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ABSA BANK LIMITED - Summary consolidated financial results for the reporting period ended 31 December 2016.

Release Date: 23/02/2017 07:07
Code(s): ABSP     PDF:  
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Summary consolidated financial results 
for the reporting period ended 31 December 2016.

Absa Bank Limited 
Authorised financial services and registered credit provider (NCRCP7)
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa
JSE share code: ABSP 
ISIN: ZAE000079810
(Absa, Absa Bank, the Bank or the Company)

Summary consolidated financial results 
for the reporting period ended 31 December 2016.

Profit and dividend announcement 
for the reporting period ended 31 December

Overview of results
Absa Bank Limited (the Bank) is a wholly owned subsidiary of Barclays Africa Group Limited (the Group), which is
listed on the exchange operated by the JSE Limited. These summary consolidated financial results are published to 
provide information to holders of the Bank’s listed non-cumulative, non-redeemable preference shares.

Commentary relating to the Bank’s summary consolidated financial results is included in the Barclays Africa Group
Limited results, as presented to shareholders on 23 February 2017.

Basis of presentation
The Bank’s audited annual 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 Johannesburg Stock Exchange (JSE) Listings Requirements and the requirements of the Companies Act, No. 71 of 2008 (as
amended). The principal accounting policies applied are set out in the Bank’s most recent annual consolidated financial
statements.

The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited
Listings Requirements for preliminary reports, and the requirements of the Companies Act applicable to summary financial
statements. The Listings Requirements require preliminary reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of IFRS and the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to
also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting (IAS 34).

The information disclosed in the SENS is derived from the information contained in the audited annual consolidated
financial statements and does not contain full or complete disclosure details. Any investment decisions by shareholders
should be based on consideration of the audited annual consolidated financial statements, which is available on request.
The presentation and disclosure comply with 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 Bank’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 and long-term insurance contracts, and offsetting
of financial assets and liabilities.

Accounting policies
The accounting policies applied in preparing the audited summary consolidated financial statements are the same as those 
in place for the reporting period ended 31 December 2015 except for business portfolio changes between operating segments. 
Refer to note 15.

Auditors’ report
PricewaterhouseCoopers Inc. and Ernst & Young Inc., the Bank’s independent auditors, have audited the consolidated
annual financial statements of the Bank from which management prepared the summary consolidated financial results. The
auditors have expressed an unqualified audit opinion on the consolidated annual financial statements. The summary
consolidated financial results comprise the summary consolidated statement of financial position at 31 December 2016, 
summary consolidated statement of comprehensive income, summary consolidated statement of changes in equity and summary 
consolidated statement of cash flows for the reporting period then ended and selected explanatory notes, excluding items 
not indicated as audited. The audit report of the consolidated annual financial statements is available for inspection 
at the Bank’s registered office.

These summary consolidated financial statements for the year ended 31 December 2016 have been audited by
PricewaterhouseCoopers Inc. and Ernst and Young Inc., who expressed an unmodified opinion thereon. A copy of the auditor’s 
report on the summary consolidated financial statements and of the auditor’s report on the annual consolidated financial
statements are available for inspection at the company’s registered office, together with the financial statements 
identified in the respective auditor’s reports.

Events after the reporting period
The directors are not aware of any events occurring between the reporting date of 2016 and the date of authorisation of 
these summary consolidated 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                    
Chairman            Chief Executive Officer    

Johannesburg
22 February 2017

Declaration of preference share dividend number 22

Absa Bank non-cumulative, non-redeemable preference shares (Absa Bank preference shares)
The Absa Bank preference shares have an effective coupon rate of 70% of Absa Bank’s prevailing prime overdraft lending
rate (prime rate).

Absa Bank’s current prime rate is 10,50%.

Notice is hereby given that preference dividend number 22, equal to 70% of the average prime rate for 1 September 2016
to 28 February 2017, per Absa Bank preference share has been declared for the period 1 September  2016 to 28  February
2017. The dividend is payable on Monday, 10 April 2017, to shareholders of the Absa Bank preference shares recorded in
the register of members of the Company at the close of business on Friday, 7 April 2017.

The directors of Absa Bank confirm that the Bank will satisfy the solvency and liquidity test immediately after
completion of the dividend distribution.

Based on the current prime rate, the preference dividend payable for the period 1 September 2016 to 28 February 2017
would indicatively be 3 644,79452 cents per Absa Bank preference share.

The dividend will be subject to dividends withholding tax at a rate of 15% that was introduced on 1 April 2012. 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 centum (15%).
* The gross local dividend amount is 3 644,79452 cents per preference share for shareholders exempt from the dividend
  tax.
* The net local dividend for shareholders subject to withholding tax at a rate of 15% amounts to 3 098,07534 cents per
  preference share.
* Absa Bank currently has 4 944 839 preference shares in issue.
* Absa Bank’s income tax reference number is 9575117719.

In compliance with the requirements of Strate, the electronic settlement and custody system used by JSE Limited, the
following salient dates for the payment of the dividend are applicable:

Last day to trade cum dividend           Tuesday, 4 April 2017      
Shares commence trading ex dividend      Wednesday, 5 April 2017    
Record date                              Friday, 7 April 2017       
Payment date                             Monday, 10 April 2017      

Share certificates may not be dematerialised or rematerialised between Wednesday, 5 April 2017 and Friday, 7 April
2017, both dates inclusive.

On Monday, 10 April 2017, the dividend will be electronically transferred to the bank accounts of certificated
shareholders.

The accounts of those shareholders who have dematerialized their shares (which are held at their participant or
broker) will also be credited on Monday 10 April 2017.

On behalf of the board

N R Drutman
Company Secretary

Johannesburg
23 February 2017

Absa Bank Limited is a company domiciled in South Africa. Its registered office is the 7th Floor, Barclays Towers
West, 15 Troye Street, Johannesburg, 2001. 

Summary consolidated salient features
for the reporting period ended 31 December

                                                                                             2016         2015    
Statement of comprehensive income (Rm)                                                                            
Revenue                                                                                    48 801       46 076    
Operating expenses                                                                         27 525       26 390    
Profit attributable to ordinary equity holders                                              9 568        9 726    
Headline earnings(1)                                                                        9 778        9 657    
Statement of financial position                                                                                   
Loans and advances to customers (Rm)                                                      630 646      602 002    
Total assets (Rm)                                                                         918 311      936 141    
Deposits due to customers (Rm)                                                            564 812      560 650    
Loans-to-deposits ratio (%)                                                                  89.5         87.4    
Financial performance (%)                                                                                         
Return on average equity(3)                                                                  16.3         17.6    
Return on average assets(3)                                                                  1.06         1.11    
Return on average risk-weighted assets(3)                                                    1.96         2.03    
Non-performing loans (NPLs) ratio on gross loans and advances(2)                              3.0          4.6    
Operating performance (%)                                                                                         
Net interest margin on average interest bearing assets(3)                                    3.91         3.91    
Credit loss ratio on gross loans and advances to customers and banks(3)                      0.93         0.79    
Credit loss ratio on net loans and advances to customers(3)                                  1.04         0.89    
Non-interest income as % of total revenue                                                    41.0         40.3    
Cost-to-income ratio                                                                        56.40        57.30    
JAWS                                                                                         1.62        (0.33)   
Effective tax rate, excluding indirect taxation                                             25.90        26.70    
Share statistics (million)                                                                                        
Number of ordinary shares in issue                                                          420.1        412.8    
Weighted average number of ordinary shares in issue                                         417.7        401.5    
Diluted weighted average number of ordinary shares in issue                                 417.7        401.5    
Share statistics (cents)                                                                                          
Headline earnings per ordinary share                                                      2 340.9      2 405.2    
Diluted headline earnings per ordinary share                                              2 340.9      2 405.2    
Basic earnings per ordinary share                                                         2 290.6      2 422.4    
Diluted basic earnings per ordinary share                                                 2 290.6      2 422.4    
Dividend per ordinary share relating to income for the reporting period                   1 169.4      2 365.6    
Dividend cover (time)                                                                         2.0          1.0    
Net asset value per ordinary share                                                         15 386       13 537    
Tangible net asset value per ordinary share                                                14 829       13 037    
Capital adequacy (%)                                                                                              
Absa Bank Limited(3)                                                                         15.0         13.6    
Common Equity Tier 1 (%)                                                                                          
Absa Bank Limited(3)                                                                         11.6         10.3    
                                                                                         
Notes
(1) After allowing for R351m (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 have been 3.7% (31 December 2015: 3,3%)
(3) These ratios are unaudited

Summary consolidated statement of financial position
for the reporting period ended 31 December

                                                                                             2016         2015    
                                                                                Note           Rm           Rm    
Assets                                                                                                            
Cash, cash balances and balances with central banks                                        28 252       26 101    
Investment securities                                                                      84 174       73 065    
Loans and advances to banks                                                                39 296       58 585    
Trading portfolio assets                                                                   74 389      116 455    
Hedging portfolio assets                                                                    1 734        2 216    
Other assets                                                                               16 645       18 839    
Current tax assets                                                                            616          410    
Non-current assets held for sale                                                   1          367          109    
Loans and advances to customers                                                    2      630 646      602 002    
Loans to Group Companies                                                                   25 794       23 850    
Investments in associates and joint ventures                                                1 065          962    
Investment property                                                                           222          518    
Property and equipment                                                                     12 726       10 955    
Goodwill and intangible assets                                                              2 339        2 029    
Deferred tax assets                                                                            46           44    
Total assets                                                                              918 311      936 141    
Liabilities                                                                                                       
Deposits from banks                                                                        60 148       61 026    
Trading portfolio liabilities                                                              42 503       87 567    
Hedging portfolio liabilities                                                               2 054        4 531    
Other liabilities                                                                          21 150       18 306    
Provisions                                                                                  2 060        1 970    
Current tax liabilities                                                                         4           72    
Non-current liabilities held for sale                                                           9            -    
Deposits due to customers                                                                 564 812      560 650    
Debt securities in issue                                                                  139 573      128 453    
Borrowed funds                                                                     3       15 679       12 954    
Deferred tax liabilities                                                                    1 020          115    
Total liabilities                                                                         849 012      875 644    
Equity                                                                                                            
Capital and reserves                                                                                              
Attributable to ordinary equity holders:                                                                          
Ordinary Share capital                                                                        304          304    
Ordinary Share premium                                                                     24 964       21 455    
Preference share capital                                                                        1            1    
Preference share premium                                                                    4 643        4 643    
Retained earnings                                                                          36 099       32 033    
Other reserves                                                                              3 262        2 050    
                                                                                           69 273       60 486    
Non-controlling interest - ordinary shares                                                     26           11    
Total equity                                                                               69 299       60 497    
Total liabilities and equity                                                              918 311      936 141    

