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Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06
JSE share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX share code: IVD
BSE share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
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Investec plc
Incorporated
in England and Wales
Registration number 3633621
LSE share code: INVP
JSE share code: INP
ISIN: GB00B17BBQ50
LEI:
2138007Z3U5GWDN3MY22
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Investec (comprising
Investec plc and Investec Limited) - Unaudited combined
consolidated financial results for the year ended 31 March
2024
Fani Titi, Group Chief Executive commented:
"The Group has delivered strong
financial performance notwithstanding the uncertain operating
environment that prevailed throughout the financial year. This
performance demonstrates the continued success in our client
acquisition strategies which underpinned the increased client
activity and loan book growth, supported by the tailwind from the
high interest rate environment. This performance underwrites our
commitment to create enduring worth for all our stakeholders
through our market-leading client franchises in our chosen markets.
Our balance sheet remains strong and highly liquid, positioning us
well to support our clients in navigating the uncertain
macroeconomic backdrop.
Today we announce new medium-term
targets, resulting from the structural improvement in Group
performance following the execution of the strategy announced at
the February 2019 Capital Markets Day (CMD)."
Basis of presentation
The average Rand/Pound Sterling
exchange rate depreciated by 15.1% in the FY2024 relative to
FY2023, resulting in a significant difference between reported and
neutral currency performance. The comparability of the Group's
total year on year performance is impacted by the financial effects
of previously announced strategic actions, some of which result in
the Group performance being presented on a continuing and
discontinued basis in line with applicable accounting
standards.
Significant strategic actions
include:
• Combination of
Investec Wealth & Investment UK (IW&I UK) with the
Rathbones Group, reflected as a discontinued operation in line with
applicable accounting standards, notwithstanding the strategic
shareholding in Rathbones. Following the successful completion of
the combination in September 2023, the investment in Rathbones has
been equity accounted for as an associate
• Completion of
approximately R6.8 billion or c.£300 million share buy-back and
share repurchase programme, in line with the Group's strategy to
optimise capital in South Africa
• Disposal of the
property management companies to Burstone Group Limited (formerly
known as Investec Property Fund (IPF)) and consequent
deconsolidation of IPF and reflection of IPF as a discontinued
operation. From July 2023, Burstone is accounted for at fair value
through profit and loss
• The restructure of
Bud Group Holdings (formerly known as IEP) in the prior year to
facilitate Investec's orderly exit
• The distribution of
a 15% shareholding in Ninety One in the prior year.
Key financial metrics
Given the nature of the IW&I
UK and IPF transactions, the Group's economic interest remained
similar before and after the transactions. To provide information
that will be more comparable to the future presentation of returns
from the Group's interest in these entities and given their new
holding structures, pro-forma information has been prepared as if
the transactions had been in effect from the beginning of the
period, i.e. IW&I UK has been presented as an equity accounted
investment and IPF as an investment at fair value through profit or
loss.
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£'millions
|
Revenue
|
Cost to
income
|
CLR
|
Adjusted operating
profit
|
Adjusted EPS
(pence)
|
HEPS
(pence)
|
ROE
|
ROTE
|
Total DPS
(pence)
|
NAV per share
(pence)
|
TNAV per share
(pence)
|
|
FY2024
|
2 085.2
|
53.8%
|
28bps
|
884.5
|
78.1
|
72.9
|
14.6%
|
16.5%
|
34.5
|
563.9
|
477.5
|
|
FY2023
|
1 986.3
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54.7%
|
23bps
|
818.7
|
68.9
|
66.8
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13.7%
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14.7%
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31.0
|
507.3
|
471.6
|
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% change in £
|
5.0%
|
|
|
8.0%
|
13.4%
|
9.1%
|
|
|
11.3%
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11.2%
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1.3%
|
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% change in Rands
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20.9%
|
|
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24.6%
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30.8%
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22.7%
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|
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13.6%
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21.4%
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10.5%
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Totals and variances are presented
in £'000 which may result in rounding differences.
Group financial
summary:
Revenue growth was
underpinned by the strong performance from the corporate client
franchises in both geographies and Investec Wealth & Investment
in South Africa. Net interest income (NII) benefitted from growth
in average lending books and higher average interest rates.
Non-interest revenue (NIR) growth reflects the diversified nature
of the Group's revenue streams. NIR growth was underpinned by
continued client acquisition, increased client activity levels and
higher trading income. NIR also benefitted from the first-time
consolidation of Capitalmind as the Group seeks to extend its
footprint into Continental Europe and increase the proportion of
capital-light revenues. Revenue growth was negatively impacted by
the effect of strategic actions, comprising the cessation of equity
accounting of Ninety One post distribution and Bud Group Holdings
following the restructure in 2022, forgone interest income on funds
utilised to execute the share buy-back programme and the
deconsolidation of IPF.
The cost to income ratio improved to 53.8% (FY2023: 54.7%), in line with our guidance
of less than 55% as revenue grew ahead of costs. Total operating
costs increased by 3.2%, including the provision of £30 million for
the potential financial impact of the recently announced
industry-wide Financial Conduct Authority (FCA) review into
historical motor finance commission arrangements and sales in the
UK. Fixed operating expenditure excluding the motor finance
provision remained flat, benefitting from a weaker average
Rand/Pound Sterling exchange rate which offset cost increases from
inflationary pressures and continued investment in people and
technology. Variable remuneration increased in line with business
performance.
Pre-provision adjusted operating profit
increased 7.1% to £963.6 million (FY2023: £899.6
million), supported by the strength and diversity of our client
franchises as well as continued success in the Group's strategic
execution.
Credit loss ratio (CLR) on
core loans was 28bps (FY2023: 23bps), at the bottom end of the
Group's through-the-cycle (TTC) range of 25bps to 35bps. Expected
credit loss (ECL) impairment charges decreased to £79.1 million
(FY2023: £80.9 million). Asset quality remained solid with
exposures well covered by collateral.
Return on equity (ROE) of
14.6% (FY2023: 13.7%) is above the midpoint of the Group's 12% to
16% target range, despite the increase in the closing equity base
resulting from the net gain recognised on completion of the
combination of IW&I UK with Rathbones. Return on tangible
equity (ROTE) was 16.5% (FY2023: 14.7%).
Net asset value (NAV) per
share increased to 563.9p (31 March 2023: 507.3p), reflecting the
strong earnings generation in the current year and the net gain
recognised on completion of the IW&I UK combination with
Rathbones.
Tangible net asset value (TNAV) per share was 477.5p, increasing from 471.6p at 31 March
2023. TNAV reflects our decision to adjust the carrying value of
our strategic investment in the Rathbones Group to reflect our
proportionate share of tangible equity in Rathbones, resulting in
an intangible net asset value of c.77p per share.
Key drivers
Net core loans increased 1.7%
to £30.9 billion (31 March 2023: £30.4 billion) and grew by 6.1% on
a neutral currency basis; primarily driven by corporate lending in
both core geographies and private client lending in South
Africa.
Customer deposits remained
constant at £39.6 billion (31 March 2023: £39.6 billion), neutral
currency growth was 4.4%, driven by strong growth in non-wholesale
and retail deposits in both geographies.
