NovaBank SA — Projected Cash Flow Statement
The projected five-year cash flow statement — operating, investing and financing cash flows and the resulting liquidity position.
Section 14 · Business Plan
Projected Cash Flow Statement
The projected five-year cash flow statement — operating, investing and financing cash flows and the resulting liquidity position.
Banking cash flow statements differ structurally from corporate cash
flows because changes in loan books and deposit balances are operational
rather than financing items under IAS 7 for banks. The Company has
prepared the cash flow statement on the indirect method, consistent with
SA banking peer disclosure.
14.1 Detailed Cash Flow Statement
| ZAR millions | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Net Profit / (Loss) After Tax | (485) | (210) | 285 | 1,180 | 2,340 |
| Add: Depreciation & Amortisation | 75 | 140 | 215 | 295 | 375 |
| Add: Impairment Provisions | 212 | 385 | 885 | 1,580 | 2,150 |
| Add: Working Capital Movements | (115) | (180) | (285) | (380) | (415) |
| Cash from Pre-Banking Operations | (313) | 135 | 1,100 | 2,675 | 4,450 |
| Δ Loans & Advances | (820) | (2,630) | (4,750) | (6,600) | (7,700) |
| Δ Customer Deposits | 590 | 2,240 | 4,530 | 6,680 | 8,260 |
| Δ Other Banking Assets/Liabilities | (85) | (180) | (310) | (420) | (540) |
| Net Cash Flow from Operations | (628) | (435) | 570 | 2,335 | 4,470 |
| INVESTING ACTIVITIES | |||||
| Purchase of PPE | (255) | (280) | (405) | (505) | (575) |
| Purchase of Intangibles / Software | (285) | (280) | (320) | (300) | (265) |
| Purchase of Investment Securities | (415) | (505) | (830) | (890) | (920) |
| Net Cash Flow from Investing | (955) | (1,065) | (1,555) | (1,695) | (1,760) |
| FINANCING ACTIVITIES | |||||
| Equity Issuance | 1,500 | 1,300 | — | — | — |
| Subordinated Debt Issued | 200 | 365 | 385 | 250 | 270 |
| Wholesale Funding Drawn | 420 | 830 | 890 | 870 | 510 |
| Repayments / Buybacks | — | — | — | (110) | (190) |
| Net Cash Flow from Financing | 2,120 | 2,495 | 1,275 | 1,010 | 590 |
| Net Change in Cash & Cash Equivalents | 537 | 995 | 290 | 1,650 | 3,300 |
| Opening Cash Balance | — | 537 | 1,532 | 1,822 | 3,472 |
| Closing Cash Balance | 537 | 1,532 | 1,822 | 3,472 | 6,772 |
Table 14.1 — Projected Cash Flow Statement, Years 1–5 (ZAR
million).
14.2 Year 5 Cash Flow Waterfall
14.3 Break-Even Analysis
On a cumulative basis, NovaBank breaks even on operating costs around
Month 36, consistent with the Company’s first quarterly profit
milestone. The investment zone (Months 1–36) is funded entirely from the
ZAR 3.5 billion capital raise, with a comfortable buffer maintained at
all points.
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.