TRUSTCO GROUP HOLDINGS LIMITED - Voluntary Announcement: Trustco's Banking Portfolio Investee ("Trustco Bank") and Bank of Namibia in Legal Battle

Voluntary Announcement: Trustco's Banking Portfolio Investee ("Trustco Bank") and Bank of Namibia in Legal Battle

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
OTCQX share code: TSCHY
ISIN Number: NA000A0RF067
(“Trustco” or “the Group”)


VOLUNTARY ANNOUNCEMENT: TRUSTCO'S BANKING PORTFOLIO INVESTEE
TRUSTCO BANK NAMIBIA LIMITED ("TRUSTCO BANK") AND BANK OF
NAMIBIA ("BON") IN LEGAL BATTLE


Shareholders are advised that:


   1.   On 31 May 2022, the Group resolved to bring Trustco Bank out of business
        incubation. The Group proposed to BON to capitalize Trustco Bank with a
        capital injection of up to N$ 1 billion (One Billion Namibia Dollars) supported
        by a business plan. This fact was reported to shareholders in the interim
        results, dated 29 June 2022 on page 4.


   2.   The proposal by Trustco Bank, a 100% subsidiary of Trustco Group, was
        subsequently refused by BON, without providing satisfactory reasons for
        such refusal.
   3.     Notwithstanding the above-mentioned request BON proceeded to issue its
          final directives. Trustco and its banking portfolio investee Trustco Bank
          brought an application for review in the High Court of Namibia against BON
          and others to set aside the directives BON made against Trustco Bank. In
          addition, an order was requested declaring certain sections of the Banking
          Institutions Act of Namibia, 1998 and the Bank of Namibia Act, 2020
          unconstitutional.


   4.     BON retaliated by threatening to bring an application for liquidation against
          Trustco Bank. The assumed application for liquidation has not been served
          on Trustco Bank as of yet.


   5.     The current value of the investment into Trustco Bank represents 1% of the
          Group’s Net Assets of N$ 6.5 billion. Trustco Bank is a 100% percent
          Namibian owned bank with limited deposits and a small loan book, but with
          immense potential.


   6.     All of Trustco Bank’s client’s deposits are fully guaranteed as Trustco Bank
          holds more than 100% cash to cover deposits. As at 31 August 2022 Trustco
          Bank’s total assets exceeded its total liabilities by N$ 69 million and its Capital
          adequacy ratio was 90.36% (regulatory requirement is 15%).


Shareholders are referred to the press release which can be viewed at
https://www.tgh.na/medianews-centre/media-releases and are also welcomed to
contact the company secretary for more information at komada@tgh.na.


Windhoek, Namibia,
30 September 2022


Komada Holdings (Pty) Ltd
Company Secretary and Investor Relations Services to Trustco Group Holdings
Limited

JSE Sponsor
Vunani Sponsors (Pty) Ltd – Johannesburg


NSX Sponsor
Simonis Storm Securities Proprietary Limited – Windhoek


OTCQX Sponsor
J.P Galda & Co – New York

Date: 30-09-2022 09:08:00
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