Investec PLC Quarterly Capital Disclosure (3522W)

TIDMINVP

RNS Number : 3522W

Investec PLC

31 July 2018

 
 Investec Limited                         Investec plc 
  Incorporated in the Republic of South    Incorporated in England 
  Africa                                   and Wales 
  Registration number 1925/002833/06       Registration number 3633621 
  JSE share code: INL                      LSE share code: INVP 
  NSX share code: IVD                      JSE share code: INP 
  BSE share code: INVESTEC                 ISIN: GB00B17BBQ50 
  ISIN: ZAE000081949 
 

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*         IBL* 
 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.

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) -      IBL consolidated group 
                                Total weighted value    - 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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July 31, 2018 10:30 ET (14:30 GMT)