreign Exchange.
Operating expenses
Operating expenses grew 7% to R35 848m from R33 420m, increasing the Group’s cost-to-income ratio to 56,8% from 56,3%.
Rand depreciation accounted for 1% of the increase. South African costs grew 6%, in line with inflation, while the
other African operations increased 10% given continued investment spend. Staff costs rose 10% to R19,3bn to account for 54%
of total expenses. Salaries grew 12% due to more senior and specialist hires, higher wage increases for entry level
employees and large inflationary increases in certain countries. Incentives rose 14%, largely due to 68% higher share-based
payments following a 38% increase in the Group’s share price. Other staff costs declined 21%, due to lower Rest of
Africa restructuring costs.
Non-staff costs increased 4% to R16,5bn. Property-related costs increased 4% to R5,3bn, but declined 1% excluding a
R252m property dilapidation provision reflecting ongoing portfolio optimisation. Total information technology-related
costs increased 3% to R6 258m, 17% of overall costs, due to efficiency gains that supported continued investment.
Depreciation fell 3% due to efficiency gains and realigning computer equipment’s useful lives. Amortisation of intangible assets
increased 7% to R503m. Marketing costs grew 19% to R1 616m, reflecting substantially higher product advertising spend.
Professional fees and communication costs increased 2% and 3% respectively.
RBB and WIMI both increased operating expenses 8% to R26,7bn and R2,9bn respectively, while CIB’s grew 7% to R6,7bn.
In South Africa, RBB and CIB’s costs both rose 7%, while WIMI’s increased 6%. Retail Banking South Africa’s operating
expenses grew 9%, due to investment in marketing and its multi-channel programme and higher fraud losses. Despite investing
in front line staff, Business Banking South Africa’s cost growth was contained to 2%, due to customers migrating to
electronic channels and internal cost efficiencies. RBB Rest of Africa’s constant currency costs grew 6% despite strategic
investments and inflationary pressures.
Taxation
The Group’s taxation expense increased 7% to R5 573m, slightly less than the growth in pre-tax profit, resulting in a
28,3% effective tax rate from 28,9%.
Segment performance
Group earnings remain well diversified by business and product line. RBB accounted for 61% of Group headline earnings
excluding head office, eliminations and other central items, while CIB contributed 29% and WIMI 10%. RBB’s return on
regulatory capital improved to 20,0% from 19,1%.
Retail Banking South Africa
Headline earnings grew 7% to R5 529m largely due to 7% lower credit impairments as pre-provision profits grew 1%. Home Loans’
earnings increased 78% to R1 813m, as credit impairments fell 51% and cost growth was contained to 2%. VAF’s 3% earnings growth to
R1 169m reflects 9% revenue growth offset by 27% higher credit impairments. Card earnings fell 17% to R1 644m, largely due to 19%
higher credit impairments and a R9m loss from the Edcon portfolio. Personal Loans earnings increased 21% to R434m, given improved
pricing and cost containment. Transactional and Deposits earnings were flat at R2 843m reflecting moderate revenue growth. Losses
in the ‘Other’ segment, which is largely central costs, increased 10% to R2 374m (2013: R2 164m) due to higher spend on marketing
and the multi-channel programme. Retail Banking South Africa accounted for 41% of Group headline earnings excluding head office,
eliminations and other central items.
Business Banking South Africa
Headline earnings increased 34% to R2 002m, reflecting 25% growth in Business Banking excluding equities and a 59%
lower loss in its non-core equity portfolio. A 36% decline in credit impairments, 10% deposit growth and cost containment
outweighed flat loans and 2% non-interest revenue growth. Business Banking South Africa generated 15% of overall earnings
excluding head office, eliminations and other central items.
Retail and Business Banking Rest of Africa
Headline earnings decreased 19% to R785m, due to margin compression, continued investment spend, non-recurring gains
in the base and a higher tax charge. Non-interest income grew 14% in part due to rand depreciation. RBB Rest of Africa
constituted 6% of Group headline earnings excluding head office, eliminations and other central items.
Corporate and Investment Bank
Headline earnings rose 16% to R3 887m, reflecting 10% higher revenue on 13% loan growth and a 35 bps wider margin. Corporate
headline earnings grew 24% to R1 639m and Investment Bank’s 11% to R2 248m. Markets net revenue increased 17%, with strong
growth in Fixed Income and Credit, Equities and Prime Services and Rest of Africa. Private equity net revenue declined due to
negative revaluations and lower realisations. Corporate’s net revenue grew 12% to R5 935m and Investment Banking 11% to R1 719m.
CIB’s South African earnings grew 9%, while Rest of Africa increased 38%. CIB’s return on regulatory capital was 19,6%
from 18,3%.
Wealth, Investment Management and Insurance
Headline earnings declined 3% to R1 383m, while net operating income was flat at R1 796m. Life Insurance headline earnings
fell 9% to R694m, with 4% higher net premium income, a non-recurring gain in 2013 and lower investment returns. Its embedded
value of new business grew 11% and its return on embedded value was 31,1%. Wealth and Investment Management’s headline earnings
increased 3% to R475m given 4% revenue growth. Short-term Insurance earnings increased 32% to R204m as its underwriting margin
and loss ratio improved. Fiduciary Services earnings grew 16% to R117m, while Distribution lost R56m because of investments in
sales capacity and introduction of a new operating model. Rest of Africa headline earnings grew 36% to R49m and South Africa
declined 4% to R1 334m. WIMI’s RoE declined to 23,1% from 24,7%.
Prospects
While volatility will persist, we expect the recovery in the global economy to continue in 2015 as uncertainty around US Federal
Reserve tapering diminishes, fiscal headwinds abate and monetary policy gains traction. We expect global GDP to grow 3,5%.
South Africa growth will likely recover from the strike-ridden 2014, as the impact of modest fiscal tightening is offset by a boost
to household disposable income benefits from lower petrol prices. Electricity shortages remain a binding supply-side constraint on
growth and means that there is downside risk to our 2,1% GDP growth forecast. The South African Reserve Bank ("SARB") is likely to
keep rates on hold for some time, given the current domestic inflation dynamics.
Significantly weaker commodity markets pose a threat to the growth outlook of our markets outside South Africa, although we expect
growth to improve to 5,0% from 3,5%.
With South African interest rates likely to remain low for longer, we do not expect the Group’s net interest margin to improve
further in 2015, although its loan growth should increase. Focus on revenue growth and continued cost management should improve
the Group’s cost-to-income ratio, while its credit loss ratio has probably troughed. These factors should increase our RoE
in 2015.
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, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by the
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, fair value measurements, impairment of available-for-sale financial assets, consolidation of structured or
sponsored entities, post-retirement benefits, provisions, income taxes, share-based payments, liabilities arising from claims made
under short-term insurance contracts, liabilities arising from claims made under life insurance contracts 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 2013 except for:
- Business portfolio changes between operating segments;
- Internal accounting policy changes; and
- Implementation of amended IFRS standards specifically IAS 32 Offsetting Financial Assets and Financial Liabilities.
