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

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

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
(“Sasfin” or “the Group”)



SASFIN HOLDINGS LIMITED AND ITS SUBSIDIARIES
CAPITAL ADEQUACY – ANNUAL REPORT 30 JUNE 2013

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 III, 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 2013, and meets the on-going reporting
requirements for annual disclosure in terms of Pillar
3 of the Basel III Accord. The comprehensive Annual Report in terms
of Regulation 43 (1) (e) (ii) of the Banks Act 1990 (as amended) is
fully disclosed on the Group's website: www.sasfin.com.

The qualitative information regarding the Group's Capital
Management Plan and Strategy is fully disclosed in the Group's
2013 Integrated Report and Audited Annual Financial Statements.

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                   4,432,573           3,618,051
     Credit risk                   2,250,260           2,241,950
     Operational risk                750,241             405,993
     Market risk                     192,147             192,147
     Equity investment risk          463,017              37,764
     Securitisation risk             528,793             528,793
     Other risk                      248,115             211,404
2. Common Equity Tier 1
   Capital                           820,569    18.51    722,884   19.98
   Share Capital & Premium           145,236              313,476
   Retained Earnings                 970,246              524,004
   Prescribed deductions and
   non-qualifying reserves          -294,913             -114,596

3. Additional Tier 1 Capital
   Non-redeemable preference
   share capital                     199,278     4.50         -       -

4. Total Tier 1 Capital            1,019,847     23.01    722,884   19.98

5. Tier 2 Capital                    123,711      2.79     82,711    2.29

   Sub-ordinated Debt                 74,205               74,205

   General other reserves             45,898                4,898
   General allowance for
   credit impairment                   3,608                3,608


   Total Qualifying Capital &
   Capital Adequacy ratio          1,143,558    25.80      805,595   22.27

   Minimum Required Capital &
6. Reserves                          421,094     9.50       343,715   9.50


7. The South African economy faced a challenging environment,
   with high levels of social unrest and strike activities
   across many sectors. Coupled with the escalating energy
   crisis, South Africa’s competitive edge is being
   undermined. These factors materially affected the
   domestic markets and heightened growth concerns needed to
   stimulate the economy. Unemployment levels remained high,
   with increased levels of consumer debt driven largely by
   unsecured lending.

   The Group's funding base enhances the ability of Sasfin
   Bank to meet the stringent Basel III liquidity
   requirements of liquidity coverage ratio and the net
   stable funding ratio in a sustainable manner. The Group’s
   liquidity position remains very healthy with adequate
   liquidity buffers held for stress situations that may
   arise.

   Whilst the Group’s capital adequacy ratio has declined by
   400 bps to 26% (2012: 30%) due to the new capital
   requirements of Basel III and growth in assets, the Group
   remains well capitalised per Basel III which came into
   effect in January 2013, with a tier I capital ratio of 23%
   (2012: 26%), which is the main measure of capital
   strength.

   The Group is pleased to report that it complies with the
   new Basel III requirements both at a liquidity and capital
   level, well ahead of their respective implementation
   dates.

   The Group continues to focus on its growth strategy in
   response to the changing banking and regulatory landscape
   with a view to broadening its franchise value by
   continuing to increase its funding through both term
   deposits and debt capital market instruments to facilitate
   Sasfin’s on-going growth.




27 September 2013

Johannesburg

Lead Sponsor
KPMG Services (Pty) Limited

Joint Sponsor
SASFIN CAPITAL A DIVISION OF SASFIN BANK LIMITED

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