Wealth Management Income - Ghana

Premier / Affluent Segment

Annual Average Inevitable Assets
Value of Investments Though Barclays
Prestige / Mass Affluent level (incl Standard Customers meeting the Profile)
Annual Average Investable Assets
Value of Investments Though Barclays
Total Cumulative Assets
New Investments - Volume
Sign-on Fee / Upfront fee
Commission / Fee on value of assets (ignoring changes in fund value)

Total Income to BA
Assumptions
% Penetration - Premier
% Penetration - Prestige
Growth in Premier Numbers
Growth In Prestige Numbers
Attrition of investment
Management Fee based on value of fund
Sign-on Fee / Upfront fee = % of new investment value (Barclays UK 5.8%; Prelim
business Case from Kenya - 3%)

2005

2006

2007

2008

2009

100
5,000
0
9,000
1,000
0
0
0
0

210
5,548
116,508
11,700
2,774
1,622,790
1,739,298
606
52,179
21,741

462
5,386
373,250
14,625
2,693
2,953,884
4,805,537
1,166
99,814
60,069

1,016
5,230
1,063,154
18,281
2,615
4,780,547
10,168,685
2,031
175,311
127,109

73,920
2006

159,883
2007

302,420
2008

0%
0%

0.00%

10%
5%
110%
30%
20%
1.25%

15%
7.5%
120%
25%
15%
1.25%

20%
10%
120%
25%
10%
1.25%

0%

3%

3%

3%

2005

Note 2005 Customer numbers has been derived at as follows = account numbers / 1.4 accounts per customer
Estimated Market Size for Premier: Customer Number
20,000
Estimated Market Size for Prestige: Customer Number
100,000

2008 Market
Share

5%
18%

1,525

22,852

2008

50%
25%

Building /
Structural
Insurance

Household Contents

Life Cover

Structural Household
Insurance contents

Life
Cover

Mortgage Policies
Volumes based on Penetration Target of New Prestige & Premier Customer Base from 2006 on-wards
6.4%
8.5%
Life Policies Sub-Saharan Africa - Ghana
2005
2006
2007

8.6%
2008

10.0%
2009

Number of new mortgages

Value of new mortgages
Target Number of New Life Policies
Cumulative Number of New Life Policies
Estimated Value of New Insured Life
Cumulative "value" of insured life
Estimated Once-off BA Sign-up Fee Income
Recurring Premium Value
BA's Share of Recurring Premium Income

18,000
0
0
0
0
0

181
18,500
109
109
1,908,772
1,908,772
9,775
9,544
0

269
18,500
161
270
2,836,078
4,744,849
14,523
33,268
0

360
18,500
216
486
3,797,541
8,542,391
19,447
75,980
0

434
18,500

Estimated Once-off BA Sign-up Fee Income

698

1,014

1,343

Recurring Premium Value

1,507

5,253

11,997

BA's Share of Recurring Premium Income

Estimated Once-off BA Sign-up Fee Income

0
0

0
1,086

0
1,614

0
2,161

Recurring Premium Value

1,758

6,128

13,996

BA's Share of Recurring Premium Income

Total Life Policy Income to BA

Assumptions:

11,559
2006

17,151
2007

22,950
2008

0%

60%

60%

60%

0%
0
0.00%
0.0%

95%
90
1.00%
0.0%

95%
90
1.00%
0.0%

95%
90
1.00%
0.0%

0%

60%

60%

60%

0%
0
0.00%
0%
0

20%
3,700
1.25%
0%
10

20%
3,700
1.25%
0%
10

20%
3,700
1.25%
0%
10

0%

100%

100%

100%

0.000%
0%
0

0.175%
0%
10

0.175%
0%
10

0.175%
0%
10

3,348,722
2006
18,500
181
181

4,975,575
2007
18,500
269
450

6,662,353
2008
###
360
810

8,035,540
2008
18,500
434
1,244

3,348,722

4,975,575

6,662,359

7,986,068

Life Policy Penetration of Customer Base / % of new mortgage customers buying

life cover
Life Cover as % of mortgage
Once-off fee / policy paid to Barclays by insurers
Annual Premium as % of Assured Value of Life (Kenya based assumption)
BA's Share of recurring premiums
Penetration of Household content insurance as % of new mortgage customers
Value of Household contents as % of value of home
Average Insured Value of Household Contents
Annual Premium as % of Household Contents
BA's Share of recurring premiums
Once-off fee / policy - Household contents insurance
Penetration of Building / Structural insurance as % of new mortgage customers
Annual Premium as % of Mortgage / Asset Value
BA's Share of recurring premiums
Once-off fee / policy - Structural / Building Insurance

