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BARCLAYS AFRICA GROUP LIMITED - BARCLAYS \ABSA - Basel III Pillar disclosure as at 30 September 2016

Release Date: 28/11/2016 12:22
Code(s): BGA ABSP     PDF:  
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BARCLAYS \ABSA  -  Basel III Pillar disclosure as at 30 September 2016

BARCLAYS AFRICA GROUP LIMITED                                  ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)                 (Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)                          (Registration number: 1986/004794/06)
ISIN: ZAE000174124                                             ISIN: ZAE000079810
JSE share code: BGA                                            JSE share code: ABSP
(Barclays Africa Group)                                        (Absa Bank)


BARCLAYS AFRICA GROUP LIMITED – BASEL III PILLAR 3 DISCLOSURE AS AT 30 SEPTEMBER 2016

The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks
Act).

1)   Capital Adequacy

Barclays Africa Group Limited

Barclays Africa Group Limited remains capitalised above the minimum regulatory capital requirements, with Tier 1 and Total
Capital Adequacy ratios being within our board approved target capital ranges and Common Equity Tier 1 above the board
approved target capital ranges. As at 30 September 2016, Barclays Africa Group Limited’s Common Equity Tier 1 ratio was
11.7%, Tier 1 ratio was 12.3% and Total Capital Adequacy ratio was 14.4%.




                                                                                                            Page 1 of 5
The table below represents the capital position for Barclays Africa Group Limited at 30 September 2016 and the comparatives
at 30 June 2016.



                                                                             30 Sep 2016(1)                     30 Jun 2016(1)
Regulatory Capital Position (excluding unappropriated profit)               Rm                 %         Rm                %

  Common Equity Tier 1 capital                                           78 553            11.1%      79 249             11.3%

    Share capital and premium                                             6 084                        6 106

    Reserves                                                             75 207                       75 621

    Non-controlling interest - ordinary shares                            2 163                        2 219

    Deductions                                                           (4 901)                      (4 697)

Additional Tier 1 capital                                                 3 657               0.5%     3 713               0.6%

Tier 1 capital                                                           82 210            11.6%      82 962             11.9%

Tier 2 capital                                                           15 123               2.2%    13 645               1.9%

Total capital                                                            97 333            13.8%      96 607             13.8%


Statutory Capital Position (including unappropriated profit)
Common Equity Tier 1 capital                                             82 873            11.7%      84 377             12.1%

Tier 1 capital                                                           86 529            12.3%      88 090             12.6%

Total capital                                                           101 652            14.4%     101 735             14.6%


Board Approved Target Ranges(2)
Common Equity Tier 1 capital                                                  9.5% - 11.5%                         9.5% - 11.5%

Tier 1 capital                                                               10.5% - 12.5%                      10.5% - 12.5%

Total capital                                                                13.0% - 15.0%                      13.0% - 15.0%




                                                                        30 Sep 2016(1)                          30 Jun 2016(1)



                                                                                      Minimum                         Minimum
Risk Weighted Assets (RWA) and Minimum Required
                                                                                      required                        required
Capital per Risk Type                                                     RWA          capital(3)          RWA         capital(3)
                                                                            Rm              Rm               Rm             Rm
Credit risk                                                             500 900          51 969          506 576         52 558

Counterparty credit risk                                                 33 334           3 459           26 773          2 778

Equity investment risk                                                    9 620               998         10 611          1 101

Market risk                                                              31 001           3 216           25 160          2 610

Operational risk                                                        100 310          10 407          100 310         10 407

Non-customer assets                                                      30 577           3 172           29 255          3 035

Total RWA and minimum required capital                                  705 742          73 221          698 685         72 489




                                                                                                                   Page 2 of 5
  Absa Bank Limited (4)

  Absa Bank Limited remains capitalised above the minimum regulatory capital requirements and above our board approved
  target capital ranges. As at 30 September 2016, Absa Bank Limited’s Common Equity Tier 1 ratio was 11.0%, Tier 1 ratio was
  11.6% and Total Capital Adequacy ratio was 14.4%.

  The table below represents the capital position for Absa Bank Limited at 30 September 2016 and comparatives at
  30 June 2016.



                                                                              30 Sep 2016(1)                 30 Jun 2016(1)
    Regulatory Capital Position (excluding unappropriated
                                                                                  Rm          %             Rm            %
    profit)
      Common Equity Tier 1 capital                                           51 429         10.1%       50 908       10.1%

         Share capital and premium                                           23 354                     23 268

         Reserves                                                            32 613                     31 791

         Deductions                                                          (4 538)                    (4 151)

    Additional Tier 1 capital                                                    2 768        0.5%        2 768        0.6%

    Tier 1 capital                                                           54 197         10.6%       53 676       10.7%

    Tier 2 capital                                                           14 539           2.8%      12 913         2.6%

    Total capital                                                            68 736         13.4%       66 589       13.3%


    Statutory Capital Position (including unappropriated
    profit)
    Common Equity Tier 1 capital                                             56 506         11.0%       54 410       10.8%

    Tier 1 capital                                                           59 274         11.6%       57 178       11.4%

    Total capital                                                            73 813         14.4%       70 091       14.0%


    Board Approved Target Ranges(2)
    Common Equity Tier 1 capital                                                   9.0% - 10.5%               9.0% - 10.5%

    Tier 1 capital                                                                10.0% - 11.5%             10.0% - 11.5%

    Total capital                                                                 12.5% - 14.0%             12.5% - 14.0%




                                                                       30 Sep 2016(1)                         30 Jun 2016(1)



                                                                                         Minimum                    Minimum
Risk Weighted Assets (RWA) and Minimum Required
                                                                                         required                   required
Capital per Risk Type                                                    RWA              capital(3)     RWA         capital(3)
                                                                           Rm                  Rm          Rm             Rm
Credit risk                                                            364 073              37 773     364 121         37 777

Counterparty credit risk                                                32 726               3 395       26 600         2 760

Equity investment risk                                                   2 624                 272        3 146           326

Market risk                                                             24 235               2 514       20 950         2 174

Operational risk                                                        69 859               7 248       69 859         7 248

Non-customer assets                                                     18 173               1 886       17 164         1 781

Total RWA and minimum required capital                                 511 690              53 088     501 840         52 066




                                                                                                                  Page 3 of 5
2)   Leverage ratio

The leverage ratio framework is complementary to the risk-based capital framework and is a non-risk based contingency
measure to restrict the build-up of excessive leverage in the banking sector.