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 summary
consolidated financial results. The auditors have expressed an unqualified audit opinion on the consolidated annual
financial statements. The summary consolidated financial results comprise the summary consolidated statement of financial
position at 31 December 2014, summary consolidated statement of comprehensive income, summary consolidated statement of
changes in equity and summary 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 summary consolidated financial results are extracted from audited information, but is not itself audited. The
directors take full responsibility for the preparation of the summary 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 2014 and the date of
authorisation of these Summary 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
3 March 2015
Declaration of final ordinary dividend number 57
Shareholders are advised that an ordinary dividend of 525,00000 cents per ordinary share was declared today,
3 March 2015, for the period ended 31 December 2014. The ordinary dividend is payable to shareholders recorded in the
register of members of the Company at the close of business on 17 April 2015. 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 local dividends withholding tax at a rate of 15%. 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 percent (15%).
- The gross local dividend amount is 525,00000 cents per ordinary share for shareholders exempt from the dividend
tax.
- The net local dividend amount is 446,25000 cents per ordinary share for shareholders liable to pay the dividend
tax.
- Barclays Africa Group Limited currently has 847 750 679 ordinary shares in issue (includes 880 000 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 Friday, 10 April 2015
Shares commence trading ex dividend Monday, 13 April 2015
Record date Friday, 17 April 2015
Payment date Monday, 20 April 2015
Share certificates may not be dematerialised or rematerialised between Monday, 13 April 2015 and Friday,
17 April 2015, both dates inclusive.
On 20 April 2015 the dividend will be electronically transferred to the bank accounts of certificated shareholders,
who use this facility.
The accounts of those shareholders who have dematerialised their shares (which are held at their participant or
broker) will be credited on 20 April 2015.
On behalf of the board
N R Drutman
Group Company Secretary
Johannesburg
3 March 2015
Barclays Africa Group Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Barclays
Towers West, 15 Troye Street, Johannesburg, 2001.
Summary consolidated statement of financial position
as at 31 December
2014 2013(1)
(Audited) (Audited)
Note Rm Rm
Assets
Cash, cash balances and balances with central banks 50 335 50 130
Investment securities 85 886 79 004
Loans and advances to banks 72 225 80 622
Trading portfolio assets 90 498 88 761
Hedging portfolio assets 2 350 3 357
Other assets 15 514 15 829
Current tax assets 381 529
Non-current assets held for sale 1 972 4 814
Loans and advances to customers 636 326 606 223
Reinsurance assets 731 870
Investments linked to investment contracts 19 317 16 134
Investments in associates and joint ventures 845 694
Investment properties 727 1 089
Property and equipment 11 177 10 679
Goodwill and intangible assets 3 219 3 141
Deferred tax assets 911 987
Total assets 991 414 962 863
Liabilities
Deposits from banks 52 977 70 791
Trading portfolio liabilities 49 772 52 128
Hedging portfolio liabilities 2 577 2 391
Other liabilities 21 079 19 775
Provisions 2 943 2 460
Current tax liabilities 54 173
Non-current liabilities held for sale 1 372 1 651
Deposits due to customers 624 886 588 897
Debt securities in issue 106 098 97 829
Liabilities under investment contracts 23 299 19 773
Policyholder liabilities under insurance contracts 3 871 3 958
Borrowed funds 2 11 208 16 525
Deferred tax liabilities 1 333 1 311
Total liabilities 900 469 877 662
Equity
Capital and reserves
Attributable to ordinary equity holders:
Share capital 1 694 1 695
Share premium 4 548 4 474
Retained earnings 70 237 64 701
Other reserves 6 211 6 447
82 690 77 317
Non-controlling interest - ordinary shares 3 611 3 240
Non-controlling interest - preference shares 4 644 4 644
Total equity 90 945 85 201
Total liabilities and equity 991 414 962 863
Note
(1) Restated, refer to note 14 for reporting changes.
Summary consolidated statement of comprehensive income
for the reporting period ended 31 December
2014 2013
(Audited) (Audited)
Note Rm Rm
Net interest income 35 601 32 351
Interest and similar income 65 646 60 232
Interest expense and similar charges (30 045) (27 881)
Non-interest income 27 524 27 055
Net fee and commission income 18 667 18 554
Fee and commission income 21 598 21 348
Fee and commission expense (2 931) (2 794)
Net insurance premium income 6 014 5 686
Net insurance claims and benefits incurred on
insurance contracts (3 044) (2 819)
Changes in investment and insurance contract liabilities (752) (2 457)
Gains and losses from banking and trading activities 4 373 4 361
Gains and losses from investment activities 1 133 2 831
Other operating income 1 133 899
Total income 63 125 59 406
Impairment losses on loans and advances (6 290) (6 987)
Operating income before operating expenditure 56 835 52 419
Operating expenses (35 848) (33 420)
Other expenses (1 412) (1 033)
Other impairments 3 (429) (33)
Indirect taxation (983) (1 000)
Share of post-tax results of associates and joint ventures 142 130
Operating profit before income tax 19 717 18 096
Taxation expense (5 573) (5 222)
Profit for the reporting period 14 144 12 874
Profit attributable to:
Ordinary equity holders 13 216 11 981
Non-controlling interest - ordinary shares 623 599
Non-controlling interest - preference shares 305 294
14 144 12 874
Earnings per share
Basic earnings per share (cents) 1 560,1 1 414,0
Diluted basic earnings per share (cents) 1 559,2 1 412,9
2014 2013
(Audited) (Audited)
Rm Rm
Profit for the reporting period 14 144 12 874
Other comprehensive income
Items that will not be reclassified to profit or loss
Movement in retirement benefit fund assets and liabilities 62 (324)
Increase/(decrease) in retirement benefit surplus 149 (92)
Increase in retirement benefit deficit (86) (229)
Deferred tax (1) (3)
Total items that will not be reclassified to profit or loss 62 (324)
Items that are or may be subsequently reclassified to profit or loss
Movement in foreign currency translation reserve (199) 2 986
Differences in translation of foreign operations 198 2 986
Gains released to profit or loss (397) -
Movement in cash flow hedging reserve (251) (1 822)
Fair value gains/(losses) arising during the reporting period 1 094 (903)
Amount removed from other comprehensive income and recognised in
profit or loss (1 443) (1 629)
Deferred tax 98 710
Movement in available-for-sale reserve (67) 107
Fair value (losses)/gains arising during the reporting period (142) 131
Amortisation of government bonds - release to profit or loss 44 10
Deferred tax 31 (34)
Total items that are or may be subsequently reclassified to profit or loss (517) 1 271
Total comprehensive income for the reporting period 13 689 13 821
Total comprehensive income attributable to:
Ordinary equity holders 12 682 12 610
Non-controlling interest - ordinary shares 702 917
Non-controlling interest - preference shares 305 294
13 689 13 821
Summary consolidated statement of changes in equity
for the reporting period ended 31 December
2014
(Audited)
Total
equity 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 77 317 3 240 4 644 85 201
Total comprehensive income 12 682 702 305 13 689
Profit for the reporting period 13 216 623 305 14 144
Other comprehensive income (534) 79 - (455)
Dividends paid during the reporting period (refer to note 5) (7 365) (311) (305) (7 981)
Purchase of Group shares in respect of equity-settled share-based
payment arrangements (46) - - (46)
Elimination of movement in treasury shares held by Group entities 96 - - 96
Movement in share-based payment reserve 34 - - 34
Transfer from share-based payment reserve (23) - - (23)
Transfer to share capital and share premium 23 - - 23
Value of employee services 34 - - 34
Movement in general credit risk reserve - - - -
Transfer from retained earnings (157) - - (157)
Transfer to general credit risk reserve 157 - - 157
Movement in foreign insurance subsidiary regulatory reserve - - - -
Transfer from retained earnings (4) - - (4)
Transfer to foreign insurance subsidiary regulatory reserve 4 - - 4
Share of post-tax results of associates and joint ventures - - - -
Transfer from retained earnings (142) - - (142)
Transfer to associates’ and joint ventures’ reserve 142 - - 142
Disposal of subsidiary(1) - (48) - (48)
Transfer to non-controlling interest (28) 28 - -
Balance at the end of the reporting period 82 690 3 611 4 644 90 945
Note
(1) The Group sold its investment in a non-core subsidiary on 2 January 2014 and the subsidiary has been derecognised.
