Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2019 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 (“Standard Bank Group” or “the group”) Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 30 September 2019. 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 September 2019 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 17 984 17 984 Ordinary shareholders' reserves3 150 295 150 295 Qualifying Common Equity Tier I non-controlling interest 5 928 5 928 Regulatory deductions against Common Equity Tier I capital (22 223) (25 571) Common Equity Tier I capital 151 984 148 636 Unappropriated profit (9 657) (9 657) Common Equity Tier 1 capital excl. unappropriated profit 142 327 138 979 Qualifying other equity instruments 7 666 7 666 Qualifying Tier I non-controlling interest 779 779 Tier I capital excl. unappropriated profit 150 772 147 424 Qualifying Tier II subordinated debt 22 026 22 026 General allowance for credit impairments 3 571 5 462 Tier II capital 25 597 27 488 Total regulatory capital excl. unappropriated profit 176 369 174 912 September 2019 (Rm) Transitional1 Fully loaded2 Credit risk 89 035 89 035 Counterparty credit risk 4 204 4 204 Equity risk in the banking book 684 684 Market risk 8 409 8 409 Operational risk 19 263 19 263 Investments in financial entities 6 155 6 010 Total minimum regulatory capital requirement 4 127 750 127 605 September 2019 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.9 15.8 Tier I capital adequacy ratio (%) 13.6 13.3 Common Equity Tier I capital adequacy ratio (%) 12.8 12.6 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 16.8 16.7 Tier I capital adequacy ratio (%) 14.5 14.2 Common Equity Tier I capital adequacy ratio (%) 13.7 13.4 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 150 772 147 424 Tier I capital (incl. unappropriated profit) (Rm) 160 429 157 081 Total exposures (Rm) 1 969 019 1 965 651 Leverage ratio (excl. unappropriated profits, %) 7.7 7.5 Leverage ratio (incl. unappropriated profits, %) 8.1 8.0 Note: 1 Represents IFRS 9 transition impact as allowed by the SARB. 2 Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact). 3 Including unappropriated profits. 4 Measured at 11.5% 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 0.0311%). The Standard Bank of South Africa Limited (SBSA) and its subsidiaries’ capital adequacy and leverage ratio September 2019 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 45 248 45 248 Ordinary shareholders' reserves3 51 022 51 022 Regulatory deductions against Common Equity Tier I capital (12 214) (13 600) Common Equity Tier I capital 84 056 82 670 Unappropriated profit (6 826) (6 826) Common Equity Tier 1 capital excl. unappropriated profit 77 230 75 844 Qualifying other equity instruments 5 467 5 467 Tier I capital excl. unappropriated profit 82 697 81 311 Qualifying Tier II subordinated debt 20 600 20 600 General allowance for credit impairments 1 482 2 785 Tier II capital 22 082 23 385 Total regulatory capital excl. unappropriated profit 104 779 104 696 September 2019 (Rm) Transitional1 Fully loaded2 Credit risk 55 111 55 111 Counterparty credit risk 3 249 3 249 Equity risk in the banking book 342 342 Market risk 5 443 5 443 Operational risk 11 365 11 365 Investments in financial entities 1 563 1 563 Total minimum regulatory capital requirement 4 77 073 77 073 September 2019 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.7 15.6 Tier I capital adequacy ratio (%) 12.4 12.2 Common Equity Tier I capital adequacy ratio (%) 11.5 11.3 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 16.7 16.7 Tier I capital adequacy ratio (%) 13.4 13.2 Common Equity Tier I capital adequacy ratio (%) 12.6 12.4 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 82 697 81 311 Tier I capital (incl. unappropriated profit) (Rm) 89 523 88 137 Total exposures (Rm) 1 617 060 1 615 658 Leverage ratio (excl. unappropriated profits, %) 5.1 5.0 Leverage ratio (incl. unappropriated profits, %) 5.5 5.4 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 11.5% 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 0.0192%). Liquidity Coverage Ratio 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. Standard Bank Group Consolidated SBSA Solo 30 September 2019 30 September 2019 Rm Rm Total HQLA 283 257 186 558 Net cash outflows 210 710 146 204 LCR (%) 134.4 127.6 Minimum requirement (%) 100.0 100.0 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 holding in excess of the minimum requirement of 100% 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 quarter ended 30 September 2019 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 July 2019, 31 August 2019 and 30 September 2019. The figures are based on the regulatory submissions to the South African Reserve Bank. 3. 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 2019 30 September 2019 Rm Rm Available stable funding 1 163 167 826 285 Required stable funding 988 631 753 087 NSFR (%) 117.7 109.7 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 26 November 2019 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: 26-11-2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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