Banc of America Securities Asia Limited
RegulatoryDisclosure Statement
For the quarter ended Mar 31, 2024
Contents | Pages | |
1. | Key Prudential Ratios | 1 |
2. | Overview of Risk Weighted Assets | 2 - 3 |
3. | Leverage Ratio | 3 - 4 |
4. | Statement of Compliance | 4 |
BANC OF AMERICA SECURITIES ASIA LIMITED (Unaudited information)
1. Key Prudential Ratios:
The follow ing table provides an overview of the Bank's key prudential ratios.
as at 31 | as at 31 | as at 30 | as at 30 | as at 31 | |||
Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | |||
Regulatorycapital (amount US$'000) | |||||||
1 | Common Equity Tier 1 (CET1) | 75,796 | 75,252 | 614,420 | 602,828 | 587,613 | |
2 | Tier 1 | 75,796 | 75,252 | 614,420 | 602,828 | 587,613 | |
3 | Total capital | 75,796 | 75,252 | 614,420 | 602,828 | 587,613 | |
RWA (amount US$'000) | |||||||
4 | Total RWA | 104,285 | 110,245 | 1,002,143 | 941,973 | 785,955 | |
Risk-based regulatory capital ratios (as a percentage of RWA) | |||||||
5 | CET1 ratio (%) | 72.68 | 68.26 | 61.31 | 64.00 | 74.76 | |
6 | Tier 1 ratio (%) | 72.68 | 68.26 | 61.31 | 64.00 | 74.76 | |
7 | Total capital ratio (%) | 72.68 | 68.26 | 61.31 | 64.00 | 74.76 | |
Additional CET1 buffer requirements (as a percentage of RWA) | |||||||
8 | Capital conservation buffer requirement (%) | 2.50 | 2.50 | 2.50 | 2.50 | 2.50 | |
9 | Countercyclical capital buffer requirement (%) | - | 1.85 | 1.97 | 1.00 | 0.99 | |
Higher loss absorbency requirements (%) | |||||||
10 | (applicable only to G-SIBs or D-SIBs) | NA | NA | NA | NA | NA | |
11 | Total AI-specific CET1 buffer requirements (%) | 2.50 | 4.35 | 4.47 | 3.50 | 3.49 | |
CET1 available after meeting the AI's minimum | |||||||
12 | capital requirements (%) | 62.18 | 55.91 | 48.84 | 51.49 | 63.27 | |
Basel III leverage ratio | |||||||
Total leverage ratio (LR) exposure measure | |||||||
13 | (amount USD'000) | 82,871 | 83,904 | 2,639,299 | 3,165,050 | 3,361,222 | |
14 | LR (%) | 91.46 | 89.69 | 23.28 | 19.05 | 17.48 | |
Liquidity Coverage Ratio (LC / Liquidity Maintenance Ratio (LMR) | |||||||
Applicable to category 1 institution only: | |||||||
15 | Total high-quality liquid assets (HQLA) | NA | NA | NA | NA | NA | |
16 | Total net cash outflows | NA | NA | NA | NA | NA | |
17 | LCR (%) | NA | NA | NA | NA | NA | |
Applicable to category 2 institution only: | |||||||
17a | LMR (%) | 160.06 | 1,182.35 | 15,459.90 | 40,196.28 | 67,615.68 | |
Net Stable Funding Ratio (NSFR) / Core Funding Ratio (CFR) | |||||||
Applicable to category 1 institution only: | |||||||
18 | Total available stable funding | NA | NA | NA | NA | NA | |
19 | Total required stable funding | NA | NA | NA | NA | NA | |
20 | NSFR (%) | NA | NA | NA | NA | NA | |
Applicable to category 2A institution only: | |||||||
20a | CFR (%) | NA | NA | NA | NA | NA |
As of March 31, 2024, the LMR w as 160.06%, decreased by 1022.29% when compared to December 31, 2023. This is mainly driven by decrease in average qualifying liabilities and decrease in average qualifying assets during the quarter.
