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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2017
Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
(“Standard Bank Group” or “the group”)
Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30
September 2017.
In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to
banks and Directive 4/2014 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
2017
Rm
Ordinary share capital and premium 17 872
Ordinary shareholders' reserves1 136 999
Qualifying Common Equity Tier I non-controlling interest 5 046
Regulatory deductions against Common Equity Tier I capital (33 843)
Common Equity Tier I capital 126 074
Unappropriated profit 9 783
Common Equity Tier 1 capital excl. unappropriated profit 116 291
Qualifying other equity instruments 6 292
Qualifying Tier I non-controlling interest 523
Tier I capital excl. unappropriated profit 123 106
Qualifying Tier II subordinated debt 15 561
General allowance for credit impairments 2 406
Tier II capital 17 967
Total regulatory capital excl. unappropriated profit 141 073
Total minimum regulatory capital requirement2 101 029
Credit Risk 69 527
Counterparty credit risk 2 011
Equity Risk in the banking book 1 506
Market Risk 6 868
Operational Risk 16 730
Investments in financial entities 4 387
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.0
Tier I capital adequacy ratio (%) 13.1
Common Equity Tier I capital adequacy ratio (%) 12.4
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.1
Tier I capital adequacy ratio (%) 14.1
Common Equity Tier I capital adequacy ratio (%) 13.4
Leverage ratio
Tier I capital (excl. unappropriated profit) 123 106
Tier I capital (incl. unappropriated profit) 132 889
Total exposures 1 721 359
Leverage ratio (excl. unappropriated profits, %) 7.2
Leverage ratio (incl. unappropriated profits, %) 7.7
Note:
1
Including unappropriated profits.
2
Measured at 10.75% in line with 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 its
exposure to jurisdictions that have announced a countercyclical buffer
requirement is insignificant.
The Standard Bank of South Africa Limited (“SBSA”) and its subsidiaries capital
adequacy and leverage ratio
September
2017
Rm
Common Equity Tier I capital1 71 308
Tier I capital1 74 852
Tier II capital 15 749
Total qualifying capital1 90 601
Unappropriated profit 6 893
Total minimum regulatory capital requirement2 63 262
Credit Risk 44 921
Counterparty credit risk 1 783
Equity Risk in the banking book 1 282
Market Risk 4 538
Operational Risk 9 807
Investments in financial entities 931
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.4
Tier I capital adequacy ratio (%) 12.7
Common Equity tier I capital adequacy ratio (%) 12.1
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.6
Tier I capital adequacy ratio (%) 13.9
Common Equity Tier I capital adequacy ratio (%) 13.3
Leverage ratio
Tier I capital (excl. unappropriated profit) 74 852
Tier I capital (incl. unappropriated profit) 81 745
Total exposures 1 410 112
Leverage ratio (excl. unappropriated profits, %) 5.3
Leverage ratio (incl. unappropriated profits, %) 5.8
Note:
1
Excluding unappropriated profits.
2
Measured at 10.75% in line with 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 SBSA’s countercyclical buffer requirement from its exposure
to jurisdictions that have announced a countercyclical buffer requirement is insignificant.
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 the bank 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 1 month 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 2017 is 80%
and will increase by 10% each year to 100% on 1 January 2019.
Standard Bank
Group Consolidated SBSA Solo
30 September 2017 30 September 2017
Rm Rm
Total high quality liquid assets 227 011 149 644
Net cash outflows 174 646 160 934
LCR (%) 130.0 93.0
Minimum requirement (%) 80.0 80.0
Note:
1. Only banking and/or deposit taking entities are included and the group data represents an
aggregation of the relevant individual net cash outflows and the individual HQLA portfolios,
where surplus HQLA holding in excess of the minimum requirement of 80% 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 2017 for SBSA including SBSA Isle of Man branch,
Stanbic Bank Ghana, Stanbic Bank Uganda, 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 values at 31 July 2017, 31 August 2017 and 30
September 2017. The figures are based on the regulatory submission 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
28 November 2017
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
Deutsche Securities (SA) Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 28/11/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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