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 (“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
first quarter of the 28 February 2022 financial year end are set out below:


                                  1st Quarter 2022          4th Quarter 2021
                                       31 May 2021          28 February 2021

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

 COMMON EQUITY TIER 1
 CAPITAL (CET1)                28 132 461       36.4     27 872 626       35.8
 Additional Tier 1 capital
 (AT1)(1)                          25 897        0.0         25 897        0.1

TIER 1 CAPITAL (T1)            28 158 358       36.4     27 898 523       35.9


 General allowance for
 credit impairment                648 295                   647 835

TIER 2 CAPITAL (T2)               648 295        0.9        647 835        0.8

TOTAL QUALIFYING REGULATORY
CAPITAL                        28 806 653       37.3     28 546 358       36.7

REQUIRED REGULATORY
CAPITAL(2)                      8 500 078                 8 558 137


(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% of risk-weighted assets, being the Basel
global minimum requirement of 8%, the Capital Conservation Buffer of 2.5% and
the Domestic Systemically Important Bank (“D-SIB”) capital add-on of 0.5%,
disclosable in terms of Directive 4 issued by the Prudential Authority on 27
August 2020.

The Prudential Authority issued Directive 2 on 6 April 2020 and temporarily
relaxed the Pillar 2A South African country-specific buffer of 1% 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. It is currently anticipated that the 1% Pillar 2A
requirement will be reinstated on 1 January 2022.


                                       1st Quarter 2022    4th Quarter 2021
                                            31 May 2021    28 February 2021
                                                  R’000               R’000
LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets                   64 560 155          57 601 979
Net Cash Outflows(1)                          2 596 583           2 342 837
Actual LCR Ratio                                 2 486%              2 459%
Required LCR Ratio(2)                               80%                 80%

(1) 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.

(2) The Prudential Authority issued Directive 1 of 2020 on 31 March 2020 and
temporarily relaxed 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 due to Covid-19 where market liquidity has decreased, and banks
expected to be under increased pressure to comply with the currently prescribed
LCR requirements.



                                       1st Quarter 2022    4th Quarter 2021
                                            31 May 2021    28 February 2021
                                                  R’000               R’000
NET STABLE FUNDING RATIO (“NSFR”)
Total Available Stable Funding              138 830 197         136 500 427
Total Required Stable Funding                61 294 638          61 746 242
Actual NSFR Ratio                                226.5%              221.1%
Required NSFR Ratio                                100%                100%



                                       1st Quarter 2022    4th Quarter 2021
                                            31 May 2021    28 February 2021
                                                  R’000               R’000
LEVERAGE RATIO
Tier 1 Capital                               28 158 358         27 898 523
Total Exposures(1)                          159 606 340        158 134 375
Leverage Ratio                                    17.6%              17.6%




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
28 June 2021
Sponsor - PSG Capital Proprietary Limited

Date: 28-06-2021 03:45:00
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