Wrap Text
Investec Limited – Basel III disclosures at 30 June 2020
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 2020
Capital disclosures
The disclosures below are made with respect to Basel III quarterly disclosure requirements. Investec Limited
holds capital in excess of regulatory requirements. Effective 1 April 2019, Investec Limited and Investec Bank
Limited adopted the Foundation Internal Ratings Based (FIRB) approach for calculating regulatory capital. As
such the below capital disclosures have been prepared on this basis.
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2020 R'mn R'mn
Common equity tier 1 capital 40,007 41,257
Additional tier 1 capital 1,870 652
Tier 1 capital 41,877 41,909
Tier 2 capital 10,825 12,682
Total regulatory capital 52,702 54,591
Risk-weighted assets per risk type:
Credit risk 261,108 261,741
Counterparty credit risk 8,745 8,699
Credit valuation adjustment risk 2,827 2,821
Equity risk 29,864 14,519
Market Risk 6,530 6,150
Operational risk 27,777 22,162
Total risk-weighted assets 336,851 316,092
Total minimum capital requirement 35,369 33,190
Capital ratios
Common equity tier 1 ratio 11.9% 13.1%
Tier 1 ratio 12.4% 13.3%
Total capital adequacy ratio 15.6% 17.3%
Leverage ratio disclosures
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2020 R'mn R'mn
Tier 1 capital 41,877 41,909
Total exposure 590,570 562,460
Leverage ratio 7.1% 7.5%
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2020 R'mn R'mn
Common equity tier 1 capital 38,016 39,889
Additional tier 1 capital 1,882 612
Tier 1 capital 39,898 40,501
Tier 2 capital 10,960 12,597
Total regulatory capital 50,858 53,098
Risk-weighted assets per risk type:
Credit risk 260,244 261,327
Counterparty credit risk 8,745 8,699
Credit valuation adjustment risk 2,827 2,821
Equity risk 29,598 14,519
Market Risk 6,530 6,150
Operational risk 27,777 22,162
Total risk-weighted assets 335,721 315,678
Total minimum capital requirement 35,251 33,146
Capital ratios
Common equity tier 1 ratio 11.3% 12.6%
Tier 1 ratio 11.9% 12.8%
Total capital adequacy ratio 15.1% 16.8%
Leverage ratio disclosures
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2020 R'mn R'mn
Tier 1 capital 39,898 40,501
Total exposure 590,163 562,296
Leverage ratio 6.8% 7.2%
* Where: IBL is Investec Bank Limited consolidated. The information for Investec Limited includes the information for IBL.
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.
With effect from 1 April 2020, the minimum LCR requirement in South Africa was reduced from 100% to 80%,
until such time as the South African Prudential Authority (PA) is of the view that the financial markets have
normalised post COVID-19. This applies for 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 for the quarter ending 30
June 2020:
IBL (solo basis) – Total IBL consolidated group – Total
weighted value weighted value
High quality liquid assets (HQLA) (R’mn) 82,946 84,633
Net cash outflows (R’mn) 62,198 59,928
Actual LCR 134.4% 142.6%
Required LCR 80%^ 80%^
^ - temporarily reduced from 100% by the PA
The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2020 to 30 June 2020 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 and June 2020 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 2020:
IBL (solo basis) IBL consolidated group
Actual NSFR 117.4% 118.5%
Required NSFR 100% 100%
Further disclosures with respect to Investec Limited’s and Investec Bank Limited’s capital and liquidity will be
provided on the Investec website in due course as required by the relevant regulations.
31 July 2020
Sponsor: Investec Bank Limited
Date: 31-07-2020 10:00:00
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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
