| Wed 13 Aug 2008, 14:22 | | ASA - ABSA Group Limited - ABSA Group - Basel II Pillar 3 Disclosure |
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ASA
AMAGB
ASA - ABSA Group Limited - ABSA Group - Basel II Pillar 3 Disclosure
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
ISIN: ZAE000067237
JSE share code: ASA
Issuer code: AMAGB
(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 are:
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 semi-annual Pillar 3 disclosure will be disclosed during
September 2008.
The table below represents the consolidated regulatory capital position for the
Absa Group as at 30 June 2008 (quarter 2, 2008).
ABSA GROUP
30 June 2008
Rm
Qualifying capital
Primary capital
Share capital and reserves (Note 2) 40 749
Minority interest 389
Less: Deductions (Note 3) (2 651)
Total primary capital 38 487
Secondary capital
Debt instruments 11 350
General allowance for credit impairment, after deferred 32
tax: Standardised approach
Less: Deductions (Note 3) (2 507)
Total secondary capital 8 875
Total qualifying capital and reserve funds 47 362
Minimum required capital and reserve funds 34 341
Capital adequacy ratios %
Total capital adequacy ratio 13,45
Primary capital ratio 10,93
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
13 August 2008
Enquiries
Mr. Carel Gronum - Group Treasurer
(+2711) 350-8995
E-mail: carelg@absa.co.za
Sponsor:
Merrill Lynch South Africa (Proprietary) Limited
Date: 13/08/2008 14:22:02 Produced by the JSE SENS Department.
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