Wrap Text
Unaudited condensed consolidated interim financial results for the reporting period ended 30 June 2016.
Barclays Africa Group Limited
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)
Unaudited condensed consolidated interim financial results
for the reporting period ended 30 June 2016.
Salient features
- Diluted headline earnings per share (HEPS) increased 7% to 856,7 cents.
- Declared a 2% higher interim dividend per share (DPS) of 460 cents.
- Headline earnings in South Africa grew 3% to R5,9bn and rest of Africa rose 33% to R1,3bn.
- Return on Equity (RoE) declined to 16,1% from 16,4%.
- Pre-provision profit increased 19,1% to R17,0bn.
- Revenue grew 13% to R36,5bn, as net interest income increased 14% and non-interest income rose 10%, while operating
expenditure grew 7% to R19,5bn.
- Credit impairments increased 46% to R5,2bn resulting in a 1,29% credit loss ratio from 0,97%.
- Barclays Africa Group Limited’s core equity tier 1 (CET1) ratio of 12,1% remains above regulatory requirements and
our board target range.
Overview of results
Barclays Africa Group Limited’s (the Group's) headline earnings increased 7% to R7 252m from R6 755m. Diluted HEPS also
grew 7% to 856,7 cents from 797,0 cents. The Group’s RoE decreased to 16,1% from 16,4%, primarily because of higher
credit impairments, and its return on assets declined to 1,29% from 1,33%. The Group declared a 2% higher ordinary DPS
of 460 cents. Its net asset value (NAV) per share increased 9% to 10 788 cents.
Pre-provision profit increased 19,1% to R17,0bn, which drove earnings growth. Non-interest income grew 10% and net
interest income 14%, as the Group’s net interest margin (on average interest-bearing assets) improved to 4,97% from
4,70%. Loans and advances to customers grew 9% to R715bn, while deposits due to customers increased 4% to R677bn.
The Group’s cost-to-income ratio improved to 53,4% from 55,9% as operating expenses rose 7%. Rand weakness added 3% to
the Group’s revenue, cost and headline earnings growth. Credit impairments grew 46%, largely due to higher charges in
Home Loans, Corporate and Investment Banking (CIB) and Retail and Business Banking (RBB) Rest of Africa. The non-performing
loans (NPLs) ratio rose to 3,8% from 3,5%, while portfolio provisions increased to 72 basis points (bps) of performing
loans from 65 bps.
RBB’s headline earnings increased 10% to R4 911m, as revenue grew 10% and costs rose 8%. Retail Banking South Africa
grew headline earnings 8%, while Business Banking South Africa and RBB Rest of Africa increased 4% and 63% respectively.
Wealth Investment Management and Insurance’s (WIMI’s) headline earnings decreased 8% to R691m, despite 13% growth in
Life Insurance in South Africa, while CIB grew 7% to R1 992m, as 41% higher Corporate earnings offset 20% lower Investment
Bank earnings.
Revenue from the Rest of Africa grew 27% and headline earnings rose 33% to R1 326m, to contribute 23% and 18% of the
Group respectively.
Operating environment
The global economy and markets were volatile in the first half, with wide swings in risk sentiment and asset prices,
and big quarterly variations in the growth of many large economies. Advanced economy growth slipped to an estimated 1,6%
in the half, while emerging markets grew 4,4%. Soft demand depressed prices for many commodities, while evolving views
on the outlook for US monetary policy impacted global markets more broadly.
South Africa’s economy shrank 1,2% on an annualised basis in the first quarter, given drought conditions and poor
mining output. A poor job market, weak consumer confidence, rising rates and higher inflation placed greater strain on
households. For the business sector, low confidence coincided with reduced investment spending. Despite low levels of
economic activity, inflation rose beyond the Reserve Bank’s 6% upper target, prompting a further 75 bps increase in rates.
Growth in the Group’s presence markets in the rest of Africa moderated further, due to lower commodity prices, the adverse
external environment and fiscal consolidation efforts in some markets.
Group performance
Statement of financial position
Total assets increased 10% to R1 142bn at 30 June 2016, predominantly due to 9% higher loans and advances to customers
and 25% growth in trading portfolio assets.
Loans and advances to customers
Loans and advances to customers increased 9% to R715bn, or 7% excluding rand depreciation. Retail Banking South
Africa’s loans rose 1% to R375bn, reflecting 3% growth in Vehicle and Asset Finance (VAF) and 14% higher Personal Loans, while
Home Loans declined 1% and Card 2%. Business Banking South Africa’s loans rose 5% to R67bn, including 6% growth in
mortgages. RBB Rest of Africa’s loans increased 16% to R42bn, or 3% in constant currency. CIB’s loans grew 26% to R225bn,
largely due to 32% higher term loans.
Funding
The Group’s liquidity position remains strong. Deposits due to customers grew 4% to R677bn, which increased its
loans to deposit and debt securities ratio to 87,1% from 85,5%. Deposits due to customers constituted 75% of total funding from 79%.
Retail Banking South Africa maintained its leading market share and increased deposits 9% to R170bn. Business Banking South Africa’s
deposits grew 4% to R106bn, with 3% higher cheque account deposits. CIB’s deposits were flat at R234bn, as 6% lower
cheque account deposits offset 10% higher fixed deposits.
Net asset value
The Group’s NAV per share grew 9% to 10 788 cents from June 2015. During the half it generated profits of R7,0bn, from which it
paid R4,6bn in dividends. Its foreign currency translation reserve reduced by R2,1bn to R4,3bn.
Capital to risk-weighted assets
Group risk-weighted assets (RWAs) increased 8% to R699bn at 30 June 2016, in line with its asset growth. However, RWAs
decreased 1% year to date due to rand depreciation. The Group remains well capitalised, comfortably above minimum
regulatory requirements. The Group’s CET1 and Tier 1 capital adequacy ratios were 12,1% and 12,6% respectively (from 11,7%
and 12,3%). The Group generated 1,1% of CET1 capital internally during the period. Its total capital adequacy ratio was
14,6%. The dividend of 460 cents per share on a dividend cover of 1,9 times recognises the internal capital generation capability,
our strategy, and growth plans while having regard to the difficult and volatile macro economy.
Statement of comprehensive income
Net interest income
Net interest income increased 14% to R21 093m from R18 463m, with average interest-bearing assets growing 8%. The Group’s net
interest margin improved to 4,97% from 4,70%.
Loan pricing had a 5 bps positive impact, as improved pricing in Home Loans offset compression in VAF. A lower proportion
of mortgages had a positive composition impact, partly offset by CIB’s growth. The Group’s deposit margin increased, due
to improved Retail Banking and Corporate pricing offsetting higher wholesale liquidity premiums and the negative mix impact
of increased wholesale funding.
Higher South African interest rates resulted in an endowment contribution on deposits and equity of 6 bps. Despite
releasing R224m to the income statement, the benefit from structural hedging declined 10 bps. Rest of Africa added 13 bps
to the Group margin, as its margin improved by 35 bps and its weighting in the overall composition increased. The basis
reset benefit from prime increasing relative to JIBAR in South Africa added another 6 bps.
Non-interest income
Non-interest income increased 10% to R15 415m from R13 960m accounting for 42% of total revenue. Rest of Africa grew
22% to R2 794m, or 9% in constant currency, while South Africa increased 8% to R12 621m. Net fee and commission income
rose 5% to R10 305m, with growth in credit cards and electronic banking of 27% and 6% respectively.
RBB’s non-interest income grew 7% to R9 483m, 62% of the Group total. Retail Banking South Africa increased 5% to
R6 252m with customer growth and sub-inflation fee increases dampened by continued migration to bundled products and
electronic channels. Card non-interest income increased 13%, with 14% growth in acquiring volumes. Business Banking’s
non-interest income grew 6% to R1 769m, largely due to fair value adjustments in its equity portfolio and 6% growth in electronic
banking income. RBB Rest of Africa’s 22% higher non-interest income of R1 462m reflects rand depreciation and
increased transaction volumes, particularly in card and foreign exchange.
WIMI’s non-interest income was flat at R2 502m, as South Africa grew 2% and the Rest of Africa declined 21% due to
revised reserving requirements, lower investment returns and new business strain. However, net insurance premiums
income grew 16% on continuing lines.
CIB’s non-interest income increased 18% to R3 282m, largely due to improved trading. Its overall Markets revenue rose
31% to R2 725m as rest of Africa grew 26% and South Africa 33%, with Fixed Income and Credit up 57% and Foreign Exchange
and Commodities increasing 28%.
Impairment losses on loans and advances
Credit impairments increased 46% to R5 197m from R3 550m, resulting in a 1,29% credit loss ratio from 0,97%. The Group
changed its credit loss ratio disclosure to use gross customer loans and loans to banks, rather than customer loans. On
the previous basis, its credit loss ratio increased to 1,48% from 1,11%. Group NPLs increased 17% to R31,4bn, or 3,8% of gross
loans and advances from 3,5%. Total NPL coverage was flat at 44%. Balance sheet portfolio impairments increased 18,2% to
R5,7bn, or 0,72% of total performing loans from 0,65%. This includes 41% higher macroeconomic impairments of R1,3bn.
RBB’s credit impairments grew 21% to R3,9bn, a 1,48% credit loss ratio from 1,27%. Retail Banking South Africa’s
charge increased 13% to R2,9bn.
Home Loans’ charge grew 77% to R505m, a 0,44% credit loss ratio from 0,25%, with NPLs rising 4% year to date. VAF's
credit loss ratio rose to 1,13% from 1,09%, as its retail charge increased due to growth in debt counselling and legal.
Commercial asset finance’s credit loss ratio improved due to low new defaults. Card credit impairments decreased 3% to
R1 297m, a 5,95% credit loss ratio from 6,21%, despite increased delinquencies and debt counselling inflows in Absa Card
and Woolworths Financial Services. Personal Loans credit impairments increased 22%, largely reflecting book growth and a
present value adjustment in the second half of the prior reporting period. Its credit loss ratio rose to 5,85% from 5,43%.
Business Banking South Africa’s credit impairments grew 32% to R332m, resulting in a 0,99% credit loss ratio from
0,79%. Its NPLs were flat at R3,2bn. RBB Rest of Africa’s credit impairments rose 58% to R646m, increasing its credit loss
ratio to 1,98% from 1,41%. Its NPLs increased 19% to R3,4bn, while performing loan cover increased to 1,76% from 1,08%.
