OptimaBank — Appendices

Supporting appendices — the detailed assumptions and methodology and glossary, the detailed financial schedules, and the key investment considerations underpinning the OptimaBank business plan and financial model.

OptimaBank Business PlanSection 17 › Appendices

Section 17 · Business Plan

Appendices

Supporting appendices — the detailed assumptions and methodology and glossary, the detailed financial schedules, and the key investment considerations underpinning the OptimaBank business plan and financial model.

Appendix A: Detailed Assumptions & Methodology

A.1 Modelling Approach

The financial model is constructed bottom-up on a fully integrated
basis, such that the income statement, balance sheet and cash-flow
statement are internally consistent and the balance sheet reconciles
exactly in every period. Customer numbers drive deposit volumes;
deposits and the target loan-to-deposit ratio drive the lending book;
the lending book and net interest margin drive net interest income; and
fee ratios, cost ratios and credit-loss ratios complete the operating
model. Capital is sized to maintain regulatory ratios above SARB
minima.

A.2 Principal Assumptions

  • Customer base grows from approximately 0.85 million in Year 1 to
    10.5 million by Year 5, consistent with the demonstrated acquisition
    rates of successful South African digital banks.
  • The loan-to-deposit ratio rises from approximately 50% to 81% as
    the bank deploys its deposit base into lending.
  • Net interest margin expands from 4.8% to 5.4% as the asset mix
    optimises.
  • Non-interest revenue grows from approximately 62% to 82% of net
    interest income as fee franchises mature.
  • The cost-to-income ratio falls from over 100% during the
    investment phase to approximately 49% at maturity.
  • Credit losses normalise from 3.2% to 1.5% of gross loans as the
    portfolio diversifies and underwriting matures.
  • Corporate tax is applied at the South African statutory rate of
    27%, with no deferred-tax asset recognised on early losses for
    prudence.

A.3 Data Sources

Industry and market statistics are drawn from publicly available
sources including the South African Reserve Bank (sector balance-sheet
and prudential data), the National Credit Regulator (credit-active
consumer data), FinScope / FinMark Trust and the World Bank Global
Findex (financial-inclusion data), PwC Major Banks Analysis, and public
disclosures of listed and digital banks. These sources are believed to
be reliable but have not been independently verified by the Company.

A.4 Glossary

Term Definition
CET1 Common Equity Tier 1 capital ratio — highest-quality regulatory capital over risk-weighted assets
CAR Capital Adequacy Ratio — total qualifying capital over risk-weighted assets
NII Net Interest Income — interest earned less interest paid
NIR Non-Interest Revenue — fees, commissions, trading and insurance income
NIM Net Interest Margin — NII as a percentage of average interest-earning assets
LCR / NSFR Liquidity Coverage Ratio / Net Stable Funding Ratio — Basel III liquidity metrics
RWA Risk-Weighted Assets — assets weighted by regulatory risk factors
ROE / ROA Return on Equity / Return on Assets
SARB South African Reserve Bank — the central bank and prudential regulator
SADC Southern African Development Community

Appendix B: Detailed Financial Schedules

B.1 Income Statement Drivers

The schedule below sets out the underlying revenue and cost drivers
feeding the projected income statement.

Driver (ZAR m unless %) Year 1 Year 2 Year 3 Year 4 Year 5
Avg interest-earning assets 9,838 29,638 63,500 112,800 180,000
Net interest margin (%) 4.8% 5.1% 5.3% 5.4% 5.4%
Net interest income 472 1,512 3,366 6,091 9,720
Non-interest revenue ratio (% of NII) 62% 68% 74% 78% 82%
Non-interest revenue 293 1,028 2,491 4,751 7,970
Total operating income 765 2,540 5,857 10,842 17,690
Cost-to-income (%) 128% 92% 64% 54% 49%
Operating expenses 979 2,337 3,748 5,855 8,668
Credit loss ratio (%) 3.2% 2.8% 2.2% 1.8% 1.5%
Credit impairments 294 770 1,188 1,728 2,280

B.2 Balance-Sheet Drivers

The schedule below sets out the balance-sheet drivers and the
resulting capital position.

Driver (ZAR m unless %) Year 1 Year 2 Year 3 Year 4 Year 5
Customer deposits 18,500 46,000 84,000 132,000 188,000
Loan-to-deposit ratio (%) 49.7% 59.8% 64.3% 72.7% 80.9%
Gross loans & advances 9,200 27,500 54,000 96,000 152,000
Expected credit loss stock 412 1,078 1,663 2,419 3,192
Net loans & advances 8,788 26,422 52,337 93,581 148,808
Liquid assets / securities 6,475 16,100 29,400 46,200 65,800
Risk-weighted assets 12,234 32,261 61,260 105,872 164,648
Total qualifying capital 6,942 8,075 12,297 20,176 31,698
Total capital adequacy ratio (%) 56.7% 25% 20.1% 19.1% 19.3%
CET1 ratio (%) 41.6% 15.9% 12.4% 12.3% 13.1%

B.3 Capital & Funding Phasing

Paid-in capital is built in tranches aligned with milestone
achievement, supplemented by retained earnings as the bank turns
profitable. The cumulative position is shown below.

ZAR m Year 1 Year 2 Year 3 Year 4 Year 5
Paid-in capital (cumulative) 6,800 7,400 9,200 12,200 15,800
Incremental capital raised 6,800 600 1,800 3,000 3,600
Retained earnings (cumulative) (508) (1,075) (403) 1,976 6,898
Total equity 6,292 6,325 8,797 14,176 22,698
Wholesale & debt funding 1,300 3,500 7,000 12,000 18,000

Appendix C: Key Investment Considerations

C.1 Why OptimaBank, Why Now

The convergence of a proven digital-banking playbook, a large and
well-regulated market, a persistent inclusion and SME-finance gap, and
an easing rate environment creates a distinctive window for a
well-capitalised universal challenger. The success of digital banks that
have reached profitability and scale within five years de-risks the core
operating thesis, while the breadth of OptimaBank’s universal-bank
licence allows it to address value pools beyond the reach of
single-product neobanks.

C.2 Summary of Strengths

  • A full universal-bank licence combined with a modern, low-cost
    technology platform.
  • A clear, demonstrated path to profitability and an attractive
    return-on-equity trajectory.
  • A diversified revenue model spanning interest, fee, corporate and
    insurance income.
  • A prudent, phased capitalisation strategy maintaining ratios
    above regulatory minima.
  • A credible regional growth runway into SADC and pan-African trade
    corridors.
  • Multiple, well-defined exit pathways for investors.

C.3 Summary of Key Risks

Prospective investors should weigh the strengths above against the
principal risks, which are managed through the frameworks described in
Section 9:

  • Execution: Execution and talent risk inherent in
    building a bank from inception.
  • Regulatory: Dependence on obtaining and
    maintaining SARB authorisation.
  • Credit: Credit-cycle and asset-quality risk,
    particularly in the early unsecured and SME books.
  • Funding: Reliance on capital markets for the
    phased capital tranches.
  • Operational: Cyber, fraud and operational risk
    inherent in digital banking at scale.
  • Competitive: Competitive response from
    incumbents and other challengers.

C.4 Concluding Statement

OptimaBank Africa Group offers a rare opportunity to participate,
from inception, in the creation of a modern African universal bank
designed for profitability, scale and impact. The plan set out in this
document combines analytical rigour, prudential discipline and a clear
execution pathway — and is presented to prospective investors and
lenders as the basis for further engagement and detailed due
diligence.

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 OptimaBank Africa Group (Pty) Ltd.