Summary consolidated statement of comprehensive income
for the reporting period ended 31 December

                                                                                            2016          2015    
                                                                              Note            Rm            Rm    
Net interest income                                                                       28 809        27 524    
Interest and similar income                                                               69 894        60 979    
Interest expense and similar charges                                                     (41 085)      (33 455)   
Non-interest income                                                                       19 992        18 552    
Net fee and commission income                                                             16 168        15 732    
Fee and commission income                                                                 17 628        17 028    
Fee and commission expense                                                                (1 460)       (1 296)   
Gains and losses from banking and trading activities                                       2 969         2 097    
Gains and losses from investment activities                                                    2            11    
Other operating income                                                                       853           712    
Total Income                                                                              48 801        46 076    
Impairment losses on loans and advances                                                   (6 408)       (5 113)   
Operating income before operating expenditure                                             42 393        40 963    
Operating expenditure                                                                    (27 525)      (26 390)   
Other expenses                                                                            (1 575)        ( 999)   
Other impairments                                                                4          (577)           43    
Indirect taxation                                                                           (998)       (1 042)   
Share of post-tax results of associates and joint ventures                                   118           136    
Operating profit before income tax                                                        13 411        13 710    
Taxation expense                                                                          (3 477)       (3 663)   
Profit for the reporting period                                                            9 934        10 047    
Profit attributable to:                                                                                           
Ordinary equity holders                                                                    9 568         9 726    
Non-controlling interest                                                                      15             -    
Preference equity holders                                                                    351           321    
                                                                                           9 934        10 047    
Earnings per share:                                                                                               
Basic earnings per share (cents per share)                                               2 290,6       2 422,4    
Diluted earnings per share (cents per share)                                             2 290,6       2 422,4    


Summary consolidated statement of comprehensive income
for the reporting period ended 31 December

                                                                                                 Bank                  
                                                                                            2016         2015    
                                                                                              Rm           Rm    
Profit for the reporting period                                                            9 934       10 047    
Other comprehensive income                                                                                       
Items that will not be reclassified to the profit or loss                                    (12)           9    
Movement in retirement benefit fund assets and liabilities                                   (12)           9    
(Decrease)/increase in retirement benefit surplus                                            (17)          12    
Deferred tax                                                                                   5           (3)   
Items that are or may be subsequently reclassified to profit or loss                         928       (2 429)   
Movement in foreign currency translation reserve                                            (453)         126    
Differences in translation of foreign operations                                            (133)         393    
Gains released to profit or loss                                                            (320)        (267)   
Movement in cash flow hedging reserve                                                      1 726       (2 222)   
Fair value (losses)/gains arising during the reporting period                              2 714       (2 028)   
Amount removed from other comprehensive income and recognised in the profit or loss         (314)      (1 058)   
Deferred tax                                                                                (674)         864    
Movement in available-for-sale reserve                                                      (345)        (333)   
Fair value gains arising during the reporting period                                        (475)        (678)   
Release to the profit or loss                                                                 (3)         210    
Deferred tax                                                                                 133          135    
Total comprehensive income for the reporting period                                       10 850        7 627    
Total comprehensive income attributable to:                                                                      
Ordinary equity holders                                                                   10 484        7 306    
Non-controlling interest                                                                      15            -    
Preference equity holders                                                                    351          321    
                                                                                          10 850        7 627    

Summary consolidated statement of changes in equity
for the reporting period ended 31 December

                                                                                       Number of 
                                                                              ordinary shares(1)      Share capital    
                                                                                            ’000                 Rm    
Balance at the beginning of the reporting period                                         412 798                304    
Total comprehensive income for the reporting period                                            -                  -    
Profit for the reporting period                                                                -                  -    
Other comprehensive income                                                                     -                  -    
Dividends paid during the reporting period                                                     -                  -    
Shares issued                                                                             18 520                  -    
Purchase of Barclays Africa Limited shares in respect of  
equity-settled share-based payment arrangements                                                -                  -    
Transfer of vesting options                                                                    -                  -    
Movement in share-based payment reserve                                                        -                  -    
Transfer from share-based payment reserve                                                      -                  -    
Value of employee services                                                                     -                  -    
Conversion from cash-settled schemes                                                           -                  -    
Deferred tax                                                                                   -                  -    
Share of post-tax results of associates and joint ventures                                     -                  -    
Disposal of interest in subsidiary                                                             -                  -    
Acquisition of subsidiary                                                                      -                  -    
Balance at the end of the reporting period                                               431 318                304    


                                                                            Share      Preference        Preference
                                                                          premium   share capital     share premium    
                                                                               Rm              Rm                Rm    
Balance at the beginning of the reporting period                           21 455               1             4 643    
Total comprehensive income for the reporting period                             -               -                 -    
Profit for the reporting period                                                 -               -                 -    
Other comprehensive income                                                      -               -                 -    
Dividends paid during the reporting period                                      -               -                 -    
Shares issued                                                               3 500               -                 -    
Purchase of Barclays Africa Limited shares in respect of                               
equity-settled share-based payment arrangements                                 -               -                 -    
Transfer of vesting options                                                     9               -                 -    
Movement in share-based payment reserve                                         -               -                 -    
Transfer from share-based payment reserve                                       -               -                 -    
Value of employee services                                                      -               -                 -    
Conversion from cash-settled schemes                                            -               -                 -    
Deferred tax                                                                    -               -                 -    
Share of post-tax results of associates and joint ventures                      -               -                 -    
Disposal of interest in subsidiary                                              -               -                 -    
Acquisition of subsidiary                                                       -               -                 -    
Balance at the end of the reporting period                                 24 964               1             4 643    
                                                                   
                                                                                             Bank
                                                                                             2016
                                                                         Retained     Total other    Available-for-
                                                                         earnings        reserves      sale reserve    
                                                                               Rm              Rm                Rm    
Balance at the beginning of the reporting period                           32 033           2 050               604    
Total comprehensive income for the reporting period                         9 907             928              (345)   
Profit for the reporting period                                             9 919               -                 -    
Other comprehensive income                                                    (12)            928              (345)   
Dividends paid during the reporting period                                 (5 851)              -                 -    
Shares issued                                                                   -               -                 -    
Purchase of Barclays Africa Limited shares in respect of                              
equity-settled share-based payment arrangements                              (198)              -                 -    
Transfer of vesting options                                                   326               -                 -    
Movement in share-based payment reserve                                         -             166                 -    
Transfer from share-based payment reserve                                       -            (315)                -    
Value of employee services                                                      -             411                 -    
Conversion from cash-settled schemes                                            -              30                 -    
Deferred tax                                                                    -              40                 -    
Share of post-tax results of associates and joint ventures                   (118)            118                 -    
Disposal of interest in subsidiary                                              -               -                 -    
Acquisition of subsidiary                                                       -               -                 -    
Balance at the end of the reporting period                                 36 099           3 262               259    

                                                                                          Foreign 
                                                                                        insurance
                                                                        Cash flow      subsidiary 
                                                                          hedging      regulatory           Capital 
                                                                          reserve         reserve           reserve    
                                                                               Rm              Rm                Rm    
Balance at the beginning of the reporting period                           (1 871)            399             1 422    
Total comprehensive income for the reporting period                         1 726            (453)                -    
Profit for the reporting period                                                 -               -                 -    
Other comprehensive income                                                  1 726            (453)                -    
Dividends paid during the reporting period                                      -               -                 -    
Shares issued                                                                   -               -                 -    
Purchase of Barclays Africa Limited shares in respect of                                              
equity-settled share-based payment arrangements                                 -               -     
Transfer of vesting options                                                     -               -                 -    
Movement in share-based payment reserve                                         -               -                 -    
Transfer from share-based payment reserve                                       -               -                 -    
Value of employee services                                                      -               -                 -    
Conversion from cash-settled schemes                                            -               -                 -    
Deferred tax                                                                    -               -                 -    
Share of post-tax results of associates and joint ventures                      -               -                 -    
Disposal of interest in subsidiary                                              -               -                 -    
Acquisition of subsidiary                                                       -               -                 -    
Balance at the end of the reporting period                                   (145)            (54)            1 422    
   
                                                                                          
                                                                                                               Total 
                                                                                        Associates’           equity 
                                                                       Share-based       and joint      attributable 
                                                                           payment       ventures’         to equity 
                                                                           reserve        reserve            holders    
                                                                               Rm              Rm                       
Balance at the beginning of the reporting period                              547             949             60 486    
Total comprehensive income for the reporting period                             -               -             10 835    
Profit for the reporting period                                                 -               -              9 919    
Other comprehensive income                                                      -               -                916    
Dividends paid during the reporting period                                      -               -             (5 851)   
Shares issued                                                                   -               -              3 500    
Purchase of Barclays Africa Limited shares in respect of              
equity-settled share-based payment arrangements                                 -               -               (198)   
Transfer of vesting options                                                     -               -                335    
Movement in share-based payment reserve                                       166               -                166    
Transfer from share-based payment reserve                                    (315)              -               (315)   
Value of employee services                                                    411               -                411    
Conversion from cash-settled schemes                                           30               -                 30    
Deferred tax                                                                   40               -                 40    
Share of post-tax results of associates and joint ventures                      -             118                  -    
Disposal of interest in subsidiary                                              -               -                  -    
Acquisition of subsidiary                                                       -               -                  -    
Balance at the end of the reporting period                                    713           1 067             69 273    

