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INVESTEC LIMITED - Investec Limited Basel III disclosures at 31 December 2018

Release Date: 31/01/2019 13:30
Code(s): INL INP     PDF:  
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Investec Limited – Basel III disclosures at 31 December 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 31 December 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*              IBL*º
As at 31 December 2018                                     R'mn               R'mn


Common equity tier 1 capital                             35,874             36,808

Additional tier 1 capital                                 2,794              963

Tier 1 capital                                           38,668             37,771

Tier 2 capital                                           13,023             14,533

Total regulatory capital                                 51,691             52,304

Risk-weighted assets per risk type:
Credit risk                                             284,383            280,279
Counterparty credit risk                                  5,891              6,028
Credit valuation adjustment risk                          2,528              2,600
Equity risk                                              24,957             18,192
Market Risk                                               4,614              3,746
Operational risk                                         32,305             22,211
Total risk-weighted assets                              354,678            333,056

Total minimum capital requirement                        39,507             37,100

Capital ratios
Common equity tier 1 ratio                                  10.1%            11.1%
Tier 1 ratio                                                10.9%            11.3%
Total capital adequacy ratio                                14.6%            15.7%


Leverage ratio disclosures
                                               Investec Limited*              IBL*
As at 31 December 2018                                      R'mn              R'mn
Tier 1 capital                                           38,668             37,771
Total exposure                                          528,427            500,204
Leverage ratio                                            7.3%               7.6%

                                                        
* Where: IBL is Investec Bank Limited consolidated. The information for Investec Limited includes the information for IBL.

º IBL’s capital information includes unappropriated profits. If unappropriated profits are excluded from capital information, all IBL’s capital
ratios would be 23bps 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 was 90% for 2018, increasing to 100% from 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 31 December
2018:

                                                     IBL (solo basis) – Total                    IBL consolidated group – Total
                                                     weighted value                              weighted value
High quality liquid assets (HQLA) (R’mn)                        80,356                                          81,386

Net cash outflows (R’mn)                                        57,883                                          54,969

Actual LCR                                                       139.2%                                         148.6%

Required LCR (from 1 January 2019)                                100%                                            100%


The values in the table are calculated as the simple average of 92 calendar daily values over the period 1 October 2018 to 31
December 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 October, November and December 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 31 December
2018:

                                                     IBL (solo basis)                            IBL consolidated group

Actual NSFR                                                 110.9%                                          112.3%

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 January 2019
Sponsor: Investec Bank Limited




                                                       

Date: 31/01/2019 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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