CAPITEC BANK HOLDINGS LIMITED - Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

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
first quarter for the 28 February 2018 financial year end are set out below:


                               1st Quarter 2018           4th Quarter 2017
                                  31 May 2017             28 February 2017

                                            Capital                    Capital
                                           Adequacy                   Adequacy
                                  R’000     Ratio %          R’000    Ratio %

 Common Equity Tier 1
 capital (CET1)               15 512 960       31.1     14 886 882        30.8
 Additional Tier 1
 capital (AT1)(1)                129 485          0.2       129 485        0.3

TIER 1 CAPITAL (T1)           15 642 445       31.3     15 016 367        31.1


 Total subordinated
 debt(1)(2)                      852 717                    856 834
 Unidentified loan
 impairments                     505 873                    491 168
TIER 2 CAPITAL (T2)            1 358 590          2.8   1 348 002          2.8


TOTAL QUALIFYING
REGULATORY CAPITAL            17 001 035       34.1     16 364 369        33.9



REQUIRED REGULATORY
CAPITAL(3)                     5 366 380                5 190 335

(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.

                                  1st Quarter 2018           4th Quarter 2017
                                       31 May 2017           28 February 2017

LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets            9 092 130             9 266 216
                   (1)
Net Cash Outflows                        871 160              804 385
Required LCR Ratio                          80%                   80%
Actual LCR Ratio                          1 044%               1 152%


LEVERAGE RATIO
Tier 1 Capital                        15 642 445           15 016 367
Total Exposures                       74 909 004           73 140 049
Leverage Ratio                             20.9%                20.5%
(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
04 July 2017
Sponsor - PSG Capital (Pty) Limited

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