                                                                            Non-
                                                                     controlling 
                                                                        interest-           Total 
                                                                  ordinary shares          equity    
                                                                               Rm              Rm    
Balance at the beginning of the reporting period                               11          60 497    
Total comprehensive income for the reporting period                            15          10 850    
Profit for the reporting period                                                15           9 934    
Other comprehensive income                                                      -             916    
Dividends paid during the reporting period                                      -          (5 851)   
Shares issued                                                                   -           3 500    
Purchase of Barclays Africa Limited shares in respect of                              
equity-settled share-based payment arrangements                                 -            (198)   
Transfer of vesting options                                                     -             335    
Movement in share-based payment reserve                                         -             166    
Transfer from share-based payment reserve                                       -            (315)   
Value of employee services                                                      -             411    
Conversion from cash-settled schemes                                            -              30    
Deferred tax                                                                    -              40    
Share of post-tax results of associates and joint ventures                      -               -    
Disposal of interest in subsidiary                                              -               -    
Acquisition of subsidiary                                                       -               -    
Balance at the end of the reporting period                                     26          69 299    

Notes
All movements are reflected net of taxation, refer to note 15.
(1) This includes ordinary shares and ‘A’ ordinary shares
(2) This movement relates to certain subsidiaries being deregistered and the Bank’s equity being 
    adjusted accordingly. 

                                                                                       Number of 
                                                                              ordinary shares(1)      Share capital    
                                                                                            ’000                 Rm     
Balance at the beginning of the reporting period                                         396 151                303    
Total comprehensive income for the reporting period                                            -                  -    
Profit for the period                                                                          -                  -    
Other comprehensive income                                                                     -                  -    
Dividends paid during the reporting period                                                     -                  -    
Shares issued                                                                             16 647                  1    
Purchase of Barclays Africa Group Limited shares in respect of                                        
equity-settled share-based payment arrangements                                                -                  -    
Movement in share-based payment reserve                                                        -                  -    
Value of employee services                                                                     -                  -    
Conversion from cash-settled to equity-settled Schemes                                         -                  -    
Deferred tax                                                                                   -                  -    
Share of post-tax results of associates and joint ventures                                     -                  -    
Disposal of interest in subsidiary(2)                                                          -                  -    
Acquisition of subsidiary                                                                      -                  -    
Balance at the end of the reporting period                                               412 798                304    

                                                                            Share      Preference        Preference
                                                                          premium   share capital     share premium    
                                                                               Rm              Rm                Rm  
Balance at the beginning of the reporting period                           16 465               1             4 643    
Total comprehensive income for the reporting period                             -               -                 -    
Profit for the period                                                           -               -                 -    
Other comprehensive income                                                      -               -                 -    
Dividends paid during the reporting period                                      -               -                 -    
Shares issued                                                               5 000               -                 -    
Purchase of Barclays Africa Group Limited shares in respect of 
equity-settled share-based payment arrangements                               (10)              -                 -    
Movement in share-based payment reserve                                         -               -                 -    
Value of employee services                                                      -               -                 -    
Conversion from cash-settled to equity-settled Schemes                          -               -                 -    
Deferred tax                                                                    -               -                 -    
Share of post-tax results of associates and joint ventures                      -               -                 -    
Disposal of interest in subsidiary(2)                                           -               -                 -    
Acquisition of subsidiary                                                       -               -                 -    
Balance at the end of the reporting period                                 21 455               1             4 643    

                                                                                             Bank
                                                                                             2015
                                                                         Retained     Total other    Available-for-                                                                   
                                                                         earnings        reserves      sale reserve    
                                                                               Rm              Rm                Rm        
Balance at the beginning of the reporting period                            33 713          3 799               937    
Total comprehensive income for the reporting period                         10 056         (2 429)             (333)   
Profit for the period                                                       10 047              -                 -    
Other comprehensive income                                                       9         (2 429)             (333)   
Dividends paid during the reporting period                                 (11 437)             -                 -    
Shares issued                                                                    -              -                 -    
Purchase of Barclays Africa Group Limited shares in respect of                                                                    
equity-settled share-based payment arrangements                               (154)             -                 -    
Movement in share-based payment reserve                                          -            544                 -    
Value of employee services                                                       -            209                 -    
Conversion from cash-settled to equity-settled Schemes                           -            372                 -    
Deferred tax                                                                     -            (37)                -    
Share of post-tax results of associates and joint ventures                    (136)           136                 -    
Disposal of interest in subsidiary(2)                                           (9)             -                 -    
Acquisition of subsidiary                                                        -              -                 -    
Balance at the end of the reporting period                                  32 033          2 050               604    

                                                                                          Foreign 
                                                                                        insurance
                                                                        Cash flow      subsidiary 
                                                                          hedging      regulatory           Capital 
                                                                          reserve         reserve           reserve    
                                                                               Rm              Rm                Rm  
Balance at the beginning of the reporting period                              351             273             1 422    
Total comprehensive income for the reporting period                        (2 222)            126                 -    
Profit for the period                                                           -               -                 -    
Other comprehensive income                                                 (2 222)            126                 -    
Dividends paid during the reporting period                                      -               -                 -    
Shares issued                                                                   -               -                 -    
Purchase of Barclays Africa Group Limited shares in respect of                                                                   
equity-settled share-based payment arrangements                                 -               -                 -    
Movement in share-based payment reserve                                         -               -                 -    
Value of employee services                                                      -               -                 -    
Conversion from cash-settled to equity-settled Schemes                          -               -                 -    
Deferred tax                                                                    -               -                 -    
Share of post-tax results of associates and joint ventures                      -               -                 -    
Disposal of interest in subsidiary(2)                                           -               -                 -    
Acquisition of subsidiary                                                       -               -                 -    
Balance at the end of the reporting period                                 (1 871)            399             1 422    

                                                                                                               Total 
                                                                                        Associates’           equity 
                                                                       Share-based       and joint      attributable 
                                                                           payment       ventures’         to equity 
                                                                           reserve        reserve            holders    
                                                                               Rm              Rm                      
Balance at the beginning of the reporting period                                3             813             58 924    
Total comprehensive income for the reporting period                             -               -              7 627    
Profit for the period                                                           -               -             10 047    
Other comprehensive income                                                      -               -             (2 420)   
Dividends paid during the reporting period                                      -               -            (11 437)   
Shares issued                                                                   -               -              5 001    
Purchase of Barclays Africa Group Limited shares in respect of                               
equity-settled share-based payment arrangements                                 -               -               (164)   
Movement in share-based payment reserve                                       544               -                544    
Value of employee services                                                    209               -                209    
Conversion from cash-settled to equity-settled Schemes                        372               -                372    
Deferred tax                                                                  (37)              -                (37)   
Share of post-tax results of associates and joint ventures                      -             136                  -    
Disposal of interest in subsidiary(2)                                           -               -                 (9)   
Acquisition of subsidiary                                                       -               -                  -    
Balance at the end of the reporting period                                    547             949             60 486    

                                                                           Non-
                                                                     controlling 
                                                                        interest-           Total 
                                                                  ordinary shares          equity    
                                                                               Rm              Rm   
Balance at the beginning of the reporting period                                2          58 926    
Total comprehensive income for the reporting period                             -           7 627    
Profit for the period                                                           -          10 047    
Other comprehensive income                                                      -          (2 420)   
Dividends paid during the reporting period                                      -         (11 437)   
Shares issued                                                                   -           5 001    
Purchase of Barclays Africa Group Limited shares in respect of                                                 
equity-settled share-based payment arrangements                                 -            (164)   
Movement in share-based payment reserve                                         -             544    
Value of employee services                                                      -             209    
Conversion from cash-settled to equity-settled Schemes                          -             372    
Deferred tax                                                                    -             (37)   
Share of post-tax results of associates and joint ventures                      -               -    
Disposal of interest in subsidiary(2)                                           -              (9)   
Acquisition of subsidiary                                                       9               9    
Balance at the end of the reporting period                                     11          60 497    

Summary consolidated statement of cash flows
for the reporting period ended 31 December

                                                                                            2016         2015    
                                                                             Note             Rm           Rm    
Net cash generated from operating activities                                               2 300       12 055    
Net cash utilised in investing activities                                                 (4 090)      (3 594)   
Net cash utilised in financing activities                                                   (168)      (4 101)   
Net increase in cash and cash equivalents                                                 (1 958)       4 360    
Cash and cash equivalents at the beginning of the reporting period              1         14 374       10 014    
Cash and cash equivalents at the end of the reporting period                    2         12 416       14 374 
                                                                                        
Notes to the summary 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)                                     8 607        8 777    
Loans and advances to banks(2)                                                             5 767        1 237    
                                                                                          14 374       10 014    
2. Cash and cash equivalents at the end of the reporting period                                                  
Cash, cash balances and balances with central banks(1)                                     9 662        8 607    
Loans and advances to banks(2)                                                             2 754        5 767    
                                                                                          12 416       14 374    
                                                                          
Notes
(1) Includes coins and bank notes.
(2) Includes call advances, which are used as working capital for the Bank. 

Summary notes to the consolidated financial results
for the reporting period ended 31 December

1. Non-current assets and non-current liabilities held for sale
The following movements in non-current assets and non-current liabilities held for sale were effected during the
current financial reporting period:

* RBB transferred a subsidiary with total assets of R367m and total liabilities of R9m to non-current assets and
  non-current liabilities held for sale. The Commercial Property Finance (CPF) Equity division disposed of an investment
  security with a carrying value of R15m.
* Head Office disposed of property and equipment with a carrying value of R94m.

