Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2018 Standard Bank Group Limited (Incorporated in the Republic of South Africa) Registration No. 1969/017128/06 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 31 March 2018 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 2018 (Rm) Qualifying capital Transitional(1) Fully loaded(2) Ordinary share capital and premium 18 248 18 248 Ordinary shareholders' reserves(3) 128 935 128 935 Qualifying Common Equity Tier I non-controlling interest 5 334 5 334 Regulatory deductions against Common Equity Tier I capital (23 446) (28 469) Common Equity Tier I capital 129 071 124 048 Unappropriated profit (9 178) (9 178) Common Equity Tier 1 capital excl. unappropriated profit 119 893 114 870 Qualifying other equity instruments 5 742 5 742 Qualifying Tier I non-controlling interest 576 576 Tier I capital excl. unappropriated profit 126 211 121 188 Qualifying Tier II subordinated debt 16 418 16 418 General allowance for credit impairments 2 326 4 762 Tier II capital 18 744 21 180 Total regulatory capital excl. unappropriated profit 144 955 142 368 March 2018 (Rm) Minimum capital requirement Transitional(1) Fully loaded(2) Credit risk 72 377 72 377 Counterparty credit risk 3 015 3 015 Equity risk in the banking book 742 742 Market risk 7 186 7 186 Operational risk 17 256 17 256 Investments in financial entities 4 795 4 668 Total minimum regulatory capital requirement(4) 105 371 105 244 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.3 15.0 Tier I capital adequacy ratio (%) 13.3 12.8 Common Equity Tier I capital adequacy ratio (%) 12.7 12.1 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 16.4 16.0 Tier I capital adequacy ratio (%) 14.3 13.8 Common Equity Tier I capital adequacy ratio (%) 13.6 13.1 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 126 211 121 188 Tier I capital (incl. unappropriated profit) (Rm) 135 389 130 366 Total exposures (Rm) 1 690 832 1 685 809 Leverage ratio (excl. unappropriated profits, %) 7.5 7.2 Leverage ratio (incl. unappropriated profits, %) 8.0 7.7 Note: 1 Represents International Financial Reporting Standards (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 11.13% 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 other jurisdictions in which the group operates, is insignificant (buffer requirement of 0.0002%). The Standard Bank of South Africa Limited (SBSA) and its subsidiaries capital adequacy and leverage ratio March 2018 (Rm) Qualifying capital Transitional(1) Fully loaded(2) Ordinary share capital and premium 43 698 43 698 Ordinary shareholders' reserves(3) 47 056 47 056 Regulatory deductions against Common Equity Tier I capital (13 181) (15 259) Common Equity Tier I capital 77 573 75 495 Unappropriated profit (5 837) (5 837) Common Equity Tier 1 capital excl. unappropriated profit 71 736 69 658 Qualifying other equity instruments 3 544 3 544 Tier I capital excl. unappropriated profit 75 280 73 202 Qualifying Tier II subordinated debt 15 470 15 470 General allowance for credit impairments 832 2 786 Tier II capital 16 302 18 256 Total regulatory capital excl. unappropriated profit 91 582 91 458 March 2018 (Rm) Minimum capital requirement Transitional(1) Fully loaded(2) Credit risk 48 842 48 842 Counterparty credit risk 2 766 2 766 Equity risk in the banking book 445 445 Market risk 4 919 4 919 Operational risk 10 371 10 371 Investments in financial entities 1 022 1 022 Total minimum regulatory capital requirement(4) 68 365 68 365 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 14.9 14.9 Tier I capital adequacy ratio (%) 12.3 11.9 Common Equity Tier I capital adequacy ratio (%) 11.7 11.3 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.9 15.8 Tier I capital adequacy ratio (%) 13.2 12.9 Common Equity Tier I capital adequacy ratio (%) 12.6 12.3 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 75 280 73 202 Tier I capital (incl. unappropriated profit) (Rm) 81 117 79 039 Total exposures (Rm) 1 409 358 1 407 280 Leverage ratio (excl. unappropriated profits, %) 5.3 5.2 Leverage ratio (incl. unappropriated profits, %) 5.8 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 11.13% 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 other jurisdictions in which the group operates, is insignificant (buffer requirement of 0.0002%). 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 SBSA Solo entity 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 2018 is 90% and will increase by a further 10% on 1 January 2019 to reach the full 100% requirement. Standard Bank Group Consolidated SBSA Solo 31 March 2018 31 March 2018 Rm Rm Total high quality liquid assets 247 835 172 089 Net cash outflows 195 600 158 982 LCR (%) 126.7 108.2 Minimum requirement (%) 90.0 90.0 Note: 1. Only banking and/or deposit taking entities are included. The group data represent consolidation of the relevant individual net cash outflows and the individual HQLA portfolios, where surplus HQLA holding in excess of the minimum requirement of 90% 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 previous quarter ended 31 March 2018 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 2018, 28 February 2018 and 31 March 2018. The figures are based on the regulatory submissions 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 23 May 2018 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 23/05/2018 03:42:00 Produced by the JSE SENS Department. 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