Funds under management (FUM) in Southern Africa increased by 5.5% to £20.9 billion (31
March 2023: £19.8 billion), driven by discretionary net inflows of
R16.6 billion, market levels and FX translation gains on dollar
denominated portfolios and partly offset by non-discretionary net
outflows of R6.8 billion.
Investec Wealth & Investment UK FUM
is now reported as part of the Rathbones Group
following the completion of the combination in September 2023.
Rathbones Funds Under Management and Administration (FUMA) totalled
£107.6 billion at 31 March 2024. Investec owns 41.25% of
Rathbones.
Balance sheet strength and
strategic execution:
The Group maintained strong
capital levels in both our anchor geographies, with Investec
Limited reporting a CET1 ratio of 13.6% measured on the Advanced
Internal Ratings-Based approach and the Investec plc CET1 at 12.4%
measured on a standardised approach. Our capital generation is
strong and gives us the ability to continue to support our clients,
invest in the business, and make distributions to our shareholders.
Liquidity levels remained strong and well-ahead of board-approved
minimums.
The Group completed the all-share
combination of IW&I UK with Rathbones plc, creating the UK's
leading discretionary wealth manager and reaffirmed the Group's
commitment to the strategically attractive UK wealth management
sector.
The Group is committed to its
strategic priority to optimise shareholder returns. The
optimisation of the South African capital base is substantially
complete, we are at the early stages in the journey to migrate the
UK capital measurement from a standardised to the internal
ratings-based approach. Bud Group Holdings announced the proposed
disposal of Assupol to Sanlam. Assupol is a significant asset
within the group of assets earmarked to facilitate Investec's and
other shareholders' exit from Bud Group Holdings
The Board has proposed a final
dividend of 19.0p per share (FY2023: 17.5p), resulting in a total
dividend of 34.5p per share for the year (FY2023: 31.0p),
translating to a 44.2% payout ratio and within the Group's current
30% to 50% payout policy.
Medium-term targets - financial
year ending March 2027
The Rathbones combination resulted
in a reduction of c.100 bps in ROE given the closing equity base
adjustment from the transaction which technically adjusted the
current ROE target range of 12%-16% to 11%-15%.
Strategic execution over the last
five years has resulted in a structural improvement in the Group
performance, leading us to revise our post Rathbones combination
ROE targets by 200bps. The Group's commitment to generating returns
above its cost of capital underwrites our purpose to create
enduring worth for all our stakeholders.
Group revised medium-term targets
Group ROE of 13% - 17% and
ROTE of 14% - 18%, with the following geographic
targets:
• Southern Africa
targets ROE/ROTE of 16% - 20%, reflecting the strong returns
generated by our client franchises and the optimisation of the SA
capital base since the 2019 CMD
• UK & Other
targets ROTE of 13% - 17% and ROE of 10%-14%, reflecting the
increasing scale and relevance of our unique corporate mid-market
position within the UK and other markets we operate in.
Cost to income ratio less than 57%, we continue to invest in the business to achieve
operational efficiencies and pursue identified growth initiatives.
The deconsolidation of IW&I UK and the equity accounting for
the investment in Rathbones resulted in a 400bps technical
reduction in cost to income ratio. Southern Africa targets a cost
to income ratio of less than 55%, while UK & Other targets a
cost to income ratio of less than 58%.
Through-the-cycle (TTC) range
for credit loss ratio of 25bps-35bps has been revised to
25bps-45bps, reflecting the mix of our books. For Southern Africa,
the new TTC range is 15bps-35bps, reflecting our exposures' bias to
high-net-worth and high-income private clients, large corporates
and secured lending books; and 35bps-55bps for UK & Other which
reflects our distinctive mid-market positioning and secured lending
portfolios.
Dividend payout policy revised to 35% to 50% of adjusted earnings per
share.
FY2025 Outlook
Revenue momentum is expected to
continue, underpinned by book growth, stronger client activity
levels and success in our client acquisition strategies; partly
offset by expected cuts in interest rates.
The Group currently
expects:
• Group ROE to be
c.14% and ROTE to be c.16%.
Southern Africa is expected to report ROE of c.18.5%, and UK &
Other is expected to report ROTE of c.14%
• Overall costs to be
well managed in the context of inflationary pressures and continued
investment in the business, with cost to income ratio expected to
be c.54.0%
• The credit loss
ratio to be within the through-the-cycle range of 25bps to 45bps.
Southern Africa is expected to be close to the lower end of the TTC
range of 15bps to 35bps. UK & Other credit loss ratio is
expected to remain elevated between 50bps and 60bps in the
short-term.
The Group remains well positioned
to continue to support its clients amidst the uncertain
macro-economic outlook. We have strong capital and liquidity levels
to navigate the current environment and pursue our identified
growth initiatives in our chosen markets.
Key financial data
This announcement covers the
results of Investec plc and Investec Limited (together "the
Investec Group" or "Investec" or "the Group") for the year ended 31
March 2024 (FY2024). Unless stated otherwise, comparatives relate
to the Group's operations for the year ended 31 March 2023
(FY2023).
Basic earnings per share includes
a gain of £358.5 million on the combination of Investec Wealth
& Investment UK with Rathbones plc, partly offset by the net
loss on deconsolidation of IPF totalling £101.5 million.
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Performance
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FY2024
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FY2023^
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Variance
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%
change
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Neutral
currency
%
change
|
|
Operating income (£'m)*
|
2 085.2
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1 986.3
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98.9
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5.0%
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11.6%
|
|
Operating costs (£'m)
|
(1 120.2)
|
(1 086.0)
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(34.2)
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3.2%
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9.8%
|
|
Adjusted operating profit
(£'m)
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884.5
|
818.7
|
65.8
|
8.0%
|
16.0%
|
|
Adjusted earnings attributable to
shareholders (£'m)
|
662.5
|
614.4
|
48.1
|
7.8%
|
15.6%
|
|
Adjusted basic earnings per share
(pence)
|
78.1
|
68.9
|
9.2
|
13.4%
|
21.3%
|
|
Basic earnings per share
(pence)
|
105.3
|
85.8
|
19.3
|
22.5%
|
29.1%
|
|
Headline earnings per share
(pence)
|
72.9
|
66.8
|
6.1
|
9.1%
|
22.7%
|
|
Dividend per share
(pence)
|
34.5
|
31.0
|
|
|
|
|
Dividend payout ratio
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44.2%
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45.0%
|
|
|
|
|
CLR (credit loss ratio)
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0.28%
|
0.23%
|
|
|
|
|
Cost to income ratio
|
53.8%
|
54.7%
|
|
|
|
|
ROE (return on equity)
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14.6%
|
13.7%
|
|
|
|
|
ROTE (return on tangible
equity)
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16.5%
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14.7%
|
|
|
|
*Operating income has been
prepared on a proforma basis.
^ Restated
|
Balance sheet
|
31 March
2024
|
31 March
2023
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Variance
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%
change
|
Neutral
currency % change
|
|
Funds under management
(£'bn)
|
|
|
|
|
|
|
IW&I Southern
Africa
|
20.9
|
19.8
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1.1
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5.5%
|
14.2%
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Rathbones/IW&I UK^
|
107.6
|
40.7
|
|
|
|
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Customer accounts (deposits)
(£'bn)
|
39.6
|
39.6
|
-
|
0.1%
|
4.4%
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Net core loans and advances
(£'bn)
|
30.9
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30.4
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0.5
|
1.7%
|
6.1%
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Cash and near cash
(£'bn)
|
16.4
|
16.4
|
-
|
-%
|
3.8%
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NAV per share (pence)
|
563.9
|
507.3
|
56.6
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11.2%
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13.0%
|
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TNAV per share (pence)
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477.5
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471.6
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5.9
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1.3%
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3.2%
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Totals and variances are presented
in £'000 which may result in rounding differences.