The following movements in non-current assets held for sale were effected during the previous financial reporting
period:

* CPF disposed of investment securities with a carrying value of R39m.
* Head Office disposed of property and equipment with a carrying value of R102m.

2. Loans and advances to customers            

                                                             2016          2015    
                                                               Rm            Rm    
Corporate overdrafts and specialised finance loans          8 285         8 784    
Credit cards                                               31 376        32 847    
Foreign currency loans                                     27 354        22 419    
Instalment credit agreements                               75 655        74 154    
Gross advances                                             93 865        91 160    
Unearned finance charges                                  (18 210)      (17 006)   
Loans to associates and joint ventures                     20 183        17 079    
Micro loans                                                 3 544         2 870    
Mortgages                                                 268 180       270 144    
Other advances                                              5 980         4 831    
Overdrafts                                                 35 945        31 287    
Overnight finance                                          15 552        15 236    
Personal and term loans                                    31 920        30 426    
Preference shares                                          17 454        16 137    
Reverse repurchase agreements (Carries)                    16 116        20 310    
Wholesale overdrafts                                       87 312        67 473    
Gross loans and advances to customers                     644 856       613 997    
Impairments losses on loans and advances                  (14 210)      (11 995)   
                                                          630 646       602 002    

The Bank has securitised certain loans and advances to customers, the total value of these securitised assets is 
R3 412m (2015: R1 003m). Included above are collateralised loans of R191m (2015: R1 086m) relating to securities 
borrowed. 

The amount pledged is the required threshold of cash collateral based on specific arrangements with different
counterparties. Exposures are reviewed on a periodic basis, whereby these thresholds are adjusted accordingly.

Other advances include working capital solutions and collateralised loans.

Impairment losses on loans and advances

                                                                   2016                                           
                                                             Performing 
                                                                  loans                                         
                                               Exposure      Impairment       Coverage ratio    
                                                     Rm              Rm                    %    
RBB                                             423 773           3 910                 0.92    
Retail Banking South Africa                     355 069           3 116                 0.88    
Credit cards                                     27 375             596                 2.18    
Instalment credit agreements                     73 530             735                 1.00    
Loans to associates and joint ventures           18 933               -                    -    
Mortgages                                       214 610           1 208                 0.56    
Other loans and advances                            492               -                    -    
Overdrafts                                        3 923              54                 1.38    
Personal and term loans                          16 206             523                 3.23    
Business Banking South Africa                    68 147             794                 1.17    
Mortgages (including CPF)                        34 547             179                 0.52    
Overdrafts                                       18 284             366                 2.00    
Term loans                                       15 316             249                 1.63    
RBB Rest of Africa                                  557               -                    -    
CIB                                             191 112             624                 0.33    
Wealth                                            5 615              14                 0.25    
Head office and other operations                    654               4                 0.61    
Loans and advances to customers                 621 154           4 552                 0.73    
Loans and advances to customers and banks       660 450           4 552                 0.69    

                                                                   Non-
                                                             performing 
                                                                  loans    
                                               Exposure      Impairment    
                                                     Rm              Rm    
RBB                                              21 320           8 417    
Retail Banking South Africa                      18 033           7 256    
Credit cards                                      4 001           2 919    
Instalment credit agreements                      2 085             925    
Loans to associates and joint ventures                -               -    
Mortgages                                         9 920           2 097    
Other loans and advances                              -               -    
Overdrafts                                          220             142    
Personal and term loans                           1 807           1 173    
Business Banking South Africa                     3 287           1 161    
Mortgages (including CPF)                         1 566             535    
Overdrafts                                          929             421    
Term loans                                          792             205    
RBB Rest of Africa                                    -               -    
CIB                                               2 266           1 184    
Wealth                                              116              57    
Head office and other operations                      -               -    
Loans and advances to customers                  23 702           9 658    
Loans and advances to customers and banks        23 702           9 658    

                                                       Non-
                                                 performing 
                                                      loans   Net total                     
                                             Coverage ratio    exposure    
                                                          %          Rm    
RBB                                                   39.48     432 766    
Retail Banking South Africa                           40.24     362 730    
Credit cards                                          72.96      27 861    
Instalment credit agreements                          44.36      73 955    
Loans to associates and joint ventures                    -      18 933    
Mortgages                                             21.14     221 225    
Other loans and advances                                  -         492    
Overdrafts                                            64.55       3 947    
Personal and term loans                               64.91      16 317    
Business Banking South Africa                         35.32      69 479    
Mortgages (including CPF)                             34.16      35 399    
Overdrafts                                            45.32      18 426    
Term loans                                            25.88      15 654    
RBB Rest of Africa                                        -         557    
CIB                                                   52.25     191 570    
Wealth                                                49.14       5 660    
Head office and other operations                          -         650    
Loans and advances to customers                       40.75     630 646    
Loans and advances to customers and banks             40.75     669 942    

                                                                   2015                                           
                                                             Performing 
                                                                  loans                                         
                                               Exposure      Impairment       Coverage ratio    
                                                     Rm              Rm                    %    
RBB                                             417 309           3 514                 0.84    
Retail Banking South Africa                     355 233           2 853                 0.80    
Credit cards                                     29 034             597                 2.06    
Instalment credit agreements                     72 433             548                 0.76    
Loans to associates and joint ventures           16 176               -                    -    
Mortgages                                       219 469           1 237                 0.56    
Other loans and advances                            343               -                    -    
Overdrafts                                        2 780              35                 1.26    
Personal and term loans                          14 998             436                 2.91    
Business Banking South Africa                    62 053             661                 1.07    
Mortgages (including CPF)                        30 018             189                 0.63    
Overdrafts                                       17 287             272                 1.57    
Term loans                                       14 748             200                 1.36    
RBB Rest of Africa                                   23               -                    -    
CIB                                             170 535             554                 0.32    
Wealth                                            5 346              32                 0.60    
Head office and other operations                    700               -                    -    
Loans and advances to customers                 593 890           4 100                 0.69    
Loans and advances to customers and banks       652 475           4 100                 0.63    

                                                                   Non-
                                                             performing 
                                                                  loans    
                                               Exposure      Impairment    
                                                     Rm              Rm       
RBB                                              19 740           7 665    
Retail Banking South Africa                      16 435           6 513    
Credit cards                                      3 813           2 737    
Instalment credit agreements                      1 595             621    
Loans to associates and joint ventures                -               -    
Mortgages                                         9 252           2 052    
Other loans and advances                              -               -    
Overdrafts                                          173              99    
Personal and term loans                           1 602           1 004    
Business Banking South Africa                     3 305           1 152    
Mortgages (including CPF)                         1 618             586    
Overdrafts                                          962             370    
Term loans                                          725             196    
RBB Rest of Africa                                    -               -    
CIB                                                 298             197    
Wealth                                               69              33    
Head office and other operations                      -               -    
Loans and advances to customers                  20 107           7 895    
Loans and advances to customers and banks        20 107           7 895    

                                                       Non-
                                                 performing 
                                                      loans   Net total
                                             Coverage ratio    exposure    
                                                          %          Rm     
RBB                                                   38.83     425 870    
Retail Banking South Africa                           39.63     362 302    
Credit cards                                          71.78      29 513    
Instalment credit agreements                          38.93      72 859    
Loans to associates and joint ventures                    -      16 176    
Mortgages                                             22.18     225 432    
Other loans and advances                                  -         343    
Overdrafts                                            57.23       2 819    
Personal and term loans                               62.67      15 160    
Business Banking South Africa                         34.86      63 545    
Mortgages (including CPF)                             36.22      30 861    
Overdrafts                                            38.46      17 607    
Term loans                                            27.03      15 077    
RBB Rest of Africa                                        -          23    
CIB                                                   66.11     170 082    
Wealth                                                47.83       5 350    
Head office and other operations                          -         700    
Loans and advances to customers                       39.26     602 002    
Loans and advances to customers and banks             39.26     660 587    

3. Borrowed funds
During the reporting period the significant movements in borrowed funds were as follows: 
R2 381m (31 December 2015: R4 500m) of subordinated notes were issued and R0m 
(31 December 2015: R2 000m) were redeemed.

4. Other impairments

                                                            2016      2015    
                                                              Rm        Rm    
Reversal of impairment raised on financial instruments       (13)      (43)   
Intangible assets(1)                                         590         -    
                                                             577       (43) 
 
Note
(1) During the current year, two of the Bank’s intangible assets were impaired. An acquired customer list was fully
impaired following an adjustment to the interest rate outlook for the related business. The second impairment relates to
the costs previously spent by the Bank on the Virtual Bank initiative. In calculating the impairment to be recognised,
the Group determined the value in use based on a discounted cash flow methodology.

5. Headline earnings
                                                                              2016                   2015                  
                                                                        Gross       Net(2)      Gross       Net(2)    
                                                                           Rm           Rm         Rm           Rm    
Headline earnings are determined as follows:                                                                          
Profit attributable to ordinary equity holders of the Bank                           9 568                   9 726    
Total headline earnings adjustment:                                                    210                     (69)   
IAS 16 - Profit on disposal of property and equipment                     (22)         (16)       (17)         (12)   
IAS 21 - Recycled foreign currency translation reserve                   (320)        (297)      (267)        (267)   
IAS 38 - Impairment of intangible assets                                  590          590          -            -    
IAS 39 - Release of available-for-sale reserves                            (3)          (2)       210          151    
IAS 40 - Change in fair value of investment properties                    (84)         (65)        73           59    
Headline earnings/diluted headline earnings                                          9 778                   9 657    
Headline earnings per share/diluted headline earnings per share (cents)            2 340.9                 2 405.2    

Note
(2) The net amount is reflected after taxation.

