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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
(“Capitec”)
QUARTERLY DISCLOSURE IN TERMS OF REGULATION 43 OF THE REGULATIONS RELATING
TO BANKS
Capitec and its subsidiaries (“the 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, leverage and
liquidity ratios on a quarterly basis.
The group’s consolidated capital and liquidity positions at the end of the
second quarter of the 28 February 2021 financial year end are set out below:
2nd Quarter 2021 1st Quarter 2021
31 August 2020 31 May 2020
Capital Capital
Adequacy Adequacy
R’000 Ratio % R’000 Ratio %
COMMON EQUITY TIER 1
CAPITAL (CET1) 24 638 904 29.5 23 660 789 28.4
Additional Tier 1 capital
(AT1)(1) 51 794 0.1 51 794 0.1
TIER 1 CAPITAL (T1) 24 690 698 29.6 23 712 583 28.5
General allowance for
credit impairment 721 072 752 664
TIER 2 CAPITAL (T2) 721 072 0.8 752 664 0.9
TOTAL QUALIFYING REGULATORY
CAPITAL 25 411 770 30.4 24 465 247 29.4
REQUIRED REGULATORY
CAPITAL(2) 9 187 290 8 742 528
(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 currently 11.000% (May 2020: 10.500%) of risk-weighted
assets, being the Basel global minimum requirement of 8.000%, the Capital
Conservation Buffer of 2.500% and the Domestic Systemically Important
Bank(“D-SIB”) capital add-on of 0.500%, disclosable in terms of Directive 4
issued by the Prudential Authority on 27 August 2020. Directive 4 has
replaced Directive 6 of 2016 and requires banks to publicly disclose their D-
SIB capital add-on as part of their composition of regulatory capital
disclosure. In terms of the regulations relating to banks the Individual
Capital Requirement (“ICR”) is excluded.
The Prudential Authority issued Directive 2 on 6 April 2020 and temporarily
relaxed the Pillar 2A South African country-specific buffer of 1.00% to
provide temporary capital relief to banks during this time of financial
stress following the outbreak of the Covid-19 pandemic, in a manner that
ensures South Africa’s continued compliance with the relevant internationally
agreed capital framework.
2nd Quarter 2021 1st Quarter 2021
31 August 2020 31 May 2020
R’000 R’000
LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets(1) 37 955 609 37 327 479
Net Cash Outflows(2) 2 051 309 2 085 404
Actual LCR Ratio 1 850% 1 790%
Required LCR Ratio(3) 80% 80%
(1) As at 31 August 2020, R906.2 million (31 May 2020: R987.9 million) of the
total High-Quality Liquid Assets is attributable to Mercantile Bank Limited.
(2) Capitec has a net cash inflow after applying the run-off weightings,
therefore outflows for the purpose of the ratio are deemed to be 25% of gross
outflows. As at 31 August 2020, R534.8 million (31 May 2020: R563.6 million)
of the total net cash outflows is attributable to Mercantile Bank Limited.
(3) The Prudential Authority issued Directive 1 of 2020 on 31 March 2020 and
decreased the minimum LCR requirement on 1 April 2020 from 100% to 80%. The
reason for the decrease is attributable to the current financial market turmoil
where market liquidity has decreased, and banks expected to be under increased
pressure to comply with the currently prescribed LCR requirements.
2nd Quarter 2021 1st Quarter 2021
31 August 2020 31 May 2020
R’000 R’000
NET STABLE FUNDING RATIO (“NSFR”)
Total Available Stable Funding(1) 130 457 121 126 572 021
Total Required Stable Funding(2) 59 504 018 59 955 245
Actual NSFR Ratio 219.2% 211.1%
Required NSFR Ratio 100% 100%
(1) As at 31 August 2020, R10.9 billion (31 May 2020: R10.4 billion) of the
Total Available Stable Funding is attributable to Mercantile Bank Limited.
(2) As at 31 August 2020, R10.2 billion (31 May 2020: R10.2 billion) of the
Total Required Stable Funding is attributable to Mercantile Bank Limited.
2nd Quarter 2021 1st Quarter 2021
31 August 2020 31 May 2020
R’000 R’000
LEVERAGE RATIO
Tier 1 Capital 24 690 698 23 712 583
Total Exposures(1) 144 709 567 140 850 287
Leverage Ratio 17.1% 16.8%
(1) As at 31 August 2020, R14.5 billion (31 May 2020: R14.1 billion) of the
total exposures is attributable to Mercantile Bank Limited.
For the detailed 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
30 September 2020
Sponsor - PSG Capital Proprietary Limited
Date: 30-09-2020 07:06:00
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