ABSA GROUP LTD (Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06) (Registration number: 1986/004794/06)
ISIN: ZAE000174124 ISIN: ZAE000079810
JSE share code: BGA JSE share code: ABSP
(Barclays Africa Group) (Absa Bank)
BARCLAYS AFRICA GROUP LIMITED - BASEL III PILLAR 3 DISCLOSURE AS AT 30 SEPTEMBER 2017The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks Act) read together with South African Reserve Bank Directive 11 of 2015 (D11/2015) and Directive 11 of 2014 (D11/2014), as well as the Basel Committee on Banking Supervision's Revised Pillar 3 disclosure requirements issued on 28 January 2015.
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Capital Adequacy Barclays Africa Group Limited
Barclays Africa Group Limited remains capitalised above the minimum regulatory capital requirements and above board approved target capital ranges.
The Group continues to optimise the level and composition of capital resources. In line with this objective the Group will continue to raise Basel III compliant capital instruments, in the domestic and/or international capital markets.
The table below represents the capital position for Barclays Africa Group Limited at 30 September 2017 and comparatives at 30 June 2017.
30 Sep 2017 (1)
30 Jun 2017 (1)
IFRS (2)
IFRS (2)
Regulatory Capital Position (excluding
unappropriated profits)
Rm
%
Rm
%
Common Equity Tier 1 capital
94 489
12.9
93 560
12.9
Ordinary share capital
1 694
0.2
1 694
0.2
Ordinary share premium
12 898
1.8
12 868
1.8
Reserves (3)
85 067
11.6
83 681
11.5
Non-controlling interest
2 048
0.3
1 831
0.3
Deductions
(7 218)
(1.0)
(6 514)
(0.9)
Additional Tier 1 capital
4 247
0.6
2 665
0.4
Tier 1 capital
98 736
13.5
96 225
13.3
Tier 2 capital
16 412
2.2
14 659
2.0
Total Capital
115 148
15.7
110 884
15.3
Statutory Capital Position (including unappropriated profits)
IFRS (2)
Normalised (4)
IFRS (2)
Normalised (4)
%
%
%
%
Common Equity Tier 1 capital
13.6
12.0
13.7
12.1
Tier 1 capital
14.2
12.7
14.0
12.4
Total capital
16.4
15.0
16.1
14.5
Absa Bank Limited (5)Board Approved Target Ranges (including unappropriated profits)
30 Sep 2017
30 Jun 2017
Common Equity Tier 1 capital
10.0% - 11.5%
10.0% - 11.5%
Tier 1 capital
11.5% - 13.0%
11.5% - 13.0%
Total capital
14.0% - 15.5%
14.0% - 15.5%
Absa Bank Limited remains capitalised above the minimum regulatory capital requirements and above board approved target capital ranges.
The table below represents the capital position for Absa Bank Limited at 30 September 2017 and comparatives at 30 June 2017.
30 Sep 2017 (1) 30 Jun 2017 (1) Regulatory Capital Position (excluding IFRS (2) IFRS (2)
Rm % Rm %unappropriated profits)
Common Equity Tier 1 capital
69 049
13.1
69 320
13.2
Ordinary share capital
304
0.1
304
0.1
Ordinary share premium
36 880
7.0
36 880
7.0
Reserves (3)
37 686
7.1
37 068
7.0
Deductions
(5 821)
(1.1)
(4 932)
(0.9)
Additional Tier 1 capital
3 811
0.7
2 293
0.4
Tier 1 capital
72 860
13.8
71 613
13.6
Tier 2 capital
16 838
3.2
15 154
2.9
Total Capital
89 698
17.0
86 767
16.5
Statutory Capital Position (including unappropriated profits) IFRS (2) Normalised (4) IFRS (2) Normalised (4)Common Equity Tier 1 capital
%
13.6
%
11.4
%
14.1
%
11.9
Tier 1 capital
14.3
12.2
14.5
12.3
Total capital
17.5
15.3
17.4
15.2
Board Approved Target Ranges (including unappropriated profits)
30 Sep 2017
30 Jun 2017
Common Equity Tier 1 capital
10.0% - 11.5%
10.0% - 11.5%
Tier 1 capital
11.0% - 12.5%
11.0% -12.5%
Total capital
13.5% - 15.0%
13.5% - 15.0%
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Overview of Risk Weighted Assets (RWAs) [OV1]
Barclays Africa Group Limiteda
b
c
30 Sep 2017 (1)
