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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 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 30 September 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
September 2020 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 18 015 18 015
Ordinary shareholders' reserves3 162 350 162 350
Qualifying Common Equity Tier I non-controlling interest 7 929 7 929
Regulatory deductions against Common Equity Tier I capital (20 569) (22 258)
Common Equity Tier I capital 167 725 166 036
Unappropriated profit (8 373) (8 373)
Common Equity Tier 1 capital excl. unappropriated profit 159 352 157 663
Qualifying other equity instruments 8 056 8 056
Qualifying Tier I non-controlling interest 1 160 1 160
Tier I capital excl. unappropriated profit 168 568 166 879
Qualifying Tier II subordinated debt 24 655 24 655
General allowance for credit impairments 5 116 6 062
Tier II capital 29 771 30 717
Total regulatory capital excl. unappropriated profit 198 339 197 596
September 2020 (Rm)
Transitional1 Fully loaded2
Credit risk 107 843 107 843
Counterparty credit risk 5 992 5 992
Equity risk in the banking book 901 901
Market risk 10 264 10 264
Operational risk 20 891 20 891
Investments in financial entities 6 966 6 921
Total minimum regulatory capital requirement 4 152 857 152 812
September 2020
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.6 15.5
Tier I capital adequacy ratio (%) 13.2 13.1
Common Equity Tier I capital adequacy ratio (%) 12.5 12.4
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.2 16.2
Tier I capital adequacy ratio (%) 13.9 13.8
Common Equity Tier I capital adequacy ratio (%) 13.2 13.0
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 168 568 166 879
Tier I capital (incl. unappropriated profit) (Rm) 176 941 175 252
Total exposures (Rm) 2 264 244 2 262 482
Leverage ratio (excl. unappropriated profits, %) 7.4 7.4
Leverage ratio (incl. unappropriated profits, %) 7.8 7.7
Note:
1 Represents IFRS 9 transition impact as allowed by the South African Reserve Bank (SARB).
2 Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact).
3 Including unappropriated profits.
4 Measured at 12.0% and excludes any confidential bank-specific capital requirements. Pillar 2A buffer requirements temporarily
removed in response to the Covid-19 pandemic. 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
September 2020 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 49 313 49 313
Ordinary shareholders' reserves3 48 947 48 947
Regulatory deductions against Common Equity Tier I capital (11 606) (12 298)
Common Equity Tier I capital 86 654 85 962
Unappropriated profit (2 404) (2 404)
Common Equity Tier 1 capital excl. unappropriated profit 84 250 83 558
Qualifying other equity instruments 6 957 6 957
Tier I capital excl. unappropriated profit 91 207 90 515
Qualifying Tier II subordinated debt 22 422 22 422
General allowance for credit impairments 2 409 3 061
Tier II capital 24 831 25 483
Total regulatory capital excl. unappropriated profit 116 038 115 998
September 2020 (Rm)
Transitional1 Fully loaded2
Credit risk 65 535 65 535
Counterparty credit risk 4 410 4 410
Equity risk in the banking book 467 467
Market risk 6 050 6 050
Operational risk 12 428 12 428
Investments in financial entities 1 732 1 732
Total minimum regulatory capital requirement 4 90 622 90 622
September 2020 (Rm)
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 16.0 16.0
Tier I capital adequacy ratio (%) 12.6 12.5
Common Equity Tier I capital adequacy ratio (%) 11.6 11.5
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.3 16.3
Tier I capital adequacy ratio (%) 12.9 12.8
Common Equity Tier I capital adequacy ratio (%) 12.0 11.9
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 91 207 90 515
Tier I capital (incl. unappropriated profit) (Rm) 93 611 92 919
Total exposures (Rm) 1 744 725 1 744 031
Leverage ratio (excl. unappropriated profits, %) 5.2 5.2
Leverage ratio (incl. unappropriated profits, %) 5.4 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 12.5% and excludes any confidential bank-specific capital requirements. Pillar 2A buffer requirements temporarily
removed in response to the Covid-19 pandemic. 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.
Liquidity Coverage Ratio (LCR)
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.
In light of the effects of Covid-19 on the South African market, the SARB has amended the
minimum requirements relating to the liquidity coverage ratio (LCR) from 100% to 80%
(effective 1 April 2020) to provide temporary liquidity relief to banks, in line with the intention
of the Basel III LCR framework, and to promote continued provision of credit by banks. No
temporary relief has been applied to the net stable funding ratio (NSFR).
Standard Bank Group
Consolidated SBSA Solo
30 September 2020 30 September 2020
Rm Rm
Total HQLA 343 507 230 410
Net cash outflows 234 733 182 317
LCR (%) 146.3 126.4
Minimum requirement (%) 80.0 80.0
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 80% 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 92 days of daily observations over the quarter
ended 30 September 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 July 2020, 31 August
2020 and 30 September 2020. The figures are based on the regulatory submissions to the SARB.
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
30 September 2020 30 September 2020
Rm Rm
Available stable funding 1 330 483 896 389
Required stable funding 1 069 378 795 488
NSFR (%) 124.4 112.7
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
30 November 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: 30-11-2020 08:05:00
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