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
third quarter of the 28 February 2022 financial year end are set out below:


                                  3rd Quarter 2022          2nd Quarter 2022
                                  30 November 2021            31 August 2021

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

COMMON EQUITY TIER 1
CAPITAL (CET1)                 30 557 063       36.5     29 547 542       36.5
Additional Tier 1 capital
 (AT1)(1)                          25 897        0.0         25 897        0.0

TIER 1 CAPITAL (T1)            30 582 960       36.5     29 573 439       36.5


 General allowance for
 credit impairment                715 172                   675 502

TIER 2 CAPITAL (T2)               715 172        0.9        675 502        0.9

TOTAL QUALIFYING REGULATORY
CAPITAL                        31 298 132       37.4     30 248 941       37.4

REQUIRED REGULATORY
CAPITAL(2)                      9 214 280                 8 901 223


(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%.
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. Directive 5 of 2021 issued on 20 May 2021 stated that the
1% Pillar 2A requirement will be reinstated on 1 January 2022.


                                       3rd Quarter 2022     2nd Quarter 2022
                                       30 November 2021       31 August 2021
                                                  R’000                R’000
LIQUIDITY COVERAGE RATIO (LCR)

High-Quality Liquid Assets                   78 034 323           71 657 162

Net Cash Outflows(1)                          2 714 334            2 464 399

Actual LCR                                       2 875%               2 908%

Required LCR(2)                                     80%                  80%


(1) Capitec has a net cash inflow after applying the run-off factors, therefore
the 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 financial market turmoil
due to Covid-19 where market liquidity has decreased, and banks expected to be
under increased pressure to comply with the prescribed LCR requirements.
Directive 8 of 2021 issued on 29 October 2021 stated that the minimum LCR
requirement will be increased to 90% with effect from 1 January 2022, and to
100% with effect from 1 April 2022.



                                       3rd Quarter 2022    2nd Quarter 2022
                                       30 November 2021      31 August 2021
                                                  R’000               R’000
NET STABLE FUNDING RATIO (“NSFR”)

Total Available Stable Funding               159 534 561         151 029 190

Total Required Stable Funding                 66 759 227          62 742 405

Actual NSFR                                       239.0%              240.7%

Required NSFR                                       100%               100%



                                       3rd Quarter 2022    2nd Quarter 2022
                                       30 November 2021      31 August 2021
                                                  R’000               R’000
LEVERAGE RATIO

Tier 1 Capital                               30 582 960          29 573 439

Total Exposures                             178 471 628         167 100 306

Leverage Ratio                                    17.1%               17.7%


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
15 December 2021
Sponsor - PSG Capital

Date: 15-12-2021 12:50:00
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