CIB’s credit impairments increased significantly to R1,4bn, largely due to specific impairments in the consumer and
resources sector, resulting in a 1,05% credit loss ratio from 0,23%. Its portfolio provisions increased to 0,43% of
performing loans.
Operating expenses
Operating expenses grew 7% to R19 487m from R18 129m. South Africa’s 5% cost growth was below inflation, while Rest of
Africa costs rose 17%, or 6% in constant currency. Staff costs grew 8% and accounted for 56% of total expenses.
Salaries rose 9% due to higher wage increases for entry level employees and hiring in specialist staff. Incentives were flat,
as bonuses rose 6% and share-based payments fell 12%.
Non-staff costs grew 7%, as structural cost programmes produced efficiency gains that enabled continued investment in
growth initiatives. Property-related costs grew 1%, reflecting continued portfolio optimisation. Total IT-related costs
increased 17% and constituted 19% of overall costs. Depreciation rose 8% and amortisation of intangible assets increased
37% due to investment in new channels. Marketing costs fell 16% after some sponsorships were terminated. Professional
fees increased 14% to assist with group projects and implementing regulatory changes.
RBB and WIMI’s operating expenses increased 8% and 12% respectively. Retail Banking South Africa’s operating expenses
grew 6%, reflecting increased staff costs and investment in digital channels, and Business Banking South Africa’s rose
6%. RBB Rest of Africa’s operating expenses grew 17%, or 6% in constant currency, despite inflationary pressures in some
countries. CIB’s costs grew 5% without reducing investment in systems.
Taxation
The Group’s taxation expense increased 3% to R2 997m, slightly less than the 4% growth in pre-tax profit, resulting in
a 28,3% effective tax rate from 28,6%.
Segment performance
Retail Banking South Africa
Headline earnings grew 8% to R3 402m, as 8% higher pre-provision profits offset 13% higher credit impairments.
Transactional and Deposits earnings grew 14% to R1 395m, given 17% higher net interest income and 4% cost growth. Home Loans’
earnings fell 7% to R825m, largely due to 77% higher credit impairments. Card earnings increased 23% to R762m, as 6%
revenue growth exceeded 4% higher costs and credit impairments decreased 3%. VAF earnings declined 15% to R411m, given lower
revenue and 8% higher credit impairments. Personal Loans earnings grew 81% to R199m, reflecting 17% revenue growth
combined with 6% lower costs. “Other” segment grew 9% to R190m, due to increased technology, enhancement of digital channels
and regulatory costs. Retail Banking South Africa accounted for 45% of total earnings, excluding the Group centre.
Business Banking South Africa
Headline earnings increased 4% to R1 070m, reflecting 4% growth in its core franchise and a 7% smaller loss in the
non-core equity portfolio. Pre-provision profits grew 11% as 8% revenue growth exceeded 6% higher costs, while its credit
loss ratio increased to 0,99%. Business Banking South Africa generated 14% of overall earnings excluding the Group
centre.
Retail and Business Banking Rest of Africa
Headline earnings grew 63% to R439m or 17% in constant currency. Revenue growth of 26% exceeded 17% higher costs to
increase pre-provision profits 48% and reduce its cost to income ratio to 67,7%. Credit impairments increased 58%,
resulting in a 1,98% credit loss ratio. RBB Rest of Africa contributed 6% of total earnings excluding the Group centre.
Corporate and Investment Bank
Headline earnings rose 7% to R1 992m, due to 45% higher pre-provision profits and 5% lower taxation. Revenues grew
23%, with Rest of Africa increasing 34% and South Africa 17%. Markets revenue rose 31%, with South Africa up 33% while Rest
of Africa grew 26%. Costs rose 5%, reflecting continued investment in systems and technology. Credit impairments
increased by R1 145m, due to specific impairments in the consumer and resources sector and higher portfolio provisions.
Corporate earnings grew 41% to R1 172m, while the Investment Bank’s fell 20% to R820m, given increased credit impairments.
CIB’s return on regulatory capital declined to 15,9% from 17,4%, due to higher credit impairments. It contributed 26% of
total earnings excluding the Group centre.
Wealth, Investment Management and Insurance
Headline earnings fell 8% to R691m due to higher actuarial reserving in Mozambique and Kenya and reduced income on
shareholder funds. Excluding these items WIMI’s earnings grew 9%. Life Insurance in South Africa grew 13% on the back of
12% higher net premium income. The embedded value of new business increased 21%. Short-term insurance in South Africa grew
its continuing line earnings 28%, despite higher claims. Wealth and Investment Management’s earnings grew 11% given 10%
revenue growth, as net assets under management increased 4% to R284bn. Fiduciary Services earnings fell 10%, while
Distribution returned to profitability. Headline earnings for the "Other" segment declined by R82m which includes the WIMI
shareholder investment portfolios which were adversely impacted by currency and market movements. Rest of Africa made a
R29m loss due to revised reserving requirements and lower investment returns. WIMI’s RoE decreased to 23,2% from 25,4%
and it generated 9% of earnings excluding the Group centre.
Prospects
The UK Brexit vote and its potential for broader implications reduced our 2016 global growth forecast to 3,1%.
We have cut our GDP growth forecast for South Africa to -0,2% in 2016. Inflation is expected to remain high in the
second half, given the impact of drought on food inflation while the recent recovery in the rand has only a temporary
moderating impact. We forecast inflation will average 6,7% in 2016 and we expect a further 25 bps rate increase towards the
end of the year. Key risks facing South Africa include further weakness in the global economy, and the potential for its
sovereign credit rating to be downgraded. The outlook is similarly challenging across our presence countries in the rest
of Africa, and we expect economic growth of 4,7% for 2016, the region’s lowest growth since 2002.
Against this challenging and volatile backdrop, we expect low to mid-single digit loan growth, with CIB growing faster
than RBB and rest of Africa growth exceeding South Africa. The Group’s net interest margin should be largely in line with
2015, despite a higher proportion of CIB lending and the National Credit Act caps. Continued focus on revenue growth
and cost management should improve the Group’s cost-to-income ratio. Its credit loss ratio should improve from the first
half, given usual seasonality, but remain above through-the-cycle levels. As a result, the Group’s RoE is likely to be
slightly lower in 2016.
Following Barclays PLC’s announcement on 1 March 2016, Barclays PLC continues to explore strategic and capital market
options to reduce its shareholding in Barclays Africa Group to achieve regulatory deconsolidation. Barclays Africa Group
continues to work with Barclays PLC, including planning for the operational separation of the two businesses in order to
preserve value for all stakeholders. Barclays Africa Group and Barclays PLC continue to engage with regulators as the
divestment process is subject to all relevant regulatory approvals. Shareholders will be updated in due course.
Basis of presentation
The Group’s unaudited condensed consolidated interim 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 (IFRS-IC), the South African Institute of Chartered Accountants’ 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 audited annual consolidated financial statements.
The Group’s unaudited condensed consolidated interim financial results comply with IAS 34 - Interim Financial
Reporting (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 policies are 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 and long-term
insurance contracts and offsetting of financial assets and liabilities.
Accounting policies
The accounting policies applied in preparing the unaudited condensed consolidated interim financial results are the same as
those in place for the reporting period ended 31 December 2015, except for internal reclassifications and business portfolio
changes. Refer to note 14.
Events after the reporting period
The directors are not aware of any events occurring between the reporting date of 30 June 2016 and the date of
authorisation of these unaudited condensed consolidated interim financial results as defined in IAS 10 - Events after the
Reporting Period (IAS 10).
On behalf of the Board
W E Lucas-Bull M Ramos
Group Chairman Chief Executive Officer
Johannesburg
29 July 2016
Declaration of interim ordinary dividend number 60
Shareholders are advised that an interim ordinary dividend of 460 cents per ordinary share was declared on 29 July 2016
for the period ended 30 June 2016. The interim ordinary dividend is payable to shareholders recorded in the register of
members of the Company at the close of business on 9 September 2016. 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 per cent (15%).
- The gross local dividend amount is 460 cents per ordinary share for shareholders exempt from the dividend tax.
- The net local dividend amount is 391 cents per ordinary share for shareholders liable to pay for the dividend tax.
- Barclays Africa Group currently has 847 750 679 ordinary shares in issue (includes 878 850 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 Tuesday, 6 September 2016
Shares commence trading ex dividend Wednesday, 7 September 2016
Record date Friday, 9 September 2016
Payment date Monday, 12 September 2016
Share certificates may not be dematerialised or rematerialised between Wednesday, 7 September 2016 and Friday,
9 September 2016, both dates inclusive. On Monday, 12 September, the dividend will be electronically transferred
to the bank accounts of certificated shareholders. The accounts of those shareholders who have dematerialised
their shares (which are held at their participant or broker) will also be credited on Monday, 12 September 2016.
On behalf of the Board
N R Drutman
Group Company Secretary
Johannesburg
29 July 2016
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.
