Quarterly Capital Disclosure

RNS Number : 3522W

Investec PLC

31 July 2018

 

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

 

As part of the dual listed company structure, Investec plc and Investec Limited notify both the London Stock Exchange and the JSE Limited of matters which are required to be disclosed under the Disclosure Guidance, Transparency Rules (DTR) and Listing Rules of the United Kingdom Listing Authority (the "UKLA") and/or the JSE Listing Requirements.

Accordingly, we advise of the following:

 

Investec Limited - Basel III disclosures at 30 June 2018

 

Capital disclosures

The disclosures below are made with respect to Basel III quarterly disclosure requirements. Investec Limited 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%. 

	Investec Limited*º	IBL*º
As at 30 June 2018	R'mn	R'mn
Common equity tier 1 capital	34,959	34,452
Additional tier 1 capital	2,797	963
Tier 1 capital	37,756	35,415
Tier 2 capital	12,892	14,231
Total regulatory capital	50,648	49,646
Risk-weighted assets per risk type:
Credit risk	274,079	269,738
Counterparty credit risk	5,486	5,535
Credit valuation adjustment risk	1,859	1,883
Equity risk	26,293	23,422
Market Risk	3,549	2,694
Operational risk	31,578	21,779
Total risk-weighted assets	342,844	325,051
Total minimum capital requirement	38,141	36,162
Capital ratios
Common equity tier 1 ratio	10.2%	10.6%
Tier 1 ratio	11.0%	10.9%
Total capital adequacy ratio	14.8%	15.3%

Leverage ratio disclosures

	Investec Limited*	IBL*
As at 30 June 2018	R'mn	R'mn
Tier 1 capital	37,756	35,415
Total exposure	498,957	472,789
Leverage ratio	7.6%	7.5%

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

º Investec Limited's and IBL's capital information includes unappropriated profits. If unappropriated profits are excluded from capital information, all Investec Limited's capital ratios would be 65bps lower and IBL's capital ratios would be 47bps lower.

Liquidity disclosures

Liquidity coverage ratio (LCR)

The objective of the 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 minimum LCR requirement in South Africa is 90% for 2018, increasing by 10% each year to 100% on 1 January 2019. This applies to both Investec Bank Limited (IBL) (solo basis) and Investec Bank Limited (IBL) consolidated group.

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. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord, as specified by BCBS d400 (2017) and Directive D1/2018.

The following table sets out the LCR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:

	IBL (solo basis) - Total weighted value	IBL consolidated group - Total weighted value
High quality liquid assets (HQLA) (R'mn)	83,858	84,969
Net cash outflows (R'mn)	61,676	62,573
Actual LCR	136.2%	136.1%
Required LCR	90%	90%

The values in the table are calculated as the simple average of 91 calendar daily values over the period 1 April 2018 to 30 June 2018 for IBL (solo basis). IBL consolidated group values use daily values for IBL (solo basis), while those for other group entities use the average of April, May, June 2018 month-end values.

Net stable funding ratio (NSFR)

The objective of the NSFR is to promote the resilience in the banking sector by requiring banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities on an ongoing structural basis. By ensuring that banks do not embark on excessive maturity transformation that is not sustainable, the NSFR is intended to reduce the likelihood that disruptions to a bank's funding sources would erode its liquidity position, increasing its risk of failure and potentially lead to broader systemic risk.

The minimum NSFR requirement in South Africa is 100%. This applies to both IBL (solo basis) and IBL consolidated group.

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 NSFR disclosure requirements. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord, as specified by Directive 11/2015 and Directive 01/2018.

The following table sets out the NSFR for IBL (solo basis) and IBL consolidated group as at 30 June 2018:

	IBL (solo basis)	IBL consolidated group
Actual NSFR	107.9%	108.6%
Required NSFR	100%	100%

Further disclosures with respect to Investec Limited's and Investec Bank Limited's capital and liquidity is provided on the Investec website as required by the relevant regulations.

Johannesburg

31 July 2018

Sponsor: Investec Bank Limited

 

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