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 2018 financial year end are set out below: 4th Quarter 2018 3rd Quarter 2018 28 February 2018 30 November 2017 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % Common Equity Tier 1 capital (CET1) 17 381 888 33.9 16 963 481 32.5 Additional Tier 1 capital (AT1)(1) 103 587 0.2 126 677 0.2 TIER 1 CAPITAL (T1) 17 485 475 34.1 17 090 158 32.7 Total subordinated debt(1)(2) 283 438 438 724 Unidentified loan impairments 519 230 529 766 TIER 2 CAPITAL (T2) 802 668 1.6 968 490 1.8 TOTAL QUALIFYING REGULATORY CAPITAL 18 288 143 35.7 18 058 648 34.5 REQUIRED REGULATORY CAPITAL(3) 5 699 501 5 619 398 (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 11.125% (2017: 10.750%) of risk-weighted assets, being the Basel global minimum requirement of 8.000%, the South African country- specific buffer of 1.250% (2017: 1.500%) and the Capital Conservation Buffer of 1.875% (2017: 1.250%), 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. 4th Quarter 2018 3rd Quarter 2018 28 February 2018 30 November 2017 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets 18 056 043 13 321 307 Net Cash Outflows (1) 961 511 929 190 Required LCR Ratio 90% 80% Actual LCR Ratio 1 878% 1 434% LEVERAGE RATIO Tier 1 Capital 17 485 475 17 090 158 Total Exposures 84 834 799 87 047 849 Leverage Ratio 20.6% 19.6% NET STABLE FUNDING RATIO (NSFR) Total Available Stable Funding(ASF) 76 621 291 79 070 186 Total Required Stable Funding (RSF) 37 205 204 38 590 155 Actual NSFR Ratio(2) 205.9% 204.9% (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. (2) A ratio of 100% or more represents compliance. Compliance is required by 2018. 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 March 2018 Sponsor - PSG Capital Proprietary Limited Date: 27/03/2018 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.