CAPITEC BANK HOLDINGS LIMITED - Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

Capitec Bank Holdings Limited
Registration number: 1999/025903/06
Registered bank controlling company
Incorporated in the Republic of South Africa
JSE ordinary share code: CPI   ISIN code: ZAE000035861
JSE preference share code: CPIP   ISIN code: ZAE000083838

QUARTERLY DISCLOSURE IN TERMS OF REGULATION 43 OF THE REGULATIONS RELATING
TO BANKS.

Capitec Bank Holdings Limited and its subsidiaries (“group”), have complied
with Regulation 43 of the Regulations relating to banks, which incorporates
the requirements of Basel.

In terms of Pillar 3 of the Basel rules, the consolidated group is required
to disclose quantitative information on its capital adequacy and liquidity
ratios on a quarterly basis.

The group’s consolidated capital and liquidity positions at the end of the
first quarter for the 28 February 2017 financial year end are set out below:


                               1st Quarter 2017         4th Quarter 2016
                                  31 May 2016           29 February 2016

                                            Capital                    Capital
                                           Adequacy                   Adequacy
                                  R’000     Ratio %          R’000    Ratio %

 Common Equity Tier 1
 capital (CET1)               13 144 403       28.9     12 625 956         30.1
 Additional Tier 1
 capital (AT1)(1)                155 381        0.3        155 381          0.4

TIER 1 CAPITAL (T1)           13 299 784       29.2     12 781 337         30.5


 Total subordinated
 debt(1)(2)                    1 456 443                 1 401 155
 Unidentified loan
 impairments                     470 241                   459 703

TIER 2 CAPITAL (T2)            1 926 684        4.2      1 860 858          4.4


TOTAL QUALIFYING
REGULATORY CAPITAL            15 226 468       33.4     14 642 195         34.9

REQUIRED REGULATORY
CAPITAL(3)                     4 438 756                 4 089 085


(1) Starting 2013, the non loss absorbent AT1 and T2 capital is subject to a
10% per annum phase-out in terms of Basel 3.
(2) Starting 2013, a deemed surplus attributable to T2 capital of subsidiaries
issued to outside third parties, is excluded from group qualifying capital in
terms of the accelerated adoption of Basel 3. This deduction phases in at 20%
per annum.
(3) This value is 9.75% of risk-weighted assets, being the Basel global
minimum requirement of 8% and a South African country-specific buffer of
1.75%. In terms of the regulations the Individual Capital Requirement (ICR)
is excluded. Operational risk disclosure changed from 01 March 2016, per the
SA Reserve Bank’s instruction. The operational risk capital add-on, in
accordance with the ASA method, has been converted to an equivalent Risk
Weighted Asset (RWA). This reduced the Capital Adequacy Ratio by
approximately 1.9% in March 2016, as qualifying capital remains the same but
is divided by a higher RWA amount.

                                 1st Quarter 2017        4th Quarter 2016
                                   31 May 2016           29 February 2016

LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets            7 455 985             6 671 459
Net Cash Outflows(1)                    896 647               641 469
Required LCR Ratio                          70%                   70%
Actual LCR Ratio                           832%                1 040%


LEVERAGE RATIO
Tier 1 Capital                        13 299 784           12 781 337
Total Exposures                       64 120 391           62 738 509
Leverage Ratio                             20.7%                20.4%

(1) As Capitec has a net cash inflow after applying the run-off weightings,
outflows for the purpose of the ratio are deemed to be 25% of gross outflows

For the complete LCR and leverage ratio calculations refer to our website at
www.capitecbank.co.za/investor-relations

By order of the Board
Stellenbosch
5 July 2016
Sponsor - PSG Capital (Pty) Limited

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