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Capitec Bank Holdings Limited
Registration number 1999/025903/06
Incorporated in the Republic of South Africa
Registered bank controlling company
Ordinary Share Code: CPI ISIN Number: ZAE000035861
Preference Share Code: CPIP ISIN Number: ZAE000083838
("Capitec")
Capitec Bank Limited
Registration number 1980/003695/06
Incorporated in the Republic of South Africa
Registered bank
Company code: BICAP
("Capitec Bank")
Quarterly Pillar 3 disclosure in terms of Directive 10 of 2025
Directive 10 of 2025 published by the Prudential Authority on 11 August 2025
informed banks that the Pillar 3 disclosure requirements have been removed from
Regulation 43 of the regulations relating to banks, which requirements have now
been specified in this directive.
In terms of the requirements, the consolidated group is required to disclose
quantitative information on its capital adequacy, leverage and liquidity ratios
on a quarterly basis.
Impact of regulatory changes
South Africa implemented the finalised Basel III post-crisis reforms, also
commonly referred to as the Basel IV regulatory framework, on 1 July 2025. As
part of the new framework, banks adopted the new standardised approach (NSA) for
operational risk. This transition had a significant impact on the operational
risk weighted assets of both Capitec and its subsidiaries (Capitec Group) and
Capitec Bank, primarily due to the absence of a cap on the fee income component
within the NSA calculation.
As a result, Capitec Group's operational risk weighted assets increased from
R14.665 billion in May 2025 to R29.444 billion in August 2025. Similarly,
Capitec Bank's operational risk weighted assets increased from R13.650 billion
to R27.772 billion over the same period.
On 6 June 2025, the Prudential Authority issued Directive 2 of 2025, requiring
banking groups to deduct from their consolidated qualifying capital and reserves
any equity or other regulatory amounts held in insurance entities. Additionally,
banking groups must remove from their balance sheets any related assets,
liabilities, or third-party investments associated with such insurance
subsidiaries or entities conducting insurance business.
Previously, only licensed insurance entities were subject to deconsolidation,
which is why Capitec Life Limited has always been deconsolidated. However, the
new directive extends this requirement to all insurance businesses, regardless
of licensing status.
In the current quarter, Capitec Group has deconsolidated equity amounting to
R3.761 billion related to Capitec Ins Proprietary Limited ("Capitec Ins") from
its consolidated qualifying capital and reserves. Capitec Ins holds in-force
funeral and credit life insurance policies through contractual cell captive
arrangements with registered insurance companies. These cell captive
arrangements are closed to new business, as the group has transitioned to
selling credit life, funeral, and life cover policies under its own insurance
licence via Capitec Life Limited.
The implementation of the NSA contributed to the decrease in the capital
adequacy ratios for both Capitec Group and Capitec Bank. The deconsolidation of
Capitec Ins decreased the capital adequacy ratio for Capitec Group during the
current quarter.
The Capitec Group and Capitec Bank capital, liquidity and leverage positions at
the end of the second quarter of the 28 February 2026 financial year (FY) end
are set out below:
Capital Adequacy Capitec Group Capitec Bank
Ratio("CAR")
2nd Quarter 1st Quarter 2nd Quarter 1st Quarter
FY 2026 FY 2026 FY 2026 FY 2026
31 August 31 May 31 August 31 May
2025 2025 2025 2025
R'000 / % R'000 / % R'000 / % R'000 / %
Common Equity Tier 1
capital (CET1) 44 275 091 45 440 935 43 729 796 40 574 297
CET1 % 32.3 37.2 33.1 35.7
Additional Tier 1
capital (AT1) - - - -
AT1 % - - - -
Tier 1 capital (T1) 44 275 091 45 440 935 43 729 796 40 574 297
T1 % 32.3 37.2 33.1 35.7
General allowance for
credit impairment 1 052 187 1 008 262 1 042 145 986 738
Tier 2 capital (T2) 1 052 187 1 008 262 1 042 145 986 738
T2 % 0.7 0.8 0.8 0.8
Total qualifying
regulatory capital 45 327 278 46 449 197 44 771 941 41 561 035
Total qualifying
regulatory capital % 33.0 38.0 33.9 36.5
Required regulatory
capital(1) 16 474 421 14 664 942 15 839 576 13 650 181
(1)This value is currently 12% of risk-weighted assets, being the Basel global
minimum requirement of 8%, the Pillar 2A South African country-specific buffer
of 1%, the Capital Conservation Buffer of 2.5% and the Domestic Systemically
Important Bank ("D-SIB") capital add-on of 0.5%.
Liquidity Coverage Capitec Group Capitec Bank
Ratio ("LCR")
2nd Quarter 1st Quarter 2nd Quarter 1st Quarter
FY 2026 FY 2026 FY 2026 FY 2026
31 August 31 May 31 August 31 May
2025 2025 2025 2025
R'000 / % R'000 / % R'000 / % R'000 / %
High-quality liquid
assets ("HQLA") 99 953 128 95 625 746 99 953 128 95 625 746
Net cash outflows(1) 3 176 436 3 328 725 3 226 641 3 360 036
Actual LCR % 3 147 2 873 3 098 2 846
Required LCR % 100 100 100 100
(1)The total net weighted cash outflows are calculated as the total cash outflows,
less the minimum of either the cash inflows, or 75% of total outflows.
Net Stable Funding Capitec Group Capitec Bank
Ratio ("NSFR")
2nd Quarter 1st Quarter 2nd Quarter 1st Quarter
FY 2026 FY 2026 FY 2026 FY 2026
31 August 31 May 31 August 31 May
2025 2025 2025 2025
R'000 / % R'000 / % R'000 / % R'000 / %
Total available
stable funding 219 580 503 214 868 539 217 041 669 207 831 698
Total required
stable funding 93 248 630 95 315 850 93 528 380 92 062 618
Actual NSFR % 235.5 225.4 232.1 225.8
Required NSFR % 100 100 100 100
Leverage ratio Capitec Group Capitec Bank
2nd Quarter 1st Quarter 2nd Quarter 1st Quarter
FY 2026 FY 2026 FY 2026 FY 2026
31 August 31 May 31 August 31 May
2025 2025 2025 2025
R'000 / % R'000 / % R'000 / % R'000 / %
Tier 1 capital 44 275 091 45 440 935 43 729 796 40 574 297
Total exposures 246 792 260 239 450 569 243 952 652 232 972 978
Leverage ratio % 17.9 19.0 17.9 17.4
For the detailed Pillar 3 disclosure report, refer to the "Banks Act Public
Disclosure" section on our website at www.capitecbank.co.za/investor-relations
By order of the Board
Stellenbosch
1 October 2025
Capitec Equity Sponsor: PSG Capital Proprietary Limited
Capitec Bank Debt Sponsor: PSG Capital Proprietary Limited
Date: 01-10-2025 07:06:00
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