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SASFIN HOLDINGS LIMITED - Capital Adequacy Quarterly Report 30 September 2016

Release Date: 22/12/2016 10:00
Code(s): SFN SFNP     PDF:  
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Capital Adequacy – Quarterly Report 30 September 2016

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 – QUARTERLY REPORT 30 September 2016

Sasfin Holdings Limited and Sasfin Bank Limited are required in terms of Regulation 43(1)(e)(ii) of the Banks Act, No 94 of 1990, as amended, of South Africa, and Regulations, 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 September 2016 are disclosed below.


                                                                                                        Sasfin Holdings Limited                              Sasfin Bank and Subsidiaries                               Sasfin Bank Limited
                                                                                                                      Risk         Minimum                                                  Minimum                                 Risk     Minimum
                                                                                            Risk weighted       weighted              capital       Risk weighted    Risk weighted             capital    Risk weighted        weighted         capital
                                                                                                    assets         assets     requirements *                assets          assets     requirements *             assets         assets requirements *
                                                                                               September             June         September            September              June         September         September             June     September
          Risk weighted assets                                                                    2016 (T)     2016( T-1)            2016 (T)             2016 (T)       2016( T-1)           2016 (T)          2016 (T)      2016( T-1)       2016 (T)
          Overview of Risk weighted assets
  1       Credit risk (excluding counterparty credit risk) (CCR)                                5 531 697     5 375 417              573 914            4 641 029         4 596 259             481 507         4 019 347     3 968 642          417 007
  2       Of which standardised approach (SA)                                                   5 531 697     5 375 417              573 914            4 641 029         4 596 259             481 507         4 019 347     3 968 642          417 007
  3       Of which internal rating-based (IRB) approach                                                   -           -                     -                     -                -                   -                 -            -                 -
  4       Counterparty credit risk                                                                  92 947      106 421                 9 643               92 947          106 420                9 643           65 778        46 578             6 824
  5       Of which standardised approach for counterparty credit risk (SA-CCR)                      92 947      106 421                 9 643               92 947          106 420                9 643           65 778        46 578             6 824
  6       Of which internal model method (IMM)                                                            -           -                                           -                                    -                 -            -                 -
  7       Equity positions in banking book under market-based approach                                    -           -                     -                     -                -                   -                 -            -                 -
  8       Equity investments in funds - look-through approach                                             -           -                     -                     -                -                   -                 -            -                 -
  9       Equity investments in funds - mandate-based approach                                            -           -                     -                     -                -                   -                 -            -                 -
  10      Equity investments in funds - fall back approach                                                -           -                     -                     -                -                   -                 -            -                 -
  11      Settlement risk                                                                                 -           -                     -                     -                -                   -                 -            -                 -
  12      Securitisation exposures in banking book                                                411 962       340 932                42 741             411 962           340 932              42 741           411 962       340 932            42 741
  13      Of which IRB ratings-based approach (RBA)                                                       -           -                     -                     -                -                   -                 -            -                 -
  14      Of which IRB Supervisory Formula Approach (SFA)                                                 -           -                     -                     -                -                   -                 -            -                 -
  15      Of which SA/simplified supervisory formula approach (SSFA)                              411 962       340 932                42 741             411 962           340 932              42 741           411 962       340 932            42 741
  16      Market risk                                                                              50 344        39 333                 5 223               50 344           39 333                5 223           11 443        12 829             1 187
  17      Of which standardised approach (SA)                                                      50 344        39 333                 5 223               50 344           39 333                5 223           11 443        12 829             1 187
  18      Of which internal model approaches (IMM)                                                        -           -                     -                     -                -                   -                 -            -                 -
  19      Operational risk                                                                      1 191 265     1 191 265              123 594              732 503           732 503              75 997           561 795       561 795            58 286
  20      Of which Basic Indicator Approach                                                     1 191 265     1 191 265              123 594              732 503           732 503              75 997           561 795       561 795            58 286
  21      Of which standardised approach                                                                  -           -                     -                     -                -                   -                 -            -                 -
  22      Of which Advanced Measurement Approach                                                          -           -                     -                     -                -                   -                 -            -                 -
  23      Amounts below the thresholds for deduction (subject to 250% risk weight)                392 299       388 836                40 701             298 325           302 188              30 952                  -            -                 -
  24      Floor adjustment                                                                        326 669       325 109                33 892             261 890           246 465              27 171           147 211       148 710            15 274
  25      Total                                                                                 7 997 183     7 767 313              829 708            6 489 000         6 364 100             673 234         5 217 536     5 079 486          541 319
          * The minimum capital requirement per risk category is 10.375% which comprises the Base minimum (8.000%) plus the Pillar 2A systemic risk Add-on (1.750%) plus the Capital Conservation Buffer (CCB) (0.625%)
                                                                                                      R’000                   R’000                               R’000                R’000                              R’000               R’000
                                                                                                     September                  June                           September                June                             September             June
          Qualifying capital and reserves                                                              2016 (T)              2016 (T-1)                          2016 (T)           2016 (T-1)                             2016 (T)           2016 (T-1)
          Tier 1 capital                                                                               1 468 141                1 446 965                          1 176 617          1 193 616                             961 773             958 478
           Common equity tier 1 capital                                                                1 352 420                1 331 244                          1 176 617          1 193 616                             961 773             958 478
           Share capital and premium                                                                     144 327                  144 327                            463 476            463 476                             463 476             463 476
           Distributable reserves and other                                                            1 153 931                1 124 440                            662 760            667 566                             425 521             411 003
           Prescribed deductions and non-qualifying reserves                                              54 998                   65 238                             67 063             77 710                              72 776              83 999
           Intragroup investments                                                                           -836                   -2 761                            -16 682            -15 136                                   -                   -
           Additional tier 1 capital
           Non-redeemable preference share capital                                                       115 721                  115 721                                  -                  -                                   -                   -
           Tier 2 capital                                                                                 30 400                   30 596                             36 106             36 501                              32 433              32 135
           Sub-ordinated debt                                                                             12 283                   12 084                             17 989             17 989                              17 989              17 989
           General allowance for credit impairment                                                        18 117                   18 512                             18 117             18 512                              14 444              14 146
           Total qualifying capital and reserves                                                       1 498 541                1 477 561                          1 212 723          1 230 117                             994 206             990 613
           Minimum required capital and reserves                                                         829 708                  805 859                            673 234            660 275                             541 319             526 997
           Capital adequacy ratios
           Tier 1 capital (%)                                                                              18.36                    18.63                               18.13            18.76                                18.44               18.87
           Common equity tier 1 (%)                                                                        16.91                    17.14                               18.13            18.76                                18.44               18.87
           Additional tier 1 (%)                                                                            1.45                     1.49                                   -                -                                    -                   -
           Tier 2 capital (%)                                                                               0.38                     0.39                                0.56             0.57                                 0.62                0.63
           Total capital adequacy ratio (%)                                                                18.74                    19.02                               18.69            19.33                                19.06               19.50
           Minimum required capital adequacy ratio (%)                                                     10.38                    10.38                               10.38            10.38                                10.38               10.38

