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


                                  2nd Quarter 2022          1st Quarter 2022
                                    31 August 2021               31 May 2021

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

 COMMON EQUITY TIER 1
 CAPITAL (CET1)                29 547 542       36.5     28 132 461       36.4
 Additional Tier 1 capital
 (AT1)(1)                          25 897        0.0         25 897        0.0

TIER 1 CAPITAL (T1)            29 573 439       36.5     28 158 358       36.4


 General allowance for
 credit impairment                675 502                   648 295

TIER 2 CAPITAL (T2)               675 502        0.9        648 295        0.9

TOTAL QUALIFYING REGULATORY
CAPITAL                        30 248 941       37.4      28 806 653      37.3

REQUIRED REGULATORY
CAPITAL(2)                      8 901 223                  8 500 078


(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.


                                       2nd Quarter 2022    1st Quarter 2022
                                         31 August 2021         31 May 2021
                                                  R’000               R’000
LIQUIDITY COVERAGE RATIO (LCR)
High-Quality Liquid Assets                   71 657 162          64 560 155
Net Cash Outflows(1)                          2 464 399           2 596 583
Actual LCR                                       2 908%              2 486%
Required LCR(2)                                     80%                 80%

(1)
    Capitec has a net cash inflow after applying the run-off weightings,
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 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. It is currently anticipated that the minimum LCR requirement
will be increased to 90% on 1 January 2022, and to 100% on 1 April 2022.



                                       2nd Quarter 2022    1st Quarter 2022
                                         31 August 2021         31 May 2021
                                                  R’000               R’000
NET STABLE FUNDING RATIO (“NSFR”)
Total Available Stable Funding              151 029 190         138 830 197
Total Required Stable Funding                62 742 405          61 294 638
Actual NSFR                                      240.7%              226.5%
Required NSFR                                      100%                100%



                                       2nd Quarter 2022    1st Quarter 2022
                                         31 August 2021         31 May 2021
                                                  R’000               R’000
LEVERAGE RATIO
Tier 1 Capital                               29 573 439          28 158 358
Total Exposures                             167 100 306         159 606 340
Leverage Ratio                                    17.7%               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
30 September 2021
Sponsor - PSG Capital Proprietary Limited  

Date: 30-09-2021 07:06:00
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