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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2019
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 31 March 2019.
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
March 2019 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 17 860 17 860
Ordinary shareholders' reserves3 145 680 145 680
Qualifying Common Equity Tier I non-controlling interest 5 909 5 909
Regulatory deductions against Common Equity Tier I capital (26 267) (29 651)
Common Equity Tier I capital 143 182 139 798
Unappropriated profit (9 552) (9 552)
Common Equity Tier 1 capital excl. unappropriated profit 133 630 130 246
Qualifying other equity instruments 7 660 7 660
Qualifying Tier I non-controlling interest 1 223 1 223
Tier I capital excl. unappropriated profit 142 513 139 129
Qualifying Tier II subordinated debt 16 648 16 648
General allowance for credit impairments 3 324 5 215
Tier II capital 19 972 21 863
Total regulatory capital excl. unappropriated profit 162 485 160 992
March 2019 (Rm)
Transitional1 Fully loaded2
Credit risk 85 612 85 612
Counterparty credit risk 3 085 3 085
Equity risk in the banking book 584 584
Market risk 8 828 8 828
Operational risk 19 106 19 106
Investments in financial entities 5 796 5 657
Total minimum regulatory capital requirement 4 123 011 122 872
March 2019
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.2 15.2
Tier I capital adequacy ratio (%) 13.4 13.0
Common Equity Tier I capital adequacy ratio (%) 12.5 12.2
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.1 16.0
Tier I capital adequacy ratio (%) 14.2 13.9
Common Equity Tier I capital adequacy ratio (%) 13.4 13.1
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 142 513 139 129
Tier I capital (incl. unappropriated profit) (Rm) 152 065 148 681
Total exposures (Rm) 1 862 636 1 859 324
Leverage ratio (excl. unappropriated profits, %) 7.7 7.5
Leverage ratio (incl. unappropriated profits, %) 8.2 8.0
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% 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 0.0207%).
The Standard Bank of South Africa (SBSA) and its subsidiaries
capital adequacy and leverage ratio
March 2019 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 45 248 45 248
3
Ordinary shareholders' reserves 48 965 48 965
Regulatory deductions against Common Equity Tier I capital (12 951) (14 336)
Common Equity Tier I capital 81 262 79 877
Unappropriated profit (4 923) (4 923)
Common Equity Tier 1 capital excl. unappropriated profit 76 339 74 954
Qualifying other equity instruments 5 462 5 462
Tier I capital excl. unappropriated profit 81 801 80 416
Qualifying Tier II subordinated debt 15 365 15 365
General allowance for credit impairments 1 378 2 681
Tier II capital 16 743 18 046
Total regulatory capital excl. unappropriated profit 98 544 98 462
March 2019 (Rm)
Transitional1 Fully loaded2
Credit risk 54 471 54 471
Counterparty credit risk 2 755 2 755
Equity risk in the banking book 185 185
Market risk 5 606 5 606
Operational risk 11 241 11 241
Investments in financial entities 1 526 1 526
Total minimum regulatory capital requirement 4 75 784 75 784
March 2019
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.0 15.0
Tier I capital adequacy ratio (%) 12.4 12.2
Common Equity Tier I capital adequacy ratio (%) 11.6 11.4
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.7 15.7
Tier I capital adequacy ratio (%) 13.2 13.0
Common Equity Tier I capital adequacy ratio (%) 12.4 12.1
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 81 801 80 416
Tier I capital (incl. unappropriated profit) (Rm) 86 724 85 339
Total exposures (Rm) 1 519 572 1 518 187
Leverage ratio (excl. unappropriated profits, %) 5.4 5.3
Leverage ratio (incl. unappropriated profits, %) 5.7 5.6
Note:
1 Represents IFRS 9 transition impact as allowed by the SARB.
2 Represents fully loaded ECL accounting results (full IFRS 9 impact).
3 Excluding unappropriated profits.
4 Measured at 11.5% 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 0.0164%).
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 SBG 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.
The Standard Bank of
Standard Bank Group South Africa Limited
Consolidated (“SBSA”) Solo
31 March 2019 31 March 2019
Rm Rm
Total HQLA 272 306 178 465
Net cash outflows 219 933 136 790
LCR (%) 123.8 130.5
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 holding in excess of the minimum requirement of 100% 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 90 days of daily observations over the quarter
ended 31 March 2019 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 January 2019, 28 February
2019 and 31 March 2019. The figures are based on the regulatory submissions to the South
African Reserve Bank.
3. 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 SBG 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 2019 31 March 2019
Rm Rm
Available stable funding 1 097 352 784 622
Required stable funding 944 637 739 388
NSFR (%) 116.2 106.1
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
28 May 2019
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: 28/05/2019 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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