Consolidated salient features
for the reporting period ended
30 June 31 December
2016 2015 2015
Statement of comprehensive income (Rm)
Revenue 36 508 32 423 67 198
Operating expenses 19 487 18 129 37 661
Profit attributable to ordinary equity holders 7 019 6 770 14 331
Headline earnings(1) 7 252 6 755 14 287
Statement of financial position
Loans and advances to customers (Rm) 715 209 657 412 703 359
Total assets (Rm) 1 142 469 1 038 945 1 144 604
Deposits due to customers (Rm) 676 968 649 226 688 419
Loans to deposits and debt securities ratio (%) 87,1 85,5 86,1
Financial performance (%)
Return on Equity (RoE) 16,1 16,4 17,0
Return on Average Assets (RoA) 1,29 1,33 1,37
Return on risk-weighted assets (RoRWA) 2,08 2,16 2,18
Non-performing loans (NPLs) ratio on loans and advances to customers and banks(2) 3,84 3,49 3,47
Operating performance (%)
Net interest margin on average interest-bearing assets 4,97 4,70 4,81
Credit loss ratio on gross loans and advances to customers and banks 1,29 0,97 0,92
Credit loss ratio on net loans and advances to customers 1,48 1,11 1,05
Non-interest income as percentage of total revenue 42,2 43,1 42,8
Cost-to-income ratio 53,4 55,9 56,0
Jaws 5,11 0,86 1,39
Effective tax rate 28,3 28,6 27,7
Share statistics (million)
Number of ordinary shares in issue 847,8 847,8 847,8
Number of ordinary shares in issue (excluding treasury shares) 846,9 846,9 845,7
Weighted average number of ordinary shares in issue 846,5 846,9 846,8
Diluted weighted average number of ordinary shares in issue 846,5 847,6 847,3
Share statistics (cents)
Headline earnings per ordinary share 856,7 797,6 1 687,2
Diluted headline earnings per ordinary share 856,7 797,0 1 686,2
Basic earnings per ordinary share 829,2 799,4 1 692,4
Diluted basic earnings per ordinary share 829,2 798,7 1 691,4
Dividend per ordinary share relating to income for the reporting period 460 450 1 000
Dividend cover (times) 1,9 1,8 1,7
NAV per ordinary share 10 788 9 860 10 558
Tangible NAV per ordinary share 10 359 9 495 10 112
Capital adequacy (%)
Barclays Africa Group Limited 14,6 14,1 14,5
Absa Bank Limited 14,0 13,0 13,6
Common Equity Tier 1 (%)
Barclays Africa Group Limited 12,1 11,7 11,9
Absa Bank Limited 10,8 10,0 10,3
Notes
(1) After allowing for R168m (30 June 2015: R159m; 31 December 2015: R321m) profit attributable to preference equity
holders.
(2) The calculation of the NPLs ratio has been changed to also include loans and advances to banks. Based on the
previous methodology the NPLs ratio would be 4,28% (30 June 2015: 3,97%; 31 December 2015: 3,88%).
Condensed consolidated statement of financial position
as at
30 June 31 December
2016 2015(1) 2015
Note Rm Rm Rm
Assets
Cash, cash balances and balances with central banks 47 734 37 181 45 904
Investment securities 101 563 88 009 100 965
Loans and advances to banks 83 663 93 535 85 951
Trading portfolio assets 111 651 89 426 137 163
Hedging portfolio assets 1 455 2 106 2 232
Other assets 37 275 32 132 25 846
Current tax assets 1 714 1 354 833
Non-current assets held for sale 1 1 623 949 1 700
Loans and advances to customers 715 209 657 412 703 359
Reinsurance assets 814 467 581
Investments linked to investment contracts 19 910 19 025 19 517
Investments in associates and joint ventures 1 005 901 1 000
Investment properties 894 751 1 264
Property and equipment 13 336 11 404 13 252
Goodwill and intangible assets 3 635 3 095 3 772
Deferred tax assets 988 1 198 1 265
Total assets 1 142 469 1 038 945 1 144 604
Liabilities
Deposits from banks 77 927 51 041 62 980
Trading portfolio liabilities 53 020 48 324 90 407
Hedging portfolio liabilities 2 357 2 432 4 531
Other liabilities 37 085 34 313 24 982
Provisions 2 126 1 986 3 236
Current tax liabilities 94 151 242
Non-current liabilities held for sale 1 9 468 233
Deposits due to customers 676 968 649 226 688 419
Debt securities in issue 144 522 119 544 128 683
Liabilities under investment contracts 28 019 22 706 24 209
Policyholder liabilities under insurance contracts 4 506 3 651 4 340
Borrowed funds 2 13 548 11 476 13 151
Deferred tax liabilities 1 613 1 768 544
Total liabilities 1 041 794 947 086 1 045 957
Equity
Capital and reserves
Attributable to ordinary equity holders:
Share capital 1 694 1 694 1 691
Share premium 4 412 4 531 4 250
Retained earnings 78 078 72 407 75 785
Other reserves 7 180 4 875 7 566
91 364 83 507 89 292
Non-controlling interest - ordinary shares 4 667 3 708 4 711
Non-controlling interest - preference shares 4 644 4 644 4 644
Total equity 100 675 91 859 98 647
Total liabilities and equity 1 142 469 1 038 945 1 144 604
Note
(1) These numbers have been restated, refer to note 14 for reporting changes.
Condensed consolidated statement of comprehensive income
for the reporting period ended
30 June 31 December
2016 2015 2015
Note Rm Rm Rm
Net interest income 21 093 18 463 38 407
Interest and similar income 42 559 34 551 73 603
Interest expense and similar charges (21 466) (16 088) (35 196)
Non-interest income 15 415 13 960 28 791
Net fee and commission income 10 305 9 845 20 155
Fee and commission income 11 859 11 285 23 152
Fee and commission expense (1 554) (1 440) (2 997)
Net insurance premium income 3 516 2 981 6 303
Net claims and benefits incurred on insurance contracts (1 869) (1 467) (3 145)
Changes in investment and insurance contract liabilities (422) (35) (214)
Gains and losses from banking and trading activities 2 989 1 987 3 933
Gains and losses from investment activities 277 293 786
Other operating income 619 356 973
Total income 36 508 32 423 67 198
Impairment losses on loans and advances (5 197) (3 550) (6 920)
Operating income before operating expenditure 31 311 28 873 60 278
Operating expenses (19 487) (18 129) (37 661)
Other expenses (1 272) (639) (1 443)
Other impairments 3 (624) (16) (84)
Indirect taxation (648) (623) (1 359)
Share of post-tax results of associates and joint ventures 55 71 129
Operating profit before income tax 10 607 10 176 21 303
Taxation expense (2 997) (2 907) (5 899)
Profit for the reporting period 7 610 7 269 15 404
Profit attributable to:
Ordinary equity holders 7 019 6 770 14 331
Non-controlling interest - ordinary shares 423 340 752
Non-controlling interest - preference shares 168 159 321
7 610 7 269 15 404
Earnings per share
Basic earnings per ordinary share (cents) 829,2 799,4 1 692,4
Diluted basic earnings per ordinary share (cents) 829,2 798,7 1 691,4
Condensed consolidated statement of comprehensive income
for the reporting period ended
30 June 31 December
2016 2015 2015
Rm Rm Rm
Profit for the reporting period 7 610 7 269 15 404
Other comprehensive income
Items that will not be reclassified to profit or loss (41) (30) (118)
Movement in retirement benefit fund assets and liabilities (41) (30) (118)
(Decrease)/increase in retirement benefit surplus (11) 4 (42)
Increase in retirement benefit deficit (28) (28) (72)
Deferred tax (2) (6) (4)
Items that are or may be subsequently reclassified to profit or loss (641) (1 461) 888
Movement in foreign currency translation reserve (2 327) (938) 3 428
Differences in translation of foreign operations (2 007) (848) 3 695
Gains released to profit or loss (320) (90) (267)
Movement in cash flow hedging reserve 1 568 (616) (2 223)
Fair value (losses)/gains arising during the reporting period 2 399 (207) (2 029)
Amount removed from other comprehensive income and recognised in profit or loss (221) (648) (1 058)
Deferred tax (610) 239 864
Movement in available-for-sale reserve 118 93 (317)
Fair value gains/(losses) arising during the reporting period 130 (11) (690)
Release to profit or loss - 101 210
Deferred tax (12) 3 163
Total comprehensive income for the reporting period 6 928 5 778 16 174
Total comprehensive income attributable to:
Ordinary equity holders 6 487 5 368 14 649
Non-controlling interest - ordinary shares 273 251 1 204
Non-controlling interest - preference shares 168 159 321
6 928 5 778 16 174
Condensed consolidated statement of changes in equity
for the reporting period ended
30 June
2016
Number of
ordinary Share Share Retained
shares capital premium earnings
'000 Rm Rm Rm
Balance at the beginning of the reporting period 845 725 1 691 4 250 75 785
Total comprehensive income - - - 6 979
- Profit for the period - - - 7 019
- Other comprehensive income - - - (40)
Dividends paid - - - (4 648)
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - (229) 28
Elimination of movement in treasury shares held by Group entities 1 146 3 96 -
Movement in share-based payment reserve - - 229 -
- Transfer from share-based payment reserve - - 229 -
- Value of employee services - - - -
- Deferred tax - - - -
Movement in general credit risk reserve - - - (29)
Movement in foreign insurance subsidiary regulatory reserve - - - 18
Share of post-tax results of associates and joint ventures - - - (55)
Acquisition of subsidiaries(1), (2) - - 66 -
Balance at the end of the reporting period 846 871 1 694 4 412 78 078
30 June
2016
Total General Available- Cash flow
other credit risk for-sale hedging
reserves reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 7 566 727 560 (1 870)
Total comprehensive income (492) - 82 1 568
- Profit for the period - - - -
- Other comprehensive income (492) - 82 1 568
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve 40 - - -
- Transfer from share-based payment reserve (229) - - -
- Value of employee services 261 - - -
- Deferred tax 8 - - -
Movement in general credit risk reserve 29 29 - -
Movement in foreign insurance subsidiary regulatory reserve (18) - - -
Share of post-tax results of associates and joint ventures 55 - - -
Acquisition of subsidiaries(1), (2) - - - -
Balance at the end of the reporting period 7 180 756 642 (302)
30 June
2016
Foreign
Foreign insurance Share- Associates
currency subsidiary based and joint
translation regulatory payment ventures
reserve reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 6 461 22 729 937
Total comprehensive income (2 142) - - -
- Profit for the period - - - -
- Other comprehensive income (2 142) - - -
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve - - 40 -
- Transfer from share-based payment reserve - - (229) -
- Value of employee services - - 261 -
- Deferred tax - - 8 -
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - (18) - -
Share of post-tax results of associates and joint ventures - - - 55
Acquisition of subsidiaries(1), (2) - - - -
Balance at the end of the reporting period 4 319 4 769 992
30 June
2016
Non- Non-
Total equity controlling controlling
attributable interest - interest - Total
to ordinary ordinary preference equity
equity shares shares Rm
Rm Rm Rm
Balance at the beginning of the reporting period 89 292 4 711 4 644 98 647
Total comprehensive income 6 487 273 168 6 928
- Profit for the period 7 019 423 168 7 610
- Other comprehensive income (532) (150) - (682)
Dividends paid (4 648) (342) (168) (5 158)
Purchase of Group shares in respect of equity-settled share-based payment arrangements (201) - - (201)
Elimination of movement in treasury shares held by Group entities 99 - - 99
Movement in share-based payment reserve 269 - - 269
- Transfer from share-based payment reserve - - - -
- Value of employee services 261 - - 261
- Deferred tax 8 - - 8
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - - - -
Share of post-tax results of associates and joint ventures - - - -
Acquisition of subsidiaries(1), (2) 66 25 - 91
Balance at the end of the reporting period 91 364 4 667 4 644 100 675
Notes
(1) The excess of the purchase price over the Group's share of the net assets of Barclays Africa Limited, acquired on 31 July 2013, was
accounted for as a deduction against share premium. The sale and purchase agreement between the Group and Barclays Bank PLC allowed for the
purchase price to be adjusted for certain items and in June 2016 an agreement was reached on the final purchase price adjustment. As a result
Barclays Bank PLC paid R66m to the Group, which was recognised in equity, in line with the accounting of the original transaction.
