ABSA GROUP LIMITED BARCLAYS AFRICA GROUP LIMITED

(Incorporated in the Republic of South Africa)

(Registration number: 1986/003934/06) ISIN: ZAE000174124

JSE share code: BGA (Barclays Africa Group)

ABSA BANK LIMITED

(Incorporated in the Republic of South Africa)

(Registration number: 1986/004794/06) ISIN: ZAE000079810

JSE share code: ABSP, ABMN (Absa Bank)



BARCLAYS AFRICA GROUP LIMITED - BASEL III PILLAR 3 DISCLOSURE AS AT 30 SEPTEMBER 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 board approved target capital ranges. As at 30 September 2015, Barclays Africa Group's Common Equity Tier 1 ratio was 11.3%, Tier 1 ratio was 11.9% and Total Capital Adequacy ratio was 13.9%.


    Page 1 of 5

    The table below represents the capital position for Barclays Africa Group at 30 September 2015 and the comparatives at 30 June 2015.


    30-Sep-2015(1)

    30-Jun-2015(1)

    Regulatory Capital Position (excluding unappropriated profit):

    Rm

    %

    Rm

    %

    Common Equity Tier 1

    70 937

    10.4% 69

    698

    10.8%

    Share capital and premium

    6 124

    6

    224

    Reserves

    68 683

    67 086

    Non-controlling interest - ordinary shares

    2 237

    2

    386

    Deductions

    (6 107)

    (5 998)

    Additional Tier 1 capital

    4 191

    0.6% 4

    265

    0.6%

    Tier 1 capital

    75 128

    11.0% 73

    963

    11.4%

    Tier 2 capital

    13 223

    1.9% 11

    226

    1.8%

    Total capital

    88 351

    12.9% 85

    189

    13.2%


    Statutory Capital Position (including unappropriated profit):

    Common Equity Tier 1(2)

    77 024

    11.3% 75

    492

    11.7%

    Tier 1 capital

    81 215

    11.9% 79

    757

    12.3%

    Total capital

    94 438

    13.9% 90

    983

    14.1%


    Board Approved Target Ranges(3):

    Common Equity Tier 1

    9.5% - 11.5%

    9.5% - 11.5%

    Tier 1 capital

    10.5% - 12.5%

    10.5% - 12.5%

    Total capital

    12.5% - 14.5%

    12.5% - 14.5%

    30-Sep-2015(1)

    RWA

    Minimum Required Capita

    l

    Risk Weighted Assets (RWA) and Minimum Required Capital per Risk Type:(4)

    Per risk

    type

    Pillar 1

    Pillar 2a

    Total

    8%

    2%

    10%

    Rm

    Rm

    Rm

    Rm

    Credit risk

    504 121

    40 330

    10 082

    5

    0 412

    Counterparty credit risk

    19 721

    1 578

    394

    1 972

    Equity investment risk

    10 664

    853

    213

    1 066

    Market risk

    27 387

    2 191

    548

    2 739

    Operational risk

    95 883

    7 670

    1 918

    9 588

    Non-customer assets

    23 118

    1 850

    462

    2 312

    Total RWA and Minimum Required Capital

    680 894

    54 472

    13 617

    6

    8 089


    30-Jun-2015(1)

    RWA

    Minimum Required Capita

    l

    Per risk

    type

    Pillar 1

    Pillar 2a

    Total

    8%

    2%

    10%

    RWA and Minimum Required Capital per Risk Type(4):

    Rm

    Rm

    Rm

    Rm

    Credit risk

    478 529

    38 282

    9 571

    4

    7 853

    Counterparty credit risk

    15 878

    1 270

    318

    1 588

    Equity investment risk

    10 303

    824

    206

    1 030

    Market risk

    23 395

    1 872

    468

    2 340

    Operational risk

    95 883

    7 671

    1 917

    9 588

    Non-customer assets

    23 484

    1 879

    469

    2 348

    Total RWA and Minimum Required Capital

    647 472

    51 798

    12 949

    6

    4 747

    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 30 September 2015, Absa Bank's Common Equity Tier 1 ratio was 9.5%, Tier 1 ratio was 10.2% and Total Capital Adequacy ratio was 12.8%.


