Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2020 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 SBKP ZAE000038881 (First preference shares) SBPP ZAE000056339 (Second preference shares) (“Standard Bank Group” or “the group”) Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2020. In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to banks, 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 March 2020 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 17 984 17 984 Ordinary shareholders' reserves3 160 809 160 809 Qualifying Common Equity Tier I non-controlling interest 7 577 7 577 Regulatory deductions against Common Equity Tier I capital (22 513) (24 207) Common Equity Tier I capital 163 857 162 163 Unappropriated profit (3 561) (3 561) Common Equity Tier 1 capital excl. unappropriated profit 160 296 158 602 Qualifying other equity instruments 6 536 6 536 Qualifying Tier I non-controlling interest 917 917 Tier I capital excl. unappropriated profit 167 749 166 055 Qualifying Tier II subordinated debt 22 460 22 460 General allowance for credit impairments 5 897 6 843 Tier II capital 28 357 29 303 Total regulatory capital excl. unappropriated profit 196 106 195 358 March 2020 (Rm) Transitional1 Fully loaded2 Credit risk 101 029 101 029 Counterparty credit risk 6 267 6 267 Equity risk in the banking book 962 962 Market risk 11 051 11 051 Operational risk 20 477 20 477 Investments in financial entities 6 744 6 697 Total minimum regulatory capital requirement 4 146 530 146 483 March 2020 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.4 15.3 Tier I capital adequacy ratio (%) 13.2 13.0 Common Equity Tier I capital adequacy ratio (%) 12.6 12.5 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.7 15.6 Tier I capital adequacy ratio (%) 13.4 13.3 Common Equity Tier I capital adequacy ratio (%) 12.9 12.7 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 167 749 166 055 Tier I capital (incl. unappropriated profit) (Rm) 171 310 169 616 Total exposures (Rm) 2 206 213 2 204 471 Leverage ratio (excl. unappropriated profits, %) 7.6 7.5 Leverage ratio (incl. unappropriated profits, %) 7.8 7.7 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 11.5% and excludes any bank-specific capital requirements. In response to the COVID-19 crisis the Prudential Authority has reduced Pillar 2A buffer requirements with effect from 6 April 2020. This will reduce the minimum capital requirement to 10.5% from that date (approximately R12.7 billion reduction in total minimum regulatory capital requirements based on March 2020 results). There is currently no requirement for the countercyclical buffer add-on in South Africa or in other jurisdictions in which the group has significant exposures. The Standard Bank of South Africa Limited (SBSA) and its subsidiaries’ capital adequacy and leverage ratio March 2020 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 45 248 45 248 3 Ordinary shareholders' reserves 54 121 54 121 Regulatory deductions against Common Equity Tier I capital (12 661) (13 354) Common Equity Tier I capital 86 708 86 015 Unappropriated profit (7 389) (7 389) Common Equity Tier 1 capital excl. unappropriated profit 79 319 78 626 Qualifying other equity instruments 5 437 5 437 Tier I capital excl. unappropriated profit 84 756 84 063 Qualifying Tier II subordinated debt 20 122 20 122 General allowance for credit impairments 2 289 2 940 Tier II capital 22 411 23 062 Total regulatory capital excl. unappropriated profit 107 167 107 125 March 2020 (Rm) Transitional1 Fully loaded2 Credit risk 59 522 59 522 Counterparty credit risk 4 434 4 434 Equity risk in the banking book 431 431 Market risk 6 531 6 531 Operational risk 11 500 11 500 Investments in financial entities 1 581 1 581 Total minimum regulatory capital requirement 4 83 999 83 999 March 2019 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 14.7 14.7 Tier I capital adequacy ratio (%) 11.6 11.5 Common Equity Tier I capital adequacy ratio (%) 10.9 10.8 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.7 15.7 Tier I capital adequacy ratio (%) 12.6 12.5 Common Equity Tier I capital adequacy ratio (%) 11.9 11.8 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 84 756 84 063 Tier I capital (incl. unappropriated profit) (Rm) 92 145 91 452 Total exposures (Rm) 1 723 936 1 723 195 Leverage ratio (excl. unappropriated profits, %) 4.9 4.9 Leverage ratio (incl. unappropriated profits, %) 5.3 5.3 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 11.5% and excludes any bank-specific capital requirements. In response to the COVID-19 crisis the Prudential Authority has reduced Pillar 2A buffer requirements with effect from 6 April 2020. This will reduce the minimum capital requirement to 10.5% from that date (approximately R7.3 billion reduction in total minimum regulatory capital requirements based on March 2020 results). There is currently no requirement for the countercyclical buffer add-on in South Africa or in other jurisdictions in which the SBSA has significant exposures. 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) on both a Standard Bank Group consolidated as well as SBSA Solo entity level. 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. Standard Bank Group Consolidated SBSA Solo 31 March 2020 31 March 2020 Rm Rm Total HQLA 300 508 201 712 Net cash outflows 211 787 161 290 LCR (%) 141.9 125.1 Minimum requirement (%) 100.0 100.0 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 holdings in excess of the minimum requirement of 100% have been excluded from the aggregated HQLA figure in the case of all Africa Regions entities. 2. The above figures reflect the simple average of 91 days of daily observations over the quarter ended 31 March 2020 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 as at 31 January 2020, 29 February 2020 and 31 March 2020. The figures are based on the regulatory submissions to the South African Reserve Bank. 3. The SBSA Solo disclosure excludes foreign branches. Net Stable Funding Ratio In terms of the Basel III requirements in Directive 8/2017 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 net stable funding ratio (NSFR) on both a Standard Bank Group consolidated as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord. The objective of the Basel III Net stable funding ratio (NSFR) is to promote funding stability and resilience in the banking sector by requiring banks to maintain a stable funding profile in relation to the composition of assets and off-balance sheet activities. . Standard Bank Group Consolidated SBSA Solo 31 March 2020 31 March 2020 Rm Rm Available stable funding 1 259 294 851 175 Required stable funding 1 072 503 810 756 NSFR (%) 117.4 105.0 Minimum requirement (%) 100.0 100.0 The information contained in this announcement has not been reviewed and reported on by the group's external auditors. Johannesburg 25 May 2020 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor JP Morgan Equities South Africa Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 25-05-2020 02:00:00 Produced by the JSE SENS Department. 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