(2) The Group acquired a 75% controlling stake in Absa Instant Life (Pty) Ltd, previously known as Instant Life (Pty) Ltd which resulted in
a R25m increase in non-controlling interest.
30 June
2015
Number of
ordinary Share Share Retained
shares capital premium(1) earnings
'000 Rm Rm Rm
Balance at the beginning of the reporting period 846 870 1 694 4 548 70 237
Total comprehensive income - - - 6 741
- Profit for the period - - - 6 770
- Other comprehensive income - - - (29)
Dividends paid - - - (4 443)
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - (5)
Elimination of movement in treasury shares held by Group entities - - (18) -
Movement in share-based payment reserve - - 1 -
- Transfer from share-based payment reserve - - 1 -
- Value of employee services - - - -
- Conversion from cash-settled to equity-settled schemes - - - -
- Deferred tax - - - -
Movement in general credit risk reserve - - - 96
Movement in foreign insurance subsidiary regulatory reserve - - - 6
Share of post-tax results of associates and joint ventures - - - (71)
Disposal of interest in subsidiary(3) - - - (154)
Balance at the end of the reporting period 846 870 1 694 4 531 72 407
30 June
2015
Total General Available- Cash flow
other credit risk for-sale hedging
reserves reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 6 211 597 912 353
Total comprehensive income (1 373) - 59 (616)
- Profit for the period - - - -
- Other comprehensive income (1 373) - 59 (616)
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve 68 - - -
- Transfer from share-based payment reserve (1) - - -
- Value of employee services 69 - - -
- Conversion from cash-settled to equity-settled schemes - - - -
- Deferred tax - - - -
Movement in general credit risk reserve (96) (96) - -
Movement in foreign insurance subsidiary regulatory reserve (6) - - -
Share of post-tax results of associates and joint ventures 71 - - -
Disposal of interest in subsidiary(3) - - - -
Balance at the end of the reporting period 4 875 501 971 (263)
30 June
2015
Foreign
Foreign insurance Share- Associates
currency subsidiary based and joint
translation regulatory payment ventures
reserve reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 3 465 20 56 808
Total comprehensive income (816) - - -
- Profit for the period - - - -
- Other comprehensive income (816) - - -
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve - - 68 -
- Transfer from share-based payment reserve - - (1) -
- Value of employee services - - 69 -
- Conversion from cash-settled to equity-settled schemes - - - -
- Deferred tax - - - -
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - (6) - -
Share of post-tax results of associates and joint ventures - - - 71
Disposal of interest in subsidiary(3) - - - -
Balance at the end of the reporting period 2 649 14 124 879
30 June
2015
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 82 690 3 611 4 644 90 945
Total comprehensive income 5 368 251 159 5 778
- Profit for the period 6 770 340 159 7 269
- Other comprehensive income (1 402) (89) - (1 491)
Dividends paid (4 443) (330) (159) (4 932)
Purchase of Group shares in respect of equity-settled share-based payment arrangements (5) - - (5)
Elimination of movement in treasury shares held by Group entities (18) - - (18)
Movement in share-based payment reserve 69 - - 69
- Transfer from share-based payment reserve - - - -
- Value of employee services 69 - - 69
- Conversion from cash-settled to equity-settled schemes - - - -
- Deferred tax - - - -
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - - - -
Share of post-tax results of associates and joint ventures - - - -
Disposal of interest in subsidiary(3) (154) 176 - 22
Balance at the end of the reporting period 83 507 3 708 4 644 91 859
31 December
2015
Number of
ordinary Share Share Retained
shares capital premium(1) earnings
'000 Rm Rm Rm
Balance at the beginning of the reporting period 846 870 1 694 4 548 70 237
Total comprehensive income - - - 14 228
- Profit for the period - - - 14 331
- Other comprehensive income - - - (103)
Dividends paid - - - (8 248)
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - (12) 3
Elimination of movement in treasury shares held by Group entities (1 145) (3) (289) -
Movement in share-based payment reserve - - 3 -
- Transfer from share-based payment reserve - - 3 -
- Value of employee services - - - -
- Conversion from cash-settled to equity-settled schemes - - - -
- Deferred tax - - - -
Movement in general credit risk reserve - - - (130)
Movement in foreign insurance subsidiary regulatory reserve - - - (2)
Share of post-tax results of associates and joint ventures - - - (129)
Acquisition of subsidiaries(2) - - - -
Disposal of interest in subsidiary(3) - - - (174)
Balance at the end of the reporting period 845 725 1 691 4 250 75 785
31 December
2015
Total General Available- Cash flow
other credit risk for-sale hedging
reserves reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 6 211 597 912 353
Total comprehensive income 421 - (352) (2 223)
- Profit for the period - - - -
- Other comprehensive income 421 - (352) (2 223)
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve 673 - - -
- Transfer from share-based payment reserve (3) - - -
- Value of employee services 283 - - -
- Conversion from cash-settled to equity-settled schemes 430 - - -
- Deferred tax (37) - - -
Movement in general credit risk reserve 130 130 - -
Movement in foreign insurance subsidiary regulatory reserve 2 - - -
Share of post-tax results of associates and joint ventures 129 - - -
Acquisition of subsidiaries(2) - - - -
Disposal of interest in subsidiary(3) - - - -
Balance at the end of the reporting period 7 566 727 560 (1 870)
31 December
2015
Foreign
Foreign insurance Associates
currency subsidiary Share-based and joint
translation regulatory payment ventures
reserve reserve reserve reserve
Rm Rm Rm Rm
Balance at the beginning of the reporting period 3 465 20 56 808
Total comprehensive income 2 996 - - -
- Profit for the period - - - -
- Other comprehensive income 2 996 - - -
Dividends paid - - - -
Purchase of Group shares in respect of equity-settled share-based payment arrangements - - - -
Elimination of movement in treasury shares held by Group entities - - - -
Movement in share-based payment reserve - - 673 -
- Transfer from share-based payment reserve - - (3) -
- Value of employee services - - 283 -
- Conversion from cash-settled to equity-settled schemes - - 430 -
- Deferred tax - - (37) -
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - 2 - -
Share of post-tax results of associates and joint ventures - - - 129
Acquisition of subsidiaries(2) - - - -
Disposal of interest in subsidiary(3) - - - -
Balance at the end of the reporting period 6 461 22 729 937
31 December
2015
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 82 690 3 611 4 644 90 945
Total comprehensive income 14 649 1 204 321 16 174
- Profit for the period 14 331 752 321 15 404
- Other comprehensive income 318 452 - 770
Dividends paid (8 248) (495) (321) (9 064)
Purchase of Group shares in respect of equity-settled share-based payment arrangements (9) - - (9)
Elimination of movement in treasury shares held by Group entities (292) - - (292)
Movement in share-based payment reserve 676 4 - 680
- Transfer from share-based payment reserve - - - -
- Value of employee services 283 4 - 287
- Conversion from cash-settled to equity-settled schemes 430 - - 430
- Deferred tax (37) - - (37)
Movement in general credit risk reserve - - - -
Movement in foreign insurance subsidiary regulatory reserve - - - -
Share of post-tax results of associates and joint ventures - - - -
Acquisition of subsidiaries(2) - 209 - 209
Disposal of interest in subsidiary(3) (174) 178 - 4
Balance at the end of the reporting period 89 292 4 711 4 644 98 647
Notes
(1) The movement is largely due to the elimination of treasury shares in the share incentive trust.These shares were acquired by the trust
as part of the conversion of the cash-settled share-based payment schemes to the equity-settled share-based payment schemes.
(2) The Group acquired a 63% shareholding in First Assurance Holdings Limited.
(3) The Group disposed of part of its interest in National Bank of Commerce (NBC), reducing its interest from 66% to 55%.
Condensed consolidated statement of cash flows
for the reporting period ended
30 June 31 December
2016 2015 2015
Note Rm Rm Rm
Net cash generated from operating activities 4 701 3 176 16 357
Net cash utilised in investing activities (1 779) (939) (4 547)
Net cash utilised in financing activities (5 136) (4 633) (7 316)
Net (decrease)/increase in cash and cash equivalents (2 214) (2 396) 4 494
Cash and cash equivalents at the beginning of the reporting period 1 21 366 16 626 16 626
Effect of foreign exchange rate movements on cash and cash equivalents (198) (284) 246
Cash and cash equivalents at the end of the reporting period 2 18 954 13 946 21 366
Notes to the 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(1) 12 899 12 903 12 903
Loans and advances to banks(2) 8 467 3 723 3 723
21 366 16 626 16 626
2. Cash and cash equivalents at the end of the reporting period
Cash, cash balances and balances with central banks(1) 10 644 9 833 12 899
Loans and advances to banks(2) 8 310 4 113 8 467
18 954 13 946 21 366
Notes
(1) Includes coins and bank notes.
(2) Includes call advances, which are used as working capital by the Group.
Condensed notes to the consolidated financial results
for the reporting period ended
1. Non-current assets and non-current liabilities held for sale
The following changes to non-current assets and non-current liabilities held for sale were effected during the current
financial reporting period:
- RBB transferred investment properties with a total carrying value of R53m and a subsidiary with a total carrying value of
R357m to non-current assets and non-current liabilities held for sale. The Commercial Property Finance (CPF) Equity division
disposed of an Investment Security previously classified as non-current assets held for sale with a total carrying value of R15m.
- Head Office disposed of Property and Equipment with a carrying value of R92m.
- WIMI transferred a fund with a carrying value of R11m out of non-current assets held for sale.
