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 fourth quarter for the 28 February 2017 financial year end are set out below: 4th Quarter 2017 3rd Quarter 2017 28 February 2017 30 November 2016 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % Common Equity Tier 1 capital (CET1) 14 886 882 30.8 14 400 817 30.0 Additional Tier 1 capital (AT1)(1) 129 485 0.3 155 381 0.3 TIER 1 CAPITAL (T1) 15 016 367 31.1 14 556 198 30.3 Total subordinated debt(1)(2) 856 834 1 254 076 Unidentified loan impairments 491 168 491 249 TIER 2 CAPITAL (T2) 1 348 002 2.8 1 745 325 3.7 TOTAL QUALIFYING REGULATORY CAPITAL 16 364 369 33.9 16 301 523 34.0 REQUIRED REGULATORY CAPITAL(3) 5 190 335 4 680 286 (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 10.75% (2016: 9.75%) of risk-weighted assets, being the Basel global minimum requirement of 8%, the South African country-specific buffer of 1.5% (2016: 1.75%) and the Capital Conservation Buffer of 1.25%(disclosable in terms of SARB November 2016 directive in order to standardise reporting across banks). 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. 4th Quarter 2017 3rd Quarter 2017 28 February 2017 30 November 2016 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets 9 266 216 8 643 621 Net Cash Outflows(1) 804 385 824 926 Required LCR Ratio 80% 70% Actual LCR Ratio 1 152% 1 048% LEVERAGE RATIO Tier 1 Capital 15 016 367 14 556 198 Total Exposures 73 140 049 71 653 426 Leverage Ratio 20.5% 20.3% (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 28 March 2017 Sponsor - PSG Capital Proprietary Limited Date: 28/03/2017 07:06:00 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.