| Tue 25 May 2021, 8:00 | | STANDARD BANK GROUP LIMITED - Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2021 |
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Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2021
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
Registration No. 1969/017128/06
JSE and A2X share code: SBK
NSX share code: SNB
ISIN: ZAE000109815
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
(“Standard Bank Group” or “the group”)
Basel III capital adequacy, leverage ratio and liquidity coverage ratio
disclosure as at 31 March 2021.
In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to
banks, Directive 11/2015 and Directive 1/2018 issued in terms of section 6(6) of the Banks
Act (Act No. 94 of 1990), minimum disclosure on the capital adequacy of the group and its
leverage ratio is required on a quarterly basis. This disclosure is in accordance with Pillar 3
of the Basel III accord.
Standard Bank Group capital adequacy and leverage ratio
March 2021 (Rm)
Ordinary share capital and premium 18 017
1
Ordinary shareholders' reserves 160 538
Qualifying Common Equity Tier I non-controlling interest 7 437
Regulatory deductions against Common Equity Tier I capital (20 506)
Common Equity Tier I capital 165 486
Unappropriated profit (11 091)
Common Equity Tier 1 capital excl. unappropriated profit 154 395
Qualifying other equity instruments 9 290
Qualifying Tier I non-controlling interest 1 444
Tier I capital excl. unappropriated profit 165 129
Qualifying Tier II subordinated debt 21 146
General allowance for credit impairments 5 827
Tier II capital 26 973
Total regulatory capital excl. unappropriated profit 192 102
March 2021 (Rm)
Credit risk 107 423
Counterparty credit risk 7 476
Equity risk in the banking book 1 859
Market risk 8 093
Operational risk 19 625
Investments in financial entities 6 401
Total minimum regulatory capital requirement 2 150 877
March 2021
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.3
Tier I capital adequacy ratio (%) 13.1
Common Equity Tier I capital adequacy ratio (%) 12.3
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.2
Tier I capital adequacy ratio (%) 14.0
Common Equity Tier I capital adequacy ratio (%) 13.2
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 165 129
Tier I capital (incl. unappropriated profit) (Rm) 176 220
Total exposures (Rm) 2 255 616
Leverage ratio (excl. unappropriated profits, %) 7.3
Leverage ratio (incl. unappropriated profits, %) 7.8
Note:
1
Including unappropriated profits.
2 Measured at 12% and excludes confidential bank-specific capital requirements and the Pillar 2A buffer requirement that has
been temporarily removed in response to the Covid-19 pandemic. There is currently no requirement for the countercyclical
buffer add-on in South Africa or in other jurisdictions in which the group has significant exposures.
The Standard Bank of South Africa Limited (SBSA) and its
subsidiaries’ capital adequacy and leverage ratio
March 2021 (Rm)
Ordinary share capital and premium 49 313
1
Ordinary shareholders' reserves 50 951
Regulatory deductions against Common Equity Tier I capital (10 772)
Common Equity Tier I capital 89 492
Unappropriated profit (5 714)
Common Equity Tier 1 capital excl. unappropriated profit 83 778
Qualifying other equity instruments 8 741
Tier I capital excl. unappropriated profit 92 519
Qualifying Tier II subordinated debt 18 983
General allowance for credit impairments 3 195
Tier II capital 22 178
Total regulatory capital excl. unappropriated profit 114 697
March 2021 (Rm)
Credit risk 67 069
Counterparty credit risk 6 203
Equity risk in the banking book 844
Market risk 5 646
Operational risk 12 135
Investments in financial entities 1 291
Total minimum regulatory capital requirement 2 93 188
March 2021 (Rm)
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.4
Tier I capital adequacy ratio (%) 12.4
Common Equity Tier I capital adequacy ratio (%) 11.2
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 16.2
Tier I capital adequacy ratio (%) 13.2
Common Equity Tier I capital adequacy ratio (%) 12.0
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 92 519
Tier I capital (incl. unappropriated profit) (Rm) 98 233
Total exposures (Rm) 1 743 278
Leverage ratio (excl. unappropriated profits, %) 5.3
Leverage ratio (incl. unappropriated profits, %) 5.6
Note:
1 Including unappropriated profits.
2
Measured at 12.5% and excludes any confidential bank-specific capital requirements and the Pillar 2A buffer requirement that
has been temporarily removed in response to the Covid-19 pandemic. There is currently no requirement for the countercyclical
buffer add-on in South Africa or in other jurisdictions in which the group has significant exposures.
Liquidity Coverage Ratio (LCR)
In terms of the Basel III requirements in Directive 11/2014 issued in terms of section 6(6) of
the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum
disclosure on the liquidity coverage ratio (LCR) on both a Standard Bank Group consolidated
as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3 of the Basel
III liquidity accord.
The LCR is designed to promote short-term resilience of the 30-calendar day liquidity profile,
by ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential
outflows in a stressed environment.
In light of the effects of Covid-19 on the South African market, the SARB has amended the
minimum requirements relating to the liquidity coverage ratio (LCR) from 100% to 80%
(effective 1 April 2020) to provide temporary liquidity relief to banks, in line with the intention
of the Basel III LCR framework, and to promote continued provision of credit by banks. No
temporary relief has been applied to the net stable funding ratio (NSFR).
Standard Bank Group
SBSA Solo
Consolidated
31 March 2021
31 March 2021
Rm
Rm
Total HQLA 346 110 224 656
Net cash outflows 245 047 189 278
LCR (%) 141.2 118.7
Minimum requirement (%) 80.0 80.0
Note:
1. Only banking and/or deposit taking entities are included. The group data represents a consolidation of the relevant
individual net cash outflows and the individual HQLA portfolios, where surplus HQLA holdings in excess of the
minimum requirement of 80% have been excluded from the aggregated HQLA figure in the case of all Africa Regions
entities.
2. The above figures reflect the simple average of 90 days of daily observations over the quarter ended 31 March 2021
for SBSA including SBSA Isle of Man branch, Stanbic Bank Ghana, Stanbic Bank Uganda, Stanbic IBTC Bank
Nigeria, Standard Bank Namibia, Standard Bank Isle of Man Limited and Standard Bank Jersey Limited. The
remaining Africa Regions banking entities results are based on the average of the month-end data points as at 31
January 2021, 28 February 2021 and 31 March 2021. The figures are based on the regulatory submissions to the
SARB.
3. The SBSA Solo disclosure excludes foreign branches.
Net Stable Funding Ratio
In terms of the Basel III requirements in Directive 8/2017 issued in terms of section 6(6) of
the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum
disclosure on the net stable funding ratio (NSFR) on both a Standard Bank Group
consolidated as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3
of the Basel III liquidity accord.
The objective of the Basel III Net stable funding ratio (NSFR) is to promote funding stability
and resilience in the banking sector by requiring banks to maintain a stable funding profile in
relation to the composition of assets and off-balance sheet activities.
.
Standard Bank Group
Consolidated SBSA Solo
31 March 2021 31 March 2021
Rm Rm
Available stable funding 1 305 320 907 300
Required stable funding 1 058 512 830 889
NSFR (%) 123.3 109.2
Minimum requirement (%) 100.0 100.0
The information contained in this announcement has not been reviewed and reported on by
the group's external auditors.
Johannesburg
25 May 2021
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
JP Morgan Equities South Africa Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 25-05-2021 08:00:00
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