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 2017
31 January 2018
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*º |
As at 31 December 2017 |
GBP 'mn |
GBP 'mn |
R'mn |
R'mn |
|
|
|
|
|
Common equity tier 1 capital |
1,578 |
1,645 |
32,347 |
34,168 |
|
|
|
|
|
Additional tier 1 capital |
274 |
200 |
2,917 |
767 |
|
|
|
|
|
Tier 1 capital |
1,852 |
1,845 |
35,264 |
34,935 |
|
|
|
|
|
Tier 2 capital |
393 |
473 |
12,680 |
13,997 |
|
|
|
|
|
Total regulatory capital |
2,245 |
2,318 |
47,944 |
48,932 |
|
|
|
|
|
Risk-weighted assets per risk type: |
|
|
|
|
Credit risk |
10,816 |
10,583 |
264,728 |
259,699 |
Counterparty credit risk |
579 |
588 |
6,244 |
6,262 |
Credit valuation adjustment risk |
112 |
112 |
2,894 |
2,912 |
Equity risk |
74 |
74 |
27,758 |
25,974 |
Market Risk |
1,173 |
1,149 |
5,173 |
3,875 |
Operational risk |
2,087 |
1,656 |
31,687 |
22,207 |
Total risk-weighted assets |
14,841 |
14,162 |
338,484 |
320,929 |
|
|
|
|
|
Total minimum capital requirement |
1,187 |
1,133 |
36,387 |
34,500 |
|
|
|
|
|
Capital ratios |
|
|
|
|
Common equity tier 1 ratio |
10.6% |
11.6% |
9.6% |
10.6% |
Tier 1 ratio |
12.5% |
13.0% |
10.4% |
10.9% |
Total capital ratio |
15.1% |
16.4% |
14.2% |
15.2% |
Leverage ratio disclosures
|
Investec plc*^ |
IBP*^ |
Investec Limited* |
IBL* |
As at 31 December 2017 |
GBP 'mn |
GBP 'mn |
R'mn |
R'mn |
|
|
|
|
|
Tier 1 capital |
1,852 |
1,845 |
35,264 |
34,935 |
Total exposure |
19,974 |
19,613 |
488,886 |
461,387 |
Leverage ratio |
9.3% |
9.4% |
7.2% |
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 above 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 foreseeable dividends when calculating CET1 capital as required under the Capital Requirements Regulation and EBA technical standards and in line with Investec's normal basis of presentation includes unaudited profits for the current quarter. If unaudited profits are excluded from the capital information, Investec plc's and IBP's common equity tier 1 and total capital ratios would be 37bps and 34bps lower respectively.
º IBL's capital information includes unappropriated profits. If unappropriated profits are excluded from capital information, all IBL's capital ratios would be 13bps lower.
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.
Investec Bank Limited (solo basis) and Investec Bank Limited Consolidated Group
The minimum LCR requirement in South Africa was 80% throughout 2017, increasing 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 as at 31 December 2017:
R'mn |
Investec Bank Limited Solo - Total weighted value |
Investec Bank Limited Consolidated Group - Total weighted value |
High quality liquid assets (HQLA) |
75,603 |
76,144 |
Net cash outflows |
57,244 |
53,265 |
Actual LCR (%) |
132.4% |
130.4% |
Required LCR (%) |
80% |
80% |
The values in the table are calculated as the simple average of 92 calendar daily values over the period 1 October 2017 to 31 December 2017 for Investec Bank Limited (IBL) bank solo. Investec Bank Limited consolidated group values use daily values for IBL bank solo, while those for other group entities use the average of October, November, December 2017 month-end values.
Investec plc, Investec Bank plc (solo basis)
On 1 October 2015 under European Commission Delegated Regulation 2015/61, the LCR became the PRA's primary regulatory reporting standard for liquidity. The LCR is a Pillar 1 metric to which the PRA apply Pillar 2 add-ons. The LCR is being introduced on a phased basis, and the PRA has opted to impose higher liquidity coverage requirements during the phased-in period than the minimum required by CRD IV. From 1 January 2017, UK banks were required to maintain a minimum of 90%, rising to 100% on 1 January 2018. The published LCR excludes Pillar 2 add-ons.
For Investec plc and Investec Bank plc (solo basis), the LCR is calculated using our own interpretations of the EU Delegated Act. The reported LCR may change over time with regulatory developments.
The LCR reported to the PRA at 31 December 2017 was 380% for Investec plc and 443% for Investec Bank plc (solo basis).
Johannesburg and London
31 January 2018
Sponsor: Investec Bank Limited
