SASFIN HOLDINGS LIMITED - Quarterly report

Release Date: 26/04/2018 17:37
Code(s): SFNP SFN
 
Wrap Text
Quarterly report

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 31 December 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 2017 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 31 December 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             Risk               Risk          capital
                                   weighted        weighted     requirements       weighted        weighted requireme            weighted           weighted    requirements
                                      assets         assets                 *         assets         assets         nts *           assets            assets                *
                                  December       September         December       December       September December             December          September        December
      Risk weighted assets          2017 (T)      2017 (T-1)         2017 (T)       2017 (T)      2017 (T-1)    2017 (T)          2017 (T)         2017 (T-1)        2017 (T)
      Overview of Risk
      weighted assets
      Credit risk (excluding
      counterparty credit
 1    risk) (CCR)                 5 806 734        5 713 985          624 224      5 109 823       4 929 537       549 306       4 482 369         4 284 253         481 855
      Of which standardised
 2    approach (SA)               5 806 734        5 713 985          624 224      5 109 823       4 929 537       549 306       4 482 369         4 284 253         481 855
       Of which internal
      rating-based (IRB)
 3    approach                              -               -                 -             -               -             -                                 -                -
      Counterparty credit
 4    risk                          175 710           45 126            18 889       175 710          45 126        18 889         175 474            44 037           18 863
      Of which standardised
      approach for
      counterparty credit risk
 5    (SA-CCR)                      175 710           45 126            18 889       175 710          45 126        18 889         175 474            44 037           18 863
      Of which internal
 6    model method (IMM)                    -               -                 -             -               -             -               -                 -                -
      Equity positions in
      banking book under
      market-based
 7    approach                              -               -                 -             -               -             -               -                 -                -
      Equity investments in
      funds - look-through
 8    approach                              -               -                 -             -               -             -               -                 -                -
         Equity investments
      in funds - mandate-
 9    based approach                        -               -                 -             -               -             -               -                 -
      Equity investments in
      funds - fall back
      approach                              -               -                 -             -               -             -               -                 -                -
 11   Settlement risk                       -               -                 -             -               -             -               -                 -                -
      Securitisation
      exposures in banking
 12   book                          608 814         309 511             65 448       608 814         309 511        65 448         608 814           309 511           65 448
      Of which IRB ratings-
 13   based approach (RBA)                  -               -                 -             -               -             -               -                 -                -
      Of which IRB
      Supervisory Formula
 14   Approach (SFA)                        -               -                 -             -               -             -               -                 -                -
      Of which SA/simplified
      supervisory formula
 15   approach (SSFA)               608 814         309 511             65 448       608 814         309 511        65 448         608 814           309 511           65 448
 16   Market risk                     5 200          36 410                559         5 200          36 410           559           3 824             3 922              411
      Of which standardised
 17   approach (SA)                    5 200          36 410               559         5 200          36 410           559            3 824            3 922              411
      Of which internal
      model approaches
 18   (IMM)                               -                -                -              -               -             -               -                 -                -
 19   Operational risk            1 433 563        1 371 421          154 108        910 156         858 963        97 842         704 246           651 421           75 706
      Of which Basic
 20   Indicator Approach          1 433 563        1 371 421          154 108        910 156         858 963        97 842         704 246           651 421           75 706
 21   Of which standardised               -                -                -              -               -             -               -                 -                -
      approach
      Of which Advanced
      Measurement
 22   Approach                              -               -                 -             -                 -           -                 -                 -            -
      Amounts below the
      thresholds for
      deduction (subject to
 23   250% risk weight)             455 537          424 240           48 970        323 856         309 860        34 815               -                 -               -
 24   Floor adjustment              374 795          956 818           40 290        277 666         394 369        29 849         172 877           205 603          18 584
 25   Total                       8 860 353        8 857 511          952 488      7 411 225       6 883 776       796 708       6 147 604         5 498 747         660 867


 * 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
                                  December       September                        December      September                      December         September
                                    2017 (T)      2017 (T-1)                        2017 (T)     2017 (T-1)                      2017 (T)        2017 (T-1)
 Qualifying capital and
 reserves
 Tier 1 capital                   1 575 282        1 520 805                       1 229 436     1 218 815                       969 229           929 470
  Common equity tier 1
 capital                          1 481 239        1 426 762                       1 229 436     1 218 815                       969 229           929 470
 Share capital and premium          160 103          144 327                         463 476       463 476                       463 476           463 476
 Distributable reserves and
 other                            1 301 379        1 229 443                        742 540        717 579                       452 207           410 999
 Prescribed deductions and
 non-qualifying reserves              19 757          57 038                          35 300        50 606                        53 546            54 995
 Intragroup investments                    0          -4 046                         -11 880       -12 846                             -                 -
 Additional tier 1 capital
 Non-redeemable preference
 share capital                        94 043          94 043                               -             -                             -                 -
 Tier 2 capital                       22 498          24 522                          25 071        27 550                        21 029            23 702
 Sub-ordinated debt                    6 422           5 967                           8 995         8 995                         8 995             8 995
 General allowance for credit
 impairment                           16 076          18 555                          16 076        18 555                        12 034            14 707
 Total qualifying capital and
 reserves                         1 597 780        1 545 327                       1 254 507     1 246 365                       990 258           953 172
 Minimum required capital
 and reserves                       952 488         952 182                         796 708        740 006                       660 867           591 115

 Capital adequacy ratios
 Tier 1 capital (%)                  17.779           17.170                          16.589        17.706                        15.766            16.903
 Common equity tier 1 (%)            16.718           16.108                          16.589        17.706                        15.766            16.903

 Additional tier 1 (%)                 1.061           1.062                               -             -                              -                -
 Tier 2 capital (%)                    0.254           0.277                           0.338         0.400                          0.342            0.431
 Total capital adequacy ratio
 (%)                                 18.033           17.447                          16.927        18.106                        16.108            17.334
 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             13 333 085      13 046 766                       11 478 432    10 641 153                     7 873 029         7 539 579
 Leverage ratio (Total Tier 1
 capital / Total exposures)
 (%)                                 11.815           11.657                          10.711        11.454                        12.311            12.328
 Minimum required
 Leverage Ratio (%)                    4.000           4.000                           4.000         4.000                          4.000            4.000
 Liquidity coverage ratio (%)                                                                                                         242              200
 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.

The amounts highlighted in yellow cast, however due to the use of the round formula results in a marginal difference when multiplying total risk weighted assets by the
regulatory minimum percentage.



26 April 2018
Johannesburg
Sponsor
Sasfin Capital (a member of the Sasfin group)

Independent Sponsor
Deloitte & Touche Sponsor Services (Pty) Ltd

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