1

Innovative Thinkingin Retail Banking

Investor Pre - Roadshow Presentation April 2008

2

Individuals

in need of

basic low cost banking

Our Focus

3

We deliver on four core needs:

• Accessibility

• Affordability

• Simplicity

• Personal Service

3

4

The Unique Business Model

Unique / Innovative Technology

Simplified / Focused Product Range

Branches Mobile Bank

ATM POS

INTERNET CAD CELL

Providing

Customer Focused – Low Cost Delivery Channels

Annuity Transactions

Via

4

5

The Capitec Bank RevolutionOur Technology Platform

•Features• Paperless• Process Driven• Real Time Delivery• Cashless• Central Control – no branch back office• Handle high volume transactions efficiently

•Structure• Open Platform• Windows-based• Scaleable

5

6

Simplified Focused Product Offer- Structure

Transactions

• Purchases

• Transfers

• Debit orders

• Stop orders

Multi loan

1 / 3 / 6 month loans

12 / 18 / 24 / 36 month term loans

Cash Wallet

Savings Account

Focus Save Accounts

6

7

Simplified Focused Product Offer- Price

Savings and Transactions

• Aggressive

Loans

• Competitive

7

8

Our People

• Cultural alignment

• Service driven

• Recruit for potential, train for skill

• Team approach

• Zero to hero in 7 weeks Firm Foundations

• Ongoing investment in competency E Learning

8

9

The MarketAverage Income Spread

LSM Number

(People million)Income %

1 2.1 R 0 – R 947 7

2 3.8 R 949 – R 1 179 12

3 3.8 R 1 179 – R 1 443 13

4 4.5 R 1 443 – R 1 977 15

5 4.1 R 1 977 – R 2 549 13

6 4.3 R 2 549 – R 4 366 14

7 2.3 R 4 366 – R 6 659 8

8 1.7 R 6 659 – R 9 388 6

9 1.9 R 9 388 – R12 077 6

10 1.7 R12 077 – R19 298 6* Household Income after statutory deductions

Target Market

17m

9

10

Client Base

02/07 02/08

Salary clients only 78 368 158 005

Loan clients only 236 092 348 966

Loan & salary clients 132 712 170 922

Sub-total 447 172 677 893

Savings clients 563 107 693 283

Total 1 010 279 1 371 176

10

11

Salary ClientsAge

2.906.58

15.74

5.73

41.83

27.23

-

5

10

15

20

25

30

35

40

45

18 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61+

%

11

12

Loan ClientsAge

-

5

10

15

20

25

30

35

40

18

- 20

21

- 30

31

- 40

41

- 50

51

- 60

60

+

%

Male Female

12

13

Loan ClientsIncome Level

-

5

10

15

20

25

30

R1- R

999

R1000 - R

1999

R2000 - R

2999

R3000 - R

3999

R4000 - R

4999

R5000 - R

7499

R7500 - R

9990

R10000 -14999

R15000+

No P

rediction

% Male

Female

13

14

History

1. Microlending

2. Bank (2000/1)- Management team

- Determining strategy- Bank licence- PASA membership- IT platform

3. Conversion- Microlending to bank

- Deposit taking- Client conversion to bank with Capitec

4. Growth Strategy14

15

Group & Operations Structure

100% 100%75%

PSG Group 34.9%

Management 8.79%

Non-ex directors

(excl black directors) 15.79%

BEE groups & individuals

15.99%

Other

24.53%

CAPITEC BANK HOLDINGS (CBHL)

Listed and registered as a bank controlling

company

Capitec Bank (Retail bank)

Key Distributors (FMCG wholesaler)

Other (No activity)

15

16

Management

• CEO

Riaan Stassen (54)

• CFOAndre du Plessis (46)

• Other Executives:

- IT Chris Oosthuizen (53)

- Risk Christian van Schalkwyk (52)- Human Resources Leon Venter (46)- Operations/Sales Gerrie Fourie (44)- Marketing & Corporate Affairs Carl Fischer (51)- Credit Risk Jaco Carstens (39)

Ian Abrahams (39)- Card Services & Business

Support Andre Olivier (40)Faick Davids (31)

16

17

Employment Equity Profile

Target 2004 2008

Senior Management 20% 8% 11%

Middle management 30% 15% 25%

Junior Management 40% 18% 50%

Rest 82% 81% 93%

17

18

Key Risks and Mitigants

• Credit

• Liquidity

• Regulatory

• Systems

• Interest rate

• Taxation

18

19

Liquidity Management

• Caution : top priority (even over profitability)