- CIB hold an Investment Security at a carrying value of R1 137m and it remains classified as non-current assets held
for sale as the Group has assessed that the sales remain highly probable.
2. Borrowed funds
During the reporting period the significant movements in borrowed funds were as follows: R231m (30 June 2015: R2 500m;
31 December 2015: R4 870m) of subordinated notes were issued and R173m (30 June 2015: R2 200m; 31 December 2015: R2 455m)
were redeemed.
3. Other impairments
30 June 31 December
2016 2015 2015
Rm Rm Rm
Financial instruments (1) (11) 10
Other 625 27 74
Goodwill - 1 1
Intangible assets(1) 583 25 72
Investments in associates and joint ventures 42 - -
Property and equipment - 1 1
624 16 84
4. Headline earnings
30 June 31 December
2016 2015
Gross Net(2) Gross Net(2)
Rm Rm Rm Rm
Headline earnings is determined as follows:
Profit attributable to ordinary equity holders 7 019 6 770
Total headline earnings adjustment: 233 (15)
IFRS 3 - Goodwill impairment - - 1 1
IFRS 5 - Gains on disposal of non-current assets held for sale - - (1) (1)
IAS 16 - Profit on disposal of property and equipment (47) (34) (3) (3)
IAS 21 - Recycled foreign currency translation reserve (320) (297) (90) (90)
IAS 28 - Impairment of investments in associates and joint ventures 42 34 - -
IAS 36 - Impairment of property and equipment - - 1 1
IAS 36 - Impairment of intangible assets 583 583 25 17
IAS 38 - Gain on disposal of intangible assets - - (6) (4)
IAS 39 - Release of available-for-sale reserves - - 101 73
IAS 40 - Change in fair value of investment properties (65) (53) (9) (9)
Headline earnings/diluted headline earnings 7 252 6 755
Headline earnings per ordinary share (cents) 856,7 797,6
Diluted headline earnings per ordinary share (cents) 856,7 797,0
31 December
2015
Gross Net(2)
Rm Rm
Headline earnings is determined as follows:
Profit attributable to ordinary equity holders 14 331
Total headline earnings adjustment: (44)
IFRS 3 - Goodwill impairment 1 1
IFRS 5 - Gains on disposal of non-current assets held for sale (1) (1)
IAS 16 - Profit on disposal of property and equipment (13) (10)
IAS 21 - Recycled foreign currency translation reserve (267) (267)
IAS 28 - Impairment of investments in associates and joint ventures - -
IAS 36 - Impairment of property and equipment 1 1
IAS 36 - Impairment of intangible assets 72 51
IAS 38 - Gain on disposal of intangible assets (7) (5)
IAS 39 - Release of available-for-sale reserves 210 152
IAS 40 - Change in fair value of investment properties 47 34
Headline earnings/diluted headline earnings 14 287
Headline earnings per ordinary share (cents) 1 687,2
Diluted headline earnings per ordinary share (cents) 1 686,2
Notes
(1) The impairment of intangible assets was incurred in RBB and Head Office. The impairment in RBB (R283m) was mainly
due to the impact of the interest rate outlook on the fair value of customer list. The impairment in Head Office (R300m)
is due to a decision to fully impair costs spent on our Virtual Bank work even though we continue to explore
opportunities in this regard.
(2) The net amount is reflected after taxation and non-controlling interest.
5. Dividends per share
30 June 31 December
2016 2015 2015
Rm Rm Rm
Dividends declared to ordinary equity holders
Interim dividend (29 July 2016: 460 cents) (29 July 2015: 450 cents) 3 900 3 815 3 815
Final dividend (1 March 2016: 550 cents) - - 4 663
3 900 3 815 8 478
Dividends declared to non-controlling preference equity holders
Interim dividend (29 July 2016: 3 696,57534 cents) (29 July 2015: 3 282,8082 cents) 183 162 162
Final dividend (1 March 2016: 3 395,47945 cents) - - 168
183 162 330
Dividends paid to ordinary equity holders (net of treasury shares)(1)
Final dividend (1 March 2016: 550 cents) (3 March 2015: 525 cents) 4 648 4 443 4 442
Interim dividend (29 July 2015: 450 cents) - - 3 806
4 648 4 443 8 248
Dividends paid to non-controlling preference equity holders
Final dividend (1 March 2016: 3 395,47945 cents) (3 March 2015: 3 210,8904 cents) 168 159 159
Interim dividend (29 July 2015: 3 282,8082 cents) - - 162
168 159 321
6. Acquisitions and disposals of businesses
6.1.1 Acquisitions of businesses during the current reporting period
In order to continue building and shaping the Group’s predictive underwriting products, expertise and technology, the
Group acquired a 75% controlling stake in Absa Instant Life (Pty) Ltd, previously known as Instant Life (Pty) Ltd. The
acquisition of the investment had an effective acquisition date of 31 March 2016 and is a business combination within the
scope of IFRS 3. The acquisition date fair value of the consideration transferred amounted to R100m.
The non-controlling interest below was measured at their proportionate share of the acquiree’s identifiable net
assets. A goodwill of R20m has been recognised through the purchase of the online insurer. The goodwill mentioned
includes but is not limited to the insurer’s workforce and the increased market share gained.
The transaction is currently under Purchase Price Allocation (PPA) consideration. The initial accounting
considerations include the valuation of intangible assets (identified in terms of IFRS3 - i.e. Value of business
acquired and Software system) and Share-based payments.
From the date of acquisition, Absa Instant Life contributed losses after tax of R4m to total profits earned by the
Group. If the combination had taken place at the beginning of the year, losses after tax of an additional R3m would have
been incurred by the Group.
Instant Life
Fair value
recognised
on
acquisition
2016 Group
Rm Rm
Consideration at 31 March 2016:
Cash 100 100
Total consideration 100 100
Recognised amounts of identifiable assets acquired and liabilities assumed
Loans and advances to banks 6 6
Other assets 14 14
Intangible assets 125 125
Other liabilities (5) (5)
Deferred tax liabilities (32) (32)
Provisions (1) (1)
Total identifiable net assets 107 107
Total non-controlling interest (27) (27)
Goodwill (20) 20
Total 100 100
Note
(1) The dividends paid on treasury shares are calculated on payment date.
30 June 31 December
2016 2015 2015
Rm Rm Rm
Summary of net cash outflow due to acquisitions 100 - 384
6.1.2 Disposals of businesses during the current reporting period
There were no disposals of businesses during the current reporting period.
6.2.1 Acquisitions of businesses during the previous reporting period
The Group acquired 63% of the issued ordinary share capital of First Assurance Company Limited (FACL), an East
African insurer, with operations in both Kenya and Tanzania. The acquisition of the investment in FACL had an
effective acquisition date of 30 October 2015, and is a business combination within the scope of IFRS 3.
The non-controlling interest below was measured at their proportionate share of the acquiree’s identifiable net
assets. A goodwill of R164m has been recognised mainly due to intangible assets that do not qualify for separate
recognition.
The transaction is still under Purchase Price Allocation (PPA) consideration. The initial accounting considerations
include the valuation of intangible assets (identified in terms of IFRS3 - i.e. Brand Names and Distribution Force),
Premium debtors, Investment Properties and the Valuation of Policyholder liabilities.
From the date of acquisition, FACL contributed R9m to profit after tax of the Group. If the combination had taken
place at the beginning of the year, profit after tax for the Group would have increased by R37m.
The Group also purchased additional shares in a non-core joint venture which resulted in an increase in the Group’s
effective shareholding from 50% to 67%. The acquisition occurred on 18 November 2015. A Bargain Purchase of R4m was
recognised in the statement of comprehensive income.
First Assurance
Holdings
2015
Fair value
recognised on
acquisition Other Group
Rm Rm Rm
Consideration at November 2015:
Cash 370 14 384
Total consideration 370 14 384
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment 28 - 28
Investment securities 145 - 145
Loans and advances to banks 196 - 196
Other assets 440 5 445
Investment properties 170 292 462
Current tax assets 2 - 2
Other liabilities (65) (1) (66)
Insurance liabilities (586) - (586)
Deferred tax liabilities (3) (4) (7)
Loans from subsidiaries - (176) (176)
Loans from Absa Group companies - (90) (90)
Total identifiable net assets 327 26 353
Total non-controlling interest (121) (8) (129)
Goodwill/(bargain purchase) 164 (4) 160
Total 370 14 384
6.2.2 Disposals of businesses during the previous reporting period
National Bank of Commerce Limited (NBC) was recapitalised through a rights issue to all its shareholders during 2013.
As the Government of Tanzania (GoT) was unable to subscribe to their rights at the time, an option was granted to GoT
providing it with the right to purchase its pro rata portion of the shares from the Group within a period of two years
after the rights issue. The GoT exercised their option during the reporting period which resulted in a decrease of the
Group’s shareholding from 66% to 55%.
7. Related parties
Barclays Bank PLC sold 12,2% of its Barclays Africa Group Limited shareholding for R13,1bn on 5 May 2016 through a
book build to money managers, leaving the Barclays Bank PLC shareholding at 50,1%.
8. Financial guarantee contracts
30 June 31 December
2016 2015 2015
Rm Rm Rm
Financial guarantee contracts 58 96 24
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.
9. Commitments
30 June 31 December
2016 2015 2015
Rm Rm Rm
Authorised capital expenditure
Contracted but not provided for 2 081 2 950 1 642
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 1 268 813 758
Later than one year and no later than five years 2 800 1 865 1 742
Later than five years 1 369 1 324 956
5 437 4 002 3 456
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 147 213 147
Later than one year and no later than five years 177 536 177
324 749 324
The Group has sponsorship commitments in respect of sports, arts and culture.
Other commitments
No later than one year - 991 991
The South African Reserve Bank (SARB) announced in August 2014 that African Bank Limited (a subsidiary of African
Bank Investments Limited) would be placed under curatorship. A consortium of six South African banks (including
Barclays Africa Group Limited) and the Public Investment Corporation had underwritten R5bn respectively. In the
current financial reporting period, African Bank Holdings Limited (that is, the holding company of “Good Bank”,
African Bank Limited) was successfully capitalised, with BAGL subscribing for a portion of the issued ordinary shares.
The investment is recognised within Investment Securities, and the remaining commitment which was underwritten by
Barclays Africa Group Limited, but guaranteed by the SARB, has been derecognised.
