Standard Bank: Basel III capital adequacy, leverage ratio, liquidity coverage ratio and net stable funding ratio







Basel III capital adequacy, leverage ratio, liquidity coverage ratio and net stable funding ratio disclosure

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)
JSE bond code: SBKI
("Standard Bank Group" or "the group")


Basel III capital adequacy, leverage ratio, liquidity coverage ratio and net stable
funding ratio disclosure as at 31 March 2022.


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 2022 (Rm)


 Ordinary share capital and premium                                                                       27 451
                                   
 Ordinary shareholders' reserves                                                                         167 986
 Qualifying Common Equity Tier I non-controlling interest                                                  8 355
 Regulatory deductions against Common Equity Tier I capital                                              (20 533)
 Common Equity Tier I capital                                                                            183 259
 Unappropriated profit                                                                                   (12 126)
 Common Equity Tier 1 capital excl. unappropriated profit                                                171 133
 Qualifying other equity instruments                                                                       8 771
 Qualifying Tier I non-controlling interest                                                                1 461
 Tier I capital excl. unappropriated profit                                                              181 365
 Qualifying Tier II subordinated debt                                                                     22 822
 General allowance for credit impairments                                                                  5 973
 Tier II capital                                                                                          28 795
 Total regulatory capital excl. unappropriated profit                                                    210 160
                                                                                                       March 2022 (Rm)


  Credit risk                                                                                                       123 209
  Counterparty credit risk                                                                                           11 310
  Equity risk in the banking book                                                                                      2 108
  Market risk                                                                                                          9 291
  Operational risk                                                                                                   22 232
  Investments in financial entities                                                                                    8 343
  Total minimum regulatory capital requirement 2                                                                    176 493




                                                                                                            March 2022

  Capital Adequacy Ratio (excl. unappropriated profit)
  Total capital adequacy ratio (%)                                                                                     15.5
  Tier I capital adequacy ratio (%)                                                                                    13.4
  Common Equity Tier I capital adequacy ratio (%)                                                                      12.6


  Capital Adequacy Ratio (incl. unappropriated profit)
  Total capital adequacy ratio (%)                                                                                     16.4
  Tier I capital adequacy ratio (%)                                                                                    14.3
  Common Equity Tier I capital adequacy ratio (%)                                                                      13.5


  Leverage ratio
  Tier I capital (excl. unappropriated profit) (Rm)                                                                181 365
  Tier I capital (incl. unappropriated profit) (Rm)                                                                193 491
  Total exposures (Rm)                                                                                          2 444 141
  Leverage ratio (excl. unappropriated profits, %)                                                                          7.4
  Leverage ratio (incl. unappropriated profits, %)                                                                          7.9




Note:
1
  Including unappropriated profits.
2 Measured at 13% and excludes confidential bank-specific capital requirements. 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 2022 (Rm)


Ordinary share capital and premium                                    49 313
                                    1
Ordinary shareholders' reserves                                       52 143
Regulatory deductions against Common Equity Tier I capital            (9 499)
Common Equity Tier I capital                                          91 957
Unappropriated profit                                                 (2 872)
Common Equity Tier 1 capital excl. unappropriated profit              89 085
Qualifying other equity instruments                                    8 772
Tier I capital excl. unappropriated profit                            97 857
Qualifying Tier II subordinated debt                                  20 636
General allowance for credit impairments                               2 864
Tier II capital                                                       23 501
Total regulatory capital excl. unappropriated profit                 121 357




                                                             March 2022 (Rm)


Credit risk                                                           74 993
Counterparty credit risk                                               9 027
Equity risk in the banking book                                          974
Market risk                                                            5 659
Operational risk                                                      13 120
Investments in financial entities                                      2 254
Total minimum regulatory capital requirement 2                       106 027
                                                                                                        March 2022 (Rm)

  Capital Adequacy Ratio (excl. unappropriated profit)
  Total capital adequacy ratio (%)                                                                                      15.5
  Tier I capital adequacy ratio (%)                                                                                     12.5
  Common Equity Tier I capital adequacy ratio (%)                                                                       11.3

  Capital Adequacy Ratio (incl. unappropriated profit)
  Total capital adequacy ratio (%)                                                                                      15.8
  Tier I capital adequacy ratio (%)                                                                                     12.8
  Common Equity Tier I capital adequacy ratio (%)                                                                       11.7


  Leverage ratio
  Tier I capital (excl. unappropriated profit) (Rm)                                                                  97 857
  Tier I capital (incl. unappropriated profit) (Rm)                                                                100 729
  Total exposures (Rm)                                                                                           1 864 313
  Leverage ratio (excl. unappropriated profits, %)                                                                        5.2
  Leverage ratio (incl. unappropriated profits, %)                                                                        5.4

Note:
1 Including unappropriated profits.
2 Measured at 13.5% and excludes any confidential bank-specific capital requirements. 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.

The temporary liquidity relief measure granted by the South African Reserve Bank (SARB)
due to the effects of Covid-19 pandemic has been withdrawn in a phased approach whereby
the minimum regulatory requirement increased from 80% to 90% effective 1 January 2022
as per the SARB Prudential Authority directive D8/2021 issued on 29 October 2021.




                                                     Standard Bank Group
                                                            Consolidated                    SBSA Solo
                                                           31 March 2022                 31 March 2022
                                                                     Rm                            Rm

 Total HQLA                                                         367 507                      226 079
 Net cash outflows                                                  259 951                      201 958
 LCR (%)                                                              141.4                        111.9
 Minimum requirement (%)                                               90.0                         90.0

 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 90% 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 2022 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 2022, 28
    February 2022 and 31 March 2022. 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 2022                  31 March 2022
                                                                     Rm                             Rm

    Available stable funding                                       1 403 009                      956 614
    Required stable funding                                        1 158 557                      903 804
    NSFR (%)                                                           121.1                        105.8
    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 2022

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: 25-05-2022 08:00:00
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Disclaimer

Standard Bank Group Ltd. published this content on May 25, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on May 25, 2022 4:12:57 PM UTC.

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Analyst Recommendations for STANDARD BANK GROUP LIMITED

2022 sales 124B
7,986 million
7,986 million
Net income 2022 30,329 million
1,947 million
1,947 million
Net debt 2022

PER 2022 ratio 9.06x
2022 return 6.51%
Capitalization 277B
17,815 million
17,815 million
capi. / Sales 2022 2.23x
capi. / Sales 2023 2.07x
# of employees 49,224
Floating 93.7%

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Sallie R. Loera