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BARCLAYS AFRICA GROUP LIMITED - BARCLAYS/ABSA - Basel III Pillar 3 Disclosure as at 31 March 2015

Release Date: 03/06/2015 14:16
Code(s): BGA ABSP     PDF:  
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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

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