Semi annual report in terms of Section 43(1)(e)(ii) 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” or “the Company”) SASFIN HOLDINGS LIMITED / SASFIN BANK LIMITED CAPITAL ADEQUACY – SEMI-ANNUAL REPORT 31 December 2014 Semi-Annual Report in terms of Regulation 43 (1) (e) (ii) of the Banks Act 1990 (as amended). Sasfin Holdings Limited and Sasfin Bank Limited are required in terms of the requirements of the Banks Act and Basel III, to report on their capital management plan, capital strategy, capital structure, capital adequacy and leverage ratio publicly. The Group's capital management plan and strategy are fully disclosed in the Group's 2014 Integrated Report and Audited Annual Financial Statements which are available at www.sasfin.com or from the Company Secretary. Sasfin Holdings Limited and Sasfin Bank Limited capital structure, capital adequacy and leverage ratio levels as at 31 December 2014 in terms of the on-going reporting requirements for semi-annual disclosure per Pillar 3 of the Basel III Accord are disclosed below. Sasfin Holdings Limited Sasfin Bank and Subsidiaries Sasfin Bank Limited R'000 % R'000 % R'000 % Capital Structure and Capital Adequacy levels 1. Total risk weighted assets and exposures 5 881 904 4 406 623 3 865 008 Credit risk 3 174 845 2 899 704 2 735 635 Operational risk 808 434 461 928 382 020 Market risk 192 284 192 284 3 080 Equity investment risk 775 540 165 364 165 364 Securitisation risk 452 551 452 551 452 551 Other risk 478 250 234 792 126 358 2. Common equity Tier 1 capital 1 158 923 19.70 881 923 20.01 705 745 18.26 Share capital and premium 144 327 313 476 313 476 Distributable reserves and other 1 107 812 535 012 364 618 Prescribed deductions and non-qualifying reserves 21 222 33 435 27 651 Intragroup investments -114 438 - - 3. Additional Tier 1 capital Non-redeemable preference share capital 159 422 2.71 - - - - 4. Total Tier 1 capital 1 318 345 22.41 881 923 20.01 705 745 18.26 5. Tier 2 capital 46 581 0.79 52 166 1.18 50 964 1.32 Sub-ordinated debt 39 388 44 973 44 973 General allowance for credit impairment 7 193 7 193 5 991 Total qualifying capital and capital adequacy ratio 1 364 926 23.21 934 089 21.20 756 709 19.58 6. Minimum required capital and reserves 588 190 10.00 440 662 10.00 386 501 10.00 Leverage Levels 7. Total Exposures for Leverage disclosure 9 575 262 7 348 462 5 105 679 8. Leverage ratio (Total Tier 1 capital / Total exposures) 13.77 12.00 13.82 9. Minimum required Leverage Ratio 4.00 4.00 4.00 10. The South African economy continues to face significant headwinds exacerbated by the electricity and labour crises as well as the fall in most commodity prices, severely impacting meaningful growth levels required to stimulate the economy. Sasfin continues to focus on its target market comprising entrepreneurial businesses, institutions, corporates and private clients. Despite the prevailing levels of uncertainty and constrained growth levels in the economy, the Group remains cautiously optimistic about the improved levels of business activity being experienced across all segments. Sasfin is well poised for sustainable growth and further expansion of its franchise value in its chosen markets. This growth will be aided by the recently launched Transactional Banking service offering, strengthened by a strong capital and liquidity position. The Sasfin Group remains well capitalised with Total Capital Adequacy, Tier 1 Capital Adequacy and leverage ratios significantly exceeding minimum regulatory requirements. 30 March 2015 Johannesburg Lead Sponsor KPMG Services (Pty) Limited Joint Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Date: 30/03/2015 07:10:00 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.