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ABSA BANK LIMITED - Barclays Africa Group Ltd/ABSA Bank Ltd - Basel III Pillar 3 disclosure as at 30 September 2015

Release Date: 30/11/2015 10:51
Code(s): ABSP BGA     PDF:  
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Barclays Africa Group Ltd/ABSA Bank Ltd - Basel III Pillar 3 disclosure as at 30 September 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
(Barclays Africa Group)                             (Absa Bank)


BARCLAYS AFRICA GROUP LIMITED – BASEL III PILLAR 3 DISCLOSURE AS AT 30
SEPTEMBER 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 board approved
target capital ranges. As at 30 September 2015, Barclays Africa Group’s Common Equity Tier 1
ratio was 11.3%, Tier 1 ratio was 11.9% and Total Capital Adequacy ratio was 13.9%.




                                                                                       Page 1 of 5
The table below represents the capital position for Barclays Africa Group at 30 September 2015
and the comparatives at 30 June 2015.

                                                              30-Sep-2015(1)                   30-Jun-2015(1)
Regulatory Capital Position (excluding unappropriated
                                                                   Rm                  %            Rm        %
profit):
   Common Equity Tier 1                                       70 937               10.4%       69 698     10.8%
    Share capital and premium                                  6 124                            6 224
    Reserves                                                  68 683                           67 086
    Non-controlling interest - ordinary shares                 2 237                            2 386
    Deductions                                                (6 107)                          (5 998)
  Additional Tier 1 capital                                    4 191                0.6%        4 265      0.6%
Tier 1 capital                                                75 128               11.0%       73 963     11.4%
Tier 2 capital                                                13 223                1.9%       11 226      1.8%
Total capital                                                 88 351               12.9%       85 189     13.2%

Statutory Capital Position (including unappropriated
profit):
Common Equity Tier 1(2)                                       77 024               11.3%       75 492     11.7%
Tier 1 capital                                                81 215               11.9%       79 757     12.3%
Total capital                                                 94 438               13.9%       90 983     14.1%


Board Approved Target Ranges(3):
Common Equity Tier 1                                                     9.5% - 11.5%               9.5% - 11.5%
Tier 1 capital                                                          10.5% - 12.5%           10.5% - 12.5%
Total capital                                                           12.5% - 14.5%           12.5% - 14.5%



                                                                                   30-Sep-2015(1)
                                                        RWA              Minimum Required Capital
Risk Weighted Assets (RWA) and Minimum Required         Per risk        Pillar 1       Pillar 2a           Total
Capital per Risk Type:(4)                                  type             8%                2%            10%
                                                            Rm             Rm                 Rm            Rm
Credit risk                                             504 121         40 330             10 082        50 412
Counterparty credit risk                                 19 721           1 578              394          1 972
Equity investment risk                                   10 664            853               213          1 066
Market risk                                              27 387           2 191              548          2 739
Operational risk                                         95 883           7 670             1 918         9 588
Non-customer assets                                      23 118           1 850              462          2 312
Total RWA and Minimum Required Capital                  680 894         54 472             13 617        68 089




                                                                                   30-Jun-2015(1)
                                                        RWA              Minimum Required Capital
                                                        Per risk        Pillar 1       Pillar 2a           Total
                                                           type             8%                2%            10%
RWA and Minimum Required Capital per Risk Type(4):          Rm              Rm               Rm             Rm
Credit risk                                             478 529         38 282              9 571        47 853
Counterparty credit risk                                 15 878           1 270              318          1 588
Equity investment risk                                   10 303            824               206          1 030
Market risk                                              23 395           1 872              468          2 340
Operational risk                                         95 883           7 671             1 917         9 588
Non-customer assets                                      23 484           1 879              469          2 348
Total RWA and Minimum Required Capital                  647 472         51 798             12 949        64 747
                                                                                                           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 30 September 2015, Absa Bank’s Common Equity Tier 1 ratio was 9.5%, Tier 1 ratio
was 10.2% and Total Capital Adequacy ratio was 12.8%.


The table below represents the capital position for Absa Bank at 30 September 2015 and
comparatives at 30 June 2015.
                                                                     30-Sep-2015(1)              30-Jun-2015(1)
Regulatory Capital Position (excluding unappropriated profit):          Rm               %        Rm            %
  Common Equity Tier 1                                              46 391            9.4%    41 643        8.8%
     Share capital and premium                                      21 759                    16 768
     Reserves                                                       29 149                    29 151
     Deductions                                                     (4 517)                   (4 276)
  Additional Tier 1 capital                                           3 251            0.7%     3 251       0.7%
Tier 1 capital                                                      49 642            10.1%   44 894        9.5%
Tier 2 capital                                                      12 694             2.6%   10 738        2.3%
Total capital                                                       62 336            12.7%   55 632       11.8%

