Semi-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 (“the Group”) SASFIN HOLDINGS LIMITED / SASFIN BANK LIMITED CAPITAL ADEQUACY – SEMI-ANNUAL REPORT 30 June 2016 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 2016 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 30 June 2016 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 7 767 313 6 364 100 5 079 486 Credit risk 4 478 297 4 543 041 3 855 815 Operational risk 1 191 265 732 503 561 795 Market risk 39 333 39 333 12 829 Equity investment risk 1 003 541 159 638 159 405 Securitisation risk 340 932 340 932 340 932 Other risk 713 945 548 653 148 710 2. Common equity Tier 1 capital 1 331 244 17.14 1 193 616 18.76 958 478 18.87 Share capital and premium 144 327 463 476 463 476 Distributable reserves and other 1 124 440 667 566 411 003 Prescribed deductions and non-qualifying reserves 65 238 77 710 83 999 Intragroup investments -2 761 -15 136 0 3. Additional Tier 1 capital Non-redeemable preference share capital 115 721 1.49 - - - 4. Total Tier 1 capital 1 446 965 18.63 1 193 616 18.76 958 478 18.87 5. Tier 2 capital 30 596 0.39 36 501 0.57 32 135 0.63 Sub-ordinated debt 12 084 17 989 17 989 General allowance for credit impairment 18 512 18 512 14 146 Total qualifying capital and capital adequacy ratio 1 477 561 19.02 1 230 117 19.33 990 613 19.50 6. Minimum required capital and reserves 805 859 10.38 660 275 10.38 526 997 10.38 Leverage and liquidity coverage 7. Total Exposures for Leverage disclosure 11 362 310 9 447 647 6 446 968 Leverage ratio (Total Tier 1 capital / Total 8. exposures) 12.73 12.63 14.87 9. Minimum required Leverage Ratio 4.00 4.00 4.00 10. Liquidity coverage ratio 206 11. Benchmark liquidity coverage ratio 70 12. South Africa, a significant commodity producer with a wide wealth gap, chronic unemployment and a high level of consumer indebtedness has been negatively affected by the weak global economy and declining commodity prices. This coupled with political uncertainty in South Africa continues to result in increased market volatility. The South African banking industry, while taking strain from the weak economy, escalating regulation, technological disruption and cybercrime, remains resilient and well capitalised. Sasfin Holdings Limited and Sasfin Bank Limited have maintained their strong capital and liquidity positions with Total Capital Adequacy, Tier 1 Capital Adequacy, Leverage and Liquidity coverage ratios all exceeding the minimum regulatory requirements and in full compliance with Basel III. 30 September 2016 Johannesburg Lead Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Independent Sponsor KPMG Services (Pty) Ltd Date: 30/09/2016 02:22:00 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.