2013
(Audited)
Total
equity 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 (refer to note 5) (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 arrangements (76) - - (76)
Elimination of 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 general 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) 99 (36) - 63
Transaction costs related to shares issued on the acquisition of
Barclays Africa Limited (99) - - (99)
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,
has been 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 has resulted in a net movement recognised in share
premium for each retrospective reporting period to date of acquisition.
(2) The Group increased its shareholding in National Bank of Commerce 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 these shares
from BAGL.
Summary consolidated statement of cash flows
for the reporting period ended 31 December
2014 2013(1)
(Audited) (Audited)
Note Rm Rm
Net cash generated from operating activities 18 233 20 358
Net cash utilised in investing activities (5 462) (4 164)
Net cash utilised in financing activities (12 055) (14 616)
Net increase in cash and cash equivalents 716 1 578
Cash and cash equivalents at the beginning of the reporting period 1 15 854 13 985
Effect of foreign exchange rate movements on cash and cash equivalents 56 291
Cash and cash equivalents at the end of the reporting period 2 16 626 15 854
Notes to the summary 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) 12 653 11 085
Loans and advances to banks(3) 3 201 2 900
15 854 13 985
2. Cash and cash equivalents at the end of the
reporting period
Cash, cash balances and balances with central banks(2) 12 903 12 653
Loans and advances to banks(3) 3 723 3 201
16 626 15 854
Notes
(1) Restated, refer to note 14 for reporting changes.
(2) Includes coins and bank notes, which are part of “Cash, cash balances and balances with central banks”.
(3) Includes call advances, which are used as working capital by the Group and are a component of other advances
within “Loans and advances to banks”.
Summary notes to the consolidated financial results
for the reporting period ended 31 December
1. Non-current assets and non-current liabilities held for sale
The following transfers to non-current assets held for sale were effected:
- RBB transferred investment securities and investment properties with a carrying value of R29m (2013: R4m)
and R376m (2013: R212m) respectively.
- The Head Office and other operations segment transferred property and equipment with a carrying value of R3m
(2013: R209m).
The fair value adjustment of investment securities relating to assets within RBB was classified as held for sale
during 2012. At the reporting date, these investment securities remain classified as non-current assets held for
sale as the delay of the disposal is as a consequence of events outside the Group’s control. The Group remains,
however, committed to dispose of the asset in 2015.
All the above assets are expected to be disposed of in 2015.
CPF Equity division in RBB disposed of a non-core subsidiary with investment property with a carrying value of
R1 315m (2013: Rnil). The remaining disposals of non-current assets and liabilities held for sale occurred in RBB,
WIMI and Head Office and other operations segments. The profit on disposal of the non-current assets held for sale
has been recognised in Other operating income in the statement of comprehensive income.
The General Fund was amalgamated with the Absa Select Equity Fund in WIMI, and therefore ceased to exist as an
independent fund. This resulted in the derecognition of the related financial assets of R2 324m (2013: Rnil) and
liabilities of R973m (2013: Rnil) of the Absa General Fund, previously classified as non-current assets and liabilities
held for sale in the previous financial reporting period.
2. Borrowed funds
During the reporting period, R531m (2013: Rnil) of subordinated notes were issued and R4 966m (2013: R1 886m) were redeemed.
3. Other impairments
2014 2013
(Audited) (Audited)
Rm Rm
Financial instruments 20 28
Other 409 5
Goodwill 1 -
Intangible assets 146 -
Investments in associates and joint ventures 2 2
Property and equipment 260 -
Repossessed properties - 3
429 33
4. Headline earnings
2014 2013
(Audited) (Audited)
Gross Net(1) Gross Net(1)
Headline earnings Rm Rm Rm Rm
Headline earnings is determined as follows:
Profit attributable to ordinary equity holders 13 216 11 981
Total headline earnings adjustment: (184) (138)
IFRS 3 - Goodwill impairment 1 1 - -
IFRS 5 - Gains on disposal of non-current assets held for sale (97) (86) (171) (138)
IAS 16 - (Profit)/loss on disposal of property and equipment (19) (15) 5 4
IAS 21 - Recycled foreign currency translation reserve (397) (397) - -
IAS 27 - (Profit)/loss on disposal of subsidiary (44) (35) 8 8
IAS 28 - Impairment of investments in associates and joint ventures 2 2 2 2
IAS 36 - Impairment of property and equipment 260 189 - -
IAS 36 and IAS 38 - Loss on disposal and impairment of intangible assets 148 107 1 -
IAS 39 - Release of available-for-sale reserves 44 31 10 7
IAS 39 - Disposal and impairment of available-for-sale assets - - 6 4
IAS 40 - Change in fair value of investment properties 18 19 (29) (25)
Headline earnings/diluted headline earnings 13 032 11 843
Headline earnings per share (cents) 1 538,4 1 397,7
Diluted headline earnings per share (cents) 1 537,5 1 396,6
Note
(1) The net amount is reflected after taxation and non-controlling interest.
5. Dividends per share
2014 2013
(Audited) (Audited)
Rm Rm
Dividends declared to ordinary equity holders(1)
Interim dividend net of treasury shares (30 July 2014: 400 cents) (30 July 2013: 350 cents) 3 384 2 512
Special dividend net of treasury shares (30 July 2013: 708 cents)(2) - 5 075
Final dividend net of treasury shares (3 March 2015: 525,00000 cents) (11 February 2014: 470 cents) 4 451 3 981
7 835 11 568
Dividends declared to non-controlling preference equity holders
Interim dividend (30 July 2014: 3 197,4658 cents) (30 July 2013: 2 999,4521 cents) 158 148
Final dividend (3 March 2015: 3 210,8904 cents) (11 February 2014: 2 979,3151 cents) 159 147
317 295
Dividends paid to ordinary equity holders(1)
Final dividend net of treasury shares (11 February 2014: 470 cents) (12 February 2013: 369 cents) 3 981 2 645
Interim dividend net of treasury shares (30 July 2014: 400 cents) (30 July 2013: 350 cents) 3 384 2 965
Special dividend net of treasury shares (30 July 2013: 708 cents)(2) - 5 992
7 365 11 602
Dividends paid to non-controlling preference equity holders
Final dividend (11 February 2014: 2 979,3151 cents) (12 February 2013: 2 950,5479 cents) 147 146
Interim dividend (30 July 2014: 3 197,4658 cents) (30 July 2013: 2 999,4521 cents) 158 148
305 294
Notes
(1) The dividends paid on treasury shares are calculated on payment date.
