INVESTEC PLC - Investec Basel III disclosures at 30 June 2016

Investec – Basel III disclosures at 30 June 2016

Investec Limited                                                            Investec plc
Incorporated in the Republic of South Africa                                Incorporated in England and Wales
Registration number 1925/002833/06                                          Registration number 3633621
JSE share code: INL                                                         LSE share code: INVP
NSX share code: IVD                                                         JSE share code: INP
BSE share code: INVESTEC                                                    ISIN: GB00B17BBQ50
ISIN: ZAE000081949

Investec (comprising Investec plc and Investec Limited) – Basel III disclosures at 30 June 2016

29 July 2016
Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. The group holds
capital in excess of regulatory requirements targeting a minimum common equity tier one capital ratio above
10% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc
and Investec Limited.

                                                 Investec                     Investec
                                                 plc*^          IBP*^         Limited*^    IBL*^
As at 30 June 2016                               GBP 'mn        GBP 'mn       R'mn         R'mn


Common equity tier 1 capital before deductions   2,005          1,870         29,735       31,381
Deductions                                        (617)          (391)         1,026        1,091
Common equity tier 1 capital                     1,388          1,479         30,761       32,472

Additional tier 1 capital                          129              -          3,388          921

Tier 1 capital                                   1,517          1,479         34,149       33,393

Tier 2 capital                                     548            590         10,352       11,188

Total regulatory capital                         2,065          2,069         44,501       44,581

Risk-weighted assets per risk type:
Credit risk                                      9,553          9,381         230,701     227,414
Counterparty credit risk                           648            648           4,849       4,849
Credit valuation adjustment risk                    62             62           2,503       2,503
Equity risk                                         82             79          40,696      39,714
Market risk                                        932            898           4,120       3,343
Operational risk                                 1,905          1,521          26,285      17,798
Total risk-weighted assets                      13,182         12,589         309,154     295,621

Total minimum capital requirement                1,055          1,007          32,075      30,671

Capital ratios
Common equity tier 1 ratio                       10.5%          11.7%           10.0%       11.0%
Tier 1 ratio                                     11.5%          11.7%           11.0%       11.3%
Total capital ratio                              15.7%          16.4%           14.4%       15.1%

                                               
Leverage ratio disclosures
                                                 Investec                      Investec
                                                 plc*^          IBP*^          Limited*^         IBL*^
As at 30 June 2016                               GBP 'mn        GBP 'mn        R'mn              R'mn

Tier 1 capital                                    1,517          1,479         34,149             33,393
Total exposure                                   19,878         19,665         75,137            437,785
Leverage ratio                                     7.6%           7.5%           7.2%               7.6%


* Where: IBP is Investec Bank plc consolidated and IBL is Investec Bank Limited consolidated. The information for Investec plc includes
the information for IBP. The information for Investec Limited includes the information for IBL.

^ The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent basis of calculation across
the jurisdictions in which the group operates. For Investec plc and IBP this does not include the deduction of forseeable dividends when
calculating CET1 capital as now required under the Capital Requirements Regulation and EBA technical standards. Investec plc’s
capital information includes unaudited profits for the last quarter. If unaudited profits are excluded from the capital information, all of
Investec plc’s capital ratios would be 20bps lower. Investec Limited’s and IBL’s capital information includes unappropriated profits. If
unappropriated profits are excluded from the capital information, Investec Limited’s CET1 ratio would be 30bps lower and its tier 1 and
total capital ratios would be 20bps lower. If unappropriated profits are excluded from the capital information, all of IBL’s ratios would be
20bps lower.

Liquidity coverage ratio disclosure

The objective of the liquidity coverage ratio (LCR) is to promote the short-term resilience of the liquidity risk
profile of banks by ensuring that they have sufficient high quality liquid assets to survive a significant stress
scenario lasting 30 calendar days.


Investec Bank Limited (solo basis) and Investec Bank Limited Consolidated Group

The minimum LCR requirement in South Africa is 70% throughout 2016, and will increase by 10% each year
to 100% on 1 January 2019.
In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990),
banks are directed to comply with the relevant LCR disclosure requirements, as set out in Directive 6/2014
and Directive 11/2014. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord.
The following table sets out the LCR for Investec Bank Limited (solo basis) and Investec Bank Consolidated
Group:

                                             Investec Bank Limited Solo –               Investec Bank Limited
                                             Total weighted value                       Consolidated Group – Total
R’mn                                                                                    weighted value

High quality liquid assets (HQLA)            73,327                                     73,420

Net cash outflows                            52,031                                     48,161

Actual LCR (%)                               142.4%                                     154.2%

Required LCR (%)                                70%                                        70%


The values in the table are calculated as the simple average of daily observations over the period 1 April 2016 to 30 June 2016 for
Investec Bank Limited (IBL) bank solo. 54 business day observations were used. Investec Bank Limited consolidated group values use
daily values for IBL bank solo, while those for other group entities use the average of April, May, June 2016 month-end values.

Investec plc, Investec Bank plc (solo basis)

On 1 October 2015 under European Commission Delegated Regulation 2015/61, the LCR became the
PRA’s primary regulatory reporting standard for liquidity. The LCR is a Pillar 1 metric to which the PRA apply
Pillar 2 add-ons. The LCR is being introduced on a phased basis, and the PRA has opted to impose higher
liquidity coverage requirements during the phased-in period than the minimum required by CRD IV. UK
banks are currently required to maintain a minimum of 80%, rising to 90% on 1 January 2017 and 100% on 1
January 2018. The published LCR excludes Pillar 2 add-ons.

                                                                     
For Investec plc and Investec Bank plc (solo basis), the LCR is calculated using our own interpretations of
the EU Delegated Act. The reported LCR may change over time with regulatory developments.

The LCR reported to the PRA at 30 June 2016 was 891% for Investec plc and 943% for Investec Bank plc
(solo basis).


Sponsor: Investec Bank Limited




                                                     
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