30 Jun 2017 (1)
30 Sep 2017 (1)
RWA
RWA
Minimum capital
requirements (6)
Rm
Rm
Rm
534 497
515 946
42 760
152 922
146 408
12 234
381 575
369 538
30 526
31 448
32 156
2 516
31 448
32 156
2 516
-
-
-
9 521
9 223
761
-
-
-
-
-
-
-
-
-
435
583
35
492
564
39
492
564
39
-
-
-
-
-
-
23 993
32 284
1 919
9 292
10 645
743
14 701
21 639
1 176
103 487
103 487
8 279
3 528
3 528
282
25 533
25 533
2 043
74 426
74 426
5 954
Credit risk (excluding counterparty credit risk)
Of which standardised approach (SA)
Of which internal rating-based (IRB) approach
Counterparty credit risk (CCR)
Of which standardised approach for CCR (SA-CCR) (7)
Of which internal model method (IMM)
Equity positions in banking book under market-based approach
Equity investments in funds -look-through approach
Equity investments in funds -mandate-based approach
Equity investments in funds -fall-back approach
Settlement risk
Securitisation exposures in banking book
Of which IRB ratings-based approach (RBA)
Of which IRB Supervisory Formula Approach (SFA)
Of which SA/simplified supervisory formula approach (SSFA)
Market risk
Of which standardised approach (SA)
Of which internal model approaches (IMA)
Operational risk
Of which Basic Indicator Approach
Of which Standardised Approach
Of which Advanced Measurement Approach
23 845
24 904
1 908
5 175
5 633
414
-
-
-
732 893
724 780
58 631
10 994
9 161
78 786
Non-customer assets
Amounts below the thresholds for deduction (subject to 250% risk weight)
Floor adjustment
- Total (1+4+7+8+9+10+11+12+16+19+23+24+non- customer assets)
Pillar 2a requirement (1.5%)
Capital conservation buffer (1.25%) (8)
S.A. minimum capital requirements including buffers (9)
The key drivers of change in RWA consumption quarter on quarter were as follows:
- Credit risk: Portfolios subject to the AIRB approach have increased by R12bn as a result of exposure growth in Corporate and Investment Banking (CIB). Portfolios subject to the SA have increased by R6.5bn mainly due to asset growth outside of South Africa as well as exchange rate fluctuations.
- CCR: Thedecrease in CCR of R0.7bn is in line with market volatility, specifically exchange rate fluctuations.
- Market risk: The decrease in market risk of R8.3bn is due to lower levels of Value at Risk (VaR) and Stressed Value at Risk (sVaR) in the three-month averaging period.
Absa Bank Limited (5)a
b
c
30 Sep 2017 (1)
30 Jun 2017 (1)
30 Sep 2017 (1)
RWA
RWA
Minimum capital
requirements (6)
Rm
Rm
Rm
383 693
373 604
30 695
12 396
13 545
991
371 297
360 059
29 704
30 955
31 815
2 476
30 955
31 815
2 476
-
-
-
2 494
2 493
200
-
-
-
-
-
-
-
-
-
435
583
35
492
564
39
492
564
39
-
-
-
-
-
-
Credit risk (excluding counterparty credit risk)
Of which standardised approach (SA)
Of which internal rating-based (IRB) approach
CCR
Of which standardised approach for CCR (SA-CCR) (7)
Of which internal model method (IMM)
Equity positions in banking book under market- based approach
Equity investments in funds -look-through approach
Equity investments in funds -mandate-based approach
Equity investments in funds -fall-back approach
Settlement risk
Securitisation exposures in banking book
Of which IRB ratings-based approach (RBA)
Of which IRB Supervisory Formula Approach (SFA)
Of which SA/simplified supervisory formula
Barclays Africa Group Limited published this content on 30 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 November 2017 10:41:08 UTC.
Original documenthttps://www.barclaysafrica.com/content/dam/barclays-africa/bagl/pdf/sens/2017/jul-dec/BAGL-basel-%20III-pillar.pdf
Public permalinkhttp://www.publicnow.com/view/9FF8E29C2F55A135797BD5DC4C012C83D63CB688