The table below represents the leverage ratios for Barclays Africa Group Limited at 30 September 2016 and the comparatives
at 30 June 2016.


 Barclays Africa Group Limited
                                                                 30 Sep 2016(1)                  30 Jun 2016(1)
 Tier 1 Capital (excluding unappropriated profit) (Rm)                  82 210                          82 962

 Tier 1 Capital (including unappropriated profit) (Rm)                   86 529                          88 090

 Total Exposures (Rm)                                                 1 255 335                       1 336 240

 Leverage Ratio (excluding unappropriated profit)                          6.5%                            6.2%

 Leverage Ratio (including unappropriated profit)                          6.9%                            6.6%

 Minimum Required Leverage Ratio                                           4.0%                            4.0%
 Board Target Leverage Ratio                                       > or =  4.5%                     > or = 4.5%


 The table below represents the leverage ratios for Absa Bank Limited at 30 September 2016 and the
 comparatives at 30 June 2016.


 Absa Bank Limited(4)
                                                                 30 Sep 2016(1)                  30 Jun 2016(1)
 Tier 1 Capital (excluding unappropriated profit) (Rm)                  54 197                          53 676

 Tier 1 Capital (including unappropriated profit) (Rm)                   59 274                          57 178

 Total Exposures (Rm)                                                 1 083 526                       1 148 984

 Leverage Ratio (excluding unappropriated profit)                          5.0%                            4.7%

 Leverage Ratio (including unappropriated profit)                          5.5%                            5.0%

 Minimum Required Leverage Ratio                                           4.0%                            4.0%
 Board Target Leverage Ratio                                        > or = 4.5%                     > or = 4.5%


3)   Liquidity Coverage Ratio

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 (HQLA) to survive a significant stress scenario lasting 30 calendar
days. The LCR requirement, from 1 January 2015, was 60% and will increase by 10% per year to 100% on 1 January 2019.
The requirement for 2016 is 70%.

The LCR is calculated as the value of HQLA divided by total net cash outflows. HQLA represents the value of assets that can
be easily and immediately converted into cash. Net cash outflows are calculated according to regulations.

Absa Bank Limited successfully applied for a committed liquidity facility from the South African Reserve Bank under guidance
note 8 of 2014 and 5 of 2015, which is included in HQLA for LCR purposes from January 2016.


Barclays Africa Group Limited

Barclays Africa Group Limited holds HQLA in excess of the regulatory minimum requirement. The table below represents the
average LCR for Barclays Africa Group Limited(5) at 30 September 2016 and the comparatives at 30 June 2016(6):

                                                                              30 Sep 2016(1)          30 Jun 2016(1)

 High Quality Liquid Assets (Rm)                                                     130 326                 129 086

 Net Cash Outflows (Rm)                                                              150 251                 154 656

 Liquidity Coverage Ratio                                                             86.7%                   83.5%

 Required Liquidity Coverage Ratio                                                    70.0%                   70.0%


                                                                                                                          Page 4 of 5
Absa Bank Solo(7)

Absa Bank Solo holds HQLA in excess of the regulatory minimum requirement. The table below represents the average LCR
for Absa Bank Solo at 30 September 2016 and the comparatives at 30 June 2016(6):

                                                                       30 Sep 2016(1)         30 Jun 2016(1)

 High Quality Liquid Assets (Rm)                                              121 589               118 301

 Net Cash Outflows (Rm)                                                       135 614               140 871

 Liquidity Coverage Ratio                                                       89.7%                 84.0%

 Required Liquidity Coverage Ratio                                              70.0%                 70.0%



Notes:
1. The 30 September 2016 figures and 30 June 2016 comparatives are unaudited.
2. Board approved target ranges include unappropriated profit.
3. The 2016 minimum regulatory capital requirements of 10.375% include the RSA minimum of 8%, Pillar 2a of 1.75% and
   capital conservation buffer of 0.625% but exclude the bank-specific individual capital requirement (Pillar 2b add-on) and
   the domestic systemically important banks (D-SIB) add-on.
4. Absa Bank Limited includes subsidiary undertakings, special purpose entities, joint ventures, associates and offshore
   holdings.
5. The LCR of Barclays Africa Group Limited represents an aggregation of the relevant individual net cash outflows and
   HQLA portfolios of only the banking and/or deposit taking entities. HQLA holdings in excess of the minimum requirement
   have been excluded from the aggregated HQLA number for all non-South African banking entities.
6. The values disclosed represent the simple average of the relevant 3 month-end data points.
7. Absa Bank Solo includes the South African banking operations.




Johannesburg
28 November 2016

Enquiries:
Alan Hartdegen
(+2711) 350-2598
E-mail: Alan.Hartdegen@barclaysafrica.com

Lead Independent Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited

Joint Sponsor:
Corporate and Investment Bank – a division of Absa Bank Limited




                                                                                                                Page 5 of 5

Date: 28/11/2016 12:22:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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