• Retail deposits - payout when requested

- cash usage

- short term loans

• Facilities - don't bank on it

- used for convenience

• Fixed vs fluctuating rates

• Forex - cover all positions

- no appetite

• Simplicity / no complex structures

- Banking Crisis 2000/1- Philosophy

19

20

Liquidity - History

• Initial strategy – Self funding

• Build trust – Retail savings deposit base

• Wholesale funding agreements

• Un-published ratings

• Preference shares

• Published ratings

• BBEE

• Short term corporate paper

• DMTN

• Retail term deposit base

20

21

Basel II – Pillar 1 Minimum Regulatory Capital Requirement

Basel I Feb 2007

Dec 2007

79%

51%

Basel II (BIA) Dec 2007

Feb 2008

37%

36%

Basel II (ASA) Feb 2008 58%

21

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Basel II – Pillar 2 The Supervisory Review Process

• Supervisory Review and Evaluation Process (SREP)

• Risk Management

• Capital Management

• Capitec Internal Capital Assessment Process (CICAAP)

• Foundation Internal Ratings Based approach (FIRB) for credit risk

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23

Basel II – Pillar 3Market Discipline

• Regulation 43 Public disclosures

• Quarterly, Bi-annual and Annual disclosures

• Dedicated Website Page under Investor relations

23

24

National Credit Act (NCA)

Act

• Income components & ceilings

• Procedures, rules & output

• Debt counseling & mediation

VAT leakage

Opportunity

Strategy (pre-empting effect)

24

25

Financial Highlights

26

Holdings vs Bank results

- IFRS

Holdings :

Equity settled in Statement of Changes in Shareholders Equity

Bank :

Cash settled through Income Statement

26

27

Loans Advanced

1,4771,904

2,2592,863

3,449

5,162

0

1,500

3,000

4,500

6,000

2003 2004 2005 2006 2007 2008

Rm

27

28

Number of Loans Advanced

24542617

2486 26502924

3155

0

500

1000

1500

2000

2500

3000

3500

2003 2004 2005 2006 2007 2008

'000

28

29

Loans advanced per product

R’m 2007 % 2008 %

1 Month 1600 46 1 692 33

3 Month 687 20 757 15

6 Month 392 11 314 6

12 Month 425 12 797 15

18 Month 190 6 430 8

24 Month 155 5 774 15

36 Month - 398 8

3 449 5 162

29

30

Impairment per product

% 1

Month

3

Month

6

Month

12 Month

18 Month

24 Month

36 Month

2008 1.05 3.83 5.14 10.18 12.99 15.78 29.37

2007 1.61 3.16 6.85 13.13 24.30 21.65 -

30

31

Net Transaction Fee Income

00 4

15

35

79

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

R'm

31

32

Value of Savings Deposits

04 74

314

554

838

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007 2008

R'm

32

33

Operations

34

Bank Branches

44

148

251 253280

331

0

100

200

300

400

2003 2004 2005 2006 2007 2008

Number

34

35

ATMs

5875

180 210

407

765

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008

No

35

36

Employees

1,180

1,4021,708

1,9012,129

2,800

1,000

1,500

2,000

2,500

3,000

2003 2004 2005 2006 2007 2008

No

36

37

Profitability

38

Headline Earnings

3047

70

116

160

212

0

50

100

150

200

250

2003 2004 2005 2006 2007 2008

R'm

38

39

Headline Earnings per Share

4570

101

165

222

259

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008

Cents

39

40

Return on Equity

8

12

16

23

26

22

0

10

20

30

2003 2004 2005 2006 2007 2008

%

40

41

Cost to Income Ratio

77 76 7466 60

58

0

50

100

2003 2004 2005 2006 2007 2008

%

41

42

Shareholder Funds

384 426 473564

1,1171,217

0

300

600

900

1200

2003 2004 2005 2006 2007 2008

R'm

42

43

Market Capitalisation

164399

1,072

2,233

3,0313,195

0

500

1000

1500

2000

2500

3000

3500

4000

2003 2004 2005 2006 2007 2008

R'm

43

44

Total Assets

434512

805

1,251

2,191

2,937

0

500

1000

1500

2000

2500

3000

2003 2004 2005 2006 2007 2008

R'm

44

45

Going Forward

46

Going forwardInvestment • Distribution

- +25 Branches

- +75 Mobile Banks- +50 ATMs- +2 250 POS devices

• Technology- Branch Streamlining

Challenges• Cash-plastic• Economy• Competitors• Funding• Crime

46

47

Thank You

Questions ?