Voluntary Announcement: Acquisition of a Controlling Interest in an International Online Lending Group Capitec Bank Holdings Limited Registration number 1999/025903/06 Incorporated in the Republic of South Africa Registered bank controlling company Share Code: CPI ISIN: ZAE000035861 ("Capitec" or the "Company") VOLUNTARY ANNOUNCEMENT: ACQUISITION OF A CONTROLLING INTEREST IN AN INTERNATIONAL ONLINE LENDING GROUP The Prudential Authority of the SA Reserve Bank has approved a transaction for Capitec to increase its shareholding in Avafin Holding Limited ("Avafin"), an international online consumer lending group, from 40.66% to 97.69% at a purchase price of €26.3 million. Shareholders are referred to the announcement on the JSE Stock Exchange News Service dated 24 March 2017 regarding Capitec's acquisition of an initial 40% interest in Cream Finance Holding Limited (renamed Avafin), domiciled in Cyprus. The acquisition of a minority interest in Avafin in 2017 provided Capitec with the opportunity to gain experience in the international online consumer credit market, management of operations and risk in foreign markets and international diversification of Capitec's income sources. Avafin management will continue to hold the residual interest in the business, in line with Capitec's philosophy of management ownership. The transaction is subject to the approval of the Financial Surveillance Department of the SA Reserve Bank and the Polish competition authority. Key reasons for acquiring the controlling interest in Avafin: • Strong culture fit – Avafin is a small challenger, taking on large market leaders by focusing on niche solutions for clients through the efficient use of a sophisticated, scalable, technology driven online consumer credit platform and sound credit risk management principles. • Geographical diversification - The business model developed from a high dependency on a single market to successful operations in multiple markets. Avafin provides online consumer loan products in Poland, Czechia, Latvia, Spain and Mexico. • Excellent management team – Management and staff are innovative with a pragmatic approach and responsive to changes in the diverse geographical environments in which they operate: - The business has developed successfully despite multiple challenges including Covid-19, the Ukrainian crisis and regulatory changes in a number of countries where Avafin operates. - Avafin is agile and management has a proven track record for timely identification and swift implementation of necessary changes to its systems, processes and credit risk appetite. - The efficiency in adapting and managing change has led to improvements in Avafin's competitive position and market share after overcoming each of the above challenges. Avafin is closely aligned to Capitec's client centric retail business model and well positioned for growth. More information on Avafin is available at https://avafin.com/wp- content/uploads/2023/08/AvaFin_Investor_Factsheet.pdf 12 March 2024 Stellenbosch Sponsor PSG Capital Date: 12-03-2024 09:30:00 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.