^ Following the
all-share combination of IW&I UK and Rathbones, IW&I UK now
forms part of the Rathbones Group. As at 31 March 2024, Rathbones
Group, of which Investec holds a 41.25% economic interest, had
funds under management of £107.6 billion.
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Salient features by geography
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FY2024
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FY2023
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Variance
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%
change
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% change
in Rands
|
|
Investec Limited (Southern Africa)
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|
|
|
|
|
|
Adjusted operating profit
(£'m)
|
429.0
|
440.9
|
(11.9)
|
(2.7%)
|
12.5%
|
|
Cost to income ratio
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52.9%
|
52.6%
|
|
|
|
|
ROE
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17.3%
|
14.9%
|
|
|
|
|
ROTE
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17.3%
|
15.0%
|
|
|
|
|
CET1
|
13.6%
|
14.7%
|
|
|
|
|
Leverage ratio
|
6.2%
|
6.5%
|
|
|
|
|
Customer accounts (deposits)
(£'bn)
|
18.8
|
20.4
|
(1.6)
|
(8.0%)
|
0.4%
|
|
Net core loans and advances
(£'bn)
|
14.3
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14.8
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(0.5)
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(3.2%)
|
5.7%
|
|
|
|
|
|
|
|
|
Investec plc (UK & Other)
|
|
|
|
|
|
|
Adjusted operating profit
(£'m)
|
455.5
|
377.8
|
77.7
|
20.6%
|
|
|
Cost to income ratio
|
54.4%
|
56.7%
|
|
|
|
|
ROE
|
12.8%
|
12.7%
|
|
|
|
|
ROTE
|
15.7%
|
14.5%
|
|
|
|
|
CET1
|
12.4%
|
12.0%
|
|
|
|
|
Leverage ratio
|
10.2%
|
9.4%
|
|
|
|
|
Customer accounts (deposits)
(£'bn)
|
20.8
|
19.1
|
1.7
|
8.7%
|
|
|
Net core loans and advances
(£'bn)
|
16.6
|
15.6
|
1.0
|
6.4%
|
|
Totals and variance are presented
in £'000 which may result in rounding differences.
Enquiries
Investec Investor
Relations
Results: Qaqambile Dwayi
Tel: +27 (0) 11 291 0129
General enquiries:
Tel: +27 (0) 11 286 7070 or
investorrelations@investec.com
Brunswick (SA PR
advisers)
Tim Schultz
Tel: +27 (0) 82 309 2496
Lansons (UK PR
advisers)
Tom Baldock
Tel: +44 (0) 78 6010 1715
Presentation/conference call
details
Investec will host its annual
results presentation live from London and broadcast live in
Johannesburg today at 10h00 (SA)/9h00 (UK) time.
Please register for the
presentation at: www.investec.com/investorrelations
A live video webcast of the
presentation will be available on www.investec.com
About Investec
Investec partners with private,
institutional, and corporate clients, offering international
banking, investments, and wealth management services in two
principal markets, South Africa, and the UK, as well as certain
other countries. The Group was established in 1974 and currently
has 7,500+ employees.
Investec has a dual listed company
structure with primary listings on the London and Johannesburg
Stock Exchanges.
Johannesburg and London
JSE Debt and Equity Sponsor: Investec Bank Limited
Group financial performance
Overview
Pre-provision adjusted operating
profit increased 7.1% to £963.6 million (FY2023: £899.6
million).
Revenue increased 5.0% to £2 085.2
million (FY2023: £1 986.3 million) and up 11.6% in neutral
currency
Net interest income increased 5.6%
to £1 338.7 million (FY2023: £1 267.3 million) driven by higher average interest
earning assets and higher global interest rates.
Non-interest revenue increased
3.8% to £746.6 million (FY2023: £719.0
million)
• Net fee and
commission income increased 4.7% to £416.2 million (FY2023: £397.4
million) or increased by 15.0% in neutral currency. This growth was
driven by higher fees from plc advisory and increase in M&A
advisory fees with the consolidation of Capitalmind and higher
average discretionary FUM from the SA wealth business as well as
moderate growth from the SA specialist bank given the challenging
macro backdrop
• Investment income of
£63.4 million (FY2023: £29.4 million) reflects dividends received
and realised gains on disposal of investments, partly offset by
fair value adjustments on investment portfolios
• Share of
post-taxation profit of associates and joint venture holdings
decreased to £91.8 million (FY2023: £104.6 million), largely driven
by:
◦ Cessation of equity
accounting following the distribution of Ninety One in May
2022
◦ Cessation of equity
accounting for IEP following a restructure in November
2022
◦ Lower share of
earnings from the wealth and investment business in the UK,
comprising IW&I UK in the first half and our share of earnings
from Rathbones in the second half partly offset by
◦ Higher share of
associate earnings within the UK specialist bank
• Trading income
arising from customer flow decreased by 22.1% to
£131.7 million from (FY2023: £169.1 million), driven by
lower trading income in South Africa due to reduced liquidity
levels in the bond market given some foreign divestment, which was
partly offset by increased client flows in the UK Treasury Risk
Solutions and Equity Capital Markets (ECM) activities, and positive
risk management gains in hedging the remaining financial products
run down book in the UK
• Net trading gains
arising from balance sheet management and other trading activities
of £41.5 million compared to £14.2 million in the prior period.
These gains are as a result of unwinding certain existing interest
rate swap hedges when initiating the implementation of the
structural interest rate hedging programme in the UK; and gains
arising from MTM movements in the value of interest rate hedges on
the balance sheet in South Africa.
Expected credit loss (ECL)
impairment charges decreased 2.1% to £79.1 million (FY2023: £80.8
million) resulting in a credit loss ratio on core loans of 28bps
(FY2023: 23bps)
Asset quality remains within Group
appetite limits, with exposures to a carefully defined target
market well covered by collateral. The decrease in the ECL
impairment charges was primarily driven by net recoveries from
previously written off exposures in South Africa, in-model ECL
release due to updated macroeconomic scenarios and model
recalibration, as well as release of overlays as anticipated ECLs
have occurred. This was partially offset by higher specific
impairments on exposures that migrated into stage 3.
Operating costs increased 3.2% to
£1 120.2 million (FY2023: £1086.0 million) and 9.8% in neutral
currency
The cost to income ratio improved
to 53.8% from 54.7% in FY2023. Fixed operating expenditure
increased by 4.0%. This includes a £30 million provision for the
industry-wide FCA motor finance review. Excluding this provision,
fixed operating expenditure remained flat.
Fixed operating costs increased by
10.6% in neutral currency due to inflationary pressures and
continued investment in technology and people. Higher expenses
primarily on personnel was due to annual salary increases and
growth in headcount as well as higher business expenses given
increased business activity and higher regulatory costs. Variable
remuneration growth is in line with business
performance.
