| Thu 12 Jun 2008, 13:12 | | ASA / ABSP - ABSA / Absa Bank - Absa Group - Basel II Pillar 3 Disclosure |
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JSE ASA ABSP
ABSP AMAGB
ASA / ABSP - ABSA / Absa Bank - Absa Group - Basel II Pillar 3 Disclosure
ABSA GROUP LIMITED ABSA BANK LIMITED
(Incorporated in the Republic of (Incorporated in the Republic
South Africa) of South Africa)
(Registration number: 1986/003934/06) (Registration number: 1986/004794/06)
ISIN: ZAE000067237 ISIN: ZAE000079810
JSE share code: ASA JSE share code: ABSP
Issuer code: AMAGB (Absa Bank)
(Absa or Absa Group)
ABSA GROUP - BASEL II PILLAR 3 DISCLOSURE
Absa, together with all registered banks, is required to comply with Basel II,
effective 1 January 2008. Basel II is divided into three pillars, namely Pillar
1 (Minimum Capital Requirements); Pillar 2 (Supervisory Review Process) and
Pillar 3 (Market Discipline).
This announcement is made in accordance with the requirements of Pillar 3. The
purpose of Pillar 3 is to complement the Minimum Capital Requirements and the
Supervisory Review Process of the Basel II Capital Accord. The minimum set of
disclosure requirements is intended to allow market participants to assess key
pieces of information on the scope of application, capital, risk exposures, risk
assessment processes, and hence the capital adequacy of the institution.
In accordance with Regulation 43(1)(e)(ii) of the regulations relating to banks,
the minimum requirements of the quantitative information to be disclosed to the
public on a quarterly basis is as follows:
- primary capital, including the primary capital adequacy ratio;
- total capital, including the total capital adequacy ratio;
- the components of capital;
- the total required amount of capital and reserve funds; and
- any risk exposure or other item that is subject to rapid or material
change.
The disclosure required semi-annually and annually is more comprehensive than
the quarterly requirements as it encompasses both quantitative and qualitative
information.
The table below represents the consolidated regulatory capital position for the
Absa Group as at 31 March 2008 (quarter 1, 2008).
ABSA GROUP
31 March 2008
Rm
Qualifying capital
Primary capital
Share capital and reserves (Note 2) 37 840
Minority interest 382
Less: Deductions (Note 3) (2 700)
Total primary capital 35 522
Secondary capital
Debt instruments 9 825
General allowance for credit 31
impairment, after deferred tax:
Standardised approach
Less: Deductions (Note 3) (2 541)
Total secondary capital 7 315
Total qualifying capital and reserve 42 837
funds
Minimum required capital and reserve 34 633
funds
Capital adequacy ratios %
Total capital adequacy ratio 12,06
Primary capital ratio 10,00
Notes:
1) The figures above have not been audited.
2) Share capital and reserves excludes unappropriated profits.
3) Absa Group uses conservative assumptions in calculating the expected loss
under the requirements of Basel II. This includes the use of a downturn loss
given default, through the cycle probability of default and undrawn facilities
in the calculation.
Johannesburg
12 June 2008
Enquiries
Mr. Carel Gronum - Group Treasurer
(+2711) 350-8995
E-mail: carelg@absa.co.za
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Date: 12/06/2008 13:12:01 Produced by the JSE SENS Department.
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