(2) Dividend amount was calculated on the number of shares in issue. It excluded the shares that were issued on 31 July 2013
for consideration of the acquisition of Barclays Africa Limited.
6. Acquisitions of businesses and other similar transactions
Acquisitions of businesses during the current reporting period
There were no acquisitions of businesses during the current and the previous reporting periods.
7. Related parties
There were no one-off significant transactions in the normal course of business with related parties of the Group
during the reporting period.
8. Financial guarantee contracts
2014 2013
(Audited) (Audited)
Rm Rm
Financial guarantee contracts 96 96
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 off-statement of financial
position exposure.
During the current reporting period, all financial guarantee contracts were reassessed and as a consequence the
disclosure has been refined.
The comparatives have been restated from R243m to R96m.
9. Commitments
2014 2013
(Audited) (Audited)
Rm Rm
Authorised capital expenditure
Contracted but not provided for 1 675 745
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.
Operating lease payments due
No later than one year 856 847
Later than one year and no later than five years 1 631 1 521
Later than five years 709 296
3 196 2 664
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.
Sponsorship payments due
No later than one year 282 272
Later than one year and no later than five years 307 541
589 813
The Group has sponsorship commitments in respect of sports, arts and culture.
Other commitments
No later than one year 991 -
The SARB announced in August 2014 that African Bank Investments Limited (“ABIL”) would be placed under curatorship.
A consortium of six South African banks (including Barclays Africa Group Limited) and the Public Investment
Corporation (“PIC”) have underwritten R5bn respectively. 50% of the amount underwritten by the banks is guaranteed
by the SARB, of which Barclays Africa Group Limited contributed R991m (pre the SARB guarantee). The value of the
amount to be underwritten was determined with reference to the respective underwriter’s proportion of total
Tier 1 capital of the consortium as at 30 June 2014.
10. Contingencies
2014 2013
(Audited) (Audited)
Rm Rm
Guarantees 34 011 21 215
Irrevocable debt facilities 125 334 127 218
Irrevocable equity facilities 366 400
Letters of credit 4 827 6 402
Other contingencies 3 774 5 674
168 312 160 909
Guarantees include performance and payment guarantee contracts.
During the reporting period, terms and conditions associated with unutilised customer facilities were reviewed and
confirmed to be irrevocable in nature. These facilities are now disclosed as irrevocable debt facilities comparatives which
were previously reported as R49bn, have been restated to R127bn.
Irrevocable facilities are commitments to extend credit where the Group does not have the right to immediately
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.
Legal proceedings
The Group is engaged in various litigation proceedings involving claims by and against it, which arise in the ordinary
course of business. The Group does not expect the ultimate resolution of any proceedings, to which the Group is party,
to have a significant adverse effect on the financial statements of the Group. Provision is made for all liabilities
which are expected to materialise.
Regulatory matters
The scale of regulatory change remains challenging and the global financial crisis is resulting in a significant
tightening of regulation and changes to regulatory structures globally, especially for companies that are deemed to be of
systemic importance. Concurrently, there is continuing political and regulatory scrutiny of the operation of the banking
and consumer credit industries globally which, in some cases, is leading to increased regulation. The nature and impact of
future changes in the legal framework, policies and regulatory action cannot currently be fully predicted and are
beyond the Group’s control, but especially in the area of banking and insurance regulation, are likely to have an impact on
the Group’s businesses and earnings. The Group is continuously evaluating its compliance programmes and controls in
general. As a consequence of these compliance programmes and controls, including monitoring and review activities, the Group
has also adopted appropriate remedial and/or mitigating steps, where necessary or advisable, and made disclosures on
material findings as and when appropriate.
Income taxes
The Group is subject to income taxes in numerous jurisdictions and the calculation of the Group’s tax charge and
worldwide provisions for income taxes necessarily involves a degree of estimation and judgement. There are many transactions
and calculations for which the ultimate tax treatment is uncertain or in respect of which the relevant tax authorities
may have indicated disagreement with the Group’s treatment and accordingly the final tax charge cannot be determined
until resolution has been reached with the relevant tax authority. The Group recognises liabilities for anticipated tax
audit issues based on estimates of whether additional taxes will be due after taking into account external advice where
appropriate. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the current and deferred income tax assets and liabilities in the reporting period in which such
determination is made. These risks are managed in accordance with the Group’s Tax Risk Framework.
11. Segment reporting
2014 2013(1)
(Audited) (Audited)
Rm Rm
11.1 Headline earnings contribution by segment
RBB 8 316 7 618
CIB 3 887 3 348
WIMI 1 383 1 420
Head Office and other operations (554) (543)
Total headline earnings 13 032 11 843
Note
(1) Operational changes, management changes and associated changes to the way
in which the Chief Operating Decision Maker (“CODM”) views the performance
of each business segment, have resulted in the reallocation of earnings,
assets and liabilities between operating segments.
2014 2013(1)
(Audited) (Audited)
Rm Rm
11.2 Total income by segment
RBB 45 816 43 684
CIB 12 610 11 430
WIMI 5 009 4 880
Head Office and other operations (310) (588)
Total income 63 125 59 406
Note
(1) Operational changes, management changes and associated changes
to the way in which the CODM views the performance of each
business segment, have resulted in the reallocation of earnings,
assets and liabilities between operating segments.
2014 2013(1)
(Audited) (Audited)
Rm Rm
11.3 Total internal income by segment
RBB (9 275) (8 534)
CIB 11 632 11 512
WIMI (752) (804)
Head Office and other operations (1 605) (2 174)
Total internal income - -
Note
(1) Operational changes, management changes and associated changes
to the way in which the CODM views the performance of each business
segment, have resulted in the reallocation of earnings, assets and
liabilities between operating segments.
2014 2013(1)
(Audited) (Audited)
Rm Rm
11.4 Total assets by segment
RBB 774 359 754 557
CIB 547 464 535 820
WIMI 46 847 44 890
Head Office and other operations (377 256) (372 404)
Total assets 991 414 962 863
Note
(1) Operational changes, management changes and associated
changes to the way in which the “CODM” views the
performance of each business segment, have resulted in
the reallocation of earnings, assets and liabilities
between operating segments.
2014 2013(1)
(Audited) (Audited)
Rm Rm
11.5 Total liabilities by segment
RBB 752 914 733 161
CIB 536 281 527 762
WIMI 41 721 39 888
Head Office and other operations (430 447) (423 149)
Total liabilities 900 469 877 662
Note
(1) Operational changes, management changes and associated changes to
the way in which the CODM views the performance of each business
segment, have resulted in the reallocation of earnings, assets and
liabilities between operating segments.