Taxation
The taxation charge on adjusted
operating profit was £172.1 million (FY2023: £163.5 million), resulting in an effective tax rate of 21.8%
(FY2023: 22.9%).
Investec plc effective tax rate is
23.7% (FY2023: 20.3%), reflecting the weighted effective tax rate
from multiple jurisdictions where Investec plc has
operations.
SA's effective tax rate is 20.1%
(FY2023: 24.7%).
Funding and liquidity
Customer deposits remained flat at
£39.6 billion (31 March 2023: £39.6 billion) and increased by 4.4%
in neutral currency. Customer deposits increased by 8.7% to
£20.8 billion for Investec plc and increased by 0.4% to R450.4
billion for Investec Limited since March 2023.
Cash and near cash of £16.4
billion (£9.7 billion in Investec plc and R160.7 billion in
Investec Limited) at 31 March 2024 represent approximately 41.3% of
customer deposits (46.4% for Investec plc and 35.7% for Investec
Limited). Loans and advances to customers as a percentage of
customer deposits was 74.9% (FY2023: 71.2%) for
Investec Limited and 79.7% (FY2023: 81.4%) for Investec
plc.
The Group comfortably exceeds
Board-approved internal targets and Basel liquidity requirements
for the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio
(NSFR)
• Investec Bank
Limited (consolidated Group) reported LCR of 159% and an NSFR of
115% at 31 March 2024
• Investec plc
reported a LCR of 453% and a NSFR of 146% at 31 March
2024.
Capital adequacy and leverage
ratios
Capital and leverage ratios remain
sound, ahead of regulatory requirements. The CET1 and leverage
ratio were 13.6% and 6.2% for Investec Limited (Advanced
Internal Ratings Based scope) and 12.4% and 10.2% for Investec plc
(Standardised approach) respectively.
Segmental performance
Specialist Banking
Adjusted operating profit from
Specialist Banking increased 11.5% to £810.5 million (FY2023:
£727.1 million). Pre-provision adjusted operating profit increased
10.1% to £889.6 million (FY2023: £808.0 million).
|
Specialist Banking
|
Southern
Africa
|
UK &
Other
|
Total
|
|
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
|
|
£'m
|
£'m
|
£'m
|
%
|
Rands
%
|
£'m
|
£'m
|
£'m
|
%
|
£'m
|
£'m
|
|
Operating income (before
ECL)
|
770.4
|
839.0
|
(68.6)
|
(8.2%)
|
5.7%
|
1 109.5
|
933.7
|
175.8
|
18.8%
|
1 880.0
|
1 772.7
|
|
ECL impairment charges
|
6.9
|
(14.1)
|
21.1
|
(>100.0%)
|
(>100.0%)
|
(86.1)
|
(66.7)
|
(19.3)
|
29.0%
|
(79.1)
|
(80.8)
|
|
Operating costs
|
(372.9)
|
(400.4)
|
27.5
|
(6.9%)
|
7.2%
|
(616.1)
|
(563.6)
|
(52.5)
|
9.3%
|
(989.0)
|
(963.9)
|
|
(Profit)/loss attributable to
NCI
|
(0.2)
|
(0.8)
|
0.6
|
(76.3%)
|
(76.5%)
|
(1.2)
|
-
|
(1.2)
|
100.0%
|
(1.4)
|
(0.8)
|
|
Adjusted operating profit
|
404.3
|
423.8
|
(19.5)
|
(4.6%)
|
9.8%
|
406.2
|
303.4
|
102.8
|
33.9%
|
810.5
|
727.1
|
Totals and variances are presented
in £'000 which may result in rounding differences.
Southern Africa Specialist Banking
(in Rands)
Adjusted operating profit
increased 9.8% to R9 517 million (FY2023: R8 667 million), achieved
in a tough and competitive operating environment. These results
were driven by our continued focus on our growth initiatives and
market share gains in our core client franchises. Pre-provision
adjusted operating profit increased by 4.4% to R9 354 million.
These results also reflect the impact of the share buy-back and the
disposal of the property management companies.
Net core loans grew by 5.7% to
R343.7 billion (FY2023: R325.1 billion). Corporate credit
portfolios increased by 6.7% from 31 March 2023, due to robust
corporate lending demand in various lending specialisations in the
first half of the financial year. Private Bank's loan book grew by
5.6% since 31 March 2023 with strong growth in the mortgages book
partially offset by the effect of muted growth in the income
producing real estate book given the high interest
rates.
Revenue growth of 5.7% was
primarily driven by higher average interest earning assets,
positive endowment effect from higher interest rates, increased
client activity and continued client acquisition in line with our
growth strategy
• The net
interest income (NII) growth of 9.2% benefitted from balance sheet
growth and the elevated interest rate environment. NII was
negatively impacted by the foregone interest income of
approximately R485 million in the current year on funds utilised in
the Group's c.R6.8 billion share buy-back and share repurchase
programme. Noteworthy, the buy-back programme has had a positive
impact on the bank's ROE. Our non-wholesale deposits grew by 14.1%
in line with our strategy to increase the proportion of retail
deposits in our funding pool
• Non-interest
revenue decreased 1.4% driven by:
- Net fee and
commission income increased marginally, benefitting from the growth
in activity levels in the corporate and institutional banking
business and Investec for Business from increased demand for trade
finance. This was partly offset by muted lending based fees from
the income producing real estate book and higher costs associated
with fee generation given the increased transactional activity
within Private Bank. The prior year included fees from the property
management companies which were disposed of in 2023
- Trading income from
Balance sheet management activities increased due to a reduction in
losses from MTM movements associated with managing fixed deposit
interest rate risk. Recognition of these MTM movements are
temporary and reverse over the life of the fixed
deposits
- Positive
contribution from Investment income, driven by higher realised
gains on disposals and dividend income from investment portfolios
in our client franchises
- Other operating
income benefitted from the non-repeat of prior year MTM losses
associated with Ninety One Limited shares held as assets in the
Group's balance sheet to fulfil employee share scheme
obligations
Offset by:
- The decrease in
trading from customer flow in the interest rate desk due to lower
derivative trading volumes
• ECL impairment charges is a net release of R163 million
compared to a charge of R289 million in the prior period, resulting
in a net recovery of -4bps (FY2023 credit loss ratio was 9bps),
driven by recoveries on previously impaired loans and model driven
releases on Stage 1 and Stage 2 ECLs as a result of updated
macroeconomic scenarios and model recalibration; partially offset
by Stage 3 ECL charges
• The cost to income
ratio was 48.4% (FY2023: 47.8%). Operating costs increased 7.2%
driven by higher personnel expenses due to inflationary salary
increases, higher regulatory costs, business related costs as we
invest for growth and higher variable remuneration in line with
performance. Discretionary costs also increased in line with
increased business activity
UK & Other Specialist
Banking
Adjusted operating profit
increased by 33.9% to £406.2 million (FY2023: £303.4 million);
supported by the diversity in our client franchises and geographies
and the integrated approach in how we provide solutions for our
clients. Revenue growth was strong across our key client franchises
as we continued to successfully execute our client acquisition
strategies to build scale and relevance in the UK and other markets
in which we operate. Pre-provision adjusted operating profit
increased by 33.0% to
£492.2 million.
