SASFIN HOLDINGS LIMITED - Capital adequecy semi annual report in terms of Regulation 43(1)(e)(ii) of the Banks Act 1990

Capital adequecy semi annual report in terms of Regulation 43(1)(e)(ii) of the Banks Act 1990

SASFIN HOLDINGS LIMITED
(Incorporated In the Republic Of South Africa)
(Registration Number 1987/002097/06)
(“Sasfin” or “the Group”)
Ordinary share code: SFN    ISIN: ZAE000006565
Preference share code: SFNP    ISIN: ZAE000060273


CAPITAL ADEQUACY – SEMI ANNUAL REPORT 31 DECEMBER 2012
SEMI ANNUAL REPORT IN TERMS OF REGULATION 43 (1) (E) (II) OF THE BANKS ACT 1990 (AS AMENDED).


In terms of the requirements of the Banks Act, and the banking legislation under Basel 2.5, all
registered banks and bank controlling companies     are obliged to report certain qualitative and
quantitative information on a regular basis to the public.


The following table sets out Sasfin Group’s quantitative information relating to its Capital and
Capital Adequacy levels as at 31 December 2012, and meets the ongoing reporting requirements for
a semi annual disclosure in terms of Pillar 3 of the Basel 2.5 Accord.


The qualitative information regarding the Group's Capital Management Plan and Strategy is fully
disclosed in the Group's 2012 Integrated Annual Report and Audited Annual Financial Statements,
as well as in the results for the six months ended 31 December 2012.
This information is available on the website: www.sasfin.com.
                                                      Sasfin Holdings         Sasfin Bank and
                                                          Limited              Subsidiaries
                                                           R'000     %age        R'000      %age
1. Total Risk weighted assets & exposures              3 671 574             2 884 788
   Credit risk                                         2 061 232             2 045 107
   Operational risk                                      756 608               393 660
   Market risk                                           188 146               188 146
   Equity investment risk                                407 763                37 092
   Other risk                                            257 825               220 783
2. Tier 1 Primary Capital                                962 879    26.23      616 375     21.37
   Share Capital & Premium                               163 686               313 476
   Primary unimpaired reserves                           957 374               458 870
   Non-redeemable preference share capital               192 576                     0
   Prescribed deductions and non-qualifying
   reserves                                             -350   757            -155 971
3. Tier 2 Secondary Capital                              118   680   3.23       70 978     2.46
   Non-redeemable preference share capital                 6   702                   0
   Sub-ordinated Debt                                     82   450              82 450
   Secondary unimpaired reserves                          45   898               4 898
   General allowance for credit impairment                 4   171               4 171
   Prescribed deductions and non-qualifying
   reserves                                              -20 541               -20 541

   Total Qualifying Capital & Capital Adequacy
   ratio                                               1 081 559     29.46     687 353    23.83
4. Minimum Required Capital & Reserves                   348 800      9.50     274 055     9.50

5.   The South African economy faced a challenging environment with high levels of social unrest
and strike activity across many sectors, coupled with continued uncertainty in the global arena
and Rand volatility. Growth opportunities were adversely affected which resulted in a sluggish
performance in almost all sectors of the economy. Consequently, unemployment levels remained
high with rising levels of consumer indebtedness.


The banking sector, whilst resilient, was subdued with the demand for credit being mixed in most
areas, and continues to be faced with rapidly escalating regulation and increasing costs of
compliance.


The Group maintains comfortable levels of capital. As at 31 December 2012, its statutory risk-
weighted capital adequacy ratio was 29% (2011: 29%)and that of the Bank 24% (2011: 25%), which
are well above the prescribed regulatory requirements and the Group’s internal targets. The
Group has a very solid Common Equity Tier I ratio of 26% which is the main measure of capital
strength per Basel III.


The Group is favourably positioned to meet the stringent new Basel III requirements both at
liquidity and capital levels, well ahead of their respective implementation dates.



25 March 2013

Johannesburg



Lead sponsor
KPMG

Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)

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