12. Assets and liabilities not held at fair value
The following table summarises the carrying amounts and fair values of those assets and liabilities not held at fair
value:
2014 2013 (1)
(Audited) (Audited)
Carrying Carrying
value Fair value value Fair value
Rm Rm Rm Rm
Financial assets
Balances with other central banks 9 401 9 401 7 350 7 350
Balances with the SARB 12 621 12 621 12 417 12 417
Coins and bank notes 12 903 12 903 12 652 12 652
Money market assets 21 21 6 6
Cash, cash balances and balances with central banks 34 946 34 946 32 425 32 425
Investment securities 110 110 - -
Loans and advances to banks 51 702 51 647 74 482 74 482
Other assets 12 835 13 124 13 486 13 486
Retail Banking South Africa 362 693 362 266 354 622 354 460
Credit cards 36 484 36 484 34 070 34 070
Instalment credit agreements 70 557 69 995 64 571 64 268
Loans to associates and joint ventures 13 012 13 012 10 287 10 287
Mortgages 224 043 224 087 227 593 227 658
Other loans and advances 410 410 262 262
Overdrafts 2 222 2 222 2 015 2 015
Personal and term loans 15 965 16 056 15 824 15 900
Business Banking South Africa 60 863 60 861 60 036 60 206
Loans to associate and joint ventures 305 305 559 559
Mortgages (including CPF) 29 856 29 852 30 718 30 888
Overdrafts 18 083 18 063 17 075 17 075
Term loans 12 619 12 641 11 684 11 684
RBB Rest of Africa 39 489 39 489 36 351 36 351
CIB 151 368 150 976 133 698 127 894
WIMI 10 507 10 507 10 885 10 885
Head Office and other operations 511 512 83 83
Loans and advances to customers
- net of impairment losses 625 431 624 611 595 675 589 879
Total assets 725 024 724 438 716 068 710 272
Financial liabilities
Deposits from banks 36 476 37 816 61 471 58 259
Other liabilities 16 525 16 532 15 778 15 310
Call deposits 56 991 56 991 52 843 52 843
Cheque account deposits 186 932 186 932 175 493 175 493
Credit card deposits 1 932 1 932 1 914 1 914
Fixed deposits 145 623 146 349 151 797 151 837
Foreign currency deposits 24 976 24 976 17 456 17 456
Notice deposits 49 764 49 843 56 348 56 350
Other deposits 11 437 11 437 10 822 10 822
Savings and transmission deposits 128 025 128 025 104 362 104 362
Deposits due to customers 605 680 606 485 571 035 571 077
Debt securities in issue 100 986 101 351 94 286 94 324
Borrowed funds 11 208 11 559 16 525 17 069
Total liabilities 770 875 773 743 759 095 756 039
Note
(1) Restated, refer to note 14 for reporting changes.
13. Assets and liabilities held at fair value
13.1 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 team (“IVC”), which is independent from the front office.
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.
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 independently verifies the results of trading and investment operations and all significant fair value measurements.
They source independent data from external independent parties, as well as internal risk areas when performing independent
price verification for all financial instruments held at fair value. They also assess and document the inputs obtained from
external independent sources to measure the fair value which supports conclusions that valuations are performed in accordance
with International Financial Reporting Standards (“IFRS”) and internal valuation policies.
Investment properties
The fair value of investment properties is determined based on the most appropriate methodology applicable to the
specific 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.
Where possible the fair value of the Group’s investment properties is determined through valuations performed by external
independent valuators. When the Group’s internal valuations are different to that of the external independent valuers,
detailed procedures are performed to substantiate the differences, whereby the IVC verifies the procedures performed by front
office and considers the appropriateness of any differences to external independent valuations.
13.2 Fair value measurements
Valuation inputs
IFRS 13 requires an entity to classify fair values measured and/or disclosed according to a hierarchy that reflects
the significance of observable market inputs. The three levels of the fair value hierarchy are defined as follows.
Quoted market prices - Level 1
Fair values are classified as Level 1 if they have been determined using observable prices in an active market. Such
fair values are determined 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. An active market is one in which transactions occur with sufficient volume and
frequency to provide pricing information on an ongoing basis.
Valuation technique using observable inputs - Level 2
Fair values classified as Level 2 have been determined using models for which inputs are observable in an active
market.
A valuation input is considered observable if it can be directly observed from transactions in an active market, or if
there is compelling external evidence demonstrating an executable exit price.
Valuation technique using significant unobservable inputs - Level 3
Fair values are classified as Level 3 if their determination incorporates significant inputs that are not based on
observable market data (unobservable inputs). An input is deemed significant if it is shown to contribute more than 10%
to the fair value of an item. Unobservable input levels are generally determined based on observable inputs of a similar
nature, historical observations or other analytical techniques.
Judgemental inputs on valuation of principal instruments
The following summary sets out the principal instruments whose valuation may involve judgemental inputs:
Debt securities and treasury and other eligible bills
These instruments are valued, based on quoted market prices from an exchange, dealer, broker, industry group or pricing
service, where available. Where unavailable, fair value is determined by reference to quoted market prices for similar
instruments or, in the case of certain mortgage-backed securities, valuation techniques using inputs derived from
observable market data, and, where relevant, assumptions in respect of unobservable inputs.
Equity instruments
Equity instruments are valued, based on quoted market prices from an exchange, dealer, broker, industry group or
pricing service, where available. Where unavailable, fair value is determined by reference to quoted market prices for
similar instruments or by using valuation techniques using inputs derived from observable market data, and, where relevant,
assumptions in respect of unobservable inputs.
Also included in equity instruments are non-public investments, which include investments in venture capital organisations.
The fair value of these investments is determined using appropriate valuation methodologies which, dependent on the nature
of the investment, may include discounted cash flow analysis, enterprise value comparisons with similar companies and
price:earnings comparisons. For each investment, the relevant methodology is applied consistently over time.
Derivatives
Derivative contracts can be exchange-traded or traded Over The Counter (“OTC”) derivatives. OTC derivative contracts
include forward, swap and option contracts related to interest rates, bonds, foreign currencies, credit spreads, equity
prices and commodity prices or indices on these instruments. Fair values of derivatives are obtained from quoted market
prices, dealer price quotations, discounted cash flow and option pricing models.
Loans and advances
The disclosed fair value of loans and advances to banks and customers is determined by discounting contractual cash
flows. Discount factors are determined using the relevant forward base rates (as at valuation date) plus the originally
priced spread. Where a significant change in credit risk has occurred, an updated spread is used to reflect valuation date
pricing. Behavioural cash flow profiles, instead of contractual cash flow profiles, are used to determine expected cash
flows where contractual cash flow profiles would provide an inaccurate fair value.
Deposits, debt securities in issue and borrowed funds
Deposits, debt securities in issue and borrowed funds are valued using discounted cash flow models, applying rates
currently offered for issuances with similar characteristics. Where these instruments include embedded derivatives, the
embedded derivative component is valued using the methodology for derivatives.
13.3 Fair value adjustments
The main valuation adjustments required to arrive at a fair value are described as follows:
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
unless the relevant mid prices are reflective of the appropriate exit price as a practical expedient given the nature of the
underlying instruments. 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 adjustment is incorporated into uncollateralised derivative valuations to reflect the impact on fair
value of counterparty credit risk, 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 the 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.
13.4 Fair value hierarchy
The following table 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.
