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

Release Date: 26/06/2018 07:05
Code(s): CPI CPIP
 
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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 2019 financial year end are set out below:


                                1st Quarter 2019         4th Quarter 2018
                                     31 May 2018         28 February 2018

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

 Common Equity Tier 1
 capital (CET1)               18 054 289       35.1    17 381 888       33.9
 Additional Tier 1
 capital (AT1)(1)                103 587        0.2       103 587        0.2

TIER 1 CAPITAL (T1)           18 157 876       35.3    17 485 475       34.1

 Total subordinated
 debt(1)(2)                      273 589                  283 438
 Unidentified loan
 impairments                     515 414                  519 230
TIER 2 CAPITAL (T2)              789 003        1.5       802 668        1.6

TOTAL QUALIFYING
REGULATORY CAPITAL            18 946 879       36.8    18 288 143       35.7

REQUIRED REGULATORY
CAPITAL(3)                     5 718 121                5 699 501

(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.

                                       1st Quarter 2019       4th Quarter 2018
                                            31 May 2018       28 February 2018

LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets                    19 066 557        18 056 043
                    (1)
Net Cash Outflows                                998 632           961 511
Required LCR Ratio                                   90%               90%
Actual LCR Ratio                                  1 909%            1 878%


LEVERAGE RATIO
Tier 1 Capital                                18 157 876        17 485 475

Total Exposures                               88 973 287        84 834 799

Leverage Ratio                                     20.4%             20.6%


NET STABLE FUNDING RATIO (NSFR)
Total Available Stable Funding(ASF)           81 088 327        76 621 291
Total Required Stable Funding (RSF)           39 107 138        37 205 204
Actual NSFR Ratio(2)                               207.3%           205.9%


(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
      26 June 2018
      Sponsor - PSG Capital Proprietary Limited

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