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 third quarter of the 28 February 2021 financial year end are set out below: 3rd Quarter 2021 2nd Quarter 2021 30 November 2020 31 August 2020 Capital Capital Adequacy Adequacy R’000 Ratio % R’000 Ratio % COMMON EQUITY TIER 1 CAPITAL (CET1) 26 507 455 30.7 24 638 904 29.5 Additional Tier 1 capital (AT1)(1) 51 794 0.0 51 794 0.1 TIER 1 CAPITAL (T1) 26 559 249 30.7 24 690 698 29.6 General allowance for credit impairment 774 832 721 072 TIER 2 CAPITAL (T2) 774 832 0.9 721 072 0.8 TOTAL QUALIFYING REGULATORY CAPITAL 27 334 081 31.6 25 411 770 30.4 REQUIRED REGULATORY CAPITAL(2) 9 513 242 9 187 290 (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. 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% 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. 3rd Quarter 2021 2nd Quarter 2021 30 November 2020 31 August 2020 R’000 R’000 LIQUIDITY COVERAGE RATIO (LCR) High-Quality Liquid Assets(1) 49 670 375 37 955 609 Net Cash Outflows(2) 2 254 621 2 051 309 Actual LCR Ratio 2 203% 1 850% Required LCR Ratio(3) 80% 80% (1) As at 30 November 2020, R1.08 billion (31 August 2020: R906.2 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 30 November 2020, R579.4 million (31 August 2020: R534.8 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 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 where market liquidity has decreased, and banks expected to be under increased pressure to comply with the currently prescribed LCR requirements. 3rd Quarter 2021 2nd Quarter 2021 30 November 2020 31 August 2020 R’000 R’000 NET STABLE FUNDING RATIO (“NSFR”) Total Available Stable Funding(1) 136 206 928 130 457 121 Total Required Stable Funding(2) 59 944 901 59 504 018 Actual NSFR Ratio 227.2% 219.2% Required NSFR Ratio 100% 100% (1) As at 30 November 2020, R11.1 billion (31 August 2020: R10.9 billion) of the Total Available Stable Funding is attributable to Mercantile Bank Limited. (2) As at 30 November 2020, R10.4 billion (31 August 2020: R10.2 billion) of the Total Required Stable Funding is attributable to Mercantile Bank Limited. 3rd Quarter 2021 2nd Quarter 2021 30 November 2020 31 August 2020 R’000 R’000 LEVERAGE RATIO Tier 1 Capital 26 559 249 24 690 698 Total Exposures(1) 153 456 051 144 709 567 Leverage Ratio 17.3% 17.1% (1) As at 30 November 2020, R14.3 billion (31 August 2020: R14.5 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 11 December 2020 Sponsor - PSG Capital Proprietary Limited Date: 11-12-2020 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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