| Wed 3 Jun 2015, 14:16 | | BARCLAYS AFRICA GROUP LIMITED - BARCLAYS/ABSA - Basel III Pillar 3 Disclosure as at 31 March 2015 |
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BGA ABSP 201506030027A
BARCLAYS/ABSA - Basel III Pillar 3 Disclosure as at 31 March 2015
BARCLAYS AFRICA GROUP LIMITED ABSA BANK LIMITED
(Incorporated in the Republic of South (Incorporated in the Republic of South
Africa) Africa)
(Registration number: 1986/003934/06) (Registration number: 1986/004794/06)
ISIN: ZAE000174124 ISIN: ZAE000079810
JSE share code: BGA JSE share code: ABSP, ABMN
(Barclays Africa Group) (Absa Bank)
BARCLAYS AFRICA GROUP LIMITED – BASEL III PILLAR 3 DISCLOSURE AS AT 31 MARCH
2015
The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No.
94 of 1990 (the Banks Act).
1) Capital Adequacy
Barclays Africa Group
Barclays Africa Group remains capitalised above the regulatory minimum requirements, with
Common Equity Tier 1, Tier 1 and Total Capital Adequacy ratios being within our increased board
approved target capital ranges. As at 31 March 2015, Barclays Africa Group’s Common Equity Tier
1 ratio was 11.4%, Tier 1 ratio was 12.1% and Total Capital Adequacy ratio was 13.9%.
Page 1 of 5
The table below represents the capital position for Barclays Africa Group at 31 March 2015 and the
comparatives at 31 December 2014.
31-Mar-20151 31-Dec-20141
Regulatory Capital Position (excluding unappropriated
Rm % Rm %
profit):
Common Equity Tier 1 64 598 10.2% 65 714 10.6%
Share capital and premium 5 852 6 242
Reserves 63 118 63 554
Non-controlling interest - ordinary shares 2 275 2 250
Deductions (6 647) (6 332)
Additional Tier 1 capital 4 192 0.7% 4 572 0.8%
Tier 1 capital 68 790 10.9% 70 286 11.4%
Tier 2 capital 11 215 1.8% 10 603 1.7%
Total capital 80 005 12.7% 80 889 13.1%
Statutory Capital Position (including unappropriated
profit):
Common Equity Tier 1 72 123 11.4% 73 829 11.9%
Tier 1 capital 76 315 12.1% 78 401 12.7%
Total capital 87 530 13.9% 89 004 14.4%
Board Approved Target Ranges2:
Common Equity Tier 1 9.5% - 11.5% 9.5% - 11.0%
Tier 1 Capital 10.5% - 12.5% 10.5% - 12.0%
Total Capital 12.5% - 14.5% 12.5% - 14.0%
31-Mar-2015
RWA Minimum Required Capital
Risk Weighted Assets (RWA) and Minimum Required Per risk Pillar 1 Pillar 2a Total
Capital per Risk Type:3 type 8% 2% 10%
Rm Rm Rm Rm
Credit risk 467 818 37 425 9 357 46 782
Counterparty credit risk 12 448 996 249 1 245
Equity investment risk 10 401 832 208 1 040
Market risk 22 824 1 826 456 2 282
Operational risk 92 942 7 435 1 859 9 294
Non-customer assets 24 360 1 949 487 2 436
Total RWA and Minimum Required Capital 630 793 50 463 12 616 63 079
31-Dec-2014
RWA Minimum Required Capital
Per risk Pillar 1 Pillar 2a Total
type 8% 2% 10%
RWA and Minimum Required Capital per Risk Type3: Rm Rm Rm Rm
Credit risk 456 622 36 530 9 132 45 662
Counterparty credit risk 12 083 967 241 1 208
Equity investment risk 13 737 1 099 275 1 374
Market risk 21 781 1 742 436 2 178
Operational risk 92 942 7 435 1 859 9 294
Non-customer assets 22 540 1 803 451 2 254
Total RWA and Minimum Required Capital 619 705 49 576 12 394 61 970
Page 2 of 5
Absa Bank
Absa Bank remains capitalised above the regulatory minimum requirements, with Common Equity
Tier 1, Tier 1 and Total Capital Adequacy ratios being within our board approved target capital
ranges. As at 31 March 2015, Absa Bank’s Common Equity Tier 1 ratio was 10.1%, Tier 1 ratio was
10.8% and Total Capital Adequacy ratio was 13.1%.
The table below represents the capital position for Absa Bank at 31 March 2015 and comparatives
at 31 December 2014.
