CAPITEC BANK HOLDINGS LIMITED - Trading Update

Trading Update

CAPITEC BANK HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/025903/06)
(Ordinary Share Code: CPI ISIN Number: ZAE000035861)
(Preference Share Code: CPIP ISIN Number: ZAE000083838)
(“Capitec”)

TRADING UPDATE

Capitec hereby advises that a reasonable degree of certainty exists that
earnings per share and headline earnings per share for the half year ended
31 August 2014 will exceed the comparable earnings per share and headline
earnings per share for the previous corresponding period being
31 August 2013 by between 18% and 22%.

The following key performance indicators contributed to this performance:
- The pattern of strong growth in active clients continued.
- Transaction income grew significantly not only because of an increase in
  client numbers, but also because we attracted clients in higher income
  groups who do more transacting. The mix of transactions has improved in
  line with our strategy to encourage clients to reduce fees by using
  their cards, mobile and internet banking. The take up of our smartphone
  app has exceeded our expectations.
- Growth in retail lending was satisfactory under the current market
  conditions and the bad debts results were in line with our risk appetite
  which factored in these market conditions.
- Cost management was within stated objectives.
- Preference shares which no longer counted as capital were repurchased
  and replaced with less expensive fixed deposits.
- The bank remains very well capitalised.
- Healthy growth in retail deposits occurred, both in call and fixed-term
  products, tracking the robust growth in client numbers.

The financial information on which this trading update is based has not
been reviewed and reported on by Capitec’s auditors. The financial results
for the interim reporting period ended 31 August 2014 are expected to be
published on or about 29 September 2014.

By order of the Board
Stellenbosch
4 September 2014

Sponsor
PSG Capital (Pty) Limited

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