Capital adequecy semi annual report in terms of Regulation 43(1)(e)(ii) of the Banks Act 1990 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 – SEMI ANNUAL REPORT 31 DECEMBER 2012 SEMI 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 31 December 2012, and meets the ongoing reporting requirements for a semi annual 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, as well as in the results for the six months ended 31 December 2012. This information is available on the website: www.sasfin.com. Sasfin Holdings Sasfin Bank and Limited Subsidiaries R'000 %age R'000 %age 1. Total Risk weighted assets & exposures 3 671 574 2 884 788 Credit risk 2 061 232 2 045 107 Operational risk 756 608 393 660 Market risk 188 146 188 146 Equity investment risk 407 763 37 092 Other risk 257 825 220 783 2. Tier 1 Primary Capital 962 879 26.23 616 375 21.37 Share Capital & Premium 163 686 313 476 Primary unimpaired reserves 957 374 458 870 Non-redeemable preference share capital 192 576 0 Prescribed deductions and non-qualifying reserves -350 757 -155 971 3. Tier 2 Secondary Capital 118 680 3.23 70 978 2.46 Non-redeemable preference share capital 6 702 0 Sub-ordinated Debt 82 450 82 450 Secondary unimpaired reserves 45 898 4 898 General allowance for credit impairment 4 171 4 171 Prescribed deductions and non-qualifying reserves -20 541 -20 541 Total Qualifying Capital & Capital Adequacy ratio 1 081 559 29.46 687 353 23.83 4. Minimum Required Capital & Reserves 348 800 9.50 274 055 9.50 5. The South African economy faced a challenging environment with high levels of social unrest and strike activity across many sectors, coupled with continued uncertainty in the global arena and Rand volatility. Growth opportunities were adversely affected which resulted in a sluggish performance in almost all sectors of the economy. Consequently, unemployment levels remained high with rising levels of consumer indebtedness. The banking sector, whilst resilient, was subdued with the demand for credit being mixed in most areas, and continues to be faced with rapidly escalating regulation and increasing costs of compliance. The Group maintains comfortable levels of capital. As at 31 December 2012, its statutory risk- weighted capital adequacy ratio was 29% (2011: 29%)and that of the Bank 24% (2011: 25%), which are well above the prescribed regulatory requirements and the Group’s internal targets. The Group has a very solid Common Equity Tier I ratio of 26% which is the main measure of capital strength per Basel III. The Group is favourably positioned to meet the stringent new Basel III requirements both at liquidity and capital levels, well ahead of their respective implementation dates. 25 March 2013 Johannesburg Lead sponsor KPMG Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Date: 25/03/2013 11:37:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.