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

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
 second quarter for the 29 February 2020 financial year end are set out
 below:


                                2nd Quarter 2020         1st Quarter 2020
                                  31 August 2019              31 May 2019

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

 Common Equity Tier 1
 capital (CET1)               22 563 756       32.6   21 585 401         31.5
 Additional Tier 1
 capital (AT1)(1)                 74 370        0.1       77 691          0.2

TIER 1 CAPITAL (T1)           22 638 126       32.7   21 663 092         31.7

 Unidentified loan
 impairments                     647 418                 642 200

TIER 2 CAPITAL (T2)              647 418        0.9      642 200          0.9

TOTAL QUALIFYING
REGULATORY CAPITAL            23 285 544       33.6   22 305 292         32.6

REQUIRED REGULATORY
CAPITAL(2)                     7 970 042               7 870 871

 (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) This value is 11.500% (2018: 11.125%) of risk-weighted assets, being the
 Basel global minimum requirement of 8.000%, the South African country-
 specific buffer of 1.000% (2018: 1.250%) and the Capital Conservation
 Buffer of 2.500% (2018: 1.875%), 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.

                                             2nd Quarter 2020     1st Quarter 2020
                                               31 August 2019          31 May 2019

       LIQUIDITY COVERAGE RATIO (LCR)

       High-Quality Liquid Assets                   26 628 505           19 259 374                         
       Net Cash Outflows (1)                         1 252 413            1 183 119
       Actual LCR Ratio                                 2 126%               1 628%
       Required LCR Ratio                                 100%                 100%


       LEVERAGE RATIO
       Tier 1 Capital                               22 638 126           21 663 092
       Total Exposures                             114 226 273          108 523 925
       Leverage Ratio                                    19.8%                20.0%


       NET STABLE FUNDING RATIO (NSFR)
       Total Available Stable Funding(ASF)          103 892 429           98 640 822
       Total Required Stable Funding (RSF)           51 546 784           47 794 908
       Actual NSFR Ratio                                 201.5%               206.4%
       Required NSFR Ratio                                 100%                 100%

      (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.


      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
      26 September 2019
      Sponsor - PSG Capital Proprietary Limited

Date: 26/09/2019 07:06:00
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