Capital Disclosures

RNS Number : 6872N

Investec PLC

02 February 2016

 

Investec Limited Incorporated in the Republic of South Africa Registration number 1925/002833/06 JSE share code: INL NSX share code: IVD BSE share code: INVESTEC ISIN: ZAE000081949

Investec plc Incorporated in England and Wales Registration number 3633621 LSE share code: INVP JSE share code: INP ISIN: GB00B17BBQ50

 

Investec (comprising Investec plc and Investec Limited) - Basel III disclosures at 31 December 2015

 

2 February 2016

Capital disclosures

The disclosures below are made with respect to Basel III quarterly disclosure requirements. The group holds capital in excess of regulatory requirements targeting a minimum common equity tier one capital ratio above 10% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc and Investec Limited. 

	Investec plc*^	IBP*^	Investec Limited*^	IBL*^
As at 31 Dec 2015	GBP 'mn	GBP 'mn	R'mn	R'mn
Common equity tier 1 capital before deductions	1,708	1,810	27,037	29,576
Deductions	(609)	(404)	1,093	1,176
Common equity tier 1 capital	1,099	1,406	28,130	30,752
Additional tier 1 capital	130	-	3,924	1,074
Tier 1 capital	1,229	1,406	32,054	31,826
Tier 2 capital	533	590	10,149	10,454
Total regulatory capital	1,762	1,996	42,203	42,280
Risk-weighted assets per risk type:
Credit risk	7,942	7,857	228,644	226,801
Counterparty credit risk	444	447	6,704	6,704
Credit valuation adjustment risk	48	49	2,839	2,839
Equity risk	625	579	38,701	45,508
Market risk	886	855	4,575	4,151
Operational risk	1,784	1,416	24,831	16,522
Total risk-weighted assets	11,729	11,203	306,294	302,525
Total minimum capital requirement	938	896	30,629	30,253
Capital ratios
Common equity tier 1 ratio	9.4%	12.6%	9.2%	10.2%
Tier 1 ratio	10.5%	12.6%	10.5%	10.5%
Total capital ratio	15.0%	17.8%	13.8%	14.0%

Leverage ratio disclosures

	Investec plc*^	IBP*^	Investec Limited*^	IBL*^
As at 31 Dec 2015	GBP 'mn	GBP 'mn	R'mn	R'mn
Tier 1 capital	1,229	1,406	32,054	31,826
Total exposure	17,424	17,359	452,353	419,847
Leverage ratio	7.1%	8.1%	7.1%	7.6%

* Where: IBP is Investec Bank plc consolidated and IBL is Investec Bank Limited consolidated. The information for Investec plc includes the information for IBP. The information for Investec Limited includes the information for IBL.

^ The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent basis of calculation across the jurisdictions in which the group operates. For Investec plc and IBP this does not include the deduction of forseeable dividends when calculating CET1 capital as now required under the Capital Requirements Regulation and EBA technical standards. Investec plc's capital information includes unaudited profits for the last quarter. If unaudited profits are excluded from the capital information, all of Investec plc's capital ratios would be 20bps lower. IBL's capital information includes unappropriated profits. If unappropriated profits are excluded from the capital information, all of IBL's capital ratios would be 13bps lower. Investec Limited has no unappropriated profits included in its capital information.

Liquidity coverage ratio disclosure

The objective of the liquidity coverage ratio (LCR) 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 LCR was phased in at 60% on 1 January 2015, and will increase by 10% each year to 100% on 1 January 2019.

In accordance with the provisions of section 6(6) of the South African Banks Act 1990 (Act No. 94 of 1990), banks are directed to comply with the relevant LCR disclosure requirements, as set out in Directive 6/2014 and Directive 11/2014. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord.

The following table sets out the LCR for Investec Bank Limited (solo basis) and Investec Bank Consolidated Group.

R'mn	Investec Bank Limited Solo - Total weighted value	Investec Bank Limited Consolidated Group - Total weighted value
High quality liquid assets (HQLA)	55,030	55,063
Net cash outflows	46,723	44,105
Actual LCR (%)	118.8	126.2
Required LCR (%)	60.0	60.0

The values in the table are calculated as the simple average of daily observations over the period 1 October 2015 to 31 December 2015 for Investec Bank Limited (IBL) bank solo. 57 business day observations were used. IBL consolidated group values use daily values for IBL bank solo, while those for other group entities use the average of October, November and December 2015 month-end values.

Johannesburg & London

Sponsor: Investec Bank Limited

 

END

 

 

MSCUASVRNRAURAR