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 Date: 30/11/2015 10:51:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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