6. Dividends per share

                                                                                                  2016        2015    
                                                                                                    Rm          Rm    
Dividends declared to ordinary equity holders                                                                         
Interim dividend (29 July 2015: 631,07 cents)                                                        -       2 500    
Special dividend (6 December 2016: 476.12 cents)(10 June 2016: 363,37                      
cents)(30 September 2015: 745,15 cents)(31 July 2015: 504,86 cents)                              3 500       5 000    
Final dividend (23 February 2017: 486,88017) (1 March 2016: 484,49896 cents)                     2 100       2 000    
                                                                                                 5 600       9 500    
Dividends declared to preference equity holders                                                                       
Interim dividend (29 July 2016: 3 696,57534 cents)(29 July 2015: 3 282,8082 cents)                 183         162    
Final dividend (23 February 2017: 3 644,79452 cents)(1 March 2016: 3 395,47945 cents)              180         168    
                                                                                                   363         330    
Dividends paid to ordinary equity holders                                                                             
Final dividend (1 March 2016: 484,49896 cents)(3 March 2015: 912,78268 cents)                    2 000       3 616    
Interim dividend (29 July 2015: 631,07 cents)                                                        -       2 500    
Special dividend (6 December 2016: 476.12 cents)(10 June 2016: 363,37 cents)               
(30 September 2015: 745,15 cents)(31 July 2015: 504,86 cents)                                    3 500       5 000    
                                                                                                 5 500      11 116    
Dividends paid to preference equity holders                                                                           
Final dividend (1 March 2016: 3 395,47945 cents)(3 March 2015: 3 210,8904 cents)                   168         159    
Interim dividend (29 July 2016: 3 696,57534 cents)(29 July 2015: 3 282,8082 cents)                 183         162    
                                                                                                   351         321    

7. Acquisitions and disposals of businesses and other similar transactions

7.1  Acquisitions and disposals of businesses during the current reporting period 
There were no acquisitions or disposals of businesses during the current reporting period.

7.2 Acquisitions and disposals of businesses during the previous reporting period

The Bank purchased additional shares in a non-core joint venture which resulted in an increase in the Bank’s effective
shareholding from 50% to 67%, and a business combination in terms of IFRS 3. The profit share to which the Bank is
entitled is 74%. The acquisition occurred on 18 November 2015. A bargain purchase amount of R4m was recognised in the
statement of comprehensive income.

There were no disposals of businesses during the previous reporting period.

                                              2015    
                                        Fair value    
                                     recognised on    
                                       acquisition    
                                                Rm    
Consideration at November 2015:                       
Cash                                            14    
Total consideration                             14    
Other assets                                     5    
Investment properties                          292    
Other liabilities                               (1)   
Deferred tax liabilities                        (4)   
Loans from Subsidiaries                       (176)   
Loans from Absa Group Companies                (90)   
Total identifiable net assets                   26    
Total NCI                                       (8)   
Goodwill/(bargain purchase)                     (4)   
Total                                           14    

A summary of the total net cash outflow and cash and cash equivalents related to acquisitions and disposals of
businesses and other similar transactions is included below:

                                                          Bank              
                                                     2016      2015    
                                                       Rm        Rm    
Summary of net cash outflow due to acquisitions         -        14    

8. Related parties
The ultimate holding company, Barclays Bank Plc, sold 12,2% of its Barclays Africa Group Limited shareholding for
R13,1bn on 5 May 2016, leaving the Barclays Plc shareholding at 50,1%.

9. Financial guarantee contracts

                                   2016      2015    
                                     Rm        Rm    
Financial guarantee contracts        10        24    

Financial guarantee contracts represent contracts where the Bank 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.

10. Commitments

                                                                                         2016       2015
                                                                                           Rm         Rm    
Authorised capital expenditure                                                                              
Contracted but not provided for                                                           509        591    
The Bank has capital commitments in respect of computer equipment and property 
development. Management is confident that future net revenues and funding will 
be sufficient to cover these commitments.                                           
Operating lease payments due                                                                                
No later than one year                                                                    947        758    
Later than one year and no later than five years                                        2 367      1 742    
Later than five years                                                                   1 195        956    
                                                                                        4 509      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 Bank. 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                                                                     84        147    
Later than one year and no later than five years                                           20        177    
                                                                                          104        324    
The Bank has sponsorship commitments in respect of sports, arts and culture sponsorships. 

11. Contingencies

                                              2016         2015    
                                                Rm           Rm    
Guarantees                                  30 469       31 266    
Irrevocable debt facilities                122 958      138 807    
Letters of credit                            4 645        6 319    
Other                                          135           21    
                                           158 207      176 413    

Guarantees include performance guarantee contracts and payment guarantee contracts.

Irrevocable facilities are commitments to extend credit where the Bank 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 Bank has been party to proceedings against it during the reporting period, and as at the reporting date the
following material cases are disclosed:

* Pinnacle Point Holdings Proprietary Limited (PPG): New Port Finance Company and the trustees of the Winifred Trust
(the plaintiffs) allege a local bank conducted itself unlawfully, and that the Bank was privy to such conduct. They have
instituted proceedings against the Bank for damages for an amount of R1 387m. Although Pinnacle Point Holdings’ claim
has been withdrawn, the second to fifth plaintiff’s claims remain and will proceed to trial.
* Ayanda Collective Investment Scheme (the Scheme): Absa Capital Investor Services was the trustee of Ayanda
Collective Investment Scheme, in which Corporate Money Managers (CMM) managed a portfolio of assets within the Scheme. 
The joint curators of the CMM group of companies and the Altron Pension Fund (an investor in the fund) allege that the 
defendants caused damages to them arising from their alleged failure to meet their obligations in the trust deed together 
with their statutory obligations set out in the Collective Investment Scheme Act, in respect of which they seek payment 
of R1 157m. 

The Bank is engaged in various other legal, competition and regulatory matters both in South Africa and a number of
other jurisdictions. It is involved in 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 Bank 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 Bank is or has been engaged.

At the present time, the Bank 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 Bank’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 Bank 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 Bank’s control, but especially in the area of banking and insurance regulation, are likely to have an impact on
the Bank’s businesses and earnings. 

The Bank 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 Bank has also adopted appropriate
remedial and/or mitigating steps, where necessary or advisable, and made disclosures on material findings as and when
appropriate. 

Absa Bank Limited, a subsidiary of Barclays Africa Group Limited, has identified potentially fraudulent activity by
certain of its customers using import advance payments for imports in 2014 and 2015 to effect foreign exchange transfers
from South Africa to beneficiary accounts located in East Asia, UK, Europe and the US. As a result, the Bank has been
conducting a review of relevant activity, processes, systems and controls. The Bank is keeping relevant authorities
informed as to the status of this matter and is providing information to these authorities as part of its on-going cooperation.
It is not currently possible to estimate the financial impact of the actions described on the Bank, if any. 
 
In February 2017 the South African Competition Commission (SACC) referred Absa Bank Limited, among other banks, to the
Competition Tribunal to be prosecuted for breaches of South African competition law related to Foreign Exchange trading
of South African Rand. The SACC found from its investigation that, between 2007 - 2013, the respondents had engaged in
various forms of collusive behaviour.  Absa Bank Limited and its parent Barclays PLC brought the conduct to the attention 
of the SACC under its leniency programme and have cooperated with, and will continue to cooperate with, the SACC in 
relation to this matter.  The SACC is therefore not seeking an order from the Tribunal to impose any administrative fine 
on Absa Bank Limited.

Income taxes
The Bank is subject to income taxes in numerous jurisdictions and the calculation of the Bank’s tax charge and
worldwide 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 Bank’s treatment and accordingly the final tax charge cannot be determined until
resolution has been reached with the relevant tax authority. The Bank 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 asset and liabilities in the reporting period which such
determination is made. These risks are managed in accordance with the Bank’s Tax Risk Framework.

12. Segment reporting

                                                         2016        2015(1)    
                                                           Rm             Rm    
12.1 Headline earnings contribution by segment                                  
RBB                                                     8 266          8 608    
Corporate and Investment Bank (CIB)                     2 701          2 338    
Wealth                                                  ( 120)          ( 93)   
Head Office, Treasury and other operations             (1 069)        (1 196)   
Total headline earnings                                 9 778          9 657    
12.2 Total income by segment                                                    
RBB                                                    39 747         38 143    
CIB                                                     9 704          8 651    
Wealth                                                    449            446    
Head Office, Treasury and other operations             (1 099)        (1 164)   
Total income                                           48 801         46 076    
12.3 Total internal income by segment                                           
RBB                                                    (9 327)        (7 889)   
CIB                                                    (6 307)            54    
Wealth                                                     10             43    
Head Office, Treasury and other operations             14 162         10 733    
Total internal income                                  (1 462)         2 941    
12.4 Total assets by segment                                                    
RBB                                                   716 023        704 743    
CIB                                                   478 103        489 329    
Wealth                                                  6 308          5 769    
Head Office, Treasury and other operations           (282 123)      (263 700)   
Total assets                                          918 311        936 141    
12.5 Total liabilities by segment                                               
RBB                                                   706 590        694 837    
CIB                                                   474 518        485 590    
Wealth                                                  6 414          5 851    
Head Office, Treasury and other operations           (338 511)      (310 634)   
Total liabilities                                     849 011        875 644    

Note:
(1) Operational changes, management changes and associated changes to the way in which the CODM views the performance
of each business segment, have resulted in the reallocation of earnings, assets and liabilities between operating
segments. For details on the business portfolio changes refer to note 15.
 
13. Assets and liabilities not held at fair value
The following table summarises the carrying amounts and fair value of those assets and liabilities not held at fair
value.