    The table below represents the capital position for Absa Bank at 30 September 2015 and comparatives at 30 June 2015.

    30-Sep-2015(1)

    30-Jun-2015(1)

    Regulatory Capital Position (excluding unappropriated profit):

    Rm

    %

    Rm

    %

    Common Equity Tier 1

    46 391

    9.4%

    41 643

    8.8%

    Share capital and premium

    21 759

    16 768

    Reserves

    29 149

    29 151

    Deductions

    (4 517)

    (4 276)

    Additional Tier 1 capital

    3 251

    0.7%

    3 251

    0.7%

    Tier 1 capital

    49 642

    10.1%

    44 894

    9.5%

    Tier 2 capital

    12 694

    2.6%

    10 738

    2.3%

    Total capital

    62 336

    12.7%

    55 632

    11.8%


    Statutory Capital Position (including unappropriated profit):

    Common Equity Tier 1(2)

    46 877

    9.5%

    47 278

    10.0%

    Tier 1 capital

    50 128

    10.2%

    50 529

    10.7%

    Total capital

    62 822

    12.8%

    61 267

    13.0%


    Board Approved Target Ranges(3):

    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%

    30-Sep-2015(1)

    RWA

    Minimum Required Capita

    l

    Risk Weighted Assets (RWA) and Minimum Required Capital per Risk Type:(4)

    Per risk

    type

    Pillar 1

    Pillar 2a

    Total

    8%

    2%

    10%

    Rm

    Rm

    Rm

    Rm

    Credit risk

    360 204

    28 816

    7 204 36 020

    Counterparty credit risk

    19 275

    1 542

    386

    1 928

    Equity investment risk

    6 475

    518

    130

    648

    Market risk

    22 692

    1 816

    453

    2 269

    Operational risk

    68 904

    5 512

    1 378

    6 890

    Non-customer assets

    14 489

    1 159

    290

    1 449

    Total RWA and Minimum Required Capital

    492 039

    39 363

    9 841 49 204


    30-Jun-2015(1)

    RWA

    Minimum required Capital

    Per risk

    type

    Pillar 1

    Pillar 2a

    Total

    8%

    2%

    10%

    RWA and Minimum Required Capital per Risk Type(4):

    Rm

    Rm

    Rm

    Rm

    Credit risk

    347 632

    27 811

    6 953 34 764

    Counterparty credit risk

    15 543

    1 243

    311

    1 554

    Equity investment risk

    6 593

    527

    132

    659

    Market risk

    19 476

    1 558

    390

    1 948

    Operational risk

    68 904

    5 513

    1 377

    6 890

    Non-customer assets

    14 450

    1 156

    289

    1 445

    Total RWA and Minimum Required Capital

    472 598

    37 808

    9 452 47 260

  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

    30-Sep-2015(1)

    30-Jun-2015(1)

    Tier 1 Capital (excluding unappropriated profit) (Rm)

    75 128

    73 963

    Tier 1 Capital (including unappropriated profit) (Rm)

    81 215

    79 757

    Total Exposures (Rm)

    1 299 199

    1 206 720

    Leverage Ratio (excluding unappropriated profit)

    5.8%

    6.1%

    Leverage Ratio (including unappropriated profit)

    6.3%

    6.6%

    Minimum Required Leverage Ratio

    4.0%

    4.0%


    Absa Bank

    30-Sep-2015(1)

    30-Jun-2015(1)

    Tier 1 Capital (excluding unappropriated profit) (Rm)

    49 642

    44 894

    Tier 1 Capital (including unappropriated profit) (Rm)

    50 128

    50 529

    Total Exposures (Rm)

    1 076 017

    1 031 963

    Leverage Ratio (excluding unappropriated profit)

    4.6%

    4.4%

    Leverage Ratio (including unappropriated profit)

    4.7%

    4.9%

    Minimum Required Leverage Ratio

    4.0%

    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 high quality liquid assets divided by total net cash outflows. High quality liquid assets are assets that can be easily and immediately converted into cash. Net cash outflows are calculated according to the scenario parameters outlined by regulations.

distributed by