Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2019 Standard Bank Group Limited (Incorporated in the Republic of South Africa) Registration No. 1969/017128/06 JSE and A2X share code: SBK NSX share code: SNB ISIN: ZAE000109815 (“Standard Bank Group” or “the group”) Basel III capital adequacy, leverage ratio and liquidity coverage ratio disclosure as at 31 March 2019. In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to banks and Directive 4/2014, Directive 11/2015 and Directive 1/2018 issued in terms of section 6(6) of the Banks Act (Act No. 94 of 1990), minimum disclosure on the capital adequacy of the group and its leverage ratio is required on a quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III accord. Standard Bank Group capital adequacy and leverage ratio March 2019 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 17 860 17 860 Ordinary shareholders' reserves3 145 680 145 680 Qualifying Common Equity Tier I non-controlling interest 5 909 5 909 Regulatory deductions against Common Equity Tier I capital (26 267) (29 651) Common Equity Tier I capital 143 182 139 798 Unappropriated profit (9 552) (9 552) Common Equity Tier 1 capital excl. unappropriated profit 133 630 130 246 Qualifying other equity instruments 7 660 7 660 Qualifying Tier I non-controlling interest 1 223 1 223 Tier I capital excl. unappropriated profit 142 513 139 129 Qualifying Tier II subordinated debt 16 648 16 648 General allowance for credit impairments 3 324 5 215 Tier II capital 19 972 21 863 Total regulatory capital excl. unappropriated profit 162 485 160 992 March 2019 (Rm) Transitional1 Fully loaded2 Credit risk 85 612 85 612 Counterparty credit risk 3 085 3 085 Equity risk in the banking book 584 584 Market risk 8 828 8 828 Operational risk 19 106 19 106 Investments in financial entities 5 796 5 657 Total minimum regulatory capital requirement 4 123 011 122 872 March 2019 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.2 15.2 Tier I capital adequacy ratio (%) 13.4 13.0 Common Equity Tier I capital adequacy ratio (%) 12.5 12.2 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 16.1 16.0 Tier I capital adequacy ratio (%) 14.2 13.9 Common Equity Tier I capital adequacy ratio (%) 13.4 13.1 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 142 513 139 129 Tier I capital (incl. unappropriated profit) (Rm) 152 065 148 681 Total exposures (Rm) 1 862 636 1 859 324 Leverage ratio (excl. unappropriated profits, %) 7.7 7.5 Leverage ratio (incl. unappropriated profits, %) 8.2 8.0 Note: 1 Represents IFRS 9 transition impact as allowed by the SARB. 2 Represents fully loaded Expected Credit Loss (ECL) accounting results (full IFRS 9 impact). 3 Including unappropriated profits. 4 Measured at 11.5% in line with Basel III transitional requirements and excludes any bank-specific capital requirements. There is currently no requirement for the countercyclical buffer add-on in South Africa. The impact on the group’s countercyclical buffer requirement from other jurisdictions in which the group operates is insignificant (buffer requirement of 0.0207%). The Standard Bank of South Africa (SBSA) and its subsidiaries capital adequacy and leverage ratio March 2019 (Rm) Transitional1 Fully loaded2 Ordinary share capital and premium 45 248 45 248 3 Ordinary shareholders' reserves 48 965 48 965 Regulatory deductions against Common Equity Tier I capital (12 951) (14 336) Common Equity Tier I capital 81 262 79 877 Unappropriated profit (4 923) (4 923) Common Equity Tier 1 capital excl. unappropriated profit 76 339 74 954 Qualifying other equity instruments 5 462 5 462 Tier I capital excl. unappropriated profit 81 801 80 416 Qualifying Tier II subordinated debt 15 365 15 365 General allowance for credit impairments 1 378 2 681 Tier II capital 16 743 18 046 Total regulatory capital excl. unappropriated profit 98 544 98 462 March 2019 (Rm) Transitional1 Fully loaded2 Credit risk 54 471 54 471 Counterparty credit risk 2 755 2 755 Equity risk in the banking book 185 185 Market risk 5 606 5 606 Operational risk 11 241 11 241 Investments in financial entities 1 526 1 526 Total minimum regulatory capital requirement 4 75 784 75 784 March 2019 Transitional1 Fully loaded2 Capital