| Mon 16 Nov 2009, 15:03 | | 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 the Basel
II Capital Accord (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 Basel II. 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 table below represents the consolidated regulatory capital position for
the Absa Group as at 30 September 2009 (quarter 3, 2009).
Absa Group
30 September 2009
R m
Qualifying capital
Primary capital
Share capital and reserves (Note 2) 47,358
Minority interest 1,247
Less: Deductions (3,209)
Total primary capital 45,396
Secondary capital
Debt instruments 11,611
General allowance for credit impairment, after deferred 66
tax: Standardised approach
Less: Deductions (2,287)
Total secondary capital (Note 3) 9,390
Total qualifying capital and reserve funds 54,785
Minimum required capital and reserve funds 37,692
Capital adequacy ratios (Note 4)
Total capital adequacy ratio 14.17
Primary capital ratio 11.74
Notes:
1) The figures above have not been audited.
2) Share capital and reserves excludes unappropriated profits. The capital
adequacy ratios disclosed in the annual and interim results presentations
include unappropriated profits and are consequently higher.
3) During the quarter the primary capital increased pursuant to the
execution of the Batho Bonke transaction which resulted in additional
Tier 1 capital of R1.5bn (38 basis points).
4) The Absa Group board has approved capital levels (buffers) of 13% for the
Total and 10% for the Tier 1 capital adequacy ratios (inclusive of
unappropriated profits). Absa Group has complied with these internal
capital levels over the reporting period.
Johannesburg
16 November 2009
Enquiries:
Mr. Carel Gronum - Group Treasurer
(+2711) 350-8995
E-mail: carelg@absa.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 16/11/2009 15:03:01 Produced by the JSE SENS Department.
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