10. Contingencies
30 June 31 December
2016 2015 2015
Rm Rm Rm
Guarantees 36 239 35 080 37 901
Irrevocable debt facilities 142 247 142 301 152 984
Irrevocable equity facilities 335 368 364
Letters of credit 6 098 7 301 7 466
Other 4 044 4 503 5 325
188 963 189 553 204 040
Guarantees include performance and payment guarantee contracts.
Irrevocable facilities are commitments to extend credit where the Group does not have the right to 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 other legal, competition and regulatory matters both in South Africa and a number of
other jurisdictions. It is party to legal proceedings which arise in the ordinary course of business from time to time,
including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud,
trusts, client assets, competition, data protection, money laundering, employment, environmental and other statutory and
common law issues.
The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal
and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer
protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking
and business activities in which the Group is or has been engaged.
At the present time, the Group does not expect the ultimate resolution of any of these other matters to have a
material adverse effect on its financial position. However, in light of the uncertainties involved in such matters and the
matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters
will not be material to the Group’s results of operations or cash flow for a particular period, depending on, amongst
other things, the amount of the loss resulting from the matter(s) and the amount of income otherwise reported for the
reporting period.
The Group has not disclosed the contingent liabilities associated with these matters either because they cannot
reasonably be estimated or because such disclosure could be prejudicial to the outcome of the matter. 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
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 expert 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
30 June 31 December
2016 2015(1) 2015(1)
Rm Rm Rm
11.1 Headline earnings contribution by segment
RBB 4 911 4 459 9 661
CIB 1 992 1 857 3 999
WIMI 691 748 1 452
Head Office, Treasury and other operations (342) (309) (825)
7 252 6 755 14 287
30 June 31 December
2016 2015(1) 2015(1)
Rm Rm Rm
11.2 Total income by segment
RBB 26 190 23 730 49 212
CIB 7 949 6 464 13 741
WIMI 2 693 2 617 5 235
Head Office, Treasury and other operations (324) (388) (990)
36 508 32 423 67 198
30 June 31 December
2016 2015(1) 2015(1)
Rm Rm Rm
11.3 Total internal income by segment
RBB (5 338) (4 789) (9 293)
CIB (258) 661 (844)
WIMI (120) (195) (425)
Head Office, Treasury and other operations 5 716 4 323 10 562
- - -
30 June 31 December
2016 2015(1) 2015(1)
Rm Rm Rm
11.4 Total assets by segment
RBB 821 202 793 274 841 708
CIB 584 860 480 124 573 334
WIMI 50 190 41 118 43 898
Head Office, Treasury and other operations (313 783) (275 571) (314 336)
1 142 469 1 038 945 1 144 604
30 June 31 December
2016 2015(1) 2015(1)
Rm Rm Rm
11.5 Total liabilities by segment
RBB 796 769 770 872 810 730
CIB 578 347 475 273 565 820
WIMI 44 735 35 735 38 386
Head Office, Treasury and other operations (378 057) (334 794) (368 979)
1 041 794 947 086 1 045 957
Note
(1) Operational changes, management changes and associated changes to the way in which the Chief Operation
Decision Maker (CODM) views the performance of each business segment, have resulted in the reallocation of
earnings, assets and liabilities between operating segments. For details on business portfolio changes,
refer to note 14.
12. Assets and liabilities not held at fair value
The table below summarises the carrying amounts and fair values of those assets and liabilities not held at fair
value:
30 June
2016 2015
Carrying Carrying
value Fair value value Fair value
Rm Rm Rm Rm
Financial assets
Balances with other central banks 13 032 13 032 7 382 7 382
Balances with the SARB 18 183 18 183 16 485 16 485
Coins and bank notes 10 644 10 644 9 833 9 833
Money market assets 41 41 24 24
Cash, cash balances and balances with central banks 41 900 41 900 33 724 33 724
Loans and advances to banks 57 469 57 469 68 051 68 051
Other assets 34 156 34 156 29 374 29 374
Retail Banking South Africa 374 752 374 085 371 890 371 355
Credit cards 36 133 36 133 36 703 36 703
Instalment credit agreements 73 126 72 349 72 921 72 296
Loans to associates and joint ventures 16 615 16 615 14 163 14 163
Mortgages 226 671 226 682 228 824 228 853
Other loans and advances 469 469 344 344
Overdrafts 3 370 3 370 2 442 2 442
Personal and term loans 18 368 18 467 16 493 16 554
Business Banking South Africa 66 480 66 480 63 219 63 246
Mortgages (including Commercial Property Finance) 32 149 32 149 30 200 30 227
Overdrafts(1) 19 322 19 322 18 703 18 703
Term loans(1) 15 009 15 009 14 316 14 316
RBB Rest of Africa 42 099 42 099 36 360 36 486
CIB 199 968 199 968 157 460 157 460
WIMI 5 895 5 895 5 117 5 117
Head Office and other operations 1 066 1 066 2 799 2 799
Loans and advances to customers - net of impairment losses 690 260 689 593 636 845 636 463
Total assets 823 785 823 118 767 994 767 612
Financial liabilities
Deposits from banks 59 632 59 632 36 972 36 972
Other liabilities 32 933 32 933 29 722 29 719
Call deposits 57 407 57 407 61 269 61 269
Cheque account deposits 199 461 199 461 200 264 200 264
Credit card deposits 1 865 1 865 1 889 1 889
Fixed deposits 157 863 156 922 147 841 148 199
Foreign currency deposits 31 595 31 595 28 259 28 259
Notice deposits 58 516 58 528 48 706 48 713
Other deposits 6 720 6 720 9 818 9 818
Savings and transmission deposits 145 821 145 821 132 739 132 739
Deposits due to customers 659 248 658 319 630 785 631 150
Debt securities in issue 138 442 138 680 112 211 112 571
Borrowed funds 13 548 13 821 11 476 11 843
Total liabilities 903 803 903 385 821 166 822 255
Note
(1) R542m of overdrafts were reallocated to term loans (30 June 2015: R674m; 31 December 2015: R554m) to align to the
way the products are utilised by the customers.
The table below summarises the carrying amounts and fair values of those assets and liabilities not held at fair
value:
31 December
2015
Carrying
value Fair value
Rm Rm
Financial assets
Balances with other central banks 12 141 12 141
Balances with the SARB 17 459 17 459
Coins and bank notes 12 898 12 898
Money market assets 34 34
Cash, cash balances and balances with central banks 42 532 42 532
Loans and advances to banks 61 623 61 632
Other assets 22 875 22 875
Retail Banking South Africa 374 996 373 967
Credit cards 37 148 37 148
Instalment credit agreements 72 859 71 798
Loans to associates and joint ventures 16 175 16 175
Mortgages 228 349 228 359
Other loans and advances 367 367
Overdrafts 2 820 2 820
Personal and term loans 17 278 17 300
Business Banking South Africa 63 412 63 440
Mortgages (including Commercial Property Finance) 30 730 30 742
Overdrafts(1) 17 605 17 621
Term loans(1) 15 077 15 077
RBB Rest of Africa 45 212 45 212
CIB 184 342 184 344
WIMI 5 350 5 350
Head Office, Treasury and other operations 625 625
Loans and advances to customers - net of impairment losses 673 937 672 938
Total assets 800 967 799 977
Financial liabilities
Deposits from banks 50 962 50 962
Other liabilities 21 398 21 278
Call deposits 72 172 72 172
Cheque account deposits 200 614 200 614
Credit card deposits 2 002 2 002
Fixed deposits 157 661 157 774
Foreign currency deposits 27 865 27 865
Notice deposits 48 954 48 963
Other deposits 13 791 13 791
Savings and transmission deposits 147 561 147 561
Deposits due to customers 670 620 670 742
Debt securities in issue 122 436 119 859
Borrowed funds 13 151 13 520
Total liabilities 878 567 876 361
Note
(1) R542m of overdrafts were reallocated to term loans (30 June 2015: R674m; 31 December 2015: R554m) to align to the
way the products are utilised by the customers.
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 Barclays Africa 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 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 the 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.
The fair value of amortised cost deposits repayable on demand is considered to be equal to their carrying value. For
other financial liabilities at amortised cost the disclosed fair value approximates the carrying value because the
instruments are short term in nature or have interest rates that reprice frequently.
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.
30 June
2016
Level 1 Level 2 Level 3 Total
Rm Rm Rm Rm
Financial assets
Cash, cash balances and balances with
central banks 2 458 3 376 - 5 834
Investment securities 61 166 34 308 6 089 101 563
Loans and advances to banks - 26 194 - 26 194
Trading and hedging portfolio assets 42 991 65 814 2 895 111 700
Debt instruments 20 036 8 420 2 169 30 625
Derivative assets - 51 656 726 52 382
Commodity derivatives - 194 - 194
Credit derivatives - 122 294 416
Equity derivatives - 1 330 - 1 330
Foreign exchange derivatives - 16 982 1 16 983
Interest rate derivatives - 33 028 431 33 459
Equity instruments 22 911 - - 22 911
Money market assets 44 5 738 - 5 782
Other assets - 7 62 69
Loans and advances to customers - 18 008 6 941 24 949
Investments linked to investment contracts 17 037 2 873 - 19 910
Total financial assets 123 652 150 580 15 987 290 219
Financial liabilities
Deposits from banks - 18 295 - 18 295
Trading and hedging portfolio liabilities 4 830 50 210 337 55 377
Derivative liabilities - 50 210 337 50 547
Commodity derivatives - 151 - 151
Credit derivatives - 327 150 477
Equity derivatives - 1 735 1 1 736
Foreign exchange derivatives - 14 042 - 14 042
Interest rate derivatives - 33 955 186 34 141
Short positions 4 830 - - 4 830
Other liabilities - 10 170 180
Deposits due to customers 119 16 680 921 17 720
Debt securities in issue 243 5 067 770 6 080
Liabilities under investment contracts - 28 019 - 28 019
Total financial liabilities 5 192 118 281 2 198 125 671
Non-financial assets
Commodity 1 406 - - 1 406
Investment properties - - 894 894
Non-recurring fair value measurements
Non-current assets held for sale(2) - - 1 623 1 623
Non-current liabilities held for sale(2) - - 9 9
30 June
2015(1)
Level 1 Level 2 Level 3 Total
Rm Rm Rm Rm
Financial assets
Cash, cash balances and balances with
central banks 4 121 7 069 1 310 12 500
Investment securities 55 589 19 229 4 148 78 966
Loans and advances to banks - 25 484 - 25 484
Trading and hedging portfolio assets 32 841 55 589 1 278 89 708
Debt instruments 18 390 9 537 872 28 799
Derivative assets 491 40 032 406 40 929
Commodity derivatives - 168 - 168
Credit derivatives - 224 111 335
Equity derivatives 12 1 491 45 1 548
Foreign exchange derivatives 114 7 197 10 7 321
Interest rate derivatives 365 30 952 240 31 557
Equity instruments 13 845 - - 13 845
Money market assets 115 6 020 - 6 135
Other assets - 5 25 30
Loans and advances to customers 3 19 839 725 20 567
Investments linked to investment contracts 16 550 2 475 - 19 025
Total financial assets 109 104 129 690 7 486 246 280
Financial liabilities
Deposits from banks - 14 062 7 14 069
Trading and hedging portfolio liabilities 7 787 42 548 421 50 756
Derivative liabilities 32 42 548 421 43 001
Commodity derivatives - 186 - 186
Credit derivatives - 146 129 275
Equity derivatives - 2 419 184 2 603
Foreign exchange derivatives 32 6 545 7 6 584
Interest rate derivatives - 33 252 101 33 353
Short positions 7 755 - - 7 755
Other liabilities - 11 10 21
Deposits due to customers 93 7 659 10 689 18 441
Debt securities in issue 2 5 265 2 066 7 333
Liabilities under investment contracts - 20 426 2 280 22 706
Total financial liabilities 7 882 89 971 15 473 113 326
Non-financial assets
Commodity 1 824 - - 1 824
Investment properties - - 751 751
Non-recurring fair value measurements
Non-current assets held for sale(2) - - 949 949
Non-current liabilities held for sale(2) - - 468 468
Notes
(1) These numbers have been 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.