2014 2013(1)
(Audited) (Audited)
Recurring fair value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
measurements Rm Rm Rm Rm Rm Rm Rm Rm
Financial assets
Cash, cash balances and balances
with central banks 4 327 9 730 1 332 15 389 7 976 7 796 1 933 17 705
Investment securities 55 402 25 239 5 135 85 776 70 390 3 926 4 688 79 004
Loans and advances to banks - 20 523 - 20 523 - 6 140 - 6 140
Trading and hedging portfolio assets 34 658 55 327 1 162 91 147 36 263 53 738 1 037 91 038
Debt instruments 24 459 6 221 870 31 550 24 049 530 873 25 452
Derivative assets 5 42 367 292 42 664 - 48 523 164 48 687
Commodity derivatives 2 313 - 315 - 336 - 336
Credit derivatives - 284 91 375 - 258 11 269
Equity derivatives 3 1 018 29 1 050 - 833 - 833
Foreign exchange derivatives - 8 378 12 8 390 - 8 624 39 8 663
Interest rate derivatives - 32 374 160 32 534 - 38 472 114 38 586
Equity instruments 9 591 321 - 9 912 12 176 77 - 12 253
Money market assets 603 6 418 - 7 021 38 4 608 - 4 646
Other assets 7 1 17 25 - - 16 16
Loans and advances to customers 4 6 160 4 731 10 895 - 4 071 6 477 10 548
Investments linked to
investment contracts 17 014 2 302 1 19 317 12 895 3 230 9 16 134
Total financial assets 111 412 119 282 12 378 243 072 127 524 78 901 14 160 220 585
Financial liabilities
Deposits from banks - 16 501 - 16 501 - 9 320 - 9 320
Trading and hedging
portfolio liabilities 7 928 44 101 320 52 349 3 741 50 229 549 54 519
Derivative liabilities - 44 101 320 44 421 - 50 229 549 50 778
Commodity derivatives - 268 - 268 - 302 - 302
Credit derivatives - 352 39 391 - 478 45 523
Equity derivatives - 1 297 198 1 495 - 1 720 306 2 026
Foreign exchange derivatives - 10 001 7 10 008 - 8 280 57 8 337
Interest rate derivatives - 32 183 76 32 259 - 39 449 141 39 590
Short positions 7 928 - - 7 928 3 741 - - 3 741
Other liabilities - 23 28 51 - 36 - 36
Deposits due to customers 80 13 596 5 530 19 206 - 10 724 7 138 17 862
Debt securities in issue 179 4 891 42 5 112 - 3 508 35 3 543
Liabilities under investment - 20 277 3 022 23 299 - 19 773 - 19 773
contracts
Total financial liabilities 8 187 99 389 8 942 116 518 3 741 93 590 7 722 105 053
Non-financial assets
Commodity 1 701 - - 1 701 1 080 - - 1 080
Investment properties - - 727 727 - - 1 089 1 089
Non-recurring fair value measurements
Non-current assets held for sale(2) - - 972 972 2 424 1 297 1 093 4 814
Non-current liabilities held for sale(2) - - 372 372 975 175 501 1 651
Notes
(1) Restated, refer to note 14 for reporting changes.
(2) Includes certain items classified in terms of the requirements of IFRS 5 which are measured in terms of their
respective standards.
13.5 Measurement of assets and liabilities categorised at Level 2
The following table presents information about the valuation techniques and significant observable inputs used in
measuring assets and liabilities categorised as Level 2 in the fair value hierarchy.
Category of asset/liability Valuation techniques applied Significant observable inputs
Cash, cash balances and balances with Discounted cash flow models Underlying price of market traded
central banks instruments and/or interest rates
Loans and advances to banks Discounted cash flow models Interest rate and/or money market curves
Trading and hedging portfolio assets
and liabilities
Debt instruments Discounted cash flow models Underlying price of market traded
instruments and/or interest rates
Derivative assets
Commodity derivatives Discounted cash flow model, option Spot price of physical or futures,
pricing, futures pricing and/or interest rates and/or volatility
Exchange Traded Fund (“ETF”) models
Credit derivatives Discounted cash flow and/or credit Interest rate, recovery rate, credit
default swap (hazard rate) models spread and/or quanto ratio
Equity derivatives Discounted cash flow, option pricing Spot price, interest rate, volatility
and/or futures pricing models and/or dividend stream
Foreign exchange derivatives Discounted cash flow and/or option Spot price, interest rate and/or volatility
pricing models
Interest rate derivatives Discounted cash flow and/or Interest rate curves, repurchase
option pricing models agreement curves, money
market curves and/or volatility
Equity instruments Net asset value Underlying price of market traded instruments
Money market assets Discounted cash flow models Money market rates and/or interest rates
Loans and advances to customers Discounted cash flow models Interest rate and/or money market curves
Investment securities and investments Listed equity: bid price. Other items: Underlying price of the market
linked to investment contracts discounted cash flow models traded instrument
Deposits from banks Discounted cash flow models Interest rate curves and/or money market curves
Deposits due to customers Discounted cash flow models Interest rate curves and/or money market curves
Debt securities in issue and Discounted cash flow models Underlying price of the market traded
other liabilities instrument and/or interest rate curves
13.6 Reconciliation of Level 3 assets and liabilities
A reconciliation of the opening balances to closing balances for all movements on Level 3 assets and liabilities is
set out below:
2014
(Audited)
Trading and
Cash hedging Loans and
and cash portfolio Other advances to Investment Investment Total assets
balances assets assets(1) customers securities properties at fair value
Rm Rm Rm Rm Rm Rm Rm
Opening balance at the beginning of the
reporting period 1 933 1 037 23 6 477 4 688 1 089 15 247
Net interest income - - 1 373 69 443
Gains and losses from banking and trading
activities - 179 - (29) 136 - 286
Gains and losses from investment activities - - - 2 (2) 6 6
Purchases 1 332 - - 143 1 086 11 2 572
Sales - (32) (6) (620) (863) (3) (1 524)
Movement in other comprehensive income - - - - 5 - 5
Settlements (1 933) - - (1 615) - - (3 548)
Transferred to/(from) assets(2) - - - - - (376) (376)
Movement in/(out) of Level 3 - (22) - - 16 - (6)
Closing balance at the end of the reporting
period 1 332 1 162 18 4 731 5 135 727 13 105
Notes
(1) Includes investments linked to investment contracts.
(2) Transfer to non-current assets (Refer to note 1).
2013(1)
(Audited)
Trading and
hedging Loans and
Cash and portfolio Other advances to Investment Investment Total assets
cash balances(2) assets assets(3) customers securities(2) properties at fair value
Rm Rm Rm Rm Rm Rm Rm
Opening balance at the beginning of the
reporting period 735 952 16 6 419 7 199 1 220 16 541
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 1 933 13 7 767 1 468 5 4 193
Sales - - - (45) (3 165) (6) (3 216)
Issues - - - - 5 - 5
Settlements (735) - - (987) (579) - (2 301)
Transferred to/(from) assets - (55) - (127) 48 (209) (343)
Movement in/(out) of Level 3 - 237 - - 53 - 290
Closing balance at the end of the reporting
period 1 933 1 037 23 6 477 4 688 1 089 15 247
Notes
(1) Restated, refer to note 14 for reporting changes.
(2) Instruments classification has changed from the previous reporting period.
(3) Includes investments linked to investment contracts.
