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
third quarter for the 28 February 2018 financial year end are set out below:


                                  3rd Quarter 2018          2nd Quarter 2018
                                  30 November 2017            31 August 2017

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

 Common Equity Tier 1
 capital (CET1)               16 963 481       32.5     16 442 494        32.3
 Additional Tier 1
 capital (AT1)(1)                126 677        0.2        129 484         0.2

TIER 1 CAPITAL (T1)           17 090 158       32.7     16 571 978        32.5


 Total subordinated
 debt(1)(2)                      438 724                   563 571
 Unidentified loan
 impairments                     529 766                   514 970
TIER 2 CAPITAL (T2)              968 490        1.8      1 078 541         2.1


TOTAL QUALIFYING
REGULATORY CAPITAL            18 058 648       34.5     17 650 519        34.6



REQUIRED REGULATORY
CAPITAL(3)                     5 619 398                 5 477 841

(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%(disclosed 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.

                                  3rd Quarter 2018          2nd Quarter 2018
                                  30 November 2017            31 August 2017

LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets            13 321 307            9 467 151
                   (1)
Net Cash Outflows                        929 190              797 509
Required LCR Ratio                           80%                  80%
Actual LCR Ratio                          1 434%               1 187%


LEVERAGE RATIO
Tier 1 Capital                        17 090 158           16 571 978
Total Exposures                       87 047 849           80 936 489
Leverage Ratio                             19.6%                20.5%

(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
12 December 2017
Sponsor - PSG Capital (Pty) Limited

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