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 Date: 22/12/2016 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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