BARCLAYS/ABSA - Basel III Pillar 3 Disclosure as at 31 March 2015 BARCLAYS AFRICA GROUP LIMITED ABSA BANK LIMITED (Incorporated in the Republic of South (Incorporated in the Republic of South Africa) 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 2015 The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks Act). 1) Capital Adequacy Barclays Africa Group Barclays Africa Group remains capitalised above the regulatory minimum requirements, with Common Equity Tier 1, Tier 1 and Total Capital Adequacy ratios being within our increased board approved target capital ranges. As at 31 March 2015, Barclays Africa Group’s Common Equity Tier 1 ratio was 11.4%, Tier 1 ratio was 12.1% and Total Capital Adequacy ratio was 13.9%. Page 1 of 5 The table below represents the capital position for Barclays Africa Group at 31 March 2015 and the comparatives at 31 December 2014. 31-Mar-20151 31-Dec-20141 Regulatory Capital Position (excluding unappropriated Rm % Rm % profit): Common Equity Tier 1 64 598 10.2% 65 714 10.6% Share capital and premium 5 852 6 242 Reserves 63 118 63 554 Non-controlling interest - ordinary shares 2 275 2 250 Deductions (6 647) (6 332) Additional Tier 1 capital 4 192 0.7% 4 572 0.8% Tier 1 capital 68 790 10.9% 70 286 11.4% Tier 2 capital 11 215 1.8% 10 603 1.7% Total capital 80 005 12.7% 80 889 13.1% Statutory Capital Position (including unappropriated profit): Common Equity Tier 1 72 123 11.4% 73 829 11.9% Tier 1 capital 76 315 12.1% 78 401 12.7% Total capital 87 530 13.9% 89 004 14.4% Board Approved Target Ranges2: Common Equity Tier 1 9.5% - 11.5% 9.5% - 11.0% Tier 1 Capital 10.5% - 12.5% 10.5% - 12.0% Total Capital 12.5% - 14.5% 12.5% - 14.0% 31-Mar-2015 RWA Minimum Required Capital Risk Weighted Assets (RWA) and Minimum Required Per risk Pillar 1 Pillar 2a Total Capital per Risk Type:3 type 8% 2% 10% Rm Rm Rm Rm Credit risk 467 818 37 425 9 357 46 782 Counterparty credit risk 12 448 996 249 1 245 Equity investment risk 10 401 832 208 1 040 Market risk 22 824 1 826 456 2 282 Operational risk 92 942 7 435 1 859 9 294 Non-customer assets 24 360 1 949 487 2 436 Total RWA and Minimum Required Capital 630 793 50 463 12 616 63 079 31-Dec-2014 RWA Minimum Required Capital Per risk Pillar 1 Pillar 2a Total type 8% 2% 10% RWA and Minimum Required Capital per Risk Type3: Rm Rm Rm Rm Credit risk 456 622 36 530 9 132 45 662 Counterparty credit risk 12 083 967 241 1 208 Equity investment risk 13 737 1 099 275 1 374 Market risk 21 781 1 742 436 2 178 Operational risk 92 942 7 435 1 859 9 294 Non-customer assets 22 540 1 803 451 2 254 Total RWA and Minimum Required Capital 619 705 49 576 12 394 61 970 Page 2 of 5 Absa Bank Absa Bank remains capitalised above the regulatory minimum requirements, with Common Equity Tier 1, Tier 1 and Total Capital Adequacy ratios being within our board approved target capital ranges. As at 31 March 2015, Absa Bank’s Common Equity Tier 1 ratio was 10.1%, Tier 1 ratio was 10.8% and Total Capital Adequacy ratio was 13.1%. The table below represents the capital position for Absa Bank at 31 March 2015 and comparatives at 31 December 2014. 31-Mar-20151 31-Dec-20141 Regulatory Capital Position (excluding unappropriated profit): Rm % Rm % Common Equity Tier 1 42 364 9.3% 42 556 9.6% Share capital and premium 16 768 16 768 Reserves 29 761 29 731 Deductions (4 165) (3 943) Additional Tier 1 capital 3 251 0.7% 3 715 0.8% Tier 1 capital 45 615 10.0% 46 271 10.4% Tier 2 capital 10 737 2.3% 10 228 2.3% Total capital 56 352 12.3% 56 499 12.7% Statutory Capital Position (including unappropriated profit): Common Equity Tier 1 45 953 10.1% 46 820 10.6% Tier 1 capital 49 204 10.8% 50 535 11.4% Total capital 59 941 13.1% 60 763 13.7% Board Approved Target Ranges2: Common Equity Tier 1 9.0% - 10.5% 9.0% - 10.5% Tier 1 Capital 10.0% - 11.5% 10.0% - 11.5% Total Capital 12.0% - 13.5% 12.0% - 13.5% 31-Mar-2015 RWA Minimum Required Capital Risk Weighted Assets (RWA) and Minimum Required Per