           Leverage and liquidity coverage
           Total Exposures for Leverage disclosure                                                    11 809 351              11 362 310                           9 464 107          9 447 647                           6 526 440           6 446 968
           Leverage ratio (Total Tier 1 capital / Total
           exposures) (%)                                                                                  12.43                    12.73                               12.43            12.63                                14.74               14.87
           Minimum required Leverage Ratio (%)                                                              4.00                     4.00                                4.00             4.00                                 4.00                4.00
           Liquidity coverage ratio (%)                                                                                                                                                                                         234                 206
           Benchmark liquidity coverage ratio (%)                                                                                                                                                                                70                  70 


 Risk weighted assets flow statements of credit risk exposures under IRB
 Sasfin does not use the internal ratings based, but rather the standardised approach, in the calculation of credit risk-weighted assets. This template is therefore not completed.

 Risk weighted assets flow statements of CCR exposures under Internal Model Method (IMM)
 Sasfin does not use an internal model method, but rather the standardised approach, in the calculation of counterparty credit risk. This template is therefore not completed.

 Risk weighted assets flow statements of market risk exposures under an IMA
 Sasfin does not use an internal model approach, but rather the standardised approach, for its market risk exposures. This template is therefore not completed.




22 December 2016
Johannesburg

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

Independent Sponsor
KPMG Services (Pty) Ltd

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