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
 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

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