HEADLINE EARNINGS PER ORDINARY SHARE 15% 255 CENTS (Dec 2013: 222 CENTS) TOTAL ASSETS 16% R9.22 BILLION (Dec 2013: R7.96 BILLION)

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1 Sasfin Holdings Limited Incorporated in the Republic of South Africa (Company registration number 1987/002097/06) ( Sasfin or the Group or the Company ) (Ordinary share code: SFN ISIN: ZAE ) (Preference share code: SFNP ISIN: ZAE ) interim results and dividend declarations for the six months ended HEADLINE EARNINGS 15% R81.03 MILLION (Dec : R70.36 MILLION) HEADLINE EARNINGS PER ORDINARY SHARE 15% 255 CENTS (Dec : 222 CENTS) DIVIDENDS PER ORDINARY SHARE 15% 75 CENTS (Dec : 65 CENTS) RETURN ON ORDINARY SHAREHOLDERS AVERAGE EQUITY 100bps 14% (Dec : 13%) TOTAL ASSETS 16% R9.22 BILLION (Dec : R7.96 BILLION) GROSS LOANS AND ADVANCES 14% R4.36 BILLION (Dec : R3.81 BILLION) FUNDS UNDER ADVISEMENT AND MANAGEMENT 15% R88.86 BILLION (Dec : R77.01 BILLION) GROUP CAPITAL ADEQUACY RATIO 24% (Dec : 24%) FUNDING BASE 11% R6.0 BILLION (Dec : R5.42 BILLION)

2 FINANCIAL HIGHLIGHTS % change Consolidated statement of financial position Total assets (Rm) Total gross loans and advances (Rm) Non-performing loans and advances (Rm) Income statement Earnings attributable to ordinary shareholders (Rm) Headline earnings (Rm) Financial performance Return on ordinary shareholders average equity (%) Return on total average assets (%) Operating performance Non-interest income to total income (%) Cost to income ratio Group (%) Banking Group (%) Credit loss ratio (bps) Non-performing advances to total gross loans and advances (%) Share statistics Earnings per ordinary share (cents) Headline earnings per ordinary share (cents) Number of ordinary shares in issue at end of the period (000) Weighted average number of ordinary shares in issue (000) Dividends per ordinary share relating to profit for the period (cents) Preference share dividend 1 for the period Preference share dividend 2 for the period Net asset value per ordinary share (cents) Capital adequacy Capital to risk weighted assets Group (%) Banking Group (%) Employees Permanent staff complement

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION All figures in R 000 % change ASSETS Cash and cash balances Short-term negotiable securities Loans and advances to customers Financial assets and reverse repurchase agreements * Other receivables * Investment securities Investments in associated companies Property, plant and equipment Taxation Intangible assets and goodwill Deferred tax asset Total assets LIABILITIES Funding under repurchase agreements and interbank Deposits from customers Debt securities issued Long-term funding Financial liabilities and repurchase agreements * Other payables Taxation Deferred tax liability Total liabilities EQUITY Ordinary share capital and share premium Reserves Preference share capital and share premium Total equity Total liabilities and equity Commitments and contingent liabilities * Restated as disclosed in the Annual Financial Statements for the year ended Sasfin Holdings Limited Interim Results and Dividend Declarations 1

4 CONSOLIDATED INCOME STATEMENT All figures in R 000 % change Interest income Interest expense Net interest income Non-interest income Total income Impairment charges on loans and advances Net income after impairments Operating costs Staff costs Other operating expenses Goodwill impairment Profit from operations Share of associate income Profit before income tax Income tax expense Profit for the period Profit attributable to: Preference shareholders Equity holders of the Group Profit for the period Earnings per ordinary share (cents) Headline earnings per ordinary share (cents) Sasfin Holdings Limited Interim Results and Dividend Declarations

5 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME All figures in R 000 % change Profit for the period Other comprehensive income for the period, net of income tax (225) (161) Items that may be subsequently reclassified to profit and loss: Net gains on remeasurement of available-for-sale financial assets Derecognition of available-for-sale reserve upon sale of investment (5 997) Gross (7 367) Income tax effect Foreign exchange differences on translation of foreign operation Net loss on hedge of net investment in foreign operation (9 803) (12 576) (9 248) Loss on hedge of net investment in foreign operation (13 615) (17 467) (12 845) Income tax effect Total comprehensive income for the period Total comprehensive income attributable to: Preference shareholders Equity holders of the Group Total comprehensive income for the period Sasfin Holdings Limited Interim Results and Dividend Declarations 3

6 CONDENSED HEADLINE EARNINGS RECONCILIATION All figures in R 000 % change Earnings are determined as follows: Earnings attributable to equity holders of the Group Headline adjustable items (29) (81) Profit on sale of property and equipment IAS 16 (29) (81) (82) Gross (40) (112) (114) Tax impact Impairment of goodwill Gain on the disposal of available-for-sale investments (5 997) Gross (7 367) Tax Impact Headline earnings Headline earnings per ordinary share (cents) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY All figures in R 000 Opening total shareholders equity Total comprehensive income for the period Profit for the period Total income Available-for-sale reserve 323 (5 074) Net gains on remeasurement Derecognition upon sale of investments (5 997) Foreign currency translation reserve Hedging reserve (9 803) (12 576) (9 248) Transactions with owners recorded directly in equity Preference share dividend (6 951) (6 679) (13 359) Ordinary share dividend (40 559) (34 885) (55 989) Closing balance Sasfin Holdings Limited Interim Results and Dividend Declarations

7 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS All figures in R 000 Cash flows from operating activities Movement in operating assets and liabilities Net cash flows from operating activities Net cash flows from investing activities (6 210) (26 399) Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Effect of exchange rate fluctuations on cash held (5 548) Cash and cash equivalents at end of the period Cash and cash equivalents comprise: Cash and cash balances Short-term negotiable securities Funding under repurchase agreements and interbank ( ) ( ) Cash and cash equivalents at end of the period Sasfin Holdings Limited Interim Results and Dividend Declarations 5

8 CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS All figures in R 000 Segment result Business Banking Capital Transactional Banking and Treasury Wealth Management Commercial Solutions Group and inter-segment eliminations (19 587) (19 511) (47 868) Profit for the year Segment revenue Business Banking Capital Transactional Banking and Treasury Wealth Management Commercial Solutions Group and inter-segment eliminations (83 351) (71 675) ( ) Total segment revenue Segment assets Business Banking Capital Transactional Banking and Treasury Wealth Management Commercial Solutions Group and inter-segment eliminations ( ) ( ) ( ) Total segment assets Segment liabilities Business Banking Capital Transactional Banking and Treasury Wealth Management Commercial Solutions Group and inter-segment eliminations ( ) ( ) ( ) Total segment liabilities Sasfin Holdings Limited Interim Results and Dividend Declarations

9 NOTE 1: FINANCIAL INSTRUMENTS: FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES The carrying amount of the Group s financial assets and financial liabilities is a reasonable approximate of fair value. The Group s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended. Fair value hierarchy The table below analyses financial instruments carried at fair value, by level of fair value hierarchy. The different levels are based on the inputs used in the calculation of fair value of the financial instruments. The levels have been defined as follows: Level 1 fair value is based on quoted market prices (unadjusted) in active markets for identical instruments. Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 unobservable inputs for the asset or liability. All figures in R 000 Level 1 Level 2 Level 3 Short-term negotiable securities Financial liabilities and repurchase agreements * Investment securities Other receivables Total financial assets carried at fair value Financial liabilities and reverse repurchase agreements * Other payables Total financial liabilities carried at fair value * Restated as disclosed in the Annual Financial Statements for the year ended Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all other financial instruments, the Group determines fair values using valuation techniques. The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the transfer has occurred. There were no transfers between Level 1, 2 and 3 of the fair value hierarchy during the six months to. All figures in R 000 Level 3 fair values Investment securities Opening balance Unrealised gains/(losses) for the year included in profit or loss Net investments/(settlements) Reclassification of associates as fair value investments Net purchases/(settlements) Closing balance The valuations of Level 3 investment securities were based predominantly on detailed discounted cash flow methodologies, which were sanity checked against implied price/earnings multiples, and where applicable benchmarked to proxies of listed entities in similar industries. This valuation methodology is allowed per the South African Venture Capital and Private Equity guidelines. Sasfin Holdings Limited Interim Results and Dividend Declarations 7

10 COMMENTARY Nature of business Sasfin Holdings Limited ( Sasfin or Group or Company ) is a bank-controlling company listed in the Financials: Investment Services sector of the JSE Limited ( the JSE ). Sasfin s subsidiaries provide a wide range of complementary banking, financial and related services. Business environment World economic growth, particularly in Europe, Japan and China has continued to disappoint despite substantial quantitative easing, partly due to tougher bank capital and liquidity restrictions. The South African economy continues to face significant headwinds exacerbated by the electricity and labour crises as well as the fall in most commodity prices, severely impacting meaningful growth levels required to stimulate the economy. Notwithstanding the deteriorating local environment, the banking sector remains resilient and well capitalised despite a constrained demand for credit. Group overview Sasfin continued to grow its core business activities and produced a solid set of results in tough trading conditions with strong revenue growth across all business segments and single digit cost growth. Headline earnings increased by 15% (Dec : 10%) to R81.03 million (Dec : R70.36 million) while headline earnings per share showed a similar increase to 255 cents (Dec : 222 cents). The Group asset base grew 16% (Dec : 36%) to R9.22 billion (Dec : R8.0 billion) driven largely by a 14% (Dec : 21%) growth in gross loans and advances to R4.36 billion from R3.81 billion in December. Total income grew by 13% (Dec : 15%) to R476 million (Dec : R420 million) underpinned by a 20% growth in gross interest income and a 15% increase in non-interest revenue. A marginally higher credit loss ratio of 92bps (Dec : 80bps) saw impairment charges rise by 21% over the corresponding period. Group costs increased by 9% to R345 million (Dec : R316 million) highlighting the Group s continuous efforts to contain cost growth. This is further evidenced by a reduced cost-to-income ratio in the Group to 72% from 74% and in the Banking Group to 62% from 65%. Encouragingly, the Group achieved a positive JAWS ratio of 4% highlighting improved levels of revenue growth. Segmental overview The Business Banking division delivered a flat set of results, with a 1% increase in profits to R47.65 million (Dec : R47.30 million). Loans and advances grew by 14% due to strong client retention, penetration into new markets and larger value transactions. These gains were however, negatively affected by margin compression and a higher than anticipated impairment charge of R19.43 million (Dec : R16.80 million) resulting in a credit loss ratio of 98bps; up from 90bps in Dec. Non-performing loans, as a percentage of the gross lending book, showed a positive downward trend to 4.0% (Dec : 4.2%). 8 Sasfin Holdings Limited Interim Results and Dividend Declarations

11 Wealth delivered an impressive 49% growth in profit to R32.97 million (Dec : R22.09 million) driven by strong revenue flows from all sectors of this division. This unit s aggressive growth strategies are yielding positive results with improved annuity income flows arising from increased local and globally managed portfolios. These initiatives have contributed to the division managing a sizeable portfolio of funds under administration and management amounting to R88.86 billion (Dec : R77.01 billion). Transactional Banking was successfully launched late in in a seamless and cost-efficient manner. The Group is optimistic about being able to become the primary banker to its clients by offering a comprehensive range of electronic banking services. Domestic Treasury, which has been combined within the Transactional Banking unit, continues to grow its deposit base, which is now at R3.0 billion, an increase of 8% over the corresponding period. The deposit book remains well diversified with fixed and notice deposits comprising just under 50% of the total deposit base. This business unit remains a strong contributor to the Group, having generated a profit of R7.89 million (Dec : R6.63 million). The Capital division showed an increase in profitability to R6.45 million (Dec : R5.27 million) following a satisfactory performance from the Private Equity and Property Equity units underpinned by strong dealflow. The Corporate Finance unit, however, had a poor performance during the period affected largely by a lack of meaningful mandates. Commercial Solutions recorded an 18% decrease in profitability due to tough trading conditions and lower import values experienced in the freight and incentives businesses. It is encouraging to note the significant strides being made in Sasfin Forex given the renewed management focus which achieved a break-even result for the period, reversing a R2.33 million loss in December. Statement of financial position and capital management review Sasfin has grown its investor and depositor base leading to an increase in its funding base to R6.0 billion (Dec : R5.42 billion) representing a well spread profile and tenor. This has led to the Group maintaining a healthy liquidity position which bodes well for its growth initiatives both organically and acquisitively. The Group maintains a high capital adequacy ratio of 24%, and a primary Tier 1 capital adequacy ratio of 23%, which is a key measure of capital strength in terms of Basel III, both well above the minimum regulatory requirements. Prospects Sasfin continues to focus on its target market comprising entrepreneurial businesses, institutions, corporates and private clients. Despite the prevailing levels of uncertainty and constrained growth levels in the economy, the Group remains cautiously optimistic about the improved levels of business activity being experienced across all segments. Sasfin is well poised for sustainable growth and further expansion of its franchise value in its chosen markets. This growth will be aided by the recently launched Transactional Banking service offering, strengthened by a strong capital and liquidity position. Shareholders attention is drawn to the Terms Announcement recently published on SENS pertaining to the Group s potential acquisition of Fintech Proprietary Limited, which is progressing. Sasfin Holdings Limited Interim Results and Dividend Declarations 9