2014
(Audited)
Trading and Liabilities
hedging Debt under Total
portfolio Other Deposits due securities investment liabilities
liabilities liabilities to customers in issue contracts at fair value
Rm Rm Rm Rm Rm Rm
Opening balance at the beginning of the
reporting period 549 - 7 138 35 - 7 722
Movement in other comprehensive income (8) - - - - (8)
Net interest income - - 1 1 - 2
Gains and losses from banking and trading
activities (62) - (1 501) 6 - (1 557)
Gains and losses from investment activities - - - - - -
Purchases - 28 - - 3 022 3 050
Sales (75) - - - - (75)
Settlements - - (81) - - (81)
Movement in/(out) of Level 3 (84) - (27) - - (111)
Closing balance at the end of the reporting
period 320 28 5 530 42 3 022 8 942
2013(1)
(Audited)
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
Net interest income - - 9 - 9
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
Settlements - (16) (1 149) - (1 165)
Movement in/(out) of Level 3 165 - - - 165
Closing balance at the end of the reporting period 549 - 7 138 35 7 722
Note
(1) Restated, refer to note 14 for reporting changes.
13.6.1 Significant transfers between levels
During the current reporting period, it was determined that significant transfers between levels of the assets and
liabilities held at fair value occurred. Treasury bills of R18,5bn have been transferred from level 1 to level 2, as these
are held in an inactive market.
During the prior the reporting period, trading portfolio assets to the value of R237m as well as trading portfolio
liabilities of R165m 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.
Transfers have been reflected as if they had taken place at the beginning of the year.
13.7 Unrealised gains and losses on Level 3 assets and liabilities
The total unrealised gains and losses for the reporting period on Level 3 positions held at the reporting date are set
out below:
2014
(Audited)
Trading and Investments
hedging Loans and linked to Non-current
portfolio Other advances to Investment investment assets held Total assets
assets assets customers securities contracts for sale at fair value
Rm Rm Rm Rm Rm Rm Rm
Gains and losses from banking and
trading activities 79 - (28) - - - 51
2013
(Audited)
Trading and Investments
hedging Loans and linked to Non-current
portfolio Other advances to Investment investment assets held Total assets
assets assets customers securities contracts for sale at fair value
Rm Rm Rm Rm Rm Rm Rm
Gains and losses from banking and
trading activities 337 - (136) - - - 201
2014
(Audited)
Trading and Liabilities
hedging Debt under Total
portfolio Other Deposits due securities investment liabilities at
liabilities liabilities to customers in issue contracts fair value
Rm Rm Rm Rm Rm Rm
Gains and losses from banking
and trading activities 116 - - - - 116
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)
13.8 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.
The following table reflects how the unobservable parameters were changed in order to evaluate the sensitivities of
Level 3 financial assets and liabilities:
Significant unobservable parameter Positive/(negative) variance applied to parameters
Credit spreads 100/(100) bps
Volatilities 10/(10)%
Basis curves 100/(100) bps
Yield curves and repo curves 100/(100) bps
Future earnings and marketability discount 15/(15)%
Funding spreads 100/(100) bps
A significant parameter has been deemed to be one which may result in a charge to the profit or loss, 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 a reasonable range of possible outcomes:
2014
(Audited)
Potential effect recorded Potential effect recorded
in profit or loss directly in equity
Favourable/ Favourable/
Significant (Unfavourable) (Unfavourable)
unobservable parameters Rm Rm
Deposits due to customers BAGL/Absa funding spread -/- -/-
Investment securities and investments Yield curves, future earnings 672/126 -/-
linked to investment contracts and marketability discount,
comparator multiples
Loans and advances to customers Credit spreads 1 037/23 -/-
Other assets Volatility, credit spreads 3/3 -/-
Trading and hedging portfolio assets Volatility, credit spreads, -/- -/-
basis curves, yield curves,
repo curves,
funding spreads
Trading and hedging portfolio liabilities Volatility, credit spreads, 34/34 -/-
basis curves, yield curves,
repo curves,
funding spreads
Other liabilities Volatility, credit spreads 28/28 -/-
1 774/214 -/-
2013
Potential Potential
effect recorded effect recorded
in profit or loss directly in equity
Favourable/ Favourable/
Significant (Unfavourable) (Unfavourable)
unobservable parameters Rm Rm
Deposits due to customers BAGL/Absa funding spread 224/223 -/-
Investment securities and investments Yield curves, future earnings 355/355 -/-
linked to investment contracts and marketability discount,
comparator multiples
Investment properties Selling price per unit, 2/2 -/-
selling price escalations,
rental income per unit, rental
escalations per year, expense
ratios, vacancy rate, income
capitalisation rate and risk
client rates
Loans and advances to customers Credit spreads 1 202/159 -/-
Other assets Volatility, credit spreads 2/2 -/-
Trading and hedging portfolio assets Volatility, credit spreads, 43/43 -/-
basis curves, yield curves,
repo curves
Trading and hedging portfolio liabilities Volatility, credit spreads, 13/5 -/-
basis curves, yield curves,
repo curves, funding spreads
1 841/789 -/-
13.9 Measurement of assets and liabilities at Level 3
The following table presents information about the valuation techniques and significant unobservable inputs used in measuring assets and
liabilities categorised as Level 3 in the fair value hierarchy:
2014 2013
Category of asset Valuation Significant unobservable Range of estimates utilised
/liability techniques applied inputs for the unobservable inputs
Loans and advances Discounted cash flow and Credit spreads 0,96% to 3,99% 1,35% to 7,5%
to customers /or dividend yield models
Investment securities Discounted cash flow Risk adjusted yield curves, Discount rates Discount rates
and investments models, third-party future earnings, marketability between 9,7% and between 9,7% and
linked to investment valuations, earnings discounts and/or 18%, comparator 18%, comparator
contracts multiples and/or income comparator multiples multiples between multiples between 5,5
capitalisation valuations 5,5 and 6,1 and 6,1
Trading and hedging portfolio
assets and liabilities
Debt instruments Discounted cash flow models Credit spreads 0,9% to 3,5% 0,9% to 3,5%
Derivative assets
Credit derivatives Discounted cash flow and/ Credit spreads, recovery 0% to 13,45% 0% to 3,5%
or credit default swap rates and/or quanto ratio
(hazard rate) models
Equity derivatives Discounted cash flow, Volatility and/or dividend 18,16% to 48,20% 16,9% to 37,2%
option pricing and/or streams (greater
futures pricing models than 3 years)
Foreign exchange Discounted cash flow African basis curves -10,74% to 6,53% -2,5% to 1,7%
derivatives and/or option (greater than 1 year)
pricing models
Interest rate Discounted cash flow Real yield curves (greater -1,56% to 10,04% -1,5% to 8,3%
derivatives and/or option than 1 year), repurchase agreement curves
pricing models (greater than 1 year), funding spreads
Deposits due Discounted cash Barclays Africa Group 0,85% to 1,2% 0,85% to 1,2%
to customers flow models Limited’s funding spreads
(greater than 5 years)
Debt securities in issue Discounted cash flow models Credit spreads 1,28% to 1,38% 0,1% to 0,2%
Investment properties Discounted cash Estimates of periods in which 2 to 7 years 2 to 7 years
flow models rental units will be disposed of
Annual selling price escalations 0% to 6% 0% to 6%
Annual rental escalations 0% to 10% 0% to 10%
Expense ratios 22% to 75% 22% to 75%
Vacancy rates 2% to 15% 2% to 15%
Income capitalisation rates 10% to 12% 10% to 12%
Risk adjusted discount rates 14% to 16% 14% to 16%
For assets or liabilities held at amortised cost and disclosed in levels 2 or 3 of the fair value hierarchy,
the discounted cash flow valuation technique is used. Interest rates and money market curves are considered
unobservable inputs for items which mature after five years. However, if the items mature in less than five
years, these inputs are considered observable.
