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 (“Capitec”) QUARTERLY DISCLOSURE IN TERMS OF REGULATION 43 OF THE REGULATIONS RELATING TO BANKS Capitec 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 third quarter for the 28 February 2019 financial year end are set out below: 3rd Quarter 2019 2nd Quarter 2019 30 November 2018 31 August 2018 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % Common Equity Tier 1 capital (CET1) 20 266 512 33.4 19 326 895 34.3 Additional Tier 1 capital (AT1)(1) 95 104 0.1 103 587 0.2 TIER 1 CAPITAL (T1) 20 361 616 33.5 19 430 482 34.5 Total subordinated debt(1)(2) 91 545 89 884 Unidentified loan impairments 594 672 556 930 TIER 2 CAPITAL (T2) 686 217 1.2 646 814 1.1 TOTAL QUALIFYING REGULATORY CAPITAL 21 047 833 34.7 20 077 296 35.6 REQUIRED REGULATORY CAPITAL(3) 6 754 061 6 265 516 (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. 3rd Quarter 2019 2nd Quarter 2019 30 November 2018 31 August 2018 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets 17 221 301 18 696 766 Net Cash Outflows (1) 1 075 499 972 041 Required LCR Ratio 90% 90% Actual LCR Ratio 1 601% 1 923% LEVERAGE RATIO Tier 1 Capital 20 361 616 19 430 482 Total Exposures 99 206 342 94 010 321 Leverage Ratio 20.5% 20.7% NET STABLE FUNDING RATIO (NSFR) Total Available Stable Funding(ASF) 89 937 489 85 334 346 Total Required Stable Funding (RSF) 44 775 231 41 709 625 Actual NSFR Ratio(2) 200.9% 204.6% (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, NSFR and leverage ratio calculations refer to the “Banks Act Public Disclosure” section on our website at www.capitecbank.co.za/investor-relations By order of the Board Stellenbosch 13 December 2018 Sponsor - PSG Capital Proprietary Limited Date: 13/12/2018 08:20:00 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.