31 December
2015
Level 1 Level 2 Level 3 Total
Rm Rm Rm Rm
Financial assets
Cash, cash balances and balances with
central banks 2 114 1 258 - 3 372
Investment securities 64 458 32 541 3 966 100 965
Loans and advances to banks - 22 219 2 109 24 328
Trading and hedging portfolio assets 37 037 98 935 1 418 137 390
Debt instruments 18 891 9 430 897 29 218
Derivative assets 51 79 938 521 80 510
Commodity derivatives - 212 - 212
Credit derivatives - 889 23 912
Equity derivatives 6 2 134 43 2 183
Foreign exchange derivatives 45 27 696 3 27 744
Interest rate derivatives - 49 007 452 49 459
Equity instruments 17 321 - - 17 321
Money market assets 774 9 567 - 10 341
Other assets - 1 25 26
Loans and advances to customers 3 21 908 7 511 29 422
Investments linked to investment contracts 16 885 2 632 - 19 517
Total financial assets 120 497 179 494 15 029 315 020
Financial liabilities
Deposits from banks - 12 011 7 12 018
Trading and hedging portfolio liabilities 3 712 91 009 217 94 938
Derivative liabilities - 91 009 217 91 226
Commodity derivatives - 429 - 429
Credit derivatives - 879 14 893
Equity derivatives - 3 768 58 3 826
Foreign exchange derivatives - 28 576 - 28 576
Interest rate derivatives - 57 357 145 57 502
Short positions 3 712 - - 3 712
Other liabilities - 7 5 12
Deposits due to customers 111 15 131 2 557 17 799
Debt securities in issue 202 5 421 624 6 247
Liabilities under investment contracts - 24 209 - 24 209
Total financial liabilities 4 025 147 788 3 410 155 223
Non-financial assets
Commodity 2 005 - - 2 005
Investment properties - - 1 264 1 264
Non-recurring fair value measurements
Non-current assets held for sale(1) - - 1 700 1 700
Non-current liabilities held for sale(1) - - 233 233
Note
(1) 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 Discounted cash flow models Underlying price of market traded instruments
balances with central banks 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, Spot price of physical or futures,
option pricing, futures interest rates and/or volatility
pricing and/or exchange
traded fund (ETF) models
Credit derivatives Discounted cash flow and/or Interest rate, recovery rate, credit spread and/or
credit default swap (hazard quanto ratio
rate) models
Equity derivatives Discounted cash flow, option Spot price, interest rate, volatility and/or
pricing and/or futures dividend stream
pricing models
Foreign exchange Discounted cash flow and/or Spot price, interest rate and/or volatility
derivatives option pricing models
Interest rate derivatives Discounted cash flow and/or Interest rate curves, repurchase agreement
option pricing models curves, money market curves and/or volatility
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 Listed equity: market bid Underlying price of the market traded
investments linked to price instrument, interest rate curves
investment contracts Other items: discounted
cash flow models
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 instrument
other liabilities 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 is set out below:
30 June 2016
Trading and
hedging Loans and Loans and
portfolio Other advances to advances
assets assets customers to banks
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period 1 418 25 7 511 2 109
Net interest income - - 167 -
Gains and losses from banking and trading activities 192 - - -
Gains and losses from investment activities - - (10) -
Purchases 1 332 37 1 962 -
Sales (47) - (2 689) (2 109)
Transferred to/(from) assets/liabilities(1) - - - -
Closing balance at the end 2 895 62 6 941 -
of the reporting period
30 June 2016
Investment Investment Total assets
securities properties at fair value
Rm Rm Rm
Opening balance at the beginning of the reporting period 3 966 1 264 16 293
Net interest income 30 - 197
Gains and losses from banking and trading activities - - 192
Gains and losses from investment activities 11 45 46
Purchases 3 209 15 6 555
Sales (1 127) - (5 972)
Transferred to/(from) assets/liabilities(1) - (430) (430)
Closing balance at the end 6 089 894 16 881
of the reporting period
30 June 2015
Trading and
hedging Loans and Loans and
portfolio Other advances to advances
assets assets customers to banks
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period 1 162 18 4 731 -
Net interest income - - - -
Gains and losses from banking and trading activities - - (16) -
Gains and losses from investment activities - 1 - -
Purchases 132 6 - -
Sales (4) - (3 990) -
Movement in/(out of) Level 3 (12) - - -
Closing balance at the end of the reporting period 1 278 25 725 -
30 June 2015
Investment Investment Total assets
securities(2) properties at fair value
Rm Rm Rm
Opening balance at the beginning of the reporting period 6 467 727 13 105
Net interest income 38 - 38
Gains and losses from banking and trading activities - - (16)
Gains and losses from investment activities 67 23 91
Purchases 296 2 436
Sales (1 410) (1) (5 405)
Movement in/(out of) Level 3 - - (12)
Closing balance at the end of the reporting period 5 458 751 8 237
Notes
(1) Transfer to non-current assets held for sale and property and equipment.
(2) These numbers have been restated, refer to note 14 for reporting changes.
31 December 2015
Trading and
hedging Loans and Loans and
portfolio Other advances to advances
assets assets customers to banks
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period 1 162 17 4 731 -
Net interest income - - 488 -
Gains and losses from banking and trading activities 323 - - -
Gains and losses from investment activities - - - (18)
Purchases 16 8 5 108 2 127
Sales (83) - (2 816) -
Movement in other comprehensive income - - - -
Closing balance at the end 1 418 25 7 511 2 109
of the reporting period
31 December 2015
Investments
linked to
Investment Investment investment Total assets
securities properties contracts at fair value
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period 6 467 727 1 13 105
Net interest income 85 - - 573
Gains and losses from banking and trading activities - - - 323
Gains and losses from investment activities 50 60 - 92
Purchases 47 478 - 7 784
Sales (2 718) (1) (1) (5 619)
Movement in other comprehensive income 35 - - 35
Closing balance at the end 3 966 1 264 - 16 293
of the reporting period
A reconciliation of the opening balances to closing balances for all movements on Level 3 liabilities is set out below:
30 June 2016
Trading and
hedging
Deposits from portfolio Other Deposits due
banks liabilities liabilities to customers
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period 7 217 5 2 557
Net interest income - - - 70
Gains and losses from banking and trading activities - 132 - -
Gains and losses from investment activities - - - -
Issues - - 165 1 958
Settlements (7) (12) - (689)
Movement in/(out of) Level 3 - - - (2 975)
Closing balance at the end of the reporting period - 337 170 921
30 June 2016
Liabilities
Debt under Total
securities investment liabilities
in issue contracts at fair value
Rm Rm Rm
Opening balance at the beginning of the reporting period 624 - 3 410
Net interest income 28 - 98
Gains and losses from banking and trading activities - - 132
Gains and losses from investment activities - - -
Issues 142 - 2 265
Settlements (24) - (732)
Movement in/(out of) Level 3 - - (2 975)
Closing balance at the end of the reporting period 770 - 2 198
30 June 2015
Trading and
hedging
Deposits from portfolio Other Deposits due
banks liabilities liabilities to customers
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period - 320 28 5 530
Net interest income - - - -
Gains and losses from banking and trading activities - 148 - 282
Gains and losses from investment activities - - - -
Purchases - - - -
Sales - - (18) -
Issues/(settlements) 7 (5) - 4 877
Movement in/(out) of level 3 - (42) - -
Closing balance at the end of the reporting period 7 421 10 10 689
30 June 2015
Liabilities
Debt under Total
securities investment liabilities
in issue contracts at fair value
Rm Rm Rm
Opening balance at the beginning of the reporting period 42 3 022 8 942
Net interest income - - -
Gains and losses from banking and trading activities (168) - 262
Gains and losses from investment activities - (742) (742)
Purchases - - -
Sales - - (18)
Issues/(settlements) 2 192 - 7 071
Movement in/(out) of level 3 - - (42)
Closing balance at the end of the reporting period 2 066 2 280 15 473
31 December 2015
Trading and
hedging
Deposits from portfolio Other Deposits due
banks liabilities liabilities to customers
Rm Rm Rm Rm
Opening balance at the beginning of the reporting period - 320 28 5 530
Net interest income - - - -
Gains and losses from banking and trading activities - (21) - -
Gains and losses from investment activities - - (23) 132
Purchases - - - -
Sales - - - -
Movement in other comprehensive income - - - -
Issues 7 1 - 3 112
Settlements - (83) - (3 265)
Transferred to/(from)
assets/liabilities - - - -
Movement in/(out) of level 3 - - - (2 952)
Closing balance at the end of the reporting period 7 217 5 2 557
31 December 2015
Liabilities
Debt under Total
securities investment liabilities
in issue contracts at fair value
Rm Rm Rm
Opening balance at the beginning of the reporting period 42 3 022 8 942
Net interest income - - -
Gains and losses from banking and trading activities - - (21)
Gains and losses from investment activities 172 (479) (198)
Purchases - - -
Sales - - -
Movement in other comprehensive income - - -
Issues 410 - 3 530
Settlements - - (3 348)
Transferred to/(from) - - -
assets/liabilities
Movement in/(out) of level 3 - (2 543) (5 495)
Closing balance at the end of the reporting period 624 - 3 410
13.6.1 Significant transfers between levels
During the prior reporting period, it was determined that significant transfers between levels of the liabilities held
at fair value occurred.
