Sasfin Holdings Limited / Sasfin Bank Limited Capital Adequacy – Quarterly Report 30 June 2017 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 June 2017 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 the 2017 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 June 2017 are disclosed below. Sasfin Holdings Limited Sasfin Bank Limited and Subsidiaries Sasfin Bank Limited R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 Minimum Minimum Minimum Risk Risk capital Risk Risk capital capital weighted weighted requirements weighted weighted requirement Risk weighted Risk weighted requirements assets assets * assets assets s* assets assets * June 2017 March 2017 June 2017 June 2017 March June 2017 June 2017 March 2017 June 2017 Risk weighted assets (T) (T-1) (T) (T) 2017 (T-1) (T) (T) (T-1) (T) Overview of Risk weighted assets Credit risk (excluding counterparty credit risk) 1 (CCR) 6 255 544 5 787 940 672 471 5 483 209 5 027 599 589 445 4 903 097 4 517 062 527 083 Of which standardised 2 approach (SA) 6 255 544 5 787 940 672 471 5 483 209 5 027 599 589 445 4 903 097 4 517 062 527 083 3 Of which internal rating- - - - - - - - - - based (IRB) approach 4 Counterparty credit risk 54 966 71 563 5 909 54 966 71 563 5 909 54 027 66 089 5 808 Of which standardised approach for counterparty 5 credit risk (SA-CCR) 54 966 71 563 5 909 54 966 71 563 5 909 54 027 66 089 5 808 Of which internal model 6 method (IMM) - - - - - - - - - Equity positions in banking book under market-based 7 approach - - - - - - - - - Equity investments in funds 8 - look-through approach - - - - - - - - - Equity investments in funds 9 - mandate-based approach - - - - - - - - - Equity investments in funds 10 - fall back approach - - - - - - - - - 11 Settlement risk - - - - - - - - - Securitisation exposures in 12 banking book 326 580 341 094 35 107 326 580 341 094 35 107 326 580 341 094 35 107 Of which IRB ratings-based 13 approach (RBA) - - - - - - - - - Of which IRB Supervisory 14 Formula Approach (SFA) - - - - - - - - - Of which SA/simplified supervisory formula 15 approach (SSFA) 326 580 341 094 35 107 326 580 341 094 35 107 326 580 341 094 35 107 16 Market risk 10 058 44 355 1 081 10 058 44 355 1 081 3 494 2 857 376 Of which standardised 17 approach (SA) 10 058 44 355 1 081 10 058 44 355 1 081 3 494 2 857 376 Of which internal model 18 approaches (IMM) - - - - - - - - - 19 Operational risk 1 371 421 1 289 913 147 428 858 963 807 387 92 339 651 421 607 948 70 028 Of which Basic Indicator 20 Approach 1 371 421 1 289 913 147 428 858 963 807 387 92 339 651 421 607 948 70 028 Of which standardised 21 approach - - - - - - - - - Of which Advanced 22 Measurement Approach - - - - - - - - - Amounts below the thresholds for deduction (subject to 250% risk 23 weight) 411 724 399 682 44 260 313 500 290 041 33 701 - - - 24 Floor adjustment 462 328 402 759 49 700 369 931 316 692 39 768 243 239 222 249 26 148 25 Total 8 892 621 8 337 306 955 956 7 417 207 6 898 731 797 350 6 181 858 5 757 299 664 550 * The minimum capital requirement per risk category is 10.750% which comprises the Base minimum (8.000%) plus the Pillar 2A systemic risk Add-on (1.500%) plus the Capital Conservation Buffer (CCB) (1.250%). R'000 R'000 R'000 R'000 R'000 R'000 June 2017 March 2017 June 2017 March March 2017 (T) (T-1) (T) 2017 (T-1) June 2017 (T) (T-1) Qualifying capital and reserves Tier 1 capital 1 461 558 1 439 385 1 200 411 1 140 167 939 313 945 044 Common equity tier 1 capital 1 367 515 1 345 342 1 200 411 1 140 167 939 313 945 044 Share capital and premium 144 327 144 327 463 476 463 476 463 476 463 476 Distributable reserves and other 1 183 816 1 153 519 699 746 631 473 411 002 410 995 Prescribed deductions and non-qualifying reserves 48 804 58 944 51 708 65 214 64 835 70 573 Intragroup investments -9 432 -11 448 -14 519 -19 996 - - Additional tier 1 capital Non-redeemable preference share capital 94 043 94 043 - - - - Tier 2 capital 25 222 25 577 27 577 28 432 23 732 24 827 Sub-ordinated debt 6 640 6 140 8 995 8 995 8 995 8 995 General allowance for credit impairment 18 582 19 437 18 582 19 437 14 737 15 832 Total qualifying capital and reserves 1 486 780 1 464 962 1 227 988 1 168 599 963 045 969 871 Minimum required capital and reserves 955 956 896 262 797 350 741 613 664 550 618 910 Capital adequacy ratios Tier 1 capital (%) 16.436 17.264 16.184 16.527 15.195 16.415 Common equity tier 1 (%) 15.378 16.136 16.184 16.527 15.195 16.415 Additional tier 1 (%) 1.058 1.128 - - - - Tier 2 capital (%) 0.284 0.307 0.372 0.412 0.384 0.431 Total capital adequacy ratio (%) 16.720 17.571 16.556 16.939 15.579 16.846 Minimum required capital adequacy ratio (%) 10.750 10.750 10.750 10.750 10.750 10.750 Leverage and liquidity coverage Total Exposures for Leverage disclosure 12 727 746 12 357 405 10 912 673 10 518 313 7 968 038 7 797 907 Leverage ratio (Total Tier 1 capital / Total exposures) (%) 11.483 11.648 11.000 10.840 11.789 12.119 Minimum required Leverage Ratio (%) 4.000 4.000 4.000 4.000 4.000 4.000 Liquidity coverage ratio (%) 164 137 Benchmark liquidity coverage ratio (%) 80 80 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. 4 October 2017 Johannesburg Lead Sponsor Sasfin Capital (a member of the Sasfin group) Independent Sponsor Deloitte & Touche Sponsor Services Proprietary Limited Date: 04/10/2017 09:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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