Absa Pillar 3 disclosure
For the six months ended 30 June 2008
Capital management and allocation/capital adequacy
Liquidity and funding risk
List of abbreviations
Absa Group Limited Absa Pillar 3 disclosure June 2008
The purpose of this document is to disclose the capital adequacy position, risk profile and risk
management practices within Absa Group Limited (Absa, Absa Group or Group) as required by
Regulation 43 of the regulations relating to banks detailing Basel II, Pillar 3 disclosure. The document
will discuss strategies, processes, structure and organisation, scope and nature of risk measurement
systems and reporting within the Group, including risk mitigation strategies and the effectiveness of
these. Risks covered will include credit risk, market risk, interest rate risk, liquidity risk, operational risk
and other major risks managed within the Group.
The Pillar 3 disclosure applies to the Absa Group Limited and all its subsidiaries but specifically
excludes all regulated insurance entities.
Absa Group Limited (consolidated controlling company) has adopted the same basis of consolidation
for both accounting and regulatory purposes with full consolidation of Absa Bank Limited (Absa Bank
or Bank); Barclays Bank Mozambique S.A.; National Bank of Commerce Limited; Absa Stockbrokers
(Proprietary) Limited; Asset Backed Arbitraged Securities (Proprietary) Limited; Collateralised Auto
Receivables Securitisation 1 (Proprietary) Limited; Collateralised Auto Receivables Securitisation
Programme (Proprietary) Limited; Sanlam Home Loans (Proprietary) Limited and Home Obligors
Mortgage Enhanced Securities (Proprietary) Limited.
There is no aggregate amount of capital deficiencies in subsidiaries not included in the consolidation.
Insurance entities within the Group for which a deduction treatment has been appli