Wrap Text
Investec Limited – Basel III disclosures at 30 June 2022
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
JSE Hybrid code: INPR JSE share code: INP
JSE debt code: INLV ISIN: GB00B17BBQ50
NSX share code: IVD LEI: 2138007Z3U5GWDN3MY22
BSE share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
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 2022
Capital disclosures
Investec Limited calculates capital resources and requirements at a group level using the Basel III framework,
as implemented in South Africa by the South African Prudential Authority, in accordance with the Bank’s Act
and all related regulations. Investec Limited continues to hold capital in excess of regulatory requirements and
board-approved minimum targets.
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2022 R'mn R'mn
Common equity tier 1 capital 44,765 44,672
Additional tier 1 capital 3,065 2,560
Tier 1 capital 47,830 47,232
Tier 2 capital 6,575 5,395
Total regulatory capital 54,405 52,627
Risk-weighted assets per risk type:
Credit risk 245,952 229,492
Counterparty credit risk 7,161 7,721
Credit valuation adjustment risk 2,731 3,048
Equity risk 16,492 12,072
Market Risk 4,473 3,617
Operational risk 28,774 23,845
Total risk-weighted assets 305,583 279,795
Total minimum capital requirement 36,670 33,575
Capital ratios
Common equity tier 1 ratio 14.6% 16.0%
Tier 1 ratio 15.7% 16.9%
Total capital adequacy ratio 17.8% 18.8%
Leverage ratio disclosures
Including unappropriated profits
Investec Limited* IBL*
As at 30 June 2022 R'mn R'mn
Tier 1 capital 47,830 47,232
Total exposure 634,297 594,783
Leverage ratio 7.5% 7.9%
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2022 R'mn R'mn
Common equity tier 1 capital 43,206 44,133
Additional tier 1 capital 3,066 2,560
Tier 1 capital 46,272 46,693
Tier 2 capital 6,581 5,395
Total regulatory capital 52,853 52,088
Risk-weighted assets per risk type:
Credit risk 245,598 229,492
Counterparty credit risk 7,161 7,721
Credit valuation adjustment risk 2,731 3,048
Equity risk 16,492 12,072
Market Risk 4,473 3,617
Operational risk 28,774 23,845
Total risk-weighted assets 305,229 279,795
Total minimum capital requirement 36,627 33,575
Capital ratios
Common equity tier 1 ratio 14.2% 15.8%
Tier 1 ratio 15.2% 16.7%
Total capital adequacy ratio 17.3% 18.6%
Leverage ratio disclosures
Excluding unappropriated profits
Investec Limited* IBL*
As at 30 June 2022 R'mn R'mn
Tier 1 capital 46,272 46,693
Total exposure 634,156 594,783
Leverage ratio 7.3% 7.9%
* 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%.
As the PA is now of the view that this relief measure is no longer necessary, the minimum LCR requirement
has been revised back to 100% from 1 April 2022. 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 2022:
IBL (solo basis) – Total IBL consolidated group – Total
weighted value weighted value
High quality liquid assets (HQLA) (R’mn) 107,488 112,410
Net cash outflows (R’mn) 74,320 76,249
Actual LCR 145.2% 148.1%
Required LCR 100% 100%
The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2022 to 30 June 2022 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 2022 month-end values.
Net stable funding ratio (NSFR)
The objective of the NSFR is to promote the resilience of 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, increase 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 2022:
IBL (solo basis) IBL consolidated group
Actual NSFR 113.9% 114.1%
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.
29 July 2022
Sponsor: Investec Bank Limited
Date: 29-07-2022 01:00:00
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.