For debt securities in issue held at amortised cost, a further significant input would be the underlying price
of the market traded instrument.
The sensitivity of the fair value measure is dependent on the unobservable inputs. Significant changes to the
unobservable inputs in isolation will have either a positive or negative impact on fair values.
13.10 Unrecognised gains/(losses) 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 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:
2014 2013
(Audited) (Audited)
Rm Rm
Opening balance at the beginning of the reporting period (55) (71)
New transactions (23) (17)
Amounts recognised in profit and loss during the reporting period 26 33
Closing balance at the end of the reporting period (52) (55)
13.11 Third-party credit enhancements
There were no significant liabilities measured at fair value and issued with inseparable third-party credit
enhancements.
14. Reporting changes overview
The financial reporting changes that have had an impact on the Group’s results for the comparative reporting
period ended 31 December 2013 include:
- The implementation of amended IFRS, specifically amendments to IAS 32, relating to offsetting of financial
assets and financial liabilities. All other amendments to IFRS, and new interpretations, effective for the
current reporting period had no significant impact on the Group’s reported results.
- Certain changes in internal accounting policies.
14.1 Accounting policy changes due to amended IFRS
The amendments to IAS 32 provide further application guidance on when the criteria for offsetting would be
considered to be met and became effective for reporting periods beginning on or after 1 January 2014.
The offsetting requirements in IAS 32 have been retained such that a financial asset and liability shall be
offset and the net amount presented in the statement of financial position, only when an entity currently has
a legally enforceable right to set off the recognised amounts, and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously. The amendments to IAS 32 provide more
application guidance on when the criteria for offsetting would be considered to be met.
The netting applied to certain financial instruments (i.e. variation margins on certain derivatives as well
as certain hybrid customer products) has been assessed in light of the amendments and it has been determined
that netting is no longer permitted under IFRS.
14.2 Internal accounting policy changes
The Group elected to make an internal accounting policy change involving the classification of items in the
statement of financial position. Investment securities across South Africa have been appropriately grouped
together as “Investment securities”, following the acquisition of Barclays Africa Limited, with remaining
investments linked to investment contracts being disclosed separately.
This has resulted in the old “statutory liquid asset portfolio” line item in the statement of financial
position no longer being displayed.
This reclassification has no impact on the overall financial position or net earnings of the Group. To
ensure comparability, the comparative reporting periods have been restated.
14.3 Impact of reporting changes on the Group’s results
The impact of these changes on the statement of financial position, is as follows:
Summary consolidated statement of financial position as at 31 December 2013
IFRS Internal
As accounting accounting
previously policy policy
reported changes changes Restated
Rm(1) Rm Rm Rm
Assets
Loans and advances to banks 79 971 651 - 80 622
Trading portfolio assets 87 034 1 727 - 88 761
Statutory liquid asset portfolio 62 055 - (62 055) -
Investment securities 33 083 - 45 921 79 004
Investments linked to investment contracts - - 16 134 16 134
Loans and advances to customers 605 337 886 - 606 223
Liabilities
Deposits from banks 69 064 1 727 - 70 791
Deposits due to customers 588 011 886 - 588 897
Trading portfolio liabilities 51 477 651 - 52 128
Note
(1) As per financial results published on 11 February 2014.
Administration and contact details
Barclays Africa Group Limited
Incorporated in the Republic of South Africa
Registration number: 1986/003934/06
Authorised financial services and registered credit provider (NCRCP7)
JSE share code: BGA
ISIN: ZAE000174124
Registered office
7th Floor, Barclays Towers West
15 Troye Street, Johannesburg, 2001
PO Box 7735, Johannesburg, 2000
Switchboard: +27 11 350 4000
barclaysafrica.com
Board of directors
Group independent non-executive directors
C Beggs, Y Z Cuba, A B Darko(2), M J Husain, P B Matlare,
T S Munday (Lead Independent Director), F Okomo-Okello(3),
S G Pretorius (resigned 31 October 2014)
Group non-executive directors
P A Clackson(1), W E Lucas-Bull (Group Chairman), M S Merson(1),
A V Vaswani(4)
Group executive directors
D W P Hodnett (Deputy Chief Executive Officer and Financial Director),
M Ramos (Chief Executive Officer)
Queries
Please direct investor relations and annual report queries to
groupinvestorrelations@barclaysafrica.com
Please direct media queries to
groupmedia@barclaysafrica.com
For all customer and client queries, please go to the relevant country website
(see details below) for the local customer contact information
Please direct queries relating to your Barclays Africa Group shares to
questions@computershare.co.za
Please direct other queries regarding the Group to
groupsec@barclaysafrica.com
Head of Investor Relations
Alan Hartdegen
Telephone: +27 11 350 2598
Group Company Secretary
Nadine Drutman
Telephone: +27 11 350 5347
Head of Finance
Jason Quinn
Telephone: +27 11 350 7565
Transfer secretary
Computershare Investor Services (Pty) Ltd
Telephone: +27 11 370 5000
computershare.com/za/
ADR depositary
BNY Mellon
Telephone: +1 212 815 2248
bnymellon.com
Auditors
Ernst & Young Inc.
Telephone: +27 011 772 3000
ey.com/ZA/en/Home
PricewaterhouseCoopers Inc.
Telephone: +27 011 797 4000
pwc.co.za
Sponsors
Lead independent sponsor
J.P. Morgan Equities South Africa (Pty) Ltd
Telephone: +27 11 507 0300
jpmorgan.com/pages/jpmorgan/emea/local/za
Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)
Telephone: +27 11 895 6843
E-mail: equitysponsor@absacapital.com
Significant banking subsidiaries
Information on the entity and the products and services provided
(including banking, insurance and investments) can be found at:
Absa Bank Limited absa.co.za
Barclays Bank Botswana barclays.co.bw
Barclays Bank of Ghana Limited gh.barclays.com/
Barclays Bank of Kenya barclays.co.ke
Barclays Bank Mauritius Limited barclays.mu
Barclays Bank Mozambique SA barclays.co.mz/eng
Barclays Bank (Seychelles) Limited barclays.sc
Barclays Bank Tanzania Limited barclays.co.tz
Barclays Bank of Uganda Limited barclays.co.ug
Barclays Bank Zambia plc zm.barclays.com/
National Bank of Commerce Ltd nbctz.com
Representative offices
Absa Namibia Pty Limited absanamibia.com.na
Absa Capital Representative Office Nigeria Limited cib.absa.co.za
While not members of the Barclays Africa Group Limited legal entity,
these operations are managed by us
Barclays Bank Egypt S.A.E barclays.com.eg
Barclays Bank of Zimbabwe Limited zw.barclays.com/
Notes
(1) British
(2) Ghanaian
(3) Kenyan
(4) Singaporean
Date: 03/03/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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