2005

Recurring Premium Value based on even spread of sign-on during the course of the year
Control Point: New Mortgage Sold - Existing Business Case
0
Control Point: New Mortages Sold / annum calculated

Ghana
Average Balance - Prestige & Premier
Volume of New Mortgages
Total Cummelative Mortgage Volumes

2005
18,000
-

2008

Vehicle
Volumes based on Penetration Target of New Prestige & Premier Customer Base from
2006 on-wards
Vehicle - Accident & Theft Insurance to new customers
Volumes of Vehicles Financed
Number of Vehicle Insurance policies sold
Cumulative Number of Vehicle Insurance Policies sold
BA's Share of Recurring Premiums
BA's Once Off Sign-up fee
Vehicle - Accident & Theft Insurance to existing customers
Volumes of Vehicles Financed
Number of Vehicle Insurance policies sold
Cumulative Number of Vehicle Insurance Policies sold
BA's Share of Recurring Premiums
BA's Once Off Sign-up fee
Total BA Volume of Vehicle Insurance Policies sold - New
Total BA Volume of Vehicle Insurance Policies sold - Cummelative
Total BA Income from Vehicle Insurance
Assumptions
It is assumed that vehicle finance will be sold to % of new (not existing) Prestige Level &
Premier Customers
It is assumed that vehicle finance will be sold to % of existing customer base of Prestige
level (some will be in standard segment - thus ramp-up penetration as ratio of prestige numbers)
& Premier Customers
% ABF customers taking Vehicle insurance
Once off-sign-up fee of
Average Value of Vehicles
Average Annual Recurring Premium as % of value of vehicle
Barclays Share of Recurring Premium
Assumptions

2005
0
0
2005
-

0%

0
0
0.00%
0%
2005

Total new Premier & Prestige Numbers

Number of existing Prestige & Premier Profiele"customer numbers
Note: Grey imports will not be financed by Barclays - thus effectively reduce the market size

9,100

2006
141
84
84
0
4,215
2006
182
109
109
0
5,460
194
194
9,675

2007
159
95
180
0
4,766
2007
182
109
218
0
5,460
205
398
10,226

2008

5%

5%

5%

2%

2%

2%

60%
50
7,000
6.00%
0%

60%
50
7,000
6.00%
0%

75%
50
7,000
6.00%
0%

2006
2,810

2007
3,177

2008
4,211

211
158
338
0
7,895
2008
182
137
355
0
6,825
294
692
14,720

Consolidated Wealth Income

Wealth Management Income - Ghana
Mortgage "enabled" Policy Income
Vehicle Related Policies
Credit Life (as per estimate of 2004 study)
Funeral Cover (@ 50% of 2004 study estimate )
Advisory Services (@ 50 / Premier customer)
Investment Income

2005

2006

2007

2008

Comment

11,559
9,675
0
0
10,500
73,920

17,151
10,226
0
0
23,100
159,883

New Wealth & Insurance Related Income

New Operating Income *

105,654
58,110

210,360
115,698

390,910
215,000

Net Income Assumptions - Scenario 1 & 2

Cost to income ratio before tax, central charges, minorities, etc
Cost exclude set-up cost (e.g. registration as broker, JVs, etc)
Note:

2006

2007

2008

45%

Canabalisation of Treasury Bill Revenue is not factored in. It is asumed that if BA does not do it, our competitors will
Curent Revenue from Credit Life is estimated at 300,000, which has been deducted from the 2004 study estimate
Other Insurance (Travel, Indemnity, trade, etc) have not been factored in as part of the base case

45%

22,950
14,720
0 Not part of the base case
0 Not part of the base case
50,820 Dependent on Restructuring / Tax return service
302,420

45%