Net core loans grew by 6.4% to
£16.6 billion driven by continued client acquisition and strong
demand for corporate lending across diversified areas, which grew
by 8.6% year to date. The residential mortgage lending book
reported moderate growth of 4.3% as the elevated interest rates
negatively affected demand for mortgages in the UK market in
general.
Revenue growth of 18.8% was
underpinned by growth in larger average loan book, increased client
activity and the positive endowment effect from higher interest
rates and strong growth in non-interest revenue. Net fees and
commission income increased significantly driven by higher fees
from our listed advisory business as well as the inclusion of
M&A revenues from Capitalmind. Trading income from customer
flow and balance sheet management also contributed
positively.
• Net interest
income increased by 13.2% benefitting from a larger average book
and higher global interest rates. Our diversified client lending
franchises allows us to continue growth notwithstanding the
persistently uncertain operating environment. Our client
acquisition strategies are the key underpin to the sustained loan
book growth across diversified specialisations.
• Non-interest
revenue increased by 36.5% driven by:
- Higher Listed
companies' advisory fees in the current year amidst a challenging
UK advisory market and the first-time consolidation of Capitalmind,
increasing our M&A advisory fees. We have also seen higher
arrangement fees in certain lending areas. Activity levels in
equity capital markets remain muted given the challenging
macroeconomic environment
- Trading income from
customer flow increased by 17.4% over the period driven by
increased facilitation of hedging for clients by our Treasury Risk
Solutions area, increased client flow trading income in our ECM
activities, as well as positive risk management gains from hedging
the significantly reduced financial products run down
book
- Trading income from
balance sheet management and other trading activities increased
significantly as a result of unwinding certain existing interest
rate swap hedges as part of the implementation of the structural
interest rate hedging programme
ECL impairment charges totalled
£86.1 million, resulting in a credit loss ratio of 58bps (FY2023:
37bps) which is in line with guidance provided in November 2023.
The increase in ECL charges was largely driven by Stage 3 ECL
charges on certain exposures. We have seen idiosyncratic client
stresses with no evidence of trend deterioration in the overall
credit quality of our books.
The cost to income ratio improved
to 55.6% (FY2023: 60.4%). Total operating costs increased by 9.3%.
Fixed operating costs include a provision for the industry-wide FCA
motor vehicle finance review of £30 million as well as £8.6 million
for the first time consolidation of Capitalmind from 1 July 2023.
Excluding these items, fixed operating costs increased by 2.9%,
well below the UK average inflation rate.
Wealth & Investment
Adjusted operating profit from the
Wealth & Investment businesses decreased 3.1% to £103.8 million
(FY2023: £107.4 million). This was positively impacted by the net
inflows in discretionary FUM in the Southern African business in
the current and prior years and includes the results of the
Investec Wealth & Investment UK pre-combination with Rathbones
and the Group's share of post-tax earnings from the Rathbones Group
in the second half of the financial year (i.e. from the completion
date).
|
Wealth & Investment
|
Southern
Africa
|
UK &
Other
|
Total
|
|
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
|
|
£'m
|
£'m
|
£'m
|
%
|
% in
Rands
|
£'m
|
£'m
|
£'m
|
%
|
£'m
|
£'m
|
|
Operating income
|
123.8
|
120.2
|
3.7
|
3.0%
|
18.1%
|
66.9
|
74.6
|
(7.7)
|
(10.3%)
|
190.7
|
194.7
|
|
Operating costs
|
(86.9)
|
(87.4)
|
0.5
|
(0.6%)
|
13.8%
|
-
|
-
|
-
|
-%
|
(86.9)
|
(87.4)
|
|
Adjusted operating profit
|
37.0
|
32.8
|
4.2
|
12.7%
|
29.6%
|
66.9
|
74.6
|
(7.7)
|
(10.3%)
|
103.8
|
107.4
|
Totals and variances are presented
in £'000 which may result in rounding differences.
Southern Africa Wealth &
Investment International Business (in Rands)
Adjusted operating profit
increased by 29.6% to R871 million (FY2023: R672 million) in a
challenging operating environment.
Total FUM increased by 15.2% to
R501.3 billion (FY2023: R435.1 billion) driven by discretionary and
annuity net inflows of R16.6 billion, reallocation of FUM
previously reported by IW&I UK following the combination with
Rathbones, positive market movement and positive foreign currency
translation gains on dollar denominated portfolios. The business
reported strong client retention and acquisitions in a very
competitive market which is testament to the success of our
international wealth management strategy.
Non-discretionary FUM reported net outflows of R6.8
billion.
Revenue grew by 18.1% underpinned
by strong inflows in our discretionary and annuity portfolios
across local and offshore investment products in the current and
prior year. This was supported by foreign currency translation
gains on US Dollar denominated revenue from the weaker average
Rand/Dollar exchange rate. Non-discretionary brokerage decreased in
the current period due to lower trading volumes. Revenue in
Switzerland grew by 26.0% in Pounds mainly driven by higher average
interest rates.
Operating costs increased 13.8 %,
driven by investment in people for growth, including higher
technology spend, FX related increases in foreign currency
denominated expenses, and higher variable remuneration in line with
performance. Fixed operating expenditure increased by 14.7%.
Operating margins increased to 29.9% (FY2023: 27.3%).
UK & Other Wealth &
Investment
The all-share combination of
IW&I UK and Rathbones successfully completed at the end of
1H2024, creating the UK's leading discretionary wealth manager with
£107.6 billion FUMA at 31 March 2024.
In 1H2024 the IW&I UK business
generated adjusted operating profit (post-tax) of £35.9 million
(10.8% above 1H2023) and an operating margin of 25.2% (1H2023:
23.6%) in an uncertain economic and operating
environment.
In 2H2024 i.e. post combination,
the Group's 41.25% economic interest in the combined Rathbones
Group has been equity accounted, reporting £31.0 million share of
post-taxation profit of associates.
For the quarter to 31 March 2024,
Rathbones realised £10.6 million of the £15 million run-rate
synergies planned to be achieved by 31 October 2024. Rathbones
reported operating margin of 26.5% for the quarter ended 31 March
2024, in line with the FY2024 guidance provided at year-end results
released on 6 March 2024.
We remain confident that the
combination will deliver scale and efficiency to power future
long-term growth.
Group Investments
Group Investments includes the
holding in Ninety One, Bud Group Holdings, Burstone Group (formerly
known as IPF) and other equity investments
|
Group Investments
|
Southern
Africa
|
UK &
Other
|
Total
|
|
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
Variance
|
FY2024
|
FY2023
|
|
|
£'m
|
£'m
|
£'m
|
%
|
% in
Rands
|
£'m
|
£'m
|
£'m
|
%
|
£'m
|
£'m
|
|
Operating income (net of ECL
charges)
|
2.9
|
0.8
|
2.1
|
>100%
|
>100%
|
11.7
|
18.1
|
(6.4)
|
(35.3%)
|
14.6
|
18.9
|
|
Operating costs
|
(0.2)
|
(1.1)
|
0.9
|
(79.2%)
|
(73.9%)
|
-
|
-
|
-
|
-
|
(0.2)
|
(1.1)
|
|
Adjusted operating profit
|
2.6
|
(0.3)
|
3.0
|
>100%
|
>100%
|
11.7
|
18.1
|
(6.4)
|
(35.3%)
|
14.4
|
17.8
|
Totals and variances are presented
in £'000 which may result in rounding differences.
