SASFIN HOLDINGS LIMITED - Annual Report in terms of Regulation 43 (1) (e) (ii) of the Banks Act

Annual Report in terms of Regulation 43 (1) (e) (ii) of the Banks Act

SASFIN HOLDINGS LIMITED

(Incorporated In The Republic Of South Africa)

(Registration Number 1987/002097/06)

(“Sasfin” or “the Group”)

Ordinary share code: SFN    ISIN: ZAE000006565

Preference share code: SFNP     ISIN: ZAE000060273




CAPITAL ADEQUACY – ANNUAL REPORT 30 June 2012



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

In terms of the requirements of the Banks Act, and the banking
legislation under Basel 2.5, all registered banks and bank
controlling companies are obliged to report certain qualitative and
quantitative information on a regular basis to the public.

The following table sets out Sasfin Group’s quantitative
information relating to its Capital and Capital Adequacy
levels as at 30 June 2012, and meets the ongoing reporting
requirements for a quarterly disclosure in terms of Pillar
3 of the Basel 2.5 Accord.

The qualitative information regarding the Group's Capital
Management Plan and Strategy is fully disclosed in the Group's
2012 Integrated Annual Report and Audited Annual Financial Statements.

This report is available for download from www.sasfin.com.




                                                Sasfin Bank
                              Sasfin             Limited &
                            Holdings                its
                             Limited           subsidiaries

                              R'000     %age      R'000       %age

     Total Risk
     weighted assets &
1.   exposures              3,694,874              2,811,450
       Credit risk          1,936,483              1,922,583
       Operational risk       760,455                397,507
       Market risk            236,164                236,164
       Equity investment
     risk                     477,487                    154
       Other risk             284,285                255,042


     Tier 1 Primary
2.   Capital                  938,391   25.40         611,024     21.73
       Share Capital &
     Premium                  163,686                 313,476
       Distributable
     reserves and
     other***                 953,992                 448,728
       Non-redeemable
     preference share
     capital                  164,807          -
       Prescribed
     deductions and
     non-qualifying
     reserves                -344,094                -151,180


     Tier 2 Secondary
3.   Capital                  153,899   4.17            78,428   2.79
       Non-redeemable
     preference share
     capital                    34,471                       -

       Subordinated debt        82,450                   82,450
       General allowance
     and other reserves         51,224                   10,224
       Prescribed
     deductions and
     non-qualifying
     reserves                   -14,246                 -14,246


     Total Capital &
     Capital Adequacy
     ratio                     1,092,290  29.56          689,452   24.52


     Minimum Required
4.   Capital & Reserves           351,013   9.50          267,088    9.50

5. The South African economy remained soft during the year
    under review, with signs of recovery, albeit at a relatively
    slow place. The continued uncertainty and volatility stemming
    from the global economy, in particular the Eurozone deepened,
    where fears of sovereign credit default and recessionary
    concerns persisted. These factors affected the domestic
    markets materially and heightened growth concerns needed
    to stimulate the economy. Unemployment levels remained
    stubbornly high, with increased levels of consumer debt
    driven largely by unsecured lending.

    Despite the volatile events in the global banking industry
    of late, the local banking sector remained stable showing
    signs of recovery and a return of credit appetite in certain
    areas. The on-going changing regulatory environment has
    impacted growth opportunities and significantly increased
    costs of compliance.

    Sasfin is well positioned to grow its franchise, focusing on
    the entrepreneurial market and private client base.

    Sasfin's growth trajectory is indeed sustainable on the back of
    its strong capital position, significant liquidity
    levels and diversified funding and activity base.

    ***Distributable reserves include
    current year unappropriated profits.




2 October 2012

Lead Sponsor

KPMG Services (Pty) Limited



Joint Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)

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