CAPITEC BANK HOLDINGS LIMITED - Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

Capitec Bank Holdings Limited
Registration number: 1999/025903/06
Registered bank controlling company
Incorporated in the Republic of South Africa
JSE ordinary share code: CPI   ISIN code: ZAE000035861
JSE preference share code: CPIP   ISIN code: ZAE000083838
(“Capitec”)

QUARTERLY DISCLOSURE IN TERMS OF REGULATION 43 OF THE REGULATIONS RELATING
TO BANKS

Capitec and its subsidiaries (“the group”) have complied with Regulation 43
of the Regulations relating to banks, which incorporates the requirements of
Basel.

In terms of Pillar 3 of the Basel rules, the consolidated group is required
to disclose quantitative information on its capital adequacy, leverage and
liquidity ratios on a quarterly basis.


The group’s consolidated capital and liquidity positions at the end of the
fourth quarter of the 28 February 2022 financial year end are set out below:


                                  4th Quarter 2022          3rd Quarter 2022
                                  28 February 2022          30 November 2021

                                             Capital                   Capital
                                            Adequacy                  Adequacy
                                   R’000     Ratio %         R’000     Ratio %

 COMMON EQUITY TIER 1
 CAPITAL (CET1)                31 189 746       35.4     30 557 063       36.5

 Additional Tier 1 capital
 (AT1)(1)                               -            -       25 897        0.0

TIER 1 CAPITAL (T1)            31 189 746       35.4     30 582 960       36.5


 General allowance for
 credit impairment                749 377                   715 172

TIER 2 CAPITAL (T2)               749 377        0.9        715 172        0.9

TOTAL QUALIFYING REGULATORY
CAPITAL                        31 939 123       36.3     31 298 132       37.4

REQUIRED REGULATORY
CAPITAL(2)                     10 566 490                 9 214 280


(1)
   Starting 2013, the non-loss absorbent AT1 and T2 capital is subject to a
10% per annum phase-out in terms of Basel 3.


(2)
   This value is currently 12% (2021: 11%) of risk-weighted assets, being the
Basel global minimum requirement of 8%, the Pillar 2A South African country-
specific buffer of 1% (2021: 0%), the Capital Conservation Buffer of 2.5% and
the Domestic Systemically Important Bank (“D-SIB”) capital add-on of 0.5%.
Per Directive 5 of 2021, the 1% Pillar 2A South African country-specific
buffer was reinstated on 1 January 2022. This buffer was temporarily relaxed
from 6 April 2020 until 31 December 2021, to provide temporary capital relief
to banks during the outbreak of the Covid-19 pandemic.


                                       4th Quarter 2022    3rd Quarter 2022
                                       28 February 2022    30 November 2021
                                                  R’000               R’000
LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets                   81 574 866          78 034 323
Net Cash Outflows(1)                          2 831 646           2 714 334
Actual LCR                                       2 881%              2 875%
Required LCR(2)                                     90%                 80%

(1)
   Capitec has a net cash inflow after applying the run-off factors, therefore
the outflows for the purpose of the ratio are deemed to be 25% of gross
outflows.

(2)
    Per Directive 8 of 2021, the minimum LCR requirement increased to 90% on 1
January 2022 and will increase to 100% on 1 April 2022. Per Directive 1 of
2020, the minimum LCR requirement was temporarily relaxed from 100% to 80% from
1 April 2020 to 31 December 2021 due to the Covid-19 pandemic.



                                       4th Quarter 2022    3rd Quarter 2022
                                       28 February 2022    30 November 2021
                                                  R’000               R’000
NET STABLE FUNDING RATIO (“NSFR”)
Total Available Stable Funding              157 548 215         159 534 561
Total Required Stable Funding                70 017 939          66 759 227
Actual NSFR                                       225.0%             239.0%
Required NSFR                                      100%                100%



                                       4th Quarter 2022    3rd Quarter 2022
                                       28 February 2022    30 November 2021
                                                  R’000               R’000
LEVERAGE RATIO
Tier 1 Capital                               31 189 746         30 582 960
Total Exposures                             178 617 863        178 471 628
Leverage Ratio                                    17.5%              17.1%


For the detailed LCR, NSFR and leverage ratio calculations refer to the
“Banks Act Public Disclosure” section on our website at
www.capitecbank.co.za/investor-relations



By order of the Board
Stellenbosch
12 April 2022
Sponsor - PSG Capital 

Date: 12-04-2022 07:21:00
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