Adjusted operating profit from
Group Investments decreased by 19.2% to £14.4 million (FY2023:
£17.8 million) driven by:
• The cessation of
equity accounting for Bud Group Holdings following its restructure
and Ninety One post the distribution of a 15% shareholding in May
2022, partly offset by higher investment income on fair value
measurement of our shareholding in Burstone Group
• Lower dividend
income from Ninety One.
Further information
Additional information on each of
the business units is provided in the Group year-end results
analyst book published on the Group's website:
http://www.investec.com.
On behalf of the Boards of
Investec plc and Investec Limited
|
Philip Hourquebie
|
|
Fani Titi
|
|
Chair
|
|
Group Chief Executive
|
|
23 May 2024
|
|
|
Notes to the commentary section above
Presentation of financial
information
Investec operates under a Dual
Listed Companies (DLC) structure with primary listings of Investec
plc on the London Stock Exchange and Investec Limited on the JSE
Limited.
In terms of the contracts
constituting the DLC structure, Investec plc and Investec Limited effectively form a single economic enterprise
from a shareholder perspective, in which the economic and voting
rights of ordinary shareholders of the companies are maintained in
equilibrium relative to each other. Creditors, however, are
ring-fenced to either Investec plc or Investec Limited as there are
no cross-guarantees between the companies. The directors of the two
companies consider that for financial reporting purposes,
the fairest presentation is achieved by combining the results and
financial position of both companies.
Accordingly, these year end
results reflect the results and financial position of the combined
DLC Group under UK adopted International Financial Reporting
Standards (IFRS) which comply with IFRS Accounting Standards as
issued by the International Accounting Standards Board (IASB) and
the (EC) No. 1606/2022 as it applies in the European Union,
denominated in Pounds Sterling. In the commentary above, all
references to Investec or the Group relate to the combined DLC
Group comprising Investec plc and Investec Limited.
Following a review of the
liquidity, capital position, profitability, the business model and
operational risks facing the business, the directors have a
reasonable expectation that the Investec Group will be a going
concern for a period of at least 12 months. The results for
the year ended 31 March 2024 have accordingly been prepared
on the going concern basis.
Unless the context indicates
otherwise, all comparatives included in the commentary above relate
to the year ended 31 March 2024.
Amounts represented on a neutral
currency basis for income statement items assume that the relevant
average exchange rates for the year ended 31 March 2024 remain the
same as those in the prior year. Amounts represented on a neutral
currency basis for balance sheet items assume that the relevant
closing exchange rates as at 31 March 2024 remain the same as those
at 31 March 2023.
Neutral currency information is
reviewed by external audit and considered as pro-forma financial
information as per the JSE Listings Requirements and is therefore
the responsibility of the Group's Board of Directors. Pro-forma
financial information was prepared for illustrative purposes and
because of its nature may not fairly present the issuer's financial
position, changes in equity, or results of operations.
Foreign currency impact
The Group's reporting currency is
Pounds Sterling. Certain of the Group's operations are conducted by
entities outside the UK. The results of operations and the
financial condition of these individual companies are reported in
the local currencies in which they are domiciled, including Rands,
Australian Dollars, Euros, US Dollars and Indian Rupee. These
results are then translated into Pounds Sterling at the applicable
foreign currency exchange rates for inclusion in the Group's
combined consolidated financial statements. In the case of the
income statement, the weighted average rate for the relevant period
is applied and, in the case of the balance sheet, the relevant
closing rate is used.
The following table sets out the
movements in certain relevant exchange rates against Pounds
Sterling over the period:
|
|
31 March
2024
|
31 March
2023
|
|
Currency
|
Closing
|
Average
|
Closing
|
Average
|
|
per GBP1.00
|
|
South African Rand
|
23.96
|
23.54
|
21.94
|
20.45
|
|
Euro
|
1.17
|
1.16
|
1.14
|
1.16
|
|
US Dollar
|
1.26
|
1.26
|
1.24
|
1.21
|
Profit Forecast
Revenue momentum is expected to
continue, underpinned by book growth, stronger client activity
levels and success in our client acquisition strategies; partly
offset by expected cuts in interest rates.
The Group currently
expects:
• Group ROE to be
c.14% and ROTE to be c.16%. Investec Limited is expected to report
ROE of c.18.5%, and Investec plc is expected to report ROTE of
c.13%
• Overall costs to be
well managed in the context of inflationary pressures and continued
investment in the business, with cost to income ratio expected to
be c.54.0%.
• The credit loss
ratio to be within the through-the-cycle (TTC) range of 25bps to
45bps. Investec Limited is expected to be close to the lower end of
the TTC range of 15bps to 35bps. Investec plc credit loss ratio is
expected to remain elevated at 50bps to 60bps range in the
short-term.
The Group remains well positioned
to continue supporting its clients amidst the uncertain
macroeconomic outlook. We have strong capital and liquidity levels
to navigate the current environment and pursue our identified
growth initiatives in our chosen markets.
The basis of preparation of this
statement and the assumptions upon which it was based are set out
below. This statement is subject to various risks and uncertainties
and other factors - these factors may cause the Group's actual
future results, performance or achievements in the markets in which
it operates to differ from those expressed in this Profit
Forecast.
Any forward-looking statements
made are based on the knowledge of the Group at 22 May
2024.
This forward-looking statement
represents a profit forecast under the Listing Rules of the UK's
Financial Conduct Authority. The Profit Forecast relates to the
year ending 31 March 2025.
The financial information on which
the Profit Forecast was based is the responsibility of the
Directors of the Group and has not been reviewed and reported on by
the Group's auditors.
Basis of preparation
The Profit Forecast has been
properly compiled using the assumptions stated below, and on a
basis consistent with the accounting policies adopted in the
Group's 31 March 2023 audited annual financial statements, which
are in accordance with UK adopted international accounting
standards and International Financial Reporting Standards
Accounting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
At 31 March 2024, UK adopted IAS
are identical in all material respects to current IFRS applicable
to the Group, with differences only in the effective dates of
certain standards.
Assumptions
The Profit Forecast has been
prepared on the basis of the following assumptions during the
forecast period:
Factors outside the influence or
control of the Investec Board:
• There will be no
material change in the political and/or economic environment that
would materially affect the Investec Group
• There will be no
material change in legislation or regulation impacting on the
Investec Group's operations or its accounting policies
• There will be no
business disruption that will have a significant impact on the
Investec Group's operations, whether for the economic effects of
increased geopolitical tensions or otherwise
• The Rand/Pound
Sterling, Euro/Pound, INR/Pound and US Dollar/Pound Sterling
exchange rates and the tax rates remain materially unchanged from
the prevailing rates detailed above
• There will be no
material changes in the structure of the markets, client demand or
the competitive environment
• There will be no
material change to the facts and circumstances relating to legal
proceedings and uncertain tax matters.
