(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)
The quarterly Pillar 3 disclosure is made in accordance with the requirements of the Banks Act, No. 94 of 1990 (the Banks Act).
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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%.
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The table below represents the capital position for Barclays Africa Group at 30 September 2015 and the comparatives at 30 June 2015.
Absa Bank30-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 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
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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%
- 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.
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