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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 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 30 September 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
September 2019 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 17 984 17 984
Ordinary shareholders' reserves3 150 295 150 295
Qualifying Common Equity Tier I non-controlling interest 5 928 5 928
Regulatory deductions against Common Equity Tier I capital (22 223) (25 571)
Common Equity Tier I capital 151 984 148 636
Unappropriated profit (9 657) (9 657)
Common Equity Tier 1 capital excl. unappropriated profit 142 327 138 979
Qualifying other equity instruments 7 666 7 666
Qualifying Tier I non-controlling interest 779 779
Tier I capital excl. unappropriated profit 150 772 147 424
Qualifying Tier II subordinated debt 22 026 22 026
General allowance for credit impairments 3 571 5 462
Tier II capital 25 597 27 488
Total regulatory capital excl. unappropriated profit 176 369 174 912
September 2019 (Rm)
Transitional1 Fully loaded2
Credit risk 89 035 89 035
Counterparty credit risk 4 204 4 204
Equity risk in the banking book 684 684
Market risk 8 409 8 409
Operational risk 19 263 19 263
Investments in financial entities 6 155 6 010
Total minimum regulatory capital requirement 4 127 750 127 605
September 2019
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.9 15.8
Tier I capital adequacy ratio (%) 13.6 13.3
Common Equity Tier I capital adequacy ratio (%) 12.8 12.6
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.8 16.7
Tier I capital adequacy ratio (%) 14.5 14.2
Common Equity Tier I capital adequacy ratio (%) 13.7 13.4
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 150 772 147 424
Tier I capital (incl. unappropriated profit) (Rm) 160 429 157 081
Total exposures (Rm) 1 969 019 1 965 651
Leverage ratio (excl. unappropriated profits, %) 7.7 7.5
Leverage ratio (incl. unappropriated profits, %) 8.1 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% 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 0.0311%).
The Standard Bank of South Africa Limited (SBSA) and its
subsidiaries’ capital adequacy and leverage ratio
September 2019 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 45 248 45 248
Ordinary shareholders' reserves3 51 022 51 022
Regulatory deductions against Common Equity Tier I capital (12 214) (13 600)
Common Equity Tier I capital 84 056 82 670
Unappropriated profit (6 826) (6 826)
Common Equity Tier 1 capital excl. unappropriated profit 77 230 75 844
Qualifying other equity instruments 5 467 5 467
Tier I capital excl. unappropriated profit 82 697 81 311
Qualifying Tier II subordinated debt 20 600 20 600
General allowance for credit impairments 1 482 2 785
Tier II capital 22 082 23 385
Total regulatory capital excl. unappropriated profit 104 779 104 696
September 2019 (Rm)
Transitional1 Fully loaded2
Credit risk 55 111 55 111
Counterparty credit risk 3 249 3 249
Equity risk in the banking book 342 342
Market risk 5 443 5 443
Operational risk 11 365 11 365
Investments in financial entities 1 563 1 563
Total minimum regulatory capital requirement 4 77 073 77 073
September 2019
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.7 15.6
Tier I capital adequacy ratio (%) 12.4 12.2
Common Equity Tier I capital adequacy ratio (%) 11.5 11.3
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.7 16.7
Tier I capital adequacy ratio (%) 13.4 13.2
Common Equity Tier I capital adequacy ratio (%) 12.6 12.4
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 82 697 81 311
Tier I capital (incl. unappropriated profit) (Rm) 89 523 88 137
Total exposures (Rm) 1 617 060 1 615 658
Leverage ratio (excl. unappropriated profits, %) 5.1 5.0
Leverage ratio (incl. unappropriated profits, %) 5.5 5.4
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.
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 0.0192%).
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
30 September 2019 30 September 2019
Rm Rm
Total HQLA 283 257 186 558
Net cash outflows 210 710 146 204
LCR (%) 134.4 127.6
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 92 days of daily observations over the quarter
ended 30 September 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 July 2019, 31 August 2019
and 30 September 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 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
30 September 2019 30 September 2019
Rm Rm
Available stable funding 1 163 167 826 285
Required stable funding 988 631 753 087
NSFR (%) 117.7 109.7
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
26 November 2019
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: 26-11-2019 08:00:00
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