Estimates and
judgements
In preparation of the Profit
Forecast, the Group makes estimations and applies judgement that
could affect the reported amount of assets and liabilities within
the reporting period. Key areas in which judgement is applied
include:
• Valuation of
unlisted investments primarily in private equity, direct
investments portfolios and embedded derivatives. Key valuation
inputs are based on the most relevant observable market inputs,
adjusted where necessary for factors that specifically apply to the
individual investments and recognising market volatility
• The determination of
ECL against assets that are carried at amortised cost and ECL
relating to debt instruments at fair value through other
comprehensive income (FVOCI) involves the assessment of future cash
flows which is judgmental in nature
• Valuation of
investment properties is performed by capitalising the budgeted net
income of the property at the market related yield applicable at
the time.
• The Group's income
tax charge and balance sheet provision are judgmental in nature.
This arises from certain transactions for which the ultimate tax
treatment can only be determined by final resolution with the
relevant local tax authorities. The Group recognises in its tax
provision certain amounts in respect of taxation that involve a
degree of estimation and uncertainty where the tax treatment cannot
finally be determined until a resolution has been reached by the
relevant tax authority. The carrying amount of this provision is
often dependent on the timetable and progress of discussions and
negotiations with the relevant tax authorities, arbitration
processes and legal proceedings in the relevant tax jurisdictions
in which the Group operates. Issues can take many years to resolve
and assumptions on the likely outcome would therefore have to be
made by the Group. Where appropriate, the Group has utilised expert
external advice as well as experience of similar situations
elsewhere in making any such provisions
• Determination of
interest income and interest expense using the effective interest
rate method involves judgement in determining the timing and extent
of future cash flows
• There will be no
business disruption that will have a significant impact on the
Investec Group's operations, whether for the economic effects of
increased geopolitical tensions or otherwise.
Accounting policies, significant
judgements and disclosures
These unaudited condensed combined
consolidated financial results have been prepared in terms of the
recognition and measurement criteria of International Financial
Reporting Standards (IFRS) and the presentation and disclosure
requirements of IAS 34, "Interim Financial Reporting" and IFRS as
adopted by the UK which comply with IFRS as issued by the IASB. At
31 March 2024, UK adopted IFRS are identical in all material
respects to current IFRS applicable to the Group, with differences
only in the effective dates of certain standards.
The accounting policies applied in
the preparation of the results for the year ended 31 March 2024 are
consistent with those in the audited financial statements for year
ended 31 March 2023 with the exception of IFRS 17 "Insurance
Contracts" which has been adopted in the current year. Management
performed an analysis of the impact that the retrospective
application of the standard would have had on the prior year
published financial statements and concluded that the impact is
immaterial for the purposes of this set of financial statements.
Accordingly, the impact of IFRS 17 will be applied prospectively.
The prior year financial statements have been restated and the
detail is provided in the restatement notes.
The financial results have been
prepared under the supervision of Nishlan Samujh, the Group Finance
Director. The year end financial statements for the year ended 31
March 2024 are available on the Group's website:
www.investec.com
Proviso
• Please note that
matters discussed in this announcement may contain forward-looking
statements which are subject to various risks and uncertainties and
other factors, including, but not limited to:
- changes in the
political and/or economic environment that would materially affect
the Investec Group
- changes in
legislation or regulation impacting the Investec Group's operations
or its accounting policies
- changes in business
conditions that will have a significant impact on the Investec
Group's operations
- changes in exchange
rates and/or tax rates from the prevailing rates outlined in this
announcement
- changes in the
structure of the markets, client demand or the competitive
environment
• A number of these
factors are beyond the Group's control
• These factors may
cause the Group's future results, performance or achievements in
the markets in which it operates to differ from those expressed or
implied
• Any forward-looking
statements made are based on the knowledge of the Group at 22 May
2024.
• The information in
the Group's announcement for the year ended 31 March 2024, which
was approved by the Board of Directors on 22 May 2024, does not
constitute statutory accounts as defined in Section 435 of the UK
Companies Act 2006. The 31 March 2023 financial statements were
filed with the registrar and were unqualified with the audit report
containing no statements in respect of sections 498(2) or 498(3) of
the UK Companies Act
• The financial
information on which forward-looking statements are based is the
responsibility of the Directors of the Group and has not been
reviewed and reported on by the Group's auditors.
This announcement is
available on the Group's website:
www.investec.com
Definitions
• Adjusted operating
profit refers to operating profit before goodwill, acquired
intangibles and strategic actions and after adjusting for earnings
attributable to other non-controlling interests. Non-IFRS measures
such as adjusted operating profit are reviewed by external audit
and are considered as pro-forma financial information as per the
JSE Listing Requirements. The pro-forma financial information is
the responsibility of the Group's Board of Directors. Pro-forma
financial information was prepared for illustrative purposes and
because of its nature may not fairly present the issuer's financial
position, changes in equity or results of operations
• Adjusted earnings is
calculated by adjusting basic earnings attributable to shareholders
for the amortisation of acquired intangible assets, non-operating
items including strategic actions, and earnings attributable to
perpetual preference shareholders and other additional tier 1
security holders
• Adjusted basic
earnings per share is calculated as adjusted earnings attributable
to shareholders divided by the weighted average number of ordinary
shares in issue during the year
• Headline earnings is
adjusted earnings plus the after tax financial effect of strategic
actions and the amortisation of acquired intangible assets.
Headline earnings is an earnings measure required to be calculated
and disclosed by the JSE and is calculated in accordance with the
guidance provided in Circular 1/2023
• Headline earnings per share (HEPS) is calculated as headline
earnings divided by the weighted average number of ordinary shares
in issue during the year
• Basic earnings is
earnings attributable to ordinary shareholders as defined by IAS33
"Earnings Per Share"
• Dividend payout
ratio is calculated as the dividend per share divided by adjusted
earnings per share
• Pre-provision
adjusted operating profit is calculated as total operating income
before expected credit loss impairment charges, net of operating
costs and net of operating profits or losses attributable to other
non-controlling interests
• The credit loss
ratio is calculated as expected credit loss (ECL) impairment
charges on gross core loans as a percentage of average gross core
loans subject to ECL
• The cost to income
ratio is calculated as operating costs divided by operating income
before expected credit loss impairment charges (net of operating
profits or losses attributable to other non-controlling
interests)
• Return on average
ordinary shareholders' equity (ROE) is calculated as adjusted
earnings attributable to ordinary shareholders divided by average
ordinary shareholders' equity
• Return on average
tangible ordinary shareholders' equity (ROTE) is calculated as
adjusted earnings attributable to ordinary shareholders divided by
average tangible ordinary shareholders' equity
• Core loans is
defined as net loans to customers plus net own originated
securitised assets
• NCI is
non-controlling interests.
Financial assistance
Shareholders are referred to
Special Resolution number 30, which was approved at the annual
general meeting held on 3 August 2023, relating to the
provision of direct or indirect financial assistance in terms of
Section 45 of the South African Companies Act, No 71 of 2008 to
related or inter-related companies. Shareholders are hereby
notified that in terms of S45(5)(a) of the South African Companies
Act, the Boards of Directors of Investec Limited and Investec Bank
Limited provided such financial assistance during the period
1 April 2023 to 31 March 2024 to various Group
subsidiaries.
