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 / SASFIN BANK LIMITED - CAPITAL ADEQUACY – ANNUAL REPORT
30 June 2014

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 2014, and
meets the on-going reporting Requirements for a yearly 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 2014 Integrated
Report and Audited Annual Financial Statements.

This information will be available on the Company’s website www.sasfin.com on or about 27 October 2014.
                                                           Sasfin Holdings Limited        Sasfin Bank and Subsidiaries

                                                          R'000               %age         R'000               %age

     Total Risk weighted assets &
1.   exposures                                           5 314 176                        4 169 471
     Credit risk                                         2 944 832                        2 763 929
     Operational risk                                      808 434                          461 928
     Market risk                                           204 840                          204 840
     Equity investment risk                                715 981                          155 821
     Securitisation risk                                   470 405                          470 405
     Other risk                                            169 684                          112 548


     Common Equity Tier 1
2.   Capital                                               983 647            18.51        879 238             21.09
     Share Capital & Premium                               145 236                         313 476
     Retained Earnings                                   1 113 674                         660 717
     Prescribed deductions and non-qualifying reserves    -275 262                         -94 955

     Additional Tier 1
3.   Capital
     Non-redeemable         preference   share
     capital                                              159 422              3.00   -                           -

4.   Total Tier 1 Capital                                1 143 070            21.51        879 238             21.09

5.   Tier 2 Capital                                       115 397              2.17         74 397              1.78
     Sub-ordinated
     Debt                                                  65 960                            65960

     General other reserves                                45 898                            4 898
     General allowance for credit
     impairment                                             3 539                            3 539
      Total Qualifying Capital & Capital Adequacy ratio 1 258 467              23.68       953 635                22.87

 6.   Minimum Required Capital & Reserves                 531 418              10.00       416 947                10.00


 7.   The South African economy, coupled with its twin deficits, faced significant headwinds caused by prolonged levels of labour unrest and
      rising unemployment across many sectors. This inevitably led to lower growth levels that were disappointingly below the government’s
      medium-term targets. Amid inflationary pressures inflicted by continued Rand volatility, higher input costs and possible further sovereign
      downgrade concerns, the macro environment remained soft with a concomitant rising interest rate outlook.

      Notwithstanding the above and the recent demise of the country’s largest unsecured lender, the South African banking industry remains
      resilient and well capitalised despite uncertainty in the credit markets and a likely increase in funding costs.

      Sasfin Bank Group remained well capitalised as at 30 June 2014 with a total capital adequacy ratio of 23.68% and a Tier 1 capital adequacy
      ratio of 21.51%, significantly exceeding minimum regulatory requirements.



30 September 2014
Johannesburg

Lead Sponsor
KPMG Services (Pty) Limited

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

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