Adequacy Ratio (excl. unappropriated profit) Total capital adequacy ratio (%) 15.0 15.0 Tier I capital adequacy ratio (%) 12.4 12.2 Common Equity Tier I capital adequacy ratio (%) 11.6 11.4 Capital Adequacy Ratio (incl. unappropriated profit) Total capital adequacy ratio (%) 15.7 15.7 Tier I capital adequacy ratio (%) 13.2 13.0 Common Equity Tier I capital adequacy ratio (%) 12.4 12.1 Leverage ratio Tier I capital (excl. unappropriated profit) (Rm) 81 801 80 416 Tier I capital (incl. unappropriated profit) (Rm) 86 724 85 339 Total exposures (Rm) 1 519 572 1 518 187 Leverage ratio (excl. unappropriated profits, %) 5.4 5.3 Leverage ratio (incl. unappropriated profits, %) 5.7 5.6 Note: 1 Represents IFRS 9 transition impact as allowed by the SARB. 2 Represents fully loaded ECL accounting results (full IFRS 9 impact). 3 Excluding unappropriated profits. 4 Measured at 11.5% in line with Basel III transitional requirements and excludes any bank-specific capital requirements. There is currently no requirement for the countercyclical buffer add-on in South Africa. The impact on the group’s countercyclical buffer requirement from other jurisdictions in which the group operates is insignificant (buffer requirement of 0.0164%). Liquidity Coverage Ratio In terms of the Basel III requirements in Directive 11/2014 issued in terms of section 6(6) of the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum disclosure on the liquidity coverage ratio (LCR) on both a SBG group consolidated as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord. The LCR is designed to promote short-term resilience of the 30 calendar day liquidity profile, by ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential outflows in a stressed environment. The Standard Bank of Standard Bank Group South Africa Limited Consolidated (“SBSA”) Solo 31 March 2019 31 March 2019 Rm Rm Total HQLA 272 306 178 465 Net cash outflows 219 933 136 790 LCR (%) 123.8 130.5 Minimum requirement (%) 100.0 100.0 Note: 1. Only banking and/or deposit taking entities are included. The group data represents a consolidation of the relevant individual net cash outflows and the individual HQLA portfolios, where surplus HQLA holding in excess of the minimum requirement of 100% have been excluded from the aggregated HQLA number in the case of all Africa Regions entities. 2. The above figures reflect the simple average of 90 days of daily observations over the quarter ended 31 March 2019 for SBSA including SBSA Isle of Man branch, Stanbic Bank Ghana, Stanbic Bank Uganda, Stanbic IBTC Bank Nigeria, Standard Bank Namibia, Standard Bank Isle of Man Limited and Standard Bank Jersey Limited. The remaining Africa Regions banking entities results are based on the average of the month-end data points at 31 January 2019, 28 February 2019 and 31 March 2019. The figures are based on the regulatory submissions to the South African Reserve Bank. 3. SBSA Solo disclosure excludes foreign branches. Net Stable Funding Ratio In terms of the Basel III requirements in Directive 8/2017 issued in terms of section 6(6) of the Banks Act, (Act No. 94 of 1990), banks are directed to comply with the minimum disclosure on the net stable funding ratio (NSFR) on both a SBG group consolidated as well as SBSA Solo entity level. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord. The objective of the Basel III Net stable funding ratio (NSFR) is to promote funding stability and resilience in the banking sector by requiring banks to maintain a stable funding profile in relation to the composition of assets and off-balance sheet activities. . Standard Bank Group Consolidated SBSA Solo 31 March 2019 31 March 2019 Rm Rm Available stable funding 1 097 352 784 622 Required stable funding 944 637 739 388 NSFR (%) 116.2 106.1 Minimum requirement (%) 100.0 100.0 The information contained in this announcement has not been reviewed and reported on by the group's external auditors. Johannesburg 28 May 2019 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor J P Morgan Equities South Africa Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 28/05/2019 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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