REG - Investec PLC - Investec Limited Capital Disclosure

InvestecAnnouncement

31/01/2022 14:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220131:nRSe1834Aa&default-theme=true

RNS Number : 1834A  Investec PLC  31 January 2022

 Investec Limited                               Investec plc
 Incorporated in the Republic of South Africa   Incorporated in England 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

ISIN: GB00B17BBQ50
 BSE share code: INVESTEC

                                              LEI: 2138007Z3U5GWDN3MY22
 ISIN: ZAE000081949

 LEI: 213800CU7SM6O4UWOZ70

 

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 31 December 2021

 

Capital disclosures

Investec Limited calculates capital resources and requirements at a group
level using the Basel III framework, as implemented in South Africa by the
South African Prudential Authority, in accordance with the Bank's Act and all
related regulations. Investec Limited continues to hold capital in excess of
regulatory requirements and board-approved minimum targets.

 

                                      Including unappropriated profits
                                      Investec Limited*       IBL*
 As at 31 December 2021               R'mn                    R'mn

 Common equity tier 1 capital                45,576              45,560

 Additional tier 1 capital                     3,381                  2,613

 Tier 1 capital                              48,957              48,173

 Tier 2 capital                              8,261               11,164

 Total regulatory capital                    57,218              59,337

 Risk-weighted assets per risk type:
 Credit risk                                243,872            241,652
 Counterparty credit risk                      8,537               8,643
 Credit valuation adjustment risk              3,837               3,900
 Equity risk                          24,822                     10,516
 Market Risk                          3,819                   3,128
 Operational risk                            27,172              22,855
 Total risk-weighted assets                 312,059            290,694

 Total minimum capital requirement           34,326              31,976

 Capital ratios
 Common equity tier 1 ratio           14.6%                   15.7%
 Tier 1 ratio                         15.7%                   16.6%
 Total capital adequacy ratio         18.3%                   20.4%

 

 

 

 

 

 

 

 

Leverage ratio disclosures

                         Including unappropriated profits
                         Investec Limited*   IBL*
 As at 31 December 2021  R'mn                R'mn
 Tier 1 capital          48,957              48,173
 Total exposure                623,591        589,748
 Leverage ratio          7.9%                8.2%

 

 

 

 

                                      Excluding unappropriated profits
                                      Investec Limited*  IBL*
 As at 31 December 2021               R'mn               R'mn

 Common equity tier 1 capital         41,778             43,857

 Additional tier 1 capital            3,388              2,614

 Tier 1 capital                       45,166             46,471

 Tier 2 capital                       8,311              11,163

 Total regulatory capital             53,477             57,634

 Risk-weighted assets per risk type:
 Credit risk                          242,909            241,652
 Counterparty credit risk             8,537              8,643
 Credit valuation adjustment risk     3,837              3,900
 Equity risk                          24,210             10,516
 Market Risk                          3,819              3,128
 Operational risk                     27,172             22,855
 Total risk-weighted assets           310,484            290,694

 Total minimum capital requirement    34,153             31,976

 Capital ratios
 Common equity tier 1 ratio           13.5%              15.1%
 Tier 1 ratio                         14.5%              16.0%
 Total capital adequacy ratio         17.2%              19.8%

 

 

Leverage ratio disclosures

                         Excluding unappropriated profits
                         Investec Limited*  IBL*
 As at 31 December 2021  R'mn               R'mn
 Tier 1 capital          45,166             46,471
 Total exposure          623,061            589,748
 Leverage ratio          7.2%               7.9%

 

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

 

 

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.

 

With effect from 1 April 2020, the minimum LCR requirement in South Africa was
reduced from 100% to 80%. As the PA is now of the view that this relief
measure is no longer necessary, the minimum LCR requirement has been revised
to 90% from 1 January 2022 and back to 100% from 1 April 2022. This applies
for 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 for the quarter ending 31 December 2021:

 

                                           IBL (solo basis) - Total weighted value  IBL consolidated group - Total weighted value
 High quality liquid assets (HQLA) (R'mn)  94,350                                   96,607
 Net cash outflows (R'mn)                  63,634                                   63,573
 Actual LCR                                150.2%                                   153.8%
 Required LCR                              80%^                                     80%^

^ - temporarily reduced from 100% by the PA.

 

The values in the table are calculated as the simple average of 92 calendar
daily values over the period 1 October 2021 to 31 December 2021 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 October, November and
December 2021 month-end values.

 

Net stable funding ratio (NSFR)

The objective of the NSFR is to promote the resilience of 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, increase 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 31 December 2021:

 

                IBL (solo basis)  IBL consolidated group
 Actual NSFR    115.3%            115.8%
 Required NSFR  100%              100%

 

 

 

 

 

 

Further disclosures with respect to Investec Limited's and Investec Bank
Limited's capital and liquidity will be provided on the Investec website in
due course as required by the relevant regulations.

 

31 January 2022

Sponsor: Investec Bank Limited

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCZZGFMFMKGZZM