NovaBank SA — Projected Balance Sheet

The projected five-year balance sheet — loans and advances, deposits, capital, and the asset and liability structure of the bank.

Section 13 · Business Plan

Projected Balance Sheet

The projected five-year balance sheet — loans and advances, deposits, capital, and the asset and liability structure of the bank.

The projected balance sheet illustrates the deliberate build-up of
NovaBank’s loan book, the rapid growth of customer deposits as a primary
funding source, and the disciplined management of capital ratios. Total
assets grow from ZAR 1.92 billion at end of Year 1 to ZAR 35.4 billion
by end of Year 5.

13.1 Detailed Balance Sheet

ZAR millions	Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
Cash & Balances with SARB	320	780	1,420	2,180	2,950
Investment Securities (HQLA)	415	920	1,750	2,640	3,560
Loans & Advances – Gross	820	3,450	8,200	14,800	22,500
Less: Expected Credit Loss	(48)	(245)	(680)	(1,180)	(1,650)
Net Loans & Advances	772	3,205	7,520	13,620	20,850
Property, Plant & Equipment	180	320	510	720	920
Intangible Assets (Software)	210	350	510	660	790
Other Assets	23	85	165	240	330
TOTAL ASSETS	1,920	5,660	11,875	20,060	29,400

LIABILITIES
Customer Deposits	590	2,830	7,360	14,040	22,300
Wholesale & Interbank Funding	420	1,250	2,140	3,010	3,520
Subordinated Debt (Tier 2)	200	565	950	1,200	1,470
Other Liabilities	85	210	415	650	920
TOTAL LIABILITIES	1,295	4,855	10,865	18,900	28,210

EQUITY
Share Capital & Premium	1,500	1,500	1,500	1,500	1,500
Tranche 2 Equity Issuance	—	1,300	1,300	1,300	1,300
Retained Earnings / (Loss)	(485)	(695)	(410)	770	3,110
Other Reserves	10	55	120	210	310
TOTAL EQUITY	1,025	2,160	2,510	3,780	6,220
TOTAL LIABILITIES & EQUITY	2,320	7,015	13,375	22,680	34,430

Table 13.1 — Projected Balance Sheet, Years 1–5 (ZAR million).

13.2 Loan Book Build & Credit Quality

Figure 13.1

Figure 13.1 — Loan book build-up and Non-Performing Loan ratio trajectory.

The loan book grows from R820 million in Year 1 to R22.5 billion by
Year 5. NPL ratio peaks at 7.4% in Year 3 — typical of a young portfolio
of unsecured retail loans — before declining to 6.4% by Year 5 as
customer cohorts mature, behavioural data accumulates, and the credit
scorecard is recalibrated. ECL coverage of NPLs is maintained above 110%
throughout the planning period.

13.3 Funding Mix Evolution

Figure 13.2

Figure 13.2 — Liability and funding mix evolution, Years 1–5 (% of total funding).

Customer deposits grow from 35% of total funding in Year 1 to 76% by
Year 5, reducing reliance on wholesale funding from 25% to 12%. This
funding structure is consistent with the deposit franchise of a
successful retail bank and supports a strong Net Stable Funding Ratio
(NSFR) above 105%.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of NovaBank SA (Pty) Ltd.