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


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

Capitec Bank Holdings Limited and its subsidiaries (“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 and liquidity
ratios on a quarterly basis.

The group’s consolidated capital and liquidity positions at the end of the
fourth quarter for the 28 February 2017 financial year end are set out
below:


                                 4th Quarter 2017        3rd Quarter 2017
                                 28 February 2017        30 November 2016

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

 Common Equity Tier 1
 capital (CET1)               14 886 882       30.8     14 400 817        30.0
 Additional Tier 1
 capital (AT1)(1)                129 485        0.3        155 381         0.3

TIER 1 CAPITAL (T1)           15 016 367       31.1     14 556 198        30.3

 Total subordinated
 debt(1)(2)                      856 834                 1 254 076
 Unidentified loan
 impairments                     491 168                   491 249

TIER 2 CAPITAL (T2)            1 348 002        2.8      1 745 325         3.7

TOTAL QUALIFYING
REGULATORY CAPITAL            16 364 369       33.9     16 301 523        34.0

REQUIRED REGULATORY
CAPITAL(3)                     5 190 335                 4 680 286

(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)
   Starting 2013, a deemed surplus attributable to T2 capital of subsidiaries
issued to outside third parties, is excluded from group qualifying capital in
terms of the accelerated adoption of Basel 3. This deduction phases in at 20%
per annum.

(3)
   This value is 10.75% (2016: 9.75%) of risk-weighted assets, being the
Basel global minimum requirement of 8%, the South African country-specific
buffer of 1.5% (2016: 1.75%) and the Capital Conservation Buffer of
1.25%(disclosable in terms of SARB November 2016 directive in order to
standardise reporting across banks). In terms of the regulations the
Individual Capital Requirement (ICR) is excluded.
Operational risk disclosure changed from 01 March 2016, per the SA Reserve
Bank’s instruction. The operational risk capital add-on, in accordance with
the ASA method, has been converted to an equivalent Risk Weighted Asset
(RWA). This reduced the Capital Adequacy Ratio by approximately 1.9% in March
2016, as qualifying capital remains the same but is divided by a higher RWA
amount.

                                     4th Quarter 2017     3rd Quarter 2017
                                     28 February 2017     30 November 2016

LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets                  9 266 216         8 643 621

Net Cash Outflows(1)                          804 385           824 926

Required LCR Ratio                                80%               70%
Actual LCR Ratio                               1 152%            1 048%


LEVERAGE RATIO
Tier 1 Capital                             15 016 367        14 556 198

Total Exposures                            73 140 049        71 653 426

Leverage Ratio                                  20.5%             20.3%

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


For the complete LCR and leverage ratio calculations refer to our website at
www.capitecbank.co.za/investor-relations

By order of the Board
Stellenbosch
28 March 2017
Sponsor - PSG Capital Proprietary Limited

Date: 28/03/2017 07:06:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.