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Investec Limited – Basel III disclosures at 30 June 2018
Investec Limited Investec plc
Incorporated in the Republic of South Africa Incorporated in England and Wales
Registration number 1925/002833/06 Registration number 3633621
JSE share code: INL LSE share code: INVP
NSX share code: IVD JSE share code: INP
BSE share code: INVESTEC ISIN: GB00B17BBQ50
ISIN: ZAE000081949
As part of the dual listed company structure, Investec plc and Investec Limited notify both the London Stock
Exchange and the JSE Limited of matters which are required to be disclosed under the Disclosure Guidance,
Transparency Rules (DTR) and Listing Rules of the United Kingdom Listing Authority (the “UKLA”) and/or the
JSE Listing Requirements.
Accordingly, we advise of the following:
Investec Limited – Basel III disclosures at 30 June 2018
Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. Investec Limited
holds capital in excess of regulatory requirements targeting a minimum common equity tier one capital ratio
above 10% and a total capital adequacy ratio range of 14% to 17%.
Investec Limited*º IBL*º
As at 30 June 2018 R'mn R'mn
Common equity tier 1 capital 34,959 34,452
Additional tier 1 capital 2,797 963
Tier 1 capital 37,756 35,415
Tier 2 capital 12,892 14,231
Total regulatory capital 50,648 49,646
Risk-weighted assets per risk type:
Credit risk 274,079 269,738
Counterparty credit risk 5,486 5,535
Credit valuation adjustment risk 1,859 1,883
Equity risk 26,293 23,422
Market Risk 3,549 2,694
Operational risk 31,578 21,779
Total risk-weighted assets 342,844 325,051
Total minimum capital requirement 38,141 36,162
Capital ratios
Common equity tier 1 ratio 10.2% 10.6%
Tier 1 ratio 11.0% 10.9%
Total capital adequacy ratio 14.8% 15.3%
Leverage ratio disclosures
Investec Limited* IBL*
As at 30 June 2018 R'mn R'mn
Tier 1 capital 37,756 35,415
Total exposure 498,957 472,789
Leverage ratio 7.6% 7.5%
* Where: IBL is Investec Bank Limited consolidated. The information for Investec Limited includes the information for IBL.
º Investec Limited’s and IBL’s capital information includes unappropriated profits. If unappropriated profits are excluded from capital
information, all Investec Limited’s capital ratios would be 65bps lower and IBL’s capital ratios would be 47bps lower.
Liquidity disclosures
Liquidity coverage ratio (LCR)
The objective of the LCR is to promote the short-term resilience of the liquidity risk profile of banks by
ensuring that they have sufficient high quality liquid assets to survive a significant stress scenario lasting 30
calendar days.
The minimum LCR requirement in South Africa is 90% for 2018, increasing by 10% each year to 100% on 1
January 2019. This applies to both Investec Bank Limited (IBL) (solo basis) and Investec Bank Limited (IBL)
consolidated group.
In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990),
banks are directed to comply with the relevant LCR disclosure requirements. This disclosure is in
accordance with Pillar 3 of the Basel III liquidity accord, as specified by BCBS d400 (2017) and Directive
D1/2018.
The following table sets out the LCR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:
IBL (solo basis) – Total IBL consolidated group – Total
weighted value weighted value
High quality liquid assets (HQLA) (R’mn) 83,858 84,969
Net cash outflows (R’mn) 61,676 62,573
Actual LCR 136.2% 136.1%
Required LCR 90% 90%
The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2018 to 30 June 2018 for
IBL (solo basis). IBL consolidated group values use daily values for IBL (solo basis), while those for other group entities use the average
of April, May, June 2018 month-end values.
Net stable funding ratio (NSFR)
The objective of the NSFR is to promote the resilience in the banking sector by requiring banks to maintain a
stable funding profile in relation to the composition of their assets and off-balance sheet activities on an
ongoing structural basis. By ensuring that banks do not embark on excessive maturity transformation that is
not sustainable, the NSFR is intended to reduce the likelihood that disruptions to a bank's funding sources
would erode its liquidity position, increasing its risk of failure and potentially lead to broader systemic risk.
The minimum NSFR requirement in South Africa is 100%. This applies to both IBL (solo basis) and IBL
consolidated group.
In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990),
banks are directed to comply with the relevant NSFR disclosure requirements. This disclosure is in
accordance with Pillar 3 of the Basel III liquidity accord, as specified by Directive 11/2015 and Directive
01/2018.
The following table sets out the NSFR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:
IBL (solo basis) IBL consolidated group
Actual NSFR 107.9% 108.6%
Required NSFR 100% 100%
Further disclosures with respect to Investec Limited’s and Investec Bank Limited’s capital and liquidity is
provided on the Investec website as required by the relevant regulations.
Johannesburg
31 July 2018
Sponsor: Investec Bank Limited
Date: 31/07/2018 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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