| Tue 25 May 2010, 12:01 | | ASA - Absa Group Limited - Basel II Pillar 3 Disclosure |
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ASA
AMAGB
ASA - Absa Group Limited - 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 31 March 2010 (Quarter 1, 2010).
Absa Group
31 March 2010
R m
Qualifying capital
Primary capital
Share capital and reserves (Note 2) 44,568
Preference share capital and premium 4,644
Minority interest 1,394
Less: Deductions 2,812
Total primary capital 47,794
Secondary capital
Debt instruments 11,611
General allowance for credit impairment, after deferred 54
tax: Standardised approach
Less: Deductions 1,631
Total secondary capital (Note 3) 10,034
Total qualifying capital and reserve funds 57,828
Minimum required capital and reserve funds 37,797
Capital adequacy ratios (Note 4)
Total capital adequacy ratio 14.92
Primary capital ratio 12.33
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 secondary capital decreased pursuant to the redemption
of the AB 03 and AB 04 subordinated callable notes.
4) The Absa Group board has approved capital levels (buffers) of 13.0% for the
Total and 10.5% 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
25 May 2010
Enquiries:
Mr. Carel Gronum - Group Treasurer
(+2711) 350-8995
E-mail: carelg@absa.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 25/05/2010 12:01:09 Produced by the JSE SENS Department.
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