INVESTEC LIMITED - Investec Limited Basel III disclosures at 30 June 2018

Release Date: 31/07/2018 16:30
Code(s): INL INP
 
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Investec Limited – Basel III disclosures at 30 June 2018

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

As part of the dual listed company structure, Investec plc and Investec Limited notify both the London Stock
Exchange and the JSE Limited of matters which are required to be disclosed under the Disclosure Guidance,
Transparency Rules (DTR) and Listing Rules of the United Kingdom Listing Authority (the “UKLA”) and/or the
JSE Listing Requirements.

Accordingly, we advise of the following:

Investec Limited – Basel III disclosures at 30 June 2018

Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. Investec Limited
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%.

                                               Investec Limited*º             IBL*º
As at 30 June 2018                                         R'mn               R'mn


Common equity tier 1 capital                              34,959            34,452

Additional tier 1 capital                                  2,797               963

Tier 1 capital                                            37,756            35,415

Tier 2 capital                                            12,892            14,231

Total regulatory capital                                  50,648            49,646

Risk-weighted assets per risk type:
Credit risk                                              274,079           269,738
Counterparty credit risk                                   5,486             5,535
Credit valuation adjustment risk                           1,859             1,883
Equity risk                                               26,293            23,422
Market Risk                                                3,549             2,694
Operational risk                                          31,578            21,779
Total risk-weighted assets                               342,844           325,051

Total minimum capital requirement                         38,141            36,162

Capital ratios
Common equity tier 1 ratio                                 10.2%             10.6%
Tier 1 ratio                                               11.0%             10.9%
Total capital adequacy ratio                               14.8%             15.3%


Leverage ratio disclosures
                                               Investec Limited*              IBL*
As at 30 June 2018                                         R'mn               R'mn
Tier 1 capital                                            37,756            35,415
Total exposure                                           498,957           472,789
Leverage ratio                                             7.6%              7.5%
* Where: IBL is Investec Bank Limited consolidated. The information for Investec Limited includes the information for IBL.

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 65bps lower and IBL’s capital ratios would be 47bps lower.

Liquidity disclosures

Liquidity coverage ratio (LCR)
The objective of the 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.

The minimum LCR requirement in South Africa is 90% for 2018, increasing by 10% each year to 100% on 1
January 2019. This applies to both Investec Bank Limited (IBL) (solo basis) and Investec Bank Limited (IBL)
consolidated group.

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. This disclosure is in
accordance with Pillar 3 of the Basel III liquidity accord, as specified by BCBS d400 (2017) and Directive
D1/2018.

The following table sets out the LCR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:

                                                    IBL (solo basis) – Total                   IBL consolidated group – Total
                                                    weighted value                             weighted value
High quality liquid assets (HQLA) (R’mn)                                            83,858                                          84,969

Net cash outflows (R’mn)                                                            61,676                                          62,573

Actual LCR                                                                         136.2%                                          136.1%

Required LCR                                                                           90%                                                90%


The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2018 to 30 June 2018 for
IBL (solo basis). IBL consolidated group values use daily values for IBL (solo basis), while those for other group entities use the average
of April, May, June 2018 month-end values.

Net stable funding ratio (NSFR)
The objective of the NSFR is to promote the resilience in the banking sector by requiring banks to maintain a
stable funding profile in relation to the composition of their assets and off-balance sheet activities on an
ongoing structural basis. By ensuring that banks do not embark on excessive maturity transformation that is
not sustainable, the NSFR is intended to reduce the likelihood that disruptions to a bank's funding sources
would erode its liquidity position, increasing its risk of failure and potentially lead to broader systemic risk.

The minimum NSFR requirement in South Africa is 100%. This applies to both IBL (solo basis) and IBL
consolidated group.

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 NSFR disclosure requirements. This disclosure is in
accordance with Pillar 3 of the Basel III liquidity accord, as specified by Directive 11/2015 and Directive
01/2018.

The following table sets out the NSFR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:

                                                    IBL (solo basis)                           IBL consolidated group

Actual NSFR                                                                        107.9%                                          108.6%

Required NSFR                                                                        100%                                            100%
Further disclosures with respect to Investec Limited’s and Investec Bank Limited’s capital and liquidity is
provided on the Investec website as required by the relevant regulations.

Johannesburg
31 July 2018
Sponsor: Investec Bank Limited

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