Sharenet Sites 
Sharenet Sites
Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2020
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 2020.
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 2020 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 17 984 17 984
Ordinary shareholders' reserves3 160 809 160 809
Qualifying Common Equity Tier I non-controlling interest 7 577 7 577
Regulatory deductions against Common Equity Tier I capital (22 513) (24 207)
Common Equity Tier I capital 163 857 162 163
Unappropriated profit (3 561) (3 561)
Common Equity Tier 1 capital excl. unappropriated profit 160 296 158 602
Qualifying other equity instruments 6 536 6 536
Qualifying Tier I non-controlling interest 917 917
Tier I capital excl. unappropriated profit 167 749 166 055
Qualifying Tier II subordinated debt 22 460 22 460
General allowance for credit impairments 5 897 6 843
Tier II capital 28 357 29 303
Total regulatory capital excl. unappropriated profit 196 106 195 358
March 2020 (Rm)
Transitional1 Fully loaded2
Credit risk 101 029 101 029
Counterparty credit risk 6 267 6 267
Equity risk in the banking book 962 962
Market risk 11 051 11 051
Operational risk 20 477 20 477
Investments in financial entities 6 744 6 697
Total minimum regulatory capital requirement 4 146 530 146 483
March 2020
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 15.4 15.3
Tier I capital adequacy ratio (%) 13.2 13.0
Common Equity Tier I capital adequacy ratio (%) 12.6 12.5
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.7 15.6
Tier I capital adequacy ratio (%) 13.4 13.3
Common Equity Tier I capital adequacy ratio (%) 12.9 12.7
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 167 749 166 055
Tier I capital (incl. unappropriated profit) (Rm) 171 310 169 616
Total exposures (Rm) 2 206 213 2 204 471
Leverage ratio (excl. unappropriated profits, %) 7.6 7.5
Leverage ratio (incl. unappropriated profits, %) 7.8 7.7
Note:
1 Represents IFRS 9 transition impact as allowed by the SARB.
2 Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact).
3 Including unappropriated profits.
4 Measured at 11.5% and excludes any bank-specific capital requirements. In response to the COVID-19 crisis the Prudential
Authority has reduced Pillar 2A buffer requirements with effect from 6 April 2020. This will reduce the minimum capital
requirement to 10.5% from that date (approximately R12.7 billion reduction in total minimum regulatory capital requirements
based on March 2020 results). 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 2020 (Rm)
Transitional1 Fully loaded2
Ordinary share capital and premium 45 248 45 248
3
Ordinary shareholders' reserves 54 121 54 121
Regulatory deductions against Common Equity Tier I capital (12 661) (13 354)
Common Equity Tier I capital 86 708 86 015
Unappropriated profit (7 389) (7 389)
Common Equity Tier 1 capital excl. unappropriated profit 79 319 78 626
Qualifying other equity instruments 5 437 5 437
Tier I capital excl. unappropriated profit 84 756 84 063
Qualifying Tier II subordinated debt 20 122 20 122
General allowance for credit impairments 2 289 2 940
Tier II capital 22 411 23 062
Total regulatory capital excl. unappropriated profit 107 167 107 125
March 2020 (Rm)
Transitional1 Fully loaded2
Credit risk 59 522 59 522
Counterparty credit risk 4 434 4 434
Equity risk in the banking book 431 431
Market risk 6 531 6 531
Operational risk 11 500 11 500
Investments in financial entities 1 581 1 581
Total minimum regulatory capital requirement 4 83 999 83 999
March 2019
Transitional1 Fully loaded2
Capital Adequacy Ratio (excl. unappropriated profit)
Total capital adequacy ratio (%) 14.7 14.7
Tier I capital adequacy ratio (%) 11.6 11.5
Common Equity Tier I capital adequacy ratio (%) 10.9 10.8
Capital Adequacy Ratio (incl. unappropriated profit)
Total capital adequacy ratio (%) 15.7 15.7
Tier I capital adequacy ratio (%) 12.6 12.5
Common Equity Tier I capital adequacy ratio (%) 11.9 11.8
Leverage ratio
Tier I capital (excl. unappropriated profit) (Rm) 84 756 84 063
Tier I capital (incl. unappropriated profit) (Rm) 92 145 91 452
Total exposures (Rm) 1 723 936 1 723 195
Leverage ratio (excl. unappropriated profits, %) 4.9 4.9
Leverage ratio (incl. unappropriated profits, %) 5.3 5.3
Note:
1 Represents IFRS 9 transition impact as allowed by the SARB.
2 Represents fully loaded ECL accounting results (full IFRS 9 impact).
3 Including unappropriated profits.
4 Measured at 11.5% and excludes any bank-specific capital requirements. In response to the COVID-19 crisis the Prudential
Authority has reduced Pillar 2A buffer requirements with effect from 6 April 2020. This will reduce the minimum capital requirement
to 10.5% from that date (approximately R7.3 billion reduction in total minimum regulatory capital requirements based on March
2020 results). There is currently no requirement for the countercyclical buffer add-on in South Africa or in other jurisdictions in
which the SBSA has significant exposures.
Liquidity Coverage Ratio
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.
Standard Bank Group
Consolidated SBSA Solo
31 March 2020 31 March 2020
Rm Rm
Total HQLA 300 508 201 712
Net cash outflows 211 787 161 290
LCR (%) 141.9 125.1
Minimum requirement (%) 100.0 100.0
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 100% 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 91 days of daily observations over the quarter
ended 31 March 2020 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 2020, 29
February 2020 and 31 March 2020. The figures are based on the regulatory submissions to the
South African Reserve Bank.
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 2020 31 March 2020
Rm Rm
Available stable funding 1 259 294 851 175
Required stable funding 1 072 503 810 756
NSFR (%) 117.4 105.0
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 2020
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: 25-05-2020 02:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