Statutory Capital Position (including unappropriated profit):
Common Equity Tier 1(2)                                              46 877            9.5%   47 278       10.0%
Tier 1 capital                                                       50 128           10.2%   50 529       10.7%
Total capital                                                        62 822           12.8%   61 267       13.0%

Board Approved Target Ranges(3):
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%


                                                                                        30-Sep-2015(1)
                                                                 RWA             Minimum Required Capital
Risk Weighted Assets (RWA) and Minimum Required                   Per risk       Pillar 1    Pillar 2a    Total
Capital per Risk Type:(4)                                            type             8%           2%      10%
                                                                      Rm             Rm           Rm        Rm
Credit risk                                                       360 204        28 816         7 204   36 020
Counterparty credit risk                                           19 275         1 542           386     1 928
Equity investment risk                                              6 475            518          130       648
Market risk                                                        22 692         1 816           453     2 269
Operational risk                                                   68 904         5 512         1 378     6 890
Non-customer assets                                                14 489         1 159           290     1 449
Total RWA and Minimum Required Capital                            492 039        39 363         9 841   49 204

                                                                                        30-Jun-2015(1)
                                                                 RWA             Minimum required Capital
                                                                  Per risk       Pillar 1    Pillar 2a    Total
                                                                     type             8%           2%      10%
RWA and Minimum Required Capital per Risk Type(4):                    Rm             Rm           Rm        Rm
Credit risk                                                       347 632        27 811         6 953   34 764
Counterparty credit risk                                           15 543         1 243           311     1 554
Equity investment risk                                              6 593            527          132       659
Market risk                                                        19 476         1 558           390     1 948
Operational risk                                                   68 904         5 513         1 377     6 890
Non-customer assets                                                14 450         1 156           289     1 445
Total RWA and Minimum Required Capital                            472 598        37 808         9 452   47 260




                                                                                                       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
                                                               30-Sep-2015(1)       30-Jun-2015(1)
Tier 1 Capital (excluding unappropriated profit) (Rm)                  75 128               73 963
Tier 1 Capital (including unappropriated profit) (Rm)                  81 215               79 757
Total Exposures (Rm)                                                1 299 199           1 206 720
Leverage Ratio (excluding unappropriated profit)                         5.8%                6.1%
Leverage Ratio (including unappropriated profit)                         6.3%                6.6%
Minimum Required Leverage Ratio                                          4.0%                4.0%


Absa Bank
                                                               30-Sep-2015(1)       30-Jun-2015(1)
Tier 1 Capital (excluding unappropriated profit) (Rm)                  49 642               44 894
Tier 1 Capital (including unappropriated profit) (Rm)                  50 128               50 529
Total Exposures (Rm)                                                1 076 017           1 031 963
Leverage Ratio (excluding unappropriated profit)                         4.6%                4.4%
Leverage Ratio (including unappropriated profit)                         4.7%                4.9%
Minimum Required Leverage Ratio                                          4.0%                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 high quality liquid assets divided by total net cash
outflows. High quality liquid assets are assets that can be easily and immediately converted into
cash. Net cash outflows are calculated according to the scenario parameters outlined by
regulations.




                                                                                            Page 4 of 5
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
      (6)                                                          (5)
Group at 30 September 2015 and the comparatives at 30 June 2015 :

                                                                   30-Sep-2015(1)        30-Jun-2015(1)
High Quality Liquid Assets (Rm)                                            115 338               115 431

Net Cash Outflows (Rm)                                                     152 602               146 226
Liquidity Coverage Ratio                                                     75.6%                 78.9%
Required Liquidity Coverage Ratio                                            60.0%                 60.0%


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 at 30 September 2015
                                     (5)
and the comparatives at 30 June 2015 .

                                                                 30-Sep-2015(1)         30-Jun-2015(1)
High Quality Liquid Assets (Rm)                                             98 348                97 476
Net Cash Outflows (Rm)                                                     137 660              128 849
Liquidity Coverage Ratio                                                     71.4%                75.7%
Required Liquidity Coverage Ratio                                            60.0%                60.0%




Notes:
1. The 30 September 2015 figures and 30 June 2015 comparatives have not been audited.
2. Common Equity Tier 1 as at 30 September 2015 is post the 2015 interim dividend declared in July 2015.
3. Board approved target ranges include unappropriated profit.
4. The regulatory minimum Common Equity Tier 1 requirement as at 30 September 2015 was 6.5% (30 June 2015: 6.5%).
5. The values disclosed represent the simple average of the relevant 3 month-end data points.
6. Only banking and/or deposit taking entities are included and the group data represents an aggregation of the relevant
   individual net cash outflows and High Quality Liquid Asset portfolios.



Johannesburg
30 November 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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