NovaBank SA — Projected Profit & Loss Statement
The projected five-year profit and loss statement — net interest income, non-interest revenue, operating costs, impairments and net profit.
Section 12 · Business Plan
Projected Profit & Loss Statement
The projected five-year profit and loss statement — net interest income, non-interest revenue, operating costs, impairments and net profit.
The projected income statement reflects the typical J-curve of a new
bank: heavy upfront investment in Years 1–2, the start of net interest
income recognition in Year 2, and a steepening profitability curve from
Year 3 onwards as scale economies in technology, branch infrastructure,
and credit data improve unit economics.
12.1 Revenue Build-up
12.2 Detailed Income Statement
| ZAR millions | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Interest Income | 215 | 905 | 2,280 | 4,310 | 6,580 |
| Loan Book Interest | 165 | 780 | 2,050 | 3,920 | 6,000 |
| Treasury & Investments | 50 | 125 | 230 | 390 | 580 |
| Interest Expense | (30) | (185) | (460) | (860) | (1,300) |
| Customer Deposits | (18) | (125) | (335) | (630) | (960) |
| Wholesale Funding | (12) | (60) | (125) | (230) | (340) |
| Net Interest Income | 185 | 720 | 1,820 | 3,450 | 5,280 |
| Fee & Commission Income | 110 | 410 | 1,015 | 1,880 | 2,810 |
| Account & Card Fees | 62 | 215 | 510 | 920 | 1,360 |
| Transaction Fees | 32 | 145 | 385 | 720 | 1,080 |
| Insurance & VAS | 16 | 50 | 120 | 240 | 370 |
| Other Operating Income | 22 | 85 | 205 | 395 | 610 |
| Total Operating Income | 317 | 1,215 | 3,040 | 5,725 | 8,700 |
| Operating Expenses | (590) | (1,118) | (1,762) | (2,520) | (3,306) |
| Staff Costs | (220) | (460) | (740) | (1,080) | (1,420) |
| Technology & Data | (125) | (220) | (310) | (420) | (540) |
| Marketing & Acquisition | (41) | (65) | (83) | (97) | (102) |
| Branch & Network | (60) | (140) | (265) | (395) | (525) |
| Professional & Regulatory | (85) | (130) | (180) | (238) | (295) |
| Other Operating Expenses | (59) | (103) | (184) | (290) | (424) |
| Pre-Provision Profit / (Loss) | (273) | 97 | 1,278 | 3,205 | 5,394 |
| Credit Impairment Charge | (212) | (385) | (885) | (1,580) | (2,150) |
| Profit Before Tax | (485) | (288) | 393 | 1,625 | 3,244 |
| Income Tax | — | 78 | (108) | (445) | (904) |
| Net Profit / (Loss) After Tax | (485) | (210) | 285 | 1,180 | 2,340 |
Table 12.1 — Projected Profit & Loss Statement, Years 1–5 (ZAR
million).
12.3 Path to Profitability
12.4 Cost Efficiency Trajectory
12.5 Key Profitability Metrics
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Net Interest Margin (NIM) | 8.2% | 8.6% | 9.0% | 9.3% | 9.5% |
| Cost-to-Income Ratio | 186% | 92% | 58% | 44% | 38% |
| Cost-of-Risk (Loan Book) | 5.5% | 6.5% | 8.0% | 7.4% | 6.4% |
| ROE | (13.9%) | (6.0%) | 7.3% | 22.4% | 31.8% |
| ROA | (2.8%) | (0.7%) | 0.6% | 1.7% | 2.5% |
| Effective Tax Rate | 0% | 27% | 27% | 27% | 27.9% |
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.