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 second quarter for the 28 February 2018 financial year end are set out below: 2nd Quarter 2018 1st Quarter 2018 31 August 2017 31 May 2017 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % Common Equity Tier 1 capital (CET1) 16 442 494 32.3 15 512 960 31.1 Additional Tier 1 capital (AT1)(1) 129 484 0.2 129 485 0.2 TIER 1 CAPITAL (T1) 16 571 978 32.5 15 642 445 31.3 Total subordinated debt(1)(2) 563 571 852 717 Unidentified loan impairments 514 970 505 873 TIER 2 CAPITAL (T2) 1 078 541 2.1 1 358 590 2.8 TOTAL QUALIFYING REGULATORY CAPITAL 17 650 519 34.6 17 001 035 34.1 REQUIRED REGULATORY CAPITAL(3) 5 477 841 5 366 380 (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. 2nd Quarter 2018 1st Quarter 2018 31 August 2017 31 May 2017 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets 9 467 151 9 092 130 Net Cash Outflows (1) 797 509 871 160 Required LCR Ratio 80% 80% Actual LCR Ratio 1 187% 1 044% LEVERAGE RATIO Tier 1 Capital 16 571 978 15 642 445 Total Exposures 80 936 489 74 909 004 Leverage Ratio 20.5% 20.9% (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 27 September 2017 Sponsor - PSG Capital (Pty) Limited Date: 27/09/2017 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.