risk Pillar 1 Pillar 2a Total Capital per Risk Type:3 type 8% 2% 10% Rm Rm Rm Rm Credit risk 339 068 27 126 6 781 33 907 Counterparty credit risk 12 222 978 244 1 222 Equity investment risk 6 574 526 131 657 Market risk 18 865 1 509 378 1 887 Operational risk 65 339 5 227 1 307 6 534 Non-customer assets 14 531 1 162 291 1 453 Total RWA and Minimum Required Capital 456 599 36 528 9 132 45 660 31-Dec-2014 RWA Minimum required Capital Per risk Pillar 1 Pillar 2a Total type 8% 2% 10% RWA and Minimum Required Capital per Risk Type3: Rm Rm Rm Rm Credit risk 326 956 26 157 6 539 32 696 Counterparty credit risk 11 954 956 239 1 195 Equity investment risk 7 650 612 153 765 Market risk 18 260 1 461 365 1 826 Operational risk 65 339 5 227 1 307 6 534 Non-customer assets 13 796 1 104 276 1 380 Total RWA and Minimum Required Capital 443 955 35 517 8 879 44 396 Page 3 of 5 2) Leverage ratio The leverage ratio framework is complementary to the risk-based capital framework and is a non- risk based contingency measure to restrict the build-up of excessive leverage in the banking sector. Barclays Africa Group 4 31-Mar-2015 Tier 1 Capital (excluding unappropriated profit) (Rm) 68 790 Tier 1 Capital (including unappropriated profit) (Rm) 76 315 Total Exposures (Rm) 1 201 640 Leverage Ratio (excluding unappropriated profit) 5.7% Leverage Ratio (including unappropriated profit) 6.4% Minimum Required Leverage Ratio 4.0% Absa Bank 4 31-Mar-2015 Tier 1 Capital (excluding unappropriated profit) (Rm) 45 615 Tier 1 Capital (including unappropriated profit) (Rm) 49 204 Total Exposures (Rm) 1 024 947 Leverage Ratio (excluding unappropriated profit) 4.5% Leverage Ratio (including unappropriated profit) 4.8% Minimum Required Leverage Ratio 4.0% 3) Liquidity Coverage Ratio The objective of the liquidity coverage ratio is to promote the short-term resilience of the liquidity risk profile of banks by ensuring that they have sufficient high quality liquid assets to survive a significant stress scenario lasting 30 calendar days. The liquidity coverage ratio requirement, from 1 January 2015, is 60% and will increase by 10% per year to 100% on 1 January 2019. The liquidity coverage ratio is calculated as the value of high quality liquid assets divided by total net cash outflows. High quality liquid assets are the value of assets that can be easily and immediately converted into cash. Net cash outflows are calculated according the scenario parameters outlined by regulations. Barclays Africa Group Barclays Africa Group held high quality liquid assets in excess of the regulatory minimum requirement. The table below represents the average liquidity coverage ratio for Barclays Africa Group for the quarter ended 31 March 2015: 4,5 31-Mar-2015 High Quality Liquid Assets (Rm) 111 087 Net Cash Outflows (Rm) 138 084 Liquidity Coverage Ratio 80% Required Liquidity Coverage Ratio 60% Page 4 of 5 Absa Bank Absa Bank held high quality liquid assets in excess of the regulatory minimum requirement. The table below represents the average liquidity coverage ratio for Absa Bank for the quarter ended 31 March 2015: 4,5 31-Mar-2015 High Quality Liquid Assets (Rm) 93 182 Net Cash Outflows (Rm) 120 424 Liquidity Coverage Ratio 77% Required Liquidity Coverage Ratio 60% Notes: 1. The 31 March 2015 figures have not been audited. (31 December 2014 comparatives have been audited). 2. Board approved target ranges include unappropriated profit. 3. The regulatory minimum Common Equity Tier 1 requirement as at 31 March 2015 was 6.5% (31 December 2014: 5.5%). 4. This announcement represents the first public disclosure of the Leverage and Liquidity Coverage Ratios, therefore no comparative information is disclosed. 5. The values disclosed represent the simple average of the relevant 3 month-end data points. Johannesburg 3 June 2015 2015 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 5 of 5 Date: 03/06/2015 02:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.