Absa Group Limited · JSE:ABG
Absa — Barclays Africa Group — Debt Investor Presentation (September 2017)
23 slides from Absa's debt investor presentation, September 2017
Slide 1: Barclays Africa Group Limited Fixed Income Investor Deal Roadshow
Barclays Africa Group Limited (“BAGL”) Fixed Income Investor Deal Roadshow September 2017
Slide 2: Table of Contents
Table of Contents 1. BAGL Update 2. Capital Position and Themes 3. Funding and Liquidity Management 4. Proposed Fixed Income Market Offering 5. Appendix 2 | BAGL South African Fixed Income Investor Roadshow | September 2017
Slide 3: BAGL Update
BAGL Update @ BARCLAYS
Slide 4: BAGL at a Glance
BAGL at a Glance We serve 11.6m customers R1.1 trillion R122 billion Balance Sheet Market Capitalisation in 12 African countries 16.8% 55.6% Return on Equity Cost to income Ratio 11 Subsidiaries (RoE) 2 Representative Offices 7% 118.9% Growth in Headline LCR Earnings providing diverse financial serv
Slide 5: Barclays PLC Sell-Down
Barclays PLC Sell-Down March 2016 May 2016 February 2017 May/June 2017 • On 1st of March 2016 • On the 4th of May Barclays • Barclays PLC submitted an application to the • Barclays PLC and BAGL received Barclays PLC announced PLC announced its intention SARB for approval to reduce its shareholding i
Slide 6: Capital Position and Themes
Capital Position and Themes BARCLAYS
Slide 7: Phased-in Minimum Industry Requirements
Phased-in Minimum Industry Requirements Industry Phase-in of SARB South Africa Aligned to Basel III Minimum Capital Requirements Individual capital requirements or Pillar 2B 11.50% 10.75% 10.75% 12% Bank-specific individual capital requirement 9.25% 2.25% Not disclosed externally 8.88% 8.50% 2.2
Slide 8: BAGL Group Capital Composition – June 2017
BAGL Group Capital Composition – June 2017 Regulatory Absa Bank Absa Bank Entity (As at Jun-17) BAGL(1) Residual 2017 Targets BAGL Minimum Limited Limited 2019 1 Total Assets R1.138bn R948.52bn R189bn CET1 – Regulatory Headline Earnings(3) R7.618bn R4.805bn R2.813bn (1) 7.3% 7.3% 7.5% minimum Common
Slide 9: Capital Levels Post Barclays PLC Sell-down
Capital Levels Post Barclays PLC Sell-down Barclays Africa Group Common Equity Tier 1 Ratio (%) Risk Weighted Assets (R’bn) 41 103 1.6 13.7 12.1 12.1 (0.3) 1.0 (0.7) (0.0) 32 Board range: 10.0% - 11.5% (Regulatory min: 7.3%) 32 516 FY16 RWA Profit Dividend Other 1H17 Barclays 1H17 Movement Normalise
Slide 10: Funding and Liquidity Management
Funding and Liquidity Management
Slide 11: Liquidity Position
Liquidity Position BAGL Liquidity Coverage Ratio (LCR) BAGL Summary Liquid Assets and Reserves Position (Rbn) 130% 190 118.9% 120% 170 33.2 39.7 110% 95.2% 150 100% 90% 130 31.6 80% 69.9% 110 31.8 70% 90 144.7 143.0 60% 80% 70 105.3 50% 70% 88.5 60% 50 40% 30% 30 Dec 2015 Dec 2016 Jun 2017 Dec 2014
Slide 12: Funding
Funding BAGL Funding Composition June 17 Long Term Funding Ratio 6% 22% 18% 21% 20% 21.8% 21.4% 21.0% 23% 19% 53% 18% Dec-15 Dec-16 Jun-17 Deposits from Banks Demand Deposits BAGL Term Deposits Debt Securities in Issue Diversification: • The Group has a well-diversified deposit base and concentratio
Slide 13: Proposed Fixed Income Market Offering
Proposed Fixed Income Market Offering
Slide 14: Previous Price Points
Previous Price Points Previous Pricing Points for Tier II Floating Rate Notes Bps 500 450 Idiosyncratic stress 400 Draft Recovery & Resolution Regime 350 New-style Tier 2 language 300 Regulatory Global Financial grandfathering Crisis after effects cut-off 250 ABL curatorship 200 Sparse issuance acti
Slide 15: BAGL/Absa South Africa Debt Maturity Profile
BAGL/Absa South Africa Debt Maturity Profile Rm 10,000 8,000 6,000 4,000 2,000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Absa Senior Absa Tier 2 BAGL Tier 2 BAGL AT1 Source: BAGL, Absa Sep 2017 Note: Graph excludes unlisted and structured notes Graphed to call date where applicable. T
Slide 16: Indicative term sheet
Indicative term sheet INDICATIVE BAGL TIER II SUBORDINATED ISSUANCE TERM SHEET Issuer Barclays Africa Group Limited (“BAGL”) Manager & Dealer Absa Corporate & Investment Bank Documentation ZAR 30bn DMTN Programme Issuance listing & settlement The Interest Rate Market of the JSE Moody’s Investor Serv
Slide 17: Appendix
Appendix @ BARCLAYS
Slide 18: South African Big Four Bank Credit Ratings
South African Big Four Bank Credit Ratings Ratings Global LT Foreign Currency Group: Ba1 (Neg) Group: Ba1 (Neg) Baa3 (Neg) Bank: Baa3 (Neg) Bank: Baa3 (Neg) Bank: Baa3 (Neg) Bank: Baa3 (Neg) Global LT Local Currency Group: Aa3.za Nat’l LT National Scale Bank: Aa1.za Bank: Aaa.za Bank: Aa1.za Bank: A
Slide 19: Tier II Instrument Overview
Tier II Instrument Overview Example of reference language used in BAGL’s Subordinated Shared Features Tier II Tier II 10NC5 + 1 Day APS (BGL16*) • After 5 years Callable • No explicit or implicit indications that the instruments would or might be called, redeemed or purchased • Not allowed Coupon st
Slide 20: SA Approach to Loss Absorption
SA Approach to Loss Absorption • South Africa as a member of the G20 subscribes to the FSB key attributes of effective resolution regimes which reinforces the hierarchy of claims and the concept of No Creditor Worse Off (NCWO) than under liquidation • The South African Reserve Bank (SARB) has releas
Slide 21: Quick Links
Quick Links • Liquidity Coverage Ratio (Jan 2013) - http://www.bis.org/publ/bcbs238.htm • Net Stable Funding Ratio (Oct 2014) - http://www.bis.org/bcbs/publ/d295.htm • TLAC - http://www.financialstabilityboard.org/wp-content/uploads/TLAC-Condoc-6-Nov-2014-FINAL.pdf Basel / FSB / • MREL - https://www
Slide 22: Contacts
Contacts Barclays Africa Syndicate Deon Raju – BAGL Treasurer Matt Duggan – Head, Principal Tel no. 011- 895 7107 / [email protected] Tel no. 011- 895 7864 / [email protected] Rolf van den Heever – Head, CME & Balance Sheet Management Muhammad Motala – Vice Principal Tel no. 011- 895
Slide 23: Disclaimer
Disclaimer This document has been compiled by Absa Corporate and Investment Bank (“Absa CIB”), a division of Absa Bank Limited, a registered bank in the Republic of South Africa (Registration number 1986/04794/06) and with its registered office at Absa Towers East, 170 Main Street, Johannesburg ("Ab
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