                                                                         2016                      
                                                                Carrying                    
                                                                   value      Fair value    
                                                                      Rm              Rm    
Financial assets                                                                            
Balances with the South African Reserve Bank                      18 552          18 552    
Coins and bank notes                                               9 662           9 662    
Money market assets                                                   38              38    
Cash, cash balances and balances with central banks               28 252          28 252    
Loans and advances to banks                                       19 439          19 439    
Other assets                                                      14 822          14 895    
Retail Banking South Africa                                      362 730         362 621    
Credit cards                                                      27 861          27 861    
Instalment credit agreements                                      73 955          73 650    
Loans to associates and joint ventures                            18 933          18 933    
Mortgages                                                        221 225         221 237    
Other loans and advances                                             492             492    
Overdrafts                                                         3 947           3 947    
Personal and term loans                                           16 317          16 501    
Business Banking South Africa                                     69 375          69 387    
Mortgages (including CPF)                                         35 295          35 307    
Overdrafts(1)                                                     18 426          18 426    
Term loans(1)                                                     15 654          15 654    
RBB Rest of Africa                                                   557             557    
CIB                                                              167 602         167 602    
Wealth                                                             5 660           5 660    
Head Office and other operations                                     645             645    
Loans and advances to customers - net of impairment losses       606 569         606 472    
Loans to Group companies                                          25 794          25 794    
Total assets                                                     694 876         694 852    
Financial liabilities                                                                       
Deposits from banks                                               42 514          42 514    
Other liabilities                                                 19 039          19 279    
Call deposits                                                     62 270          62 270    
Cheque account deposits                                          152 474         152 474    
Credit card deposits                                               1 906           1 906    
Fixed deposits                                                   116 049         116 113    
Foreign currency deposits                                         23 325          23 325    
Notice deposits                                                   59 358          59 457    
Other deposits                                                     2 059           2 059    
Saving and transmission deposits                                 130 208         130 208    
Deposits due to customers                                        547 649         547 812    
Debt securities in issue                                         133 906         131 329    
Borrowed funds                                                    15 679          15 900    
Total liabilities                                                758 787         756 834    

                                                                         2015                      
                                                                Carrying                    
                                                                   value      Fair value    
                                                                      Rm              Rm    
Financial assets                                                                            
Balances with the South African Reserve Bank                      17 459          17 459    
Coins and bank notes                                               8 607           8 607    
Money market assets                                                   34              34    
Cash, cash balances and balances with central banks               26 100          26 100    
Loans and advances to banks                                       34 257          34 257    
Other assets                                                      17 354          17 354    
Retail Banking South Africa                                      362 303         361 273    
Credit cards                                                      29 515          29 515    
Instalment credit agreements                                      72 860          71 798    
Loans to associates and joint ventures                            16 176          16 176    
Mortgages                                                        225 431         225 441    
Other loans and advances                                             343             343    
Overdrafts                                                         2 819           2 819    
Personal and term loans                                           15 159          15 181    
Business Banking South Africa                                     63 412          63 440    
Mortgages (including CPF)                                         30 730          30 742    
Overdrafts(1)                                                     17 604          17 620    
Term loans(1)                                                     15 078          15 078    
RBB Rest of Africa                                                    22              22    
CIB                                                              140 796         140 796    
Wealth                                                             5 350           5 350    
Head Office and other operations                                     696             696    
Loans and advances to customers - net of impairment losses       572 579         571 577    
Loans to Group companies                                          23 850          23 958    
Total assets                                                     674 140         673 246    
Financial liabilities                                                                       
Deposits from banks                                               44 394          44 394    
Other liabilities                                                 16 346          16 250    
Call deposits                                                     72 130          72 130    
Cheque account deposits                                          150 842         150 842    
Credit card deposits                                               2 002           2 002    
Fixed deposits                                                   118 278         118 390    
Foreign currency deposits                                         26 168          26 168    
Notice deposits                                                   48 954          48 963    
Other deposits                                                     1 943           1 943    
Saving and transmission deposits                                 122 522         122 522    
Deposits due to customers                                        542 839         542 960    
Debt securities in issue                                         121 730         119 153    
Borrowed funds                                                    12 954          13 323    
Total liabilities                                                738 263         736 080    

Note
(1) Some overdrafts were reallocated to term loans to align to the way the products are utilised by the customers. The
restatement effected resulted in a decrease of R821m (2015: R555m) in “Overdrafts” with corresponding increase in “Term
loans”.

14. Assets and liabilities held at fair value

14.1 Fair value measurement and valuation processes

Financial assets and financial liabilities
The Bank 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 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 International Financial Reporting Standards (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 Bank’s investment properties is determined through valuations performed by
external independent valuators. When the Bank’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.

14.2 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). 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.

14.3 Fair value adjustments
The main valuation adjustments required to arrive at a fair value are described below:

Bid-offer valuation adjustments
For assets and liabilities where the Bank is not a market maker, mid prices are adjusted to bid and offer prices
respectively. 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 firm 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 firm’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 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. 

14.4 Fair value hierarchy
The following table shows the Bank’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.

                                                                             2016                                             
                                                         Level 1      Level 2      Level 3        Total    
                                                              Rm           Rm           Rm           Rm    
Financial Assets                                                                                           
Cash, cash balances and balances with central banks            -            -            -            -    
Investment Securities                                     50 909       32 203        1 062       84 174    
Loans and advances to banks                                    -       19 286          571       19 857    
Trading and hedging portfolio assets                      16 360       56 773        1 505       74 638    
Debt instruments                                          15 417        2 573        1 324       19 314    
Derivative assets                                              -       46 570          181       46 751    
Commodity derivatives                                          -          794            -          794    
Credit derivatives                                             -           70          114          184    
Equity derivatives                                             -        1 526           67        1 593    
Foreign exchange derivatives                                   -       15 121            -       15 121    
Interest rate derivatives                                      -       29 059            -       29 059    
Listed equity instruments - HFT                              943            -            -          943    
Money market assets                                            -        7 630            -        7 630    
Other assets                                                   -            -            -            -    
Loans and advances to customers                                -       19 187        4 890       24 077    
Total financial assets                                    67 269      127 449        8 028      202 746    
Financial liabilities                                                                                      
Deposits from banks                                            -       17 634            -       17 634    
Trading and hedging portfolio liabilities                  1 786       42 464          307       44 557    
Derivative liabilities                                         -       42 464          307       42 771    
Commodity derivatives                                          -          872            -          872    
Credit derivatives                                             -          135          101          236    
Equity derivatives                                             -        1 306           59        1 365    
Foreign exchange derivatives                                   -       13 996            -       13 996    
Interest rate derivatives                                      -       26 155          147       26 302    
Short positions                                            1 786            -            -        1 786    
Deposits due to customers                                    154       15 870        1 139       17 163    
Debt securities in issue                                     412        4 651          604        5 667    
Total financial liabilities                                2 352       80 619        2 050       85 021    
Non-financial assets                                                                                       
Commodity                                                  1 485            -            -        1 485    
Investment Properties                                          -            -          222          222    
Non-recurring fair value measurements                                                                      
Non-current assets held for sale(1)                            -            -          367          367    
Non-current liabilities held for sale(1)                       -            -            9            9    

                                                                              2015                                             
                                                         Level 1      Level 2      Level 3        Total    
                                                              Rm           Rm           Rm           Rm    
Financial Assets                                                                                           
Cash, cash balances and balances with central banks            -            1            -            1    
Investment Securities                                     46 507       25 273        1 285       73 065    
Loans and advances to banks                                    -       22 219        2 109       24 328    
Trading and hedging portfolio assets                      20 083       95 168        1 415      116 666    
Debt instruments                                          18 674        7 957          897       27 528    
Derivative assets                                              -       79 235          518       79 753    
Commodity derivatives                                          -          223            -          223    
Credit derivatives                                             -          885           23          908    
Equity derivatives                                             -        2 118           43        2 161    
Foreign exchange derivatives                                   -       26 996            -       26 996    
Interest rate derivatives                                      -       49 013          452       49 465    
Listed equity instruments - HFT                            1 409            -            -        1 409    
Money market assets                                            -        7 976            -        7 976    
Other assets                                                   -            -           17           17    
Loans and advances to customers                                3       21 909        7 511       29 423    
Total financial assets                                    66 593      164 570       12 337      243 500    
Financial liabilities                                                                                      
Deposits from banks                                            -       16 625            7       16 632    
Trading and hedging portfolio liabilities                  1 242       90 640          216       92 098    
Derivative liabilities                                         -       90 640          216       90 856    
Commodity derivatives                                          -          440            -          440    
Credit derivatives                                             -          879           14          893    
Equity derivatives                                             -        3 768           57        3 825    
Foreign exchange derivatives                                   -       28 193            -       28 193    
Interest rate derivatives                                      -       57 360          145       57 505    
Short positions                                            1 242            -            -        1 242    
Deposits due to customers                                    110       15 144        2 557       17 811    
Debt securities in issue                                     678        5 421          624        6 723    
Total financial liabilities                                2 030      127 830        3 404      133 264    
Non-financial assets                                                                                       
Commodity                                                  2 005            -            -        2 005    
Investment Properties                                          -            -          518          518    
Non-recurring fair value measurements                                                                      
Non-current assets held for sale(1)                            -            -          109          109    
Non-current liabilities held for sale(1)                       -            -            -            -    

Note
(1) Includes certain items classified in terms of the requirements of IFRS 5 which are measured in terms of their
respective standards.

