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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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