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Investec (comprising Investec plc and Investec Limited) – Basel III disclosures at 30 June 2017
Investec Limited Investec plc
Incorporated in the Republic of South Africa Incorporated in England and Wales
Registration number 1925/002833/06 Registration number 3633621
JSE share code: INL LSE share code: INVP
NSX share code: IVD JSE share code: INP
BSE share code: INVESTEC ISIN: GB00B17BBQ50
ISIN: ZAE000081949
Investec (comprising Investec plc and Investec Limited) – Basel III disclosures at 30 June 2017
28 July 2017
Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. The group holds
capital in excess of regulatory requirements targeting a minimum common equity tier one capital ratio above
10% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc
and Investec Limited.
Investec Investec
plc*^ IBP*^ Limited*º IBL*º
As at 30 June 2017 GBP 'mn GBP 'mn R'mn R'mn
Common equity tier 1 capital 1,557 1,575 33,583 34,465
Additional tier 1 capital 24 - 2,911 767
Tier 1 capital 1,581 1,575 36,494 35,232
Tier 2 capital 468 531 12,402 15,407
Total regulatory capital 2,049 2,106 48,896 50,639
Risk-weighted assets per risk type:
Credit risk 9,959 9,725 249,934 246,032
Counterparty credit risk 541 549 5,484 5,548
Credit valuation adjustment risk 74 75 1,632 1,632
Equity risk 79 80 47,851 46,045
Market Risk 1,063 1,033 4,681 4,291
Operational risk 2,087 1,656 30,486 20,499
Total risk-weighted assets 13,803 13,118 340,068 324,047
Total minimum capital requirement 1,104 1,049 36,557 34,835
Capital ratios
Common equity tier 1 ratio 11.3% 12.0% 9.9% 10.6%
Tier 1 ratio 11.5% 12.0% 10.7% 10.9%
Total capital ratio 14.8% 16.1% 14.4% 15.6%
Leverage ratio disclosures
Investec Investec
plc*^ IBP*^ Limited* IBL*
As at 30 June 2017 GBP 'mn GBP 'mn R'mn R'mn
Tier 1 capital 1,581 1,575 36,494 35,232
Total exposure 20,242 20,053 471,559 445,879
Leverage ratio 7.8% 7.9% 7.7% 7.9%
* Where: IBP is Investec Bank plc consolidated and IBL is Investec Bank Limited consolidated. The information for Investec plc includes
the information for IBP. The information for Investec Limited includes the information for IBL.
^ The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent basis of calculation across
the jurisdictions in which the group operates. For Investec plc and IBP this does not include the deduction of foreseeable dividends
when calculating CET1 capital as required under the Capital Requirements Regulation and EBA technical standards and in line with
Investec’s normal basis of presentation includes unaudited profits for the current quarter.
º Investec Limited’s and IBL’s capital information includes unappropriated profits. If unappropriated profits are excluded from capital
information, all Investec Limited’s capital ratios would be 46bps lower and IBL’s capital ratios would be 20 bps lower.
Liquidity coverage ratio disclosure
The objective of the liquidity coverage ratio (LCR) is to promote the short-term resilience of the liquidity risk
profile of banks by ensuring that they have sufficient high quality liquid assets to survive a significant stress
scenario lasting 30 calendar days.
Investec Bank Limited (solo basis) and Investec Bank Limited Consolidated Group
The minimum LCR requirement in South Africa is 80% for 2017, increasing by 10% each year to 100% on 1
January 2019.
In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990),
banks are directed to comply with the relevant LCR disclosure requirements, as set out in Directive 6/2014
and Directive 11/2014. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord.
The following table sets out the LCR for Investec Bank Limited (solo basis) and Investec Bank Consolidated
Group as at 30 June 2017:
Investec Bank Limited Solo – Investec Bank Limited
Total weighted value Consolidated Group – Total
R’mn weighted value
High quality liquid assets (HQLA) 69,025 69,101
Net cash outflows 52,969 47,833
Actual LCR (%) 130.4% 127.4%
Required LCR (%) 80% 80%
The values in the table are calculated as the simple average of daily observations over the period 1 April 2017 to 30 June 2017 for
Investec Bank Limited (IBL) bank solo. 61 business day observations were used. Investec Bank Limited consolidated group values use
daily values for IBL bank solo, while those for other group entities use the average of April, May, June 2017 month-end values.
Investec plc, Investec Bank plc (solo basis)
On 1 October 2015 under European Commission Delegated Regulation 2015/61, the LCR became the
PRA’s primary regulatory reporting standard for liquidity. The LCR is a Pillar 1 metric to which the PRA apply
Pillar 2 add-ons. The LCR is being introduced on a phased basis, and the PRA has opted to impose higher
liquidity coverage requirements during the phased-in period than the minimum required by CRD IV. From 1
January 2017, UK banks are required to maintain a minimum of 90%, rising to 100% on 1 January 2018. The
published LCR excludes Pillar 2 add-ons.
For Investec plc and Investec Bank plc (solo basis), the LCR is calculated using our own interpretations of
the EU Delegated Act. The reported LCR may change over time with regulatory developments.
The LCR reported to the PRA at 30 June 2017 was 613% for Investec plc and 525% for Investec Bank plc
(solo basis).
Johannesburg and London
28 July 2017
Sponsor:
Investec Bank Limited
2
Date: 28/07/2017 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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