12 BASIS OF PREPARATION AND PRESENTATION OF THE SUMMARISED INTERIM FINANCIAL STATEMENTS The condensed interim consolidated financial statements have been prepared in accordance with IAS 34: Interim Financial Reporting, the requirements of the Companies Act of South Africa, and in compliance with the JSE Listings Requirements. The accounting policies applied conform to International Financial Reporting Standards ( IFRS ) and the SAICA Financial Reporting Guides. There are no material events to report subsequent to. The accounting policies applied in these condensed interim unaudited and unreviewed consolidated financial statements for the period ended are the same as those applied in the Group s consolidated financial statements as at and for the year ended. Responsibility of financial statements In terms of S29(1)(e)(ii) of the Companies Act, these interim financial statements are prepared under the supervision of Tyrone Soondarjee CA(SA), Group Financial Director. PREFERENCE SHARE CASH DIVIDEND Notice is hereby given that the directors have declared a gross cash preference dividend number 21 amounting to cents per share ( cents per share net of 15% dividend withholding tax) [Dec : cents per share ( cents per share net of 15% dividend withholding tax)] ( preference dividend ) for the period 1 July to. Preference dividends have been paid on (Dec : ) preference shares issued at R (Dec : R100.00) each, and on (Dec : ) preference shares issued at R (Dec : R110.49) each. These dividends have been declared from income reserves and no secondary taxes on companies credits have been used. The preference dividend is payable to holders of preference shares recorded in the register of the Company at the close of business on Thursday, 2 April The salient dates relating to the preference dividend are as follows: Last day to trade cum the preference dividend Thursday, 26 March 2015 Preference shares commence trading ex the preference dividend Friday, 27 March 2015 Preference dividend record date Thursday, 2 April 2015 Payment date of preference dividend Tuesday, 7 April 2015 Preference share certificates may not be dematerialised or rematerialised between Friday, 27 March 2015 and Thursday, 2 April 2015, both days inclusive. INTERIM ORDINARY SHARE CASH DIVIDEND Notice is hereby given that a gross interim ordinary share cash dividend of cents (Dec : cents) per ordinary share has been declared and is payable to ordinary shareholders. The following further information is provided to shareholders with regard to the final dividend declaration in respect of the new dividends tax: The dividend has been declared from income reserves. The dividend withholding tax rate is 15%, and a net dividend of cents (Dec : cents) per share is paid to those shareholders who are not exempt from dividend withholding tax. The issued number of ordinary shares as at the declaration date is (Dec : ). Sasfin s tax reference number is 9300/204/71/7. 10 Sasfin Holdings Limited Interim Results and Dividend Declarations

13 The ordinary dividend is payable to holders of ordinary shares recorded in the register of the Company at the close of business on Friday, 10 April The salient dates relating to the ordinary dividend are as follows: Last day to trade cum the ordinary dividend Wednesday, 1 April 2015 Ordinary shares commence trading ex the ordinary dividend Thursday, 2 April 2015 Ordinary dividend record date Friday, 10 April 2015 Payment date of ordinary dividend Monday, 13 April 2015 Ordinary share certificates may not be dematerialised or rematerialised between Thursday, 2 April 2015 and Friday, 10 April 2015, both days inclusive. The above dates and times are subject to amendment. Any such amendment will be released on SENS and published in the press. CHANGES TO THE BOARD As previously announced, Eddie Blight and Dolly Mokgatle retired and resigned respectively from the Boards of Sasfin Holdings Limited and Sasfin Bank Limited on 27 November. For and on behalf of the Board RC ANDERSEN RDEB SASSOON TD SOONDARJEE Non-executive Chairman Chief Executive Officer Group Financial Director 9 March 2015 This announcement and additional information is available on the website: Sasfin Holdings Limited Interim Results and Dividend Declarations 11

14 Independent Non-Executive Chairman RC Andersen Executive Directors RDEB Sassoon (Chief Executive Officer) TD Soondarjee (Group Financial Director) Alternate Executive Directors LR Fröhlich, MG Lane, MEE Sassoon Non-Executive Directors L de Beer #, GC Dunnington #, J Moses #, MS Rylands, LJ Sennelo # # Independent Group Company Secretary H Brown Joint Auditors KPMG Inc. and Grant Thornton (Jhb) Inc. Lead Sponsor KPMG Services Proprietary Limited Joint Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Registered Office 29 Scott Street, Waverley Johannesburg 2090 Tel: Fax: /2489 Transfer Secretaries Computershare Investor Services Proprietary Limited 70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107 Website DISCLAIMER The Group has in good faith made reasonable effort to ensure the accuracy and completeness of the information contained in this document, including all information that may be regarded as forward-looking statements. Forward-looking statements may be identified by words such as believe, anticipate, expect, plan, estimate, intend, project and target. Forward-looking statements are not statements of fact, but statements by the management of the Group based on its current estimates, projections, expectations, beliefs and assumptions regarding the Group s future performance and no assurance can be given to this effect. The risks and uncertainties inherent in the forward-looking statements contained in this document include but are not limited to changes to IFRS and the interpretations, applications and practices subject thereto as they apply to past, present and future periods; domestic and international business and market conditions such as exchange rate and interest rate movements; changes in the domestic and international regulatory and legislative environments; changes to domestic and international operational, social, economic and political risks; and the effects of both current and future litigation. The Group does not undertake to update any forward-looking statements contained in this document and does not assume responsibility for any loss or damage and however arising as a result of the reliance by any party thereon, including, but not limited to, loss of earnings, profits or consequential loss or damage. 12 Sasfin Holdings Limited Interim Results and Dividend Declarations

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