31-Mar-20151 31-Dec-20141
Regulatory Capital Position (excluding unappropriated profit): Rm % Rm %
Common Equity Tier 1 42 364 9.3% 42 556 9.6%
Share capital and premium 16 768 16 768
Reserves 29 761 29 731
Deductions (4 165) (3 943)
Additional Tier 1 capital 3 251 0.7% 3 715 0.8%
Tier 1 capital 45 615 10.0% 46 271 10.4%
Tier 2 capital 10 737 2.3% 10 228 2.3%
Total capital 56 352 12.3% 56 499 12.7%
Statutory Capital Position (including unappropriated profit):
Common Equity Tier 1 45 953 10.1% 46 820 10.6%
Tier 1 capital 49 204 10.8% 50 535 11.4%
Total capital 59 941 13.1% 60 763 13.7%
Board Approved Target Ranges2:
Common Equity Tier 1 9.0% - 10.5% 9.0% - 10.5%
Tier 1 Capital 10.0% - 11.5% 10.0% - 11.5%
Total Capital 12.0% - 13.5% 12.0% - 13.5%
31-Mar-2015
RWA Minimum Required Capital
Risk Weighted Assets (RWA) and Minimum Required Per risk Pillar 1 Pillar 2a Total
Capital per Risk Type:3 type 8% 2% 10%
Rm Rm Rm Rm
Credit risk 339 068 27 126 6 781 33 907
Counterparty credit risk 12 222 978 244 1 222
Equity investment risk 6 574 526 131 657
Market risk 18 865 1 509 378 1 887
Operational risk 65 339 5 227 1 307 6 534
Non-customer assets 14 531 1 162 291 1 453
Total RWA and Minimum Required Capital 456 599 36 528 9 132 45 660
31-Dec-2014
RWA Minimum required Capital
Per risk Pillar 1 Pillar 2a Total
type 8% 2% 10%
RWA and Minimum Required Capital per Risk Type3: Rm Rm Rm Rm
Credit risk 326 956 26 157 6 539 32 696
Counterparty credit risk 11 954 956 239 1 195
Equity investment risk 7 650 612 153 765
Market risk 18 260 1 461 365 1 826
Operational risk 65 339 5 227 1 307 6 534
Non-customer assets 13 796 1 104 276 1 380
Total RWA and Minimum Required Capital 443 955 35 517 8 879 44 396
Page 3 of 5
2) Leverage ratio
The leverage ratio framework is complementary to the risk-based capital framework and is a non-
risk based contingency measure to restrict the build-up of excessive leverage in the banking sector.
Barclays Africa Group
4
31-Mar-2015
Tier 1 Capital (excluding unappropriated profit) (Rm) 68 790
Tier 1 Capital (including unappropriated profit) (Rm) 76 315
Total Exposures (Rm) 1 201 640
Leverage Ratio (excluding unappropriated profit) 5.7%
Leverage Ratio (including unappropriated profit) 6.4%
Minimum Required Leverage Ratio 4.0%
Absa Bank
4
31-Mar-2015
Tier 1 Capital (excluding unappropriated profit) (Rm) 45 615
Tier 1 Capital (including unappropriated profit) (Rm) 49 204
Total Exposures (Rm) 1 024 947
Leverage Ratio (excluding unappropriated profit) 4.5%
Leverage Ratio (including unappropriated profit) 4.8%
Minimum Required Leverage Ratio 4.0%
3) Liquidity Coverage Ratio
The objective of the liquidity coverage ratio is to promote the short-term resilience of the liquidity
risk profile of banks by ensuring that they have sufficient high quality liquid assets to survive a
significant stress scenario lasting 30 calendar days. The liquidity coverage ratio requirement, from 1
January 2015, is 60% and will increase by 10% per year to 100% on 1 January 2019.
The liquidity coverage ratio is calculated as the value of high quality liquid assets divided by total
net cash outflows. High quality liquid assets are the value of assets that can be easily and
immediately converted into cash. Net cash outflows are calculated according the scenario
parameters outlined by regulations.
Barclays Africa Group
Barclays Africa Group held high quality liquid assets in excess of the regulatory minimum
requirement. The table below represents the average liquidity coverage ratio for Barclays Africa
Group for the quarter ended 31 March 2015:
4,5
31-Mar-2015
High Quality Liquid Assets (Rm) 111 087
Net Cash Outflows (Rm) 138 084
Liquidity Coverage Ratio 80%
Required Liquidity Coverage Ratio 60%
Page 4 of 5
Absa Bank
Absa Bank held high quality liquid assets in excess of the regulatory minimum requirement. The
table below represents the average liquidity coverage ratio for Absa Bank for the quarter ended 31
March 2015:
4,5
31-Mar-2015
High Quality Liquid Assets (Rm) 93 182
Net Cash Outflows (Rm) 120 424
Liquidity Coverage Ratio 77%
Required Liquidity Coverage Ratio 60%
Notes:
1. The 31 March 2015 figures have not been audited. (31 December 2014 comparatives have been audited).
2. Board approved target ranges include unappropriated profit.
3. The regulatory minimum Common Equity Tier 1 requirement as at 31 March 2015 was 6.5% (31 December 2014: 5.5%).
4. This announcement represents the first public disclosure of the Leverage and Liquidity Coverage Ratios, therefore no
comparative information is disclosed.
5. The values disclosed represent the simple average of the relevant 3 month-end data points.
Johannesburg
3 June 2015 2015
Enquiries:
Alan Hartdegen
(+2711) 350-2598
E-mail: Alan.Hartdegen@barclaysafrica.com
Lead Independent Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
Joint Sponsor:
Absa Bank Limited Corporate and Investment Banking Division
Page 5 of 5
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