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 second quarter for the 28 February 2017 financial year end are set out below: 2nd Quarter 2017 1st Quarter 2017 31 August 2016 31 May 2016 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % Common Equity Tier 1 capital (CET1) 13 796 552 29.9 13 144 403 28.9 Additional Tier 1 capital (AT1)(1) 155 381 0.3 155 381 0.3 TIER 1 CAPITAL (T1) 13 951 933 30.2 13 299 784 29.2 Total subordinated debt(1)(2) 1 279 716 1 456 443 Unidentified loan impairments 475 526 470 241 TIER 2 CAPITAL (T2) 1 755 242 3.8 1 926 684 4.2 TOTAL QUALIFYING REGULATORY CAPITAL 15 707 175 34.0 15 226 468 33.4 REQUIRED REGULATORY CAPITAL(3) 4 503 732 4 438 756 (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. 2nd Quarter 2017 1st Quarter 2017 31 August 2016 31 May 2016 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets 7 371 310 7 455 985 Net Cash Outflows(1) 744 040 896 647 Required LCR Ratio 70% 70% Actual LCR Ratio 991% 832% LEVERAGE RATIO Tier 1 Capital 13 951 933 13 299 784 Total Exposures 67 180 272 64 120 391 Leverage Ratio 20.8% 20.7% (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 27 September 2016 Sponsor - PSG Capital Proprietary Limited Date: 27/09/2016 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.