14.5 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
Cash, cash balances and balances with central banks       Discounted cash flow models
Loans and advances to banks                               Discounted cash flow models
Trading and hedging portfolio assets and Liabilities
Debt Instruments                                          Discounted cash flow models
Derivatives
Commodity Derivatives                                     Discounted cash flow and/or option pricing, futures
                                                          pricing and/or exchange traded fund (ETF) models    
Credit Derivatives                                        Discounted cash flow and/or credit default swap models
Equity derivatives                                        Discounted cash flow, option pricing and/or futures 
                                                          pricing model
Foreign exchange derivatives                              Discounted cash flow and/or option pricing models
Interest rate derivatives                                 Discounted cash flow and/or option pricing models
Money market assets                                       Discounted cash flow models
Loans and advances to customers                           Discounted cash flow models
Investment securities                                     Listed equity: market bid price. Other items:
                                                          discounted cash flow models
Deposits from banks                                       Discounted cash flow models
Deposits due to customers                                 Discounted cash flow models
Debt securities in issue and other liabilities            Discounted cash flow models


Category of asset/liability                               Significant observable inputs
Cash, cash balances and balances with central banks       Underlying price of market traded instruments and/or 
                                                          interest rates                         
Loans and advances to banks                               Interest rate and/or money market curves
Trading and hedging portfolio assets and Liabilities
Debt Instruments                                          Underlying price of market traded instruments and 
                                                          interest rates                            
Derivatives
Commodity Derivatives                                     Spot price of physical or futures, interest rates 
                                                          and/or volatility                         
Credit Derivatives                                        Interest rate, recovery rate, credit spread and/or 
                                                          quanto ratio                             
Equity derivatives                                        Spot price, interest rate, volatility and/or dividend 
                                                          stream                                
Foreign exchange derivatives                              Spot price, interest rate and/or volatility
Interest rate derivatives                                 Interest rate curves, repurchase agreement curves, 
                                                           money market curves and/or volatility    
Money market assets                                       Money market rates and/or interest rates
Loans and advances to customers                           Interest rate curves and/or money market curves
Investment securities                                     Underlying price of the market traded instruments 
                                                          and/or interest rate curves                      
Deposits from banks                                       Interest rate curves and/or money market curves
Deposits due to customers                                 Interest rate curves and/or money market curves
Debt securities in issue and other liabilities            Underlying price of the market traded instrument 
                                                          and/or interest rate curves                

14.6 Reconciliation of Level 3 assets and liabilities
A reconciliation of the opening balances to closing balances for all movements on Level 3 assets and liabilities is
set out below:            

                                                                                         2016
                                                                          Trading 
                                                                      and hedging                   Loans and 
                                                                        portfolio        Other     advances to 
                                                                           assets       assets       customers  
                                                                               Rm           Rm              Rm    
Opening balance at the beginning of the reporting period                   1 415            17           7 511    
Net interest income                                                            -             -             297    
Gains and losses from banking and trading activities                         116             -               -    
Gains and losses from investment activities                                    -             -               -    
Purchases                                                                  1 308             -               -    
Sales                                                                     (1 334)          (17)         (1 956)   
Movement in other comprehensive income                                         -             -               -    
Issues                                                                         -             -               -    
Settlements                                                                    -             -               -    
Transferred to/(from) assets                                                   -             -               -    
Movement in/(out) of Level 3                                                   -             -            (962)   
Closing balance at the end of the reporting period                         1 505             -           4 890    

                                                                           Loans 
                                                                    and advances       Investment 
                                                                        to banks       securities    
                                                                              Rm               Rm    
Opening balance at the beginning of the reporting period                   2 109            1 285    
Net interest income                                                            -               56    
Gains and losses from banking and trading activities                        (139)              16    
Gains and losses from investment activities                                    -                -    
Purchases                                                                     70                2    
Sales                                                                     (1 469)            (147)   
Movement in other comprehensive income                                         -                4    
Issues                                                                         -                -    
Settlements                                                                    -                -    
Transferred to/(from) assets                                                   -                -    
Movement in/(out) of Level 3                                                   -             (154)   
Closing balance at the end of the reporting period                           571            1 062    

                                                                                            Total 
                                                                      Investment        assets at 
                                                                      properties       fair value    
                                                                              Rm               Rm    
Opening balance at the beginning of the reporting period                     518           12 855    
Net interest income                                                           61              414    
Gains and losses from banking and trading activities                           -               (7)   
Gains and losses from investment activities                                    -                -    
Purchases                                                                      -            1 380    
Sales                                                                        (65)          (4 988)   
Movement in other comprehensive income                                         -                4    
Issues                                                                         -                -    
Settlements                                                                    -                -    
Transferred to/(from) assets                                                (292)            (292)   
Movement in/(out) of Level 3                                                   -           (1 116)   
Closing balance at the end of the reporting period                           222            8 250    

                                                                                    2015
                                                                          Trading 
                                                                      and hedging                   Loans and 
                                                                        portfolio        Other     advances to 
                                                                           assets       assets       customers  
                                                                               Rm           Rm              Rm    
Opening balance at the beginning of the reporting period                    1 151           17           4 731    
Net interest income                                                             -            -             488    
Gains and losses from banking and trading activities                          331            -               -    
Gains and losses from investment activities                                     -            -               -    
Purchases                                                                      16            -           5 108    
Sales                                                                         (83)           -          (2 816)   
Movement in other comprehensive income                                          -            -               -    
Issues                                                                          -            -               -    
Settlements                                                                     -            -               -    
Transferred to/(from) assets                                                    -            -               -    
Movement in/(out) of Level 3                                                    -            -               -    
Closing balance at the end of the reporting period                          1 415           17           7 511    

                                                                           Loans 
                                                                    and advances       Investment 
                                                                        to banks       securities    
                                                                              Rm               Rm      
Opening balance at the beginning of the reporting period                       -            2 316    
Net interest income                                                            -               78    
Gains and losses from banking and trading activities                           -                -    
Gains and losses from investment activities                                  (18)              14    
Purchases                                                                  2 127               14    
Sales                                                                          -           (1 172)   
Movement in other comprehensive income                                         -               35    
Issues                                                                         -                -    
Settlements                                                                    -                -    
Transferred to/(from) assets                                                   -                -    
Movement in/(out) of Level 3                                                   -                -    
Closing balance at the end of the reporting period                         2 109            1 285    

                                                                                            Total 
                                                                      Investment        assets at 
                                                                      properties       fair value
                                                                              Rm               Rm    
Opening balance at the beginning of the reporting period                     252            8 467    
Net interest income                                                            -              566    
Gains and losses from banking and trading activities                           -              331    
Gains and losses from investment activities                                    4                -    
Purchases                                                                    294            7 559    
Sales                                                                        (32)          (4 103)   
Movement in other comprehensive income                                         -               35    
Issues                                                                         -                -    
Settlements                                                                    -                -    
Transferred to/(from) assets                                                   -                -    
Movement in/(out) of Level 3                                                   -                -    
Closing balance at the end of the reporting period                           518           12 855    

14.6.1 Significant transfers between levels
During the 2016 and 2015 reporting periods, transfers between levels occurred because of changes in 
the observability of valuation inputs, in some instances owing to changes in the level of market activity.

Transfers have been reflected as if they had taken place at the beginning of the year.

                                                                                        Trading 
                                                                          2016      and hedging                                                          
                                                                      Deposits        portfolio 
                                                                    from banks      liabilities    
                                                                            Rm               Rm    
Opening balance at the beginning of the reporting period                     7              216    
Net interest income                                                          -                -    
Gains and losses from banking and trading activities                         -               91    
Gains and losses from investment activities                                  -                -    
Purchases                                                                    -                -    
Sales                                                                        -                -    
Movement in other comprehensive income                                       -                -    
Issues                                                                       -                -    
Settlements                                                                 (7)               -    
Transferred to/(from) assets/liabilities                                     -                -    
Movement in/(out) of Level 3                                                 -                -    
Closing balance at the end of the reporting period                           -              307    

                                                                                         Debt           Total 
                                                                   Deposits due    securities     liabilities  
                                                                   to customers      in issue   at fair value    
                                                                             Rm            Rm              Rm    
Opening balance at the beginning of the reporting period                   2 557          624           3 404    
Net interest income                                                            -            -               -    
Gains and losses from banking and trading activities                           -            -              91    
Gains and losses from investment activities                                  139           (9)            130    
Purchases                                                                      -            -               -    
Sales                                                                          -            -               -    
Movement in other comprehensive income                                         -            -               -    
Issues                                                                     1 953            -           1 953    
Settlements                                                               (3 510)         (11)         (3 528)   
Transferred to/(from) assets/liabilities                                       -            -               -    
Movement in/(out) of Level 3                                                   -            -               -    
Closing balance at the end of the reporting period                         1 139          604           2 050    

                                                                                        Trading 
                                                                          2015      and hedging                                                          
                                                                      Deposits        portfolio 
                                                                    from banks      liabilities    
                                                                            Rm               Rm    
Opening balance at the beginning of the reporting period                     -              320    
Net interest income                                                          -                -    
Gains and losses from banking and trading activities                         -              (21)   
Gains and losses from investment activities                                  -                -    
Purchases                                                                    -                -    
Sales                                                                        -                -    
Movement in other comprehensive income                                       -                -    
Issues                                                                       7                -    
Settlements                                                                  -              (83)   
Transferred to/(from) liabilities                                            -                -    
Movement in/(out) of Level 3                                                 -                -    
Closing balance at the end of the reporting period                           7              216    

                                                                                         Debt           Total 
                                                                   Deposits due    securities     liabilities  
                                                                   to customers      in issue   at fair value    
                                                                             Rm            Rm              Rm    
Opening balance at the beginning of the reporting period                  5 530            42           5 892    
Net interest income                                                           -             -               -    
Gains and losses from banking and trading activities                          -             -             (21)   
Gains and losses from investment activities                                 132           172             304    
Purchases                                                                     -             -               -    
Sales                                                                         -             -               -    
Movement in other comprehensive income                                        -             -               -    
Issues                                                                    3 112           410           3 529    
Settlements                                                              (3 265)            -          (3 348)   
Transferred to/(from) liabilities                                             -             -               -    
Movement in/(out) of Level 3                                             (2 952)            -          (2 952)   
Closing balance at the end of the reporting period                        2 557           624           3 404    

14.7 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:

                                                                                  2016                                                                                    
                                                                   Trading and     
                                                                       hedging      Loans and
                                                                     portfolio    advances to      Investment 
                                                                        assets      customers      securities    
                                                                            Rm             Rm              Rm    
Gains and losses from banking and trading activities                       (22)            39               9    

                                                                                         Non-
                                                                                      current 
                                                                                       assets           Total 
                                                                    Investment           held       assets at 
                                                                    properties       for sale      fair value    
                                                                            Rm             Rm              Rm    
Gains and losses from banking and trading activities                         -              -              26    

                                                                          2015                                                                                    
                                                                   Trading and     
                                                                       hedging      Loans and
                                                                     portfolio    advances to       Investment 
                                                                        assets      customers       securities    
                                                                            Rm              Rm              Rm  
Gains and losses from banking and trading activities                        96             (28)             48    

                                                                                         Non-
                                                                                      current 
                                                                                       assets           Total 
                                                                    Investment           held       assets at 
                                                                    properties       for sale      fair value    
                                                                            Rm             Rm              Rm   
Gains and losses from banking and trading activities                         -              -             116    

                                                                          2016
                                                                   Trading and     
                                                                       hedging                         Deposits
                                                                     portfolio            Other          due to 
                                                                   liabilities      liabilities       customers    
                                                                            Rm              Rm              Rm  
Gains and losses from banking and trading activities                      (104)              -               -    

                                                                                         Total 
                                                                          Debt     liabilities 
                                                                    securities         at fair 
                                                                      in issue           value    
                                                                            Rm              Rm    
Gains and losses from banking and trading activities                         -            (104)   

                                                                          2015                                                                             
                                                                   Trading and     
                                                                       hedging                         Deposits
                                                                     portfolio            Other          due to 
                                                                   liabilities      liabilities       customers    
                                                                            Rm               Rm              Rm 
Gains and losses from banking and trading activities                        79                -               -    

                                                                                         Total 
                                                                          Debt     liabilities 
                                                                    securities         at fair 
                                                                      in issue           value    
                                                                            Rm              Rm     
Gains and losses from banking and trading activities                         -              79    

14.8 Sensitivity analysis of valuations using unobservable inputs
As part of the Bank’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 most impact this
sensitivity analysis 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:

                                                 Positive/(negative) variance applied to parameters    
Significant unobservable parameter                                                                     
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 discounts      15/(15)%                                              
Funding spreads                                  100/(100) bps                                         

A significant parameter has been deemed to be one which may result in a charge to 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:

                                                                                                2016
                                                                                      Potential            Potential 
                                                                             effect recorded in      effect recorded 
                                                                                profit and loss   directly in equity
                                                                                    Favourable/          Favourable/    
                                           Significant unobservable              (Unfavourable)       (Unfavourable)    
                                           parameters                                       Rm                   Rm    
Deposits due to customers                  BAGL/Absa funding spread                        -/-                  -/-    
Investment securities                      Risk adjustment yield curves,          
                                           future earnings and                    
                                           marketability discount                         13/14               31/33    
Loans and advances to customers            Credit spreads                                 72/71                 -/-    
Other assets                               Volatility, credit spreads                       -/-                 -/-    
Trading and hedging portfolio assets       Volatility, credit spreads,            
                                           basis curves, yield curves,            
                                           repo curves, funding spreads                 175/175                 -/-    
Trading and hedging portfolio liabilities  Volatility, credit spreads,            
                                           basis curves, yield curves,            
                                           repo curves, funding spreads                   36/36                 -/-    
Other liabilities                          Volatility, credit spreads                       -/-                 -/-    
                                                                                        296/296                31/33    

                                                                                                2015
                                                                                      Potential            Potential 
                                                                             effect recorded in      effect recorded 
                                                                                profit and loss   directly in equity                                                                                                               
                                                                                    Favourable/          Favourable/    
                                           Significant unobservable              (Unfavourable)       (Unfavourable)    
                                           parameters                                       Rm                   Rm  
Deposits due to customers                  BAGL/Absa funding spread                         -/-                 -/-    
Investment securities                      Risk adjustment yield curves, 
                                           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                 -/-    

14.9 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/liability       Valuation techniques applied
Loans and advances to customers   Discounted cash flow 
                                  and/or dividend yield models
                                  
Investment securities             Discounted cash flow models, 
                                  third-party valuations, earnings 
                                  multiples and/or income
                                  capitalisation valuations    
Trading and hedging portfolio 
assets and liabilities                                                                                                 
Debt instruments                  Discounted cash flow models                                                                                        
Derivative assets                                                                                                                                    
Credit derivatives                Discounted cash flow and/ or 
                                  credit default swap (hazard rate) 
                                  models
Equity derivatives                Discounted cash flow, option 
                                  pricing and/or futures  
                                  pricing models
                                  
Foreign exchange derivatives      Discounted cash flow and/or 
                                  option pricing models

Interest rate derivatives         Discounted cash flow and/or 
                                  option pricing models

Deposits due to customers         Discounted cash flow models
Debt securities in issue          Discounted cash flow models
Investment Properties             Discounted cash flow models

                                           2016            2015    
Significant unobservable inputs        Range of estimates utilised 
                                       for the unobservable inputs
Credit spreads                        0.5% to 5%          0,96% to 3,99%    
Risk adjusted yield curves,        Discount rate          Discount rates
future earnings marketability            of 13%,          between 8% and
discounts and/or comparator           comparator        11,5%,comparator
multiples                              multiples               multiples 
                                         between                 between 
                                      5 and 10,5              5 and 10,5   

Credit spreads                    1.2% to 11.16%            0,9% to 3,5%    
Credit spreads, recovery 
rates and/or quanto ratio            0.0% to 40%          0.0% to 23,64%    
Volatility and/or dividend 
streams (greater than 3 years)  17,82% to 67,71%        17,82% to 67,71%    
African basis curves 
(greater than 1 year)           (16.6)% to 13.1%      (10.00%) to 10,50%    
Real yield curves (less than 
1 year), repurchase agreement 
curves (less than 1 year), 
funding spreads                   0.31% to 3.38%          0,58% to 2,15%    
Barclays Africa Group Limited’s 
funding spreads (greater than 
5 years)                        (0.27)% to 2.13%          1,52% to 2,15%    
Funding curves (greater 
than 5 years)                   (0.27)% to 2.13%        (0,20%) to 3,35%    
Estimates of periods in which 
rental units will be disposed      1 to 10 years            1 to 7 years
of                                      1% to 7%                0% to 6%    
Annual selling price escalations        1% to 7%               0% to 10%    
Annual rental escalations             25% to 50%              26% to 51%    
Expense ratios Vacancy rates            1% to 7%               1% to 18%    
Income capitalisation rates           10% to 11%               8% to 12%    
Risk adjusted discount rates                 14%              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.

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.

14.10 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:

                                                                       2016       2015    
                                                                         Rm         Rm    
Opening balance at the beginning of the reporting period               (105)       (52)   
New transactions                                                        (64)       (91)   
Amounts recognised in profit or loss during the reporting period         30         38    
Closing balance at the beginning of the reporting period               (139)      (105)   

14.11 Third-party credit enhancements
There were no significant liabilities measured at fair value and issued with inseparable third-party credit
enhancements during the current and previous reporting period.

15. Reporting changes overview
The following business portfolio changes have impacted the financial results for the comparative period ended 31
December 2015. None of the restatements have impacted the overall financial position or net earnings of the Bank.

* Statutory liquid assets allocations in loan portfolios that were moved from Wealth to RBB in previous reporting
  periods were reassessed and resulted in the restatement of interest expense and similar charges of R6m between 
  Wealth and RBB. 
* The Bank refined its transfer pricing and allocation of endowment methodologies, resulting in a restatement of Net
  interest income of R22m from Wealth to RBB.
* The Bank reassessed its cost allocation methodology, resulting in the restatements of operating expenses of R328m
  from CIB (R38m) and Head Office, Treasury and other operations (R290m) to RBB.
* Interest rates on internal cash balances were aligned to market-related rates, resulting in a restatement of Net 
  interest income of R41m from CIB to 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 a restatement of net interest expense of R7m and operating expenses of R311m.
* Africa Corporate Development (previously reported in CIB Private Equity) was moved from CIB to Head Office, Treasury
  and other operations to better align the management thereof. This resulted in a restatement of operating expenses of
  R4m between these segments. 
* Cheque income and the associated costs were moved from CIB to RBB to better align the ownership of the product and
  the management thereof. This resulted in a restatement between CIB and RBB of Fee and commission income of R36m as well
  as Operating expenses of R21m. 
* Integrated Processing Solutions was moved from RBB to Head office, Treasury and other operations to better align the
  ownership of the investment and the management thereof and resulted in a restatement of Investments in associates and
  joint ventures of R32m between these segments. 

Absa Bank Limited
Incorporated in the Republic of South Africa
Registration number: 1986/004794/06
Authorised financial services and registered credit provider (NCRCP7)
JSE share code: ABSP
ISIN: ZAE000079810

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 Financial Control
John Annandale
Telephone: +27 11 350 3496

Queries
Please direct investors relations queries to IR@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 Bank to absa@absa.co.za

Transfer secretary 
Computershare Investor Services (Pty) Ltd 
Telephone: +27 11 370 5000 
computershare.com/za/

Sponsors
Absa Bank Limited (Corporate and Investment Bank) 
Telephone: +27 11 895 6843 
equitysponsor@absacapital.com
 
Auditors            
Ernst & Young Inc. 
Telephone: +27 11 772 3000 
ey.com/ZA/en/Home

PricewaterhouseCoopers 
Telephone: +27 11 797 4000 
pwc.co.za

KPMG Inc.(1)
Telephone: +27 11 647 7111 kpmg.com/ZA/en/Home

Note
(1) KPMG Inc. will be replacing PricewaterhouseCoopers Inc. as auditors for the reporting period starting 
1 January 2017.
Date: 23/02/2017 07:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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