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BANC OF AMERICA SECURITIES ASIA LIMITED (Unaudited information)
The above key regulatory ratios were calculated in accordance with the following Rules, where relevant, issued by the HKMA.
- Banking (Capital) Rules ("BCR")
- Leverage Ratio Framew ork
- Banking (Liquidity) Rules ("BLR")
2. Overview of Risk Weighted Assets
The follow ing table sets out the Banks's risk-w eighted assets ("RWA") and the corresponding minimum capital requirements by risk types.
Minimum | ||||
RWA | capital | |||
requirements | ||||
US$'000 | ||||
US$'000 | ||||
As at | As at | As at | ||
31 Mar 2024 | 31 Dec 2023 | 31 Mar 2024 | ||
1 | Credit risk for non-securitization exposures | 16,523 | 18,973 | 1,322 |
2 | Of w hich STC approach | 16,523 | 18,973 | 1,322 |
2a | Of w hich BSC approach | - | - | - |
3 | Of w hich foundation IRB approach | - | - | - |
4 | Of w hich supervisory slotting criteria approach | - | - | - |
5 | Of w hich advanced IRB approach | - | - | - |
6 | Counterparty default risk and default fund contributions | - | - | - |
7 | Of w hich SA-CCR approach | - | - | - |
7a | Of w hich CEM | - | - | - |
8 | Of w hich IMM(CCR) approach | - | - | - |
9 | Of w hich other | - | - | - |
10 | CVA Risk | - | - | - |
11
Equity positions in banking book under the simple risk- w eight method and internal models method
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-
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12 | Collective investment scheme ("CIS") exposures - LTA | - | - | - |
13 | CIS exposures - MBA | - | - | - |
14 | CIS exposures - FBA | - | - | - |
14a | CIS exposures - combination of approaches | - | - | - |
15 | Settlement risk | - | - | - |
16 | Securitization exposures in banking book | - | - | - |
17 | Of w hich SEC-IRBA | - | - | - |
18 | Of w hich SEC-ERBA (including IAA) | - | - | - |
19 | Of w hich SEC-SA | - | - | - |
19a | Of w hich SEC-FBA | - | - | - |
20 | Market risk | - | 256 | - |
21 | Of w hich STM approach | - | 256 | - |
22
Of w hich IMM approach
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BANC OF AMERICA SECURITIES ASIA LIMITED (Unaudited information)
Minimum | |||||||||
RWA | capital | ||||||||
requirements | |||||||||
US$'000 | |||||||||
US$'000 | |||||||||
As at | As at | As at | |||||||
31 Mar 2024 | 31 Dec 2023 | 31 Mar 2024 | |||||||
23 | Capital charge for sw itch between exposures in trading | - | - | - | |||||
book and banking book (not applicable before the revised | |||||||||
market risk framew ork takes effect)* | |||||||||
24 | Operational risk | 87,762 | 91,016 | 7,021 | |||||
24a | Sovereign concentration risk | - | - | - | |||||
25 | Amounts below the thresholds for deduction (subject to | - | - | - | |||||
250% RW) | |||||||||
26 | Capital floor adjustment | - | - | - | |||||
26a | Deduction to RWA | - | - | - | |||||
26b | Of w hich portion of regulatory reserve for general | - | - | - | |||||
banking risks and collective provisions w hich is not | |||||||||
included in Tier 2 Capital | |||||||||
26c | Of w hich portion of cumulative fair value gains arising | - | - | - | |||||
fromthe revaluation of land and buildings w hich is not | |||||||||
included in Tier 2 Capital | |||||||||
27 | Total | 104,285 | 110,245 | 8,343 | |||||
3. Leverage Ratio
Leverage ratio | Leverage ratio | ||||||||
Item | framework | framework | |||||||
US$'000 | US$'000 | ||||||||
31 Mar 2024 | 31 Dec 2023 | ||||||||
On-balance sheet exposures | |||||||||
1 | On-balance sheet exposures (excluding those arising from derivative | 8 3 ,594 | 8 4 ,625 | ||||||
contracts and SFTs, but including collateral) | |||||||||
2 | Less: Asset amounts deducted in determining Tier 1 capital | -7 23 | -7 21 | ||||||
