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

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)
Ordinary share code: SFN ISIN: ZAE000006565
Preference share code: SFNP ISIN: ZAE000060273
(“the Group”)


SASFIN HOLDINGS LIMITED / SASFIN BANK LIMITED
CAPITAL ADEQUACY – SEMI-ANNUAL REPORT
31 December 2015

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 2015 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, leverage and liquidity coverage ratios at 31 December 2015 are disclosed below.



                                                                                                                      Sasfin Bank and
                                                                                                                                                      Sasfin Bank Limited
                                                                                 Sasfin Holdings Limited                Subsidiaries
                                                                                   R'000              %              R'000            %               R'000              %
 Capital Structure and Capital Adequacy levels

 1.    Total risk weighted assets and exposures                                   6 850 676                         5 297 334                        4 110 624
         Credit risk                                                              3 945 335                         3 782 306                        3 105 840
         Operational risk                                                           975 060                           573 430                          456 262
         Market risk                                                                 47 140                            47 140                            7 963
         Equity investment risk                                                     818 782                           138 246                          138 246
         Securitisation risk                                                        233 823                           233 823                          233 823
        Other risk                                                830 536             522 389                168 490

2.    Common equity Tier 1 capital                               1 334 065   19.47   1 158 808   21.88       909 493    22.13
        Share capital and premium                                  144 327             463 476               463 476
        Distributable reserves and other                         1 114 376             663 961               390 669
        Prescribed deductions and non-qualifying reserves           77 867              49 672                55 348
        Intragroup investments                                      -2 505             -18 301                     -

3.    Additional Tier 1 capital
        Non-redeemable preference share capital                   136 815    2.00            -          -           -           -

4.    Total Tier 1 capital                                       1 470 880   21.47   1 158 808   21.88       909 493    22.13

5.    Tier 2 capital                                               34 307    0.50      43 346    0.82         40 609     0.99
         Sub-ordinated debt                                        20 943              29 982                 29 982
         General allowance for credit impairment                   13 364              13 364                 10 627

      Total qualifying capital and capital adequacy ratio        1 505 187   21.97   1 202 154   22.69       950 102    23.11

6.    Minimum required capital and reserves                       822 081    12.00    635 680    12.00       493 275    12.00

Leverage and liquidity coverage

7.    Total Exposures for Leverage disclosure                   11 263 413           9 361 772              5 931 648

8.    Leverage ratio (Total Tier 1 capital / Total exposures)                13.06               12.38                  15.33

9.    Minimum required Leverage Ratio                                        4.00                4.00                    4.00

10.   Liquidity coverage ratio                                                                                          270.00

11.   Benchmark liquidity coverage ratio                                                                                60.00
 12.   China's industrial growth, the mainstay for global economic growth, has slowed, which has brought about a rapid fall in commodity prices. Europe and Japan have
       stepped up monetary stimulus and the USA may defer further interest rate increases to maintain growth.

       South Africa is suffering the effects of the commodities slump, drought and mismanagement in the public sector and could lose its investment grade status.

       Sasfin Holdings Limited and Sasfin Bank Limited continue to maintain their strong capital and liquidity positions. Total Capital Adequacy, Tier 1 Capital Adequacy,
       Leverage and Liquidity coverage ratios exceed the minimum regulatory requirements, in full compliance with Basel III.

31 March 2016
Johannesburg

Independent Sponsor
KPMG Services (Pty) Ltd

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

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