SASFIN HOLDINGS LIMITED - Capital Adequacy Quarterly Report 31 March 2016

Capital Adequacy – Quarterly Report 31 March 2016

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


SASFIN HOLDINGS LIMITED / SASFIN BANK LIMITED

CAPITAL ADEQUACY – QUARTERLY REPORT 31 March 2016

Quarterly Report in terms of Regulation 43 (1) (e) (ii) of the Banks Act 1990 (as amended).

Sasfin Holdings Limited and Sasfin Bank Limited are required in terms of the requirements of the Banks Act and Basel III,
to report on their capital management plan, capital strategy, capital structure, capital adequacy and leverage ratio publicly.

The Group's capital management plan and strategy are fully disclosed in the Group's 2015 Integrated Report and Audited Annual
Financial Statements which are available at www.sasfin.com or from the Company Secretary.

Sasfin Holdings Limited and Sasfin Bank Limited capital structure, capital adequacy, leverage and liquidity coverage ratios at 31 March
2016 are disclosed below.

                                                  Sasfin           Sasfin Bank               Sasfin
                                                Holdings                   and                 Bank
                                                 Limited          Subsidiaries              Limited
                                                   R'000      %         R'000     %           R'000        %
Capital Structure and Capital Adequacy
levels


      Total risk weighted assets and
1.    exposures                                  7 199 136           5 996 642               4 737 327
        Credit risk                              4 156 736           4 249 409               3 631 424
        Operational risk                           975 060             573 430                 456 262
       Market risk                                 147 287             147 287                   9 798
       Equity investment risk                      861 206             138 246                 138 246
       Securitisation risk                         236 059             236 059                 236 059
       Other risk                                  822 788             652 211                 265 538

2.   Common equity Tier 1 capital                 1 322 863   18.38   1 185 295   19.77        949 743    20.05
      Share capital and premium                     144 327             463 476                463 476
      Distributable reserves and other            1 118 214             663 295                406 907
       Prescribed deductions and non-
       qualifying reserves                          63 845               74 417                 79 360
      Intragroup investments                        -3 523              -15 893                      0

3.   Additional Tier 1 capital

     Non-redeemable preference share capital       117 270    1.63            -     -     -                  -

4.   Total Tier 1 capital                         1 440 133   20.00   1 185 295   19.77        949 743    20.05

5.   Tier 2 capital                                 26 487    0.37      32 865    0.55          28 655    0.60

       Sub-ordinated debt                           11 611              17 989                  17 989

       General allowance for credit impairment      14 876              14 876                  10 666

     Total qualifying capital and capital
     adequacy ratio                               1 466 620   20.37   1 218 160   20.31        978 398    20.65

6.   Minimum required capital and reserves         746 910    10.38    622 152    10.38        491 498    10.38

Leverage and liquidity coverage

     Total Exposures for Leverage
7.   disclosure                                  11 213 854           9 345 839               6 089 985
      Leverage ratio (Total Tier 1 capital /
8.    Total exposures)                                        12.84                12.68                     15.60

9.    Minimum required Leverage Ratio                          4.00                 4.00                      4.00
10. Liquidity coverage ratio                                                                                   236

11. Benchmark liquidity coverage ratio                                                                          70

 12. South Africa has managed to avert a sovereign rating downgrade to below investment grade, but continues to face significant
     headwinds in the form of the slump in commodity prices, drought, currency volatility and low growth concerns.

     In terms of South African banking regulatory capital requirements, a conservation capital buffer requirement of 0.625% was
     introduced in 2016 while the base minimum capital requirement changed from 10.000% to 9.750%. This has resulted in an
     increase to the minimum regulatory capital requirement from
     10.000% to 10.375%.

     Sasfin Holdings Limited and Sasfin Bank Limited have maintained their strong capital and liquidity positions with Total Capital
     Adequacy, Tier 1 Capital Adequacy, Leverage and Liquidity coverage ratios all exceeding the minimum regulatory requirements
     and in full compliance with Basel III.

30 June 2016
Johannesburg

Independent Sponsor
KPMG Services (Pty) Ltd

Lead Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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