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


 QUARTERLY DISCLOSURE IN TERMS OF REGULATION 43 OF THE REGULATIONS RELATING
 TO BANKS

 Capitec Bank Holdings Limited 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 28 February 2019 financial year end are set out
 below:


                                2nd Quarter 2019         1st Quarter 2019
                                  31 August 2018              31 May 2018

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

 Common Equity Tier 1
 capital (CET1)               19 326 895       34.3     18 054 289       35.1
 Additional Tier 1
 capital (AT1)(1)                103 587        0.2        103 587        0.2

TIER 1 CAPITAL (T1)           19 430 482       34.5     18 157 876       35.3

 Total subordinated
 debt(1)(2)                       89 884                   273 589

 Unidentified loan
 impairments                     556 930                   515 414

TIER 2 CAPITAL (T2)              646 814        1.1        789 003        1.5

TOTAL QUALIFYING
REGULATORY CAPITAL            20 077 296       35.6     18 946 879       36.8

REQUIRED REGULATORY
CAPITAL(3)                     6 265 516                 5 718 121


 (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.

                                              2nd Quarter 2019    1st Quarter 2019
                                                31 August 2018      31 May 2018

        LIQUIDITY COVERAGE RATIO (LCR)

        High-Quality Liquid Assets                  18 696 766      19 066 557

        Net Cash Outflows (1)                          972 041         998 632

        Required LCR Ratio                                 90%             90%

        Actual LCR Ratio                                1 923%          1 909%


        LEVERAGE RATIO

        Tier 1 Capital                              19 430 482      18 157 876

        Total Exposures                             94 010 321      88 973 287

        Leverage Ratio                                   20.7%           20.4%


        NET STABLE FUNDING RATIO (NSFR)

        Total Available Stable Funding(ASF)         85 334 346      81 088 327

        Total Required Stable Funding (RSF)         41 709 625      39 107 138

        Actual NSFR Ratio(2)                            204.6%          207.3%


(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 and leverage ratio calculations refer to our website at
      www.capitecbank.co.za/investor-relations

      By order of the Board
      Stellenbosch
      26 September 2018
      Sponsor - PSG Capital Proprietary Limited

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