3 | Total on-balance sheet exposures (excluding derivativecontracts and SFTs) | 8 2 ,871 | 8 3 ,904 | ||||||
Exposures arising from derivative contracts | |||||||||
4 | Replacement cost associated with all derivative contracts (where applicable | - | - | ||||||
net of eligible cash variation margin and/or w ith bilateral netting) | |||||||||
5 | Add-on amounts for PFE associated w ith all derivative transactions | - | - | ||||||
Gross-up for collateral provided in respect of derivative contracts w here | - | - | |||||||
6 | deducted from the balance sheet assets pursuant to the applicable | ||||||||
accounting framework. | |||||||||
7 | Less: Deductions of receivables assets for cash variation margin provided | - | - | ||||||
under derivative contracts | |||||||||
8 | Less: Exempted CCP leg of client-cleared trade exposures | - | - | ||||||
9 | Adjusted effective notional amount of w ritten credit derivative contracts | - | - | ||||||
10 | Less: Adjusted effective notional offsets and add-on deductions for written | - | - | ||||||
credit derivative contracts | |||||||||
11 | Total exposures arising fromderivative contracts | - | - | ||||||
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BANC OF AMERICA SECURITIES ASIA LIMITED (Unaudited information)
Item | ||||||
Leverage ratio | Leverage ratio | |||||
framework | framework | |||||
US$'000 | US$'000 | |||||
31 Mar 2024 | 31 Dec 2023 | |||||
Exposures arising from SFTs | ||||||
12 | Gross SFT assets (w ith no recognition of netting), after adjusting for sale | - | - | |||
accounting transactions | ||||||
13 | Less: Netted amounts of cash payables and cash receivables of gross SFT | - | - | |||
assets | ||||||
14 | CCR exposure for SFT assets | - | - | |||
15 | Agent transaction exposures | - | - | |||
16 | Total exposures arising fromSFTs | - | - | |||
Other off-balance sheet exposures | ||||||
17 | Off-balance sheet exposure at gross notional amount | - | - | |||
18 | Less: Adjustments for conversion to credit equivalent amounts | - | - | |||
19 | Off-balance sheet items | - | - | |||
Capital and total exposures | ||||||
20 | Tier 1 capital | 7 5 ,796 | 7 5 ,252 | |||
20a | Total exposures before adjustments for specific and collective provisions | 8 2 ,871 | 8 3 ,904 | |||
20b | Adjustments for specific and collective provisions | - | - | |||
21 | Total exposures after adjustments for specific and collective provisions | 8 2 ,871 | 8 3 ,904 | |||
Leverage ratio | ||||||
22 | Leverage ratio | 91.46% | 89.69% | |||
4. Statement of Compliance
Upon consultation w ith the HKMA under section 16(2)(a) of the Banking (Disclosure) Rules ("BDR"), BASAL had sought consent fromthe HKMA to continue uploading the required financial disclosure information to the w ebsite of its ultimate parent entity, Bank of America Corporation.
It is not practicable for BASAL to disclose under section 16(FE)(1)(b) of the BDR the full terms and conditions of all of its relevant regulatory capital instruments on its internet w ebsite, since BASAL does not currently maintain its own internet w ebsite. This is the reason that led BASAL to seek the aforementioned consent formHKMA.
Herein included below is the direct link to Bank of America Corporation's internet w ebsite, whereby the full terms and conditions of all of BASAL's relevant regulatory capital instruments and financial disclosure information can be accessed.
https://investor.bankofamerica.com/regulatory-and-other-filings/subsidiary-and-country-disclosures
This information is also the closest available alternative to the information w hich have been the subject of the required disclosures.
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Bank of America Corporation published this content on 27 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2024 12:18:13 UTC.