Announcement Standard Bank Group Limited Registration No. 1969/017128/06 Incorporated in the Republic of South Africa JSE share code: SBK ISIN: ZAE000109815 NSX share code: SNB NSX share code: SNB ZAE000109815 (“Standard Bank Group” or “the group”) ANNOUNCEMENT In terms of the requirements under Regulation 43(1)(e) of the regulations relating to banks and Directive 4/2014 issued in terms of section 6(6) of the Banks Act (Act No. 94 of 1990), minimum disclosure on the capital adequacy of the group and its leverage ratio is required on a quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III accord. Capital adequacy and leverage The capital adequacy and leverage ratios for the group and The Standard Bank of South Africa Limited are set out below. Standard Bank Group Capital adequacy Mar 2017 Rm Ordinary share capital and premium 18 099 Ordinary shareholders' reserves 1 130 572 Qualifying common equity tier I non-controlling interest 4 750 Regulatory deductions against common equity tier I capital (34 126) Common equity tier I capital 119 295 Unappropriated Profit (7 222) Common equity tier 1 capital excluding unappropriated profit 112 073 Additional Tier 1 instruments 4 491 Qualifying tier I non-controlling interest 673 Tier I capital excluding unappropriated profit 117 237 Tier II subordinated debt instruments 16 291 General allowances for credit impairments 2 197 Total qualifying capital excluding unappropriated profit 135 725 Minimum total regulatory capital requirement ² 95 895 Capital adequacy ratios (excl. unappropriated profit) Total capital adequacy ratio (%) 15.2 Tier I capital adequacy ratio (%) 13.1 Common equity tier I capital adequacy ratio (%) 12.6 Capital adequacy ratios (incl. unappropriated profit) Total capital adequacy ratio (%) 16.0 Tier I capital adequacy ratio (%) 14.0 Common equity tier I capital adequacy ratio (%) 13.4 1 Including unappropriated profits. ² Measured at 10.75% in line with transitional requirements and excludes any bank-specific capital requirements. There is currently no requirement for a countercyclical buffer add-on in South Africa. The impact on the group's countercyclical buffer requirement from other jurisdictions that the group operates in is insignificant (buffer requirement of 0.0001%). Leverage ratio Mar 2017 Dec 2016 Sept 2016 Jun 2016 Tier I capital (excl. unappropriated profit, Rm) 117 237 118 020 111 701 116 464 Tier I capital (incl. unappropriated profit, Rm) 124 459 126 188 119 257 123 775 Total exposures (Rm) 1 822 110 1 821 551 1 798 857 1 817 388 Leverage ratio (excl. unappropriated profits, %) 6.4 6.5 6.2 6.4 Leverage ratio (incl. unappropriated profits, %) 6.8 6.9 6.6 6.8 The Standard Bank of South Africa Limited and its subsidiaries Capital adequacy Mar 2017 Rm Ordinary share capital and premium 41 198 Ordinary shareholders' reserves 1 50 476 Regulatory deductions against common equity tier I capital (19 529) Common equity tier I capital 72 145 Unappropriated Profit (4 470) Common equity tier 1 capital excluding unappropriated profit 67 675 Additional Tier 1 instruments 1 744 Tier I capital excluding unappropriated profit 69 419 Tier II subordinated debt instruments 18 355 General allowances for credit impairments 313 Regulatory deductions – investment in Tier II instruments of other banks (2 852) Total qualifying capital excluding unappropriated profit 85 235 Minimum total regulatory capital requirement ² 60 834 Capital adequacy ratios (excl. unappropriated profit) Total capital adequacy ratio (%) 15.1 Tier I capital adequacy ratio (%) 12.3 Common equity tier I capital adequacy ratio (%) 12.0 Capital adequacy ratios (incl. unappropriated profit) Total capital adequacy ratio (%) 15.9 Tier I capital adequacy ratio (%) 13.1 Common equity tier I capital adequacy ratio (%) 12.7 1 Including unappropriated profits. ² Measured at 10.75% in line with transitional requirements and excludes any bank-specific capital requirements. There is currently no requirement for the countercyclical buffer add-on in South Africa. The impact on The Standard Bank of South Africa Limited’s countercyclical buffer requirement from other jurisdictions that have announced a countercyclical buffer requirement is insignificant (buffer requirement of 0.0002%). Leverage ratio Mar 2017 Dec 2016 Sept 2016 Jun 2016 Tier I capital (excl. unappropriated profit, Rm) 69 419 68 097 67 965 68 387 Tier I capital (incl. unappropriated profit, Rm) 73 889 76 866 72 578 72 905 Total exposures (Rm) 1 369 622 1 379 147 1 360 038 1 369 638 Leverage ratio (excl. unappropriated profits, %) 5.1 4.9 5.0 5.0 Leverage ratio (incl. unappropriated profits, %) 5.4 5.6 5.3 5.3 Liquidity coverage ratio In terms of the Basel III requirements in Directive 11/2014 issued in terms of section 6(6) of the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum disclosure on the liquidity coverage ratio (LCR) of the group and the bank on a quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord. The LCR is designed to promote short-term resilience of the 30 calendar day liquidity profile, by ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential outflows in a stressed environment. The minimum regulatory requirement for 2017 is 80% and will increase by 10% each year to 100% on 1 January 2019. The Standard Bank of Standard Bank Group South Africa Limited Solo Mar 2017 Mar 2017 Total high quality liquid assets (Rm) 197 736 142 717 Net cash outflows (Rm) 168 634 154 634 LCR (%) 117.3 92.3 Minimum requirement (%) 80.0 80.0 Notes: 1 Only banking and/or deposit taking entities are included and the group data represent an aggregation of the relevant individual net cash outflows and the individual HQLA portfolios, where surplus HQLA holding in excess of the minimum requirement of 80% have been excluded from the aggregated HQLA number in the case of all Africa Regions entities. ² The above figures for Standard Bank Group reflect the simple average of 90 days of daily observations over the previous quarter ended 31 March 2017 for The Standard Bank of South Africa Limited including The Standard Bank of South Africa Isle of Man branch, Stanbic Bank Ghana, Stanbic Bank Uganda, Standard Bank Isle of Man Limited and Standard Bank Jersey Limited. The remaining Africa Regions banking entities results are based on the month-end values at 31 January 2017, 28 February 2017 and 31 March 2017. The figures are based on the regulatory submission to the South Africa Reserve Bank. The information contained in this announcement has not been reviewed and reported on by the group's external auditors. Johannesburg 26 May 2017 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 26/05/2017 10:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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