Transfers out of Level 3 and into Level 2 arise where the maturities on debt securities decreased to less than
5 years.
Transfers have been reflected as if they had taken place at the beginning of the year.
In the previous reporting period transfers out of level 3 and into level 2 arose where unobservable inputs became
observable and/or unobservable inputs were no longer considered to be significant to the valuation of an instrument.
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:
30 June 2016
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 109 - 46 34 - - 189
30 June 2015
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 146 - (28) - - - 118
31 December 2015
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 96 - (28) 48 - - 116
30 June 2016
Trading and Liabilities
hedging under Total
portfolio Other Deposits due investment liabilities at
liabilities liabilities to customers contracts fair value
Rm Rm Rm Rm Rm
Gains and
losses from
banking and
trading
activities - - - - -
30 June 2015
Trading and Liabilities
hedging under Total
portfolio Other Deposits due investment liabilities at
liabilities liabilities to customers contracts fair value
Rm Rm Rm Rm Rm
Gains and
losses from
banking and
trading activities - - - - -
31 December 2015
Trading and Liabilities
hedging under Total
portfolio Other Deposits due investment liabilities at
liabilities liabilities to customers contracts fair value
Rm Rm Rm Rm Rm
Gains and
losses from
banking and
trading activities 79 - - - 79
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 impact this
sensitivity analysis most 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:
30 June 2016
Potential Potential
effect effect
recorded recorded
in profit directly
or loss in equity
Favourable/ Favourable/
Significant (Unfavourable) (Unfavourable)
unobservable parameters Rm Rm
Deposits due to customers BAGL/Absa funding spread -/- -/-
Investment securities and Risk adjustment yield curves,
investments linked to investment future earnings and
contracts marketability discount 12/12 110/105
Loans and advances to customers Credit spreads 103/101 -/-
Other assets Volatility, credit spreads -/- -/-
Trading and hedging portfolio assets Volatility, credit spreads,
basis curves, yield curves,
repo curves, funding spreads 90/90 -/-
Trading and hedging portfolio liabilities Volatility, credit spreads,
basis curves, yield curves,
repo curves, funding spreads 11/11 -/-
Other liabilities Volatility, credit spreads -/- -/-
216/214 110/105
30 June 2015
Potential Potential
effect effect
recorded recorded
in profit directly
or loss 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
linked to investment contracts and marketability discount,
comparator multiples 378/378 (5)/4
Loans and advances to customers Credit spreads 2/2 -/-
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, basis
curves, yield curves, repo
curves, funding spreads -/- -/-
Other liabilities Volatility, credit spreads -/- -/-
383/383 (5)/4
31 December 2015
Potential Potential
effect effect
recorded recorded
in profit directly
or loss in equity
Favourable/ Favourable/
Significant (Unfavourable) (Unfavourable)
unobservable parameters Rm Rm
Deposits due to customers BAGL/Absa funding spread -/- -/-
Investment securities and investments Risk adjustment yield curves,
linked to investment contracts future earnings and
marketability discount -/- -/-
Loans and advances to customers Credit spreads 235/246 -/-
Other assets Volatility, credit spreads -/- -/-
Trading and hedging portfolio assets Volatility, credit spreads,
basis curves, yield curves,
repo curves, funding spreads 107/107 -/-
Trading and hedging portfolio liabilities Volatility, credit spreads,
basis curves, yield curves,
repo curves, funding spreads 15/15 -/-
Other liabilities Volatility, credit spreads
357/368 -/-
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:
Category of asset/ Valuation techniques Significant
liability applied unobservable inputs
Loans and advances Discounted cash flow Credit spreads
to customers and/or dividend yield models
Investment securities Discounted cash flow Risk adjusted yield
and investments models, third-party curves, future earnings,
linked to investment valuations, earnings marketability discounts
contracts multiples and/or income and/or comparator
capitalisation valuations multiples
Trading and hedging
portfolio assets and
liabilities
Debt instruments Discounted cash flow Credit spreads
models
Derivative assets
Credit derivatives Discounted cash flow Credit spreads, recovery
and/or credit default swap rates and/or quanto ratio
(hazard rate) models
Equity derivatives Discounted cash flow, Volatility and/or dividend
option pricing and/or streams (greater than
futures pricing models 3 years)
Foreign exchange Discounted cash flow African basis curves
derivatives and/or option pricing models (greater than 1 year)
Interest rate Discounted cash flow Real yield curves (less
derivatives and/or option pricing models than 2 years)
Forward curves
Deposits due to Discounted cash flow Barclays Africa Group
customers models Limited’s funding
spreads (greater than
5 years)
Debt securities in Discounted cash flow Funding curves
issue models (greater than 5 years)
Investment Discounted cash flow Estimates of periods in
properties models which rental units will be
disposed of
Annual selling price
escalations
Annual rental escalations
Expense ratios
Vacancy ratio
Income capitalisation
rates
Risk adjusted discount
rates
30 June 31 December
2016 2015 2015
Range of estimates utilised
for the unobservable inputs
0,96% to 3,99% 0,96% to 3,99% 0,96% to 3,99%
Discount rates Discount rates Discount rates
between 9,5% and between 9,7% and between 8% and
13,25%, comparator 18%, comparator 11,5%, comparator
multiples between multiples between multiples between
5 and 10,5 5,5 and 6,1 5 and 10,5
0,9% to 3,5% 0,9% to 3,5% 0,9% to 3,5%
0,0% to 23,67% 0,0% to 23,58% 0,0% to 23,64%
0,0% to 81,20% 15,15% to 46,80% 17,82% to 67,71%
(6,0%) to 24,99% (10,00%) to 13,95% (10,00%) to 10,50%
(0,67%) to 7,90% (2,59%) to 2,47% 0,58% to 4,24%
0,0% to 2,15% 0,85% to 1,2% 1,52% to 2,15%
(0,16%) to 3,5% 1,44% to 1,70% (0,20%) to 3,35%
1 to 10 years 2 to 7 years 1 to 7 years
0% to 7% 0% to 6% 0% to 6%
0% to 10% 0% to 10% 0% to 10%
26,35% to 44% 22% to 75% 26% to 51%
1% to 18% 2% to 15% 1% to 18%
8% to 11% 10% to 12% 8% to 12%
9,5% to 14% 14% to 16% 13% to 14%
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:
30 June 31 December
2016 2015 2015
Rm Rm Rm
Opening balance at the beginning of the reporting period (105) (52) (52)
New transactions (20) (83) (91)
Amounts recognised in profit or loss during the reporting period 17 28 38
Closing balance at the end of the reporting period (108) (107) (105)
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
Reclassification changes
The following changes have impacted the financial results for the comparative periods ended 30 June 2015 and
31 December 2015.
1) Internal reclassifications
In terms of the Group’s policy, financial assets with a maturity of less than three months should be reported as
“Cash, cash balances and balances with central banks”, while financial assets with a maturity of longer than
three months are reported as “Investment securities”. Based on an analysis performed on the maturity periods of
treasury bills in Rest of Africa, it was established that some treasury bills’ maturity period extended beyond
three months and had been reported as “Cash, cash balances and balances with the central banks”. These items are
now being reported as “Investment securities”. This resulted in a restatement from cash, cash balances and
balances to central banks to investment securities of R9bn and R11bn for the reporting periods ended 30 June 2015
and 31 December 2015, respectively.
The impact of these changes on the statement of financial position is as follows:
Condensed consolidated statement of financial position as at 30 June 2015
As
previously Internal
reported reclassifications Restated
Rm(1) Rm Rm
Assets
Cash, cash balances and balances with central banks 46 224 (9 043) 37 181
Investment securities 78 966 9 043 88 009
2) Business portfolio changes
- Statutory liquid assets allocations in loan portfolios that were moved from Wealth Investment Management
and Insurance (WIMI) to Retail and Business Banking (RBB) in previous reporting periods were reassessed and
resulted in the restatement of statutory liquid assets between WIMI and RBB.
- The Group refined its transfer pricing and allocation of endowment methodologies, resulting in restatements
between segments.
- The Group reassessed its cost allocation methodology, resulting in the restatements of operating expenses
between and within segments.
- South African Reserve Bank (SARB) cash and central exchange balances were moved from Corporate and Investment
Banking (CIB) to Head Office, Treasury and other operations.
- Interest rates on internal cash balances were aligned to market related rates, resulting in the restatement of
interest between CIB and Head Office, Treasury and other operations.
- Certain shared services operations that were previously conducted by RBB were transferred to Head office,
Treasury and other operations, resulting in the restatement of income and costs.
- Africa Corporate Development (previously reported within CIB Private Equity) was moved from CIB to Head
Office and cheque income and associated costs were moved from CIB to RBB to better align the ownership of
the products and the management thereof.
Note
(1) As per published financial results for 30 June 2015.
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
Head 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
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
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 11 772 3000
ey.com/ZA/en/Home
PricewaterhouseCoopers Inc.
Telephone: +27 11 797 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
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 of Botswana Limited barclays.co.bw
Barclays Bank of Ghana Limited gh.barclays.com/
Barclays Bank of Kenya Limited 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 Limited nbctz.com
Representative offices
Absa Namibia Pty Limited absanamibia.com.na
Absa Capital Representative Office Nigeria Limited cib.absa.co.za
Date: 29/07/2016 07:05:00 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.
Sharenet Sites 
