Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2018 Standard Bank Group Limited (Incorporated in the Republic of South Africa) Registration No. 1969/017128/06 JSE and A2X share code: SBK NSX share code: SNB ISIN: ZAE000109815 (“Standard Bank Group” or “the group”) Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2018 In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to banks and Directive 4/2014, Directive 11/2015 and Directive 1/2018 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. Standard Bank Group capital adequacy and leverage ratio September 2018 (Rm) Transitional(1) Fully loaded(2) Ordinary share capital and premium 17 790 17 790 Ordinary shareholders' reserves(3) 137 350 137 350 Qualifying Common Equity Tier I non-controlling interest 5 335 5 335 Regulatory deductions against Common Equity Tier I capital (26 805) (31 073) Common Equity Tier I capital 133 670 129 402 Unappropriated profit (10 578) (10 578) Common Equity Tier 1 capital excl. unappropriated profit 123 092 118 824 Qualifying other equity instruments 5 742 5 742 Qualifying Tier I non-controlling interest 387 387 Tier I capital excl. unappropriated profit 129 221 124 953 Qualifying Tier II subordinated debt 14 954 14 954 General allowance for credit impairments 2 545 5 383 Tier II capital 17 499 20 337 Total regulatory capital excl. unappropriated profit 146 720 145 290 September 2018 (Rm) Transitional(1) Fully loaded(2) Credit risk 79 402 79 402 Counterparty credit risk 2 856 2 856 Equity risk in the banking book 702 702 Market risk 6 892 6 892 Operational risk 17 802 17 802 Investments in financial entities 5 142 4 963 Total minimum regulatory capital requirement(4) 112 796 112 617 September 2018 (Rm) Transitional(1) Fully loaded(2) Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 14.5 14.4 Tier I capital adequacy ratio (%) 12.8 12.4 Common Equity Tier I capital adequacy ratio (%) 12.2 11.8 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.6 15.4 Tier I capital adequacy ratio (%) 13.8 13.4 Common Equity Tier I capital adequacy ratio (%) 13.2 12.8 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 129 221 124 953 Tier I capital (incl. unappropriated profit) (Rm) 139 799 135 531 Total exposures (Rm) 1 803 261 1 799 148 Leverage ratio (excl. unappropriated profits, %) 7.2 6.9 Leverage ratio (incl. unappropriated profits, %) 7.8 7.5 Note: (1) Represents IFRS 9 transition impact as allowed by the SARB. (2) Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact). (3) Including unappropriated profits. (4) Measured at 11.14% in line with Basel III 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 group’s countercyclical buffer requirement from other jurisdictions in which the group operates is insignificant (buffer requirement of 0.0136%). The Standard Bank of South Africa Limited (SBSA) and its subsidiaries capital adequacy and leverage ratio September 2018 (Rm) Transitional(1) Fully loaded(2) Ordinary share capital and premium 44 448 44 448 Ordinary shareholders' reserves(3) 48 719 48 719 Regulatory deductions against Common Equity Tier I capital (12 996) (15 075) Common Equity Tier I capital 80 171 78 092 Unappropriated profit (7 515) (7 515) Common Equity Tier 1 capital excl. unappropriated profit 72 656 70 577 Qualifying other equity instruments 3 544 3 544 Tier I capital excl. unappropriated profit 76 200 74 121 Qualifying Tier II subordinated debt 13 451 13 451 General allowance for credit impairments 675 2 629 Tier II capital 14 126 16 080 Total regulatory capital excl. unappropriated profit 90 326 90 201 September 2018 (Rm) Transitional(1) Fully loaded(2) Credit risk 50 084 50 084 Counterparty credit risk 2 424 2 424 Equity risk in the banking book 369 369 Market risk 4 378 4 378 Operational risk 10 665 10 665 Investments in financial entities 1 412 1 412 Total minimum regulatory capital requirement(4) 69 332 69 332 September 2018 (Rm) Transitional(1) Fully loaded(2) Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 14.5 14.5 Tier I capital adequacy ratio (%) 12.2 11.9 Common Equity Tier I capital adequacy ratio (%) 11.7 11.3 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.7 15.7 Tier I capital adequacy ratio (%) 13.4 13.1 Common Equity Tier I capital adequacy ratio (%) 12.9 12.5 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 76 200 74 121 Tier I capital (incl. unappropriated profit) (Rm) 83 715 81 636 Total exposures (Rm) 1 442 615 1 440 537 Leverage ratio (excl. unappropriated profits, %) 5.3 5.1 Leverage ratio (incl. unappropriated profits, %) 5.8 5.7 Note: (1) Represents IFRS 9 transition impact as allowed by the SARB. (2) Represents fully loaded ECL accounting results (full IFRS 9 impact). (3) Including unappropriated profits. (4) Measured at 11.14% in line with Basel III 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 group’s countercyclical buffer requirement from other jurisdictions in which the group operates is insignificant (buffer requirement of 0.0081%). Liquidity coverage ratio disclosure 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 SBSA Solo entity 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 2018 is 90% and will increase by a further 10% on 1 January 2019 to reach the full 100% requirement. Standard Bank Group Consolidated SBSA Solo 30 September 2018 30 September 2018 Rm Rm Total HQLA 267 148 171 934 Net cash outflows 212 966 157 473 LCR (%) 125.4 109.2 Minimum requirement (%) 90.0 90.0 Note: 1. Only banking and/or deposit taking entities are included. The group data represents a consolidation of the relevant individual net cash outflows and the individual HQLA portfolios, where surplus HQLA holding in excess of the minimum requirement of 90% have been excluded from the aggregated HQLA number in the case of all Africa Regions entities. 2. The above figures reflect the simple average of 92 days of daily observations over the previous quarter ended 30 September 2018 for SBSA including SBSA Isle of Man branch, Stanbic Bank Ghana, Stanbic Bank Uganda, Stanbic IBTC Bank Nigeria, Standard Bank Namibia, Standard Bank Isle of Man Limited and Standard Bank Jersey Limited. The remaining Africa Regions banking entities results are based on the average of the month-end data points at 31 July 2018, 31 August 2018 and 30 September 2018. The figures are based on the regulatory submissions to the South African Reserve Bank. The information contained in this announcement has not been reviewed and reported on by the group's external auditors. Johannesburg 27 November 2018 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor J P Morgan Equities South Africa Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 27/11/2018 08:00:00 Produced by the JSE SENS Department. 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