Semi-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) Ordinary share code: SFN ISIN: ZAE000006565 Preference share code: SFNP ISIN: ZAE000060273 SASFIN HOLDINGS LIMITED / SASFIN BANK LIMITED CAPITAL ADEQUACY – SEMI-ANNUAL REPORT 31 December 2013 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 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 31 December 2013, and meets the on-going reporting requirements for a quarterly disclosure in terms of Pillar 3 of the Basel III Accord. The qualitative information regarding the Group's Capital Management Plan and Strategy is fully disclosed in the Group's 2013 Integrated Annual Report and Audited Annual Financial Statements. This information is available on the website: www.sasfin.com. Sasfin Holdings Limited Sasfin Bank and Subsidiaries R'000 %age R'000 %age 1. Total Risk weighted assets & exposures 5 099 975 4 051 504 Credit risk 2 349 788 2 214 736 Operational risk 750 241 405 993 Market risk 228 409 228 409 Equity investment risk 559 076 38 699 Securitisation risk 880 167 880 167 Other risk 332 294 283 500 2. Common Equity Tier 1 Capital 919 639 18.03 795 948 19.65 Share Capital & Premium 145 236 313 476 Retained Earnings 1 052 560 583 134 Prescribed deductions and non-qualifying reserves -278 157 -100 662 Additional Tier 1 3. Capital Non-redeemable preference share capital 179 350 3.52 - - 4. Total Tier 1 Capital 1 098 989 21.55 795 948 19.65 5. Tier 2 Capital 123 043 2.41 82 043 2.03 Sub-ordinated Debt 74 205 74 205 General other reserves 45 898 4 898 General allowance for credit impairment 2 940 2 940 Total Qualifying Capital & Capital Adequacy ratio 1 222 032 23.96 877 991 21.67 6. Minimum Required Capital & Reserves 484 498 9.50 384 893 9.50 7. The South African economy faced a challenging environment in 2013, amid quantitative easing inflicted pressures and possible sovereign downgrade issues, rand volatility has escalated affecting growth levels required to stimulate the economy. In addition, with a rising interest rate outlook, consumer over indebtedness remains a concern. Sasfin Bank Group remained well capitalised as at 31 December 2013 with a total capital adequacy ratio of 24% and a Tier 1 capital adequacy ratio of 22%, significantly exceeding minimum regulatory requirements. 3 April 2014 Johannesburg Lead Sponsor KPMG Services (Pty) Limited Joint Sponsor SASFIN CAPITAL A DIVISION OF SASFIN BANK LIMITED Date: 03/04/2014 04:20:00 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.