Exchange rate impact on statutory
results
Exchange rates between local currencies and Pounds Sterling have fluctuated
over the period. The most significant impact arises from the
volatility of the Rand. The average Rand: Pound Sterling exchange
rate over the period has depreciated by 15.1% against the comparative year ended 31 March
2023, and the closing rate has depreciated by 9.2%
since 31 March 2023. The following tables provide
an analysis of the impact of the Rand on our reported
numbers.
|
|
Results in Pounds
Sterling
|
Results in
Rands
|
|
Total Group
|
Year to 31 March
2024
|
Year to
31 March 2023*
|
%
change
|
Neutral currency^ Year to 31
March 2024
|
Neutral
currency
%
change
|
Year to 31 March
2024
|
Year to
31 March 2023*
|
%
change
|
|
Adjusted operating profit before
taxation (million)
|
£896
|
£836
|
7.2%
|
£962
|
15.1%
|
R21
102
|
R17
057
|
23.7%
|
|
Earnings attributable to
shareholders (million)
|
£941
|
£805
|
16.9%
|
£994
|
23.5%
|
R22
150
|
R16
376
|
35.3%
|
|
Adjusted earnings attributable to
shareholders (million)
|
£662
|
£614
|
7.8%
|
£710
|
15.6%
|
R15
587
|
R12
524
|
24.5%
|
|
Adjusted earnings per
share
|
78.1p
|
68.9p
|
13.4%
|
83.6p
|
21.3%
|
1836c
|
1404c
|
30.8%
|
|
Basic earnings per
share
|
105.3p
|
85.8p
|
22.7%
|
111.0p
|
29.4%
|
2477c
|
1745c
|
41.9%
|
|
Headline earnings per
share
|
72.9p
|
66.8p
|
9.1%
|
79.4p
|
18.9%
|
1716c
|
1398c
|
22.7%
|
|
|
Results in Pounds
Sterling
|
Results in
Rands
|
|
|
At 31 March
2024
|
At 31
March 2023*
|
%
change
|
Neutral currency^^ At 31
March 2024
|
Neutral
currency
%
change
|
At 31 March
2024
|
At 31
March 2023*
|
%
change
|
|
Net asset value per
share
|
563.9p
|
507.3p
|
11.2%
|
573.1p
|
13.0%
|
13
511c
|
11
132c
|
21.4%
|
|
Tangible net asset value
per share
|
477.5p
|
471.6p
|
1.3%
|
486.7p
|
3.2%
|
11
441c
|
10
348c
|
10.6%
|
|
Total equity (million)
|
£5 514
|
£5 309
|
3.9%
|
£5
699
|
7.3%
|
R132
118
|
R116
494
|
13.4%
|
|
Total assets (million)*
|
£56 750
|
£57 892
|
(2.0%)
|
£59
201
|
2.3%
|
R1
359 751
|
R1 270
311
|
7.0%
|
|
Core loans (million)
|
£30 901
|
£30 381
|
1.7%
|
£32
220
|
6.1%
|
R740
400
|
R666
633
|
11.1%
|
|
Cash and near cash balances
(million)
|
£16 359
|
£16 361
|
-%
|
£16
976
|
3.8%
|
R391
978
|
R359
006
|
9.2%
|
|
Customer accounts (deposits)
(million)
|
£39 580
|
£39 556
|
0.1%
|
£41
309
|
4.4%
|
R948
352
|
R867
968
|
9.3%
|
^
For
income statement items we have used the average Rand: Pound
Sterling exchange rate that was applied in the prior period, i.e.
20.45.
^^
For balance sheet items we have assumed that the
Rand: Pound Sterling closing exchange rate has remained neutral
since 31 March 2023.
* Restated as
detailed below.
Condensed combined consolidated income
statement
|
£'000
|
Year to
31 March
2024
|
Year
to
31
March 2023^
|
|
Interest income
|
4 124 150
|
3 187 420
|
|
Interest expense
|
(2 785 457)
|
(1 920 124)
|
|
Net interest income
|
1
338 693
|
1 267 296
|
|
Fee and commission
income
|
482 668
|
453 670
|
|
Fee and commission
expense
|
(66 481)
|
(56 315)
|
|
Investment income
|
60 381
|
29 303
|
|
Share of post-taxation profit of
associates and joint venture holdings
|
55 949
|
30 034
|
|
Trading income arising
from
|
|
|
|
- customer flow
|
131 712
|
169 110
|
|
- balance sheet management and
other trading activities
|
41 496
|
14 235
|
|
Other operating income
|
1 961
|
4 386
|
|
Operating income
|
2 046 379
|
1 911 719
|
|
Expected credit loss impairment
charges
|
(79 113)
|
(80 846)
|
|
Operating income after expected credit loss impairment
charges
|
1 967 266
|
1 830 873
|
|
Operating costs
|
(1 120 245)
|
(1 085 999)
|
|
Operating profit before goodwill and acquired
intangibles
|
847 021
|
744 874
|
|
Impairment of goodwill
|
-
|
(890)
|
|
Amortisation of acquired
intangibles
|
(1 483)
|
(2 535)
|
|
Amortisation of acquired
intangibles of associates
|
(5 679)
|
(1 542)
|
|
Closure and rundown of the Hong
Kong direct investments business
|
(785)
|
(450)
|
|
Operating profit
|
839 074
|
739 457
|
|
Net gain on distribution of
associate to shareholders
|
-
|
154 438
|
|
Financial impact of strategic
actions
|
(16 576)
|
(30)
|
|
Profit before taxation from continuing
operations
|
822 498
|
893 865
|
|
Taxation on operating profit
before goodwill and acquired intangibles
|
(172 066)
|
(163 522)
|
|
Taxation on acquired intangibles
and net gain on distribution of associate to
shareholders
|
879
|
15 182
|
|
Profit after taxation from continuing
operations
|
651 311
|
745 525
|
|
Profit after taxation and
financial impact of strategic actions from discontinued
operations*
|
302 877
|
71 906
|
|
Operating profit before
non-controlling interests from discontinued operations*
|
45 824
|
76 844
|
|
Financial impact of strategic
actions net of taxation from discontinued operations*
|
257 053
|
(4 938)
|
|
|
|
|
|
Profit after taxation from total Group
|
954 188
|
817 431
|
|
Profit attributable to
non-controlling interests
|
(1 382)
|
(752)
|
|
Profit attributable to
non-controlling interests of discontinued operations
|
(11 766)
|
(11 814)
|
|
Earnings of total Group attributable to
shareholders
|
941 040
|
804 865
|
|
Earnings attributable to ordinary
shareholders
|
891 964
|
764 446
|
|
Earnings attributable to perpetual
preferred securities and other Additional Tier 1 security
holders
|
49 076
|
40 419
|
|
|
|
|
^ Restated as
detailed below.
* Refer to
discontinued operations disclosure.
Earnings per share
|
|
Year to
31 March
2024
|
Year
to
31
March 2023^
|
|
Basic earnings for total Group per share -
pence
|
105.3
|
85.8
|
|
Diluted basic earnings for total Group per share -
pence
|
101.0
|
82.5
|
|
Basic earnings for continuing operations per share -
pence
|
71.0
|
79.1
|
|
Diluted basic earnings for continuing operations per share -
pence
|
68.1
|
76.0
|
^ Restated as
detailed below.
Combined consolidated statement of total comprehensive
income
|
£'000
|
Year to
31 March
2024
|
Year
to
31 March
2023^
|
|
|
|
|
|
Profit after taxation from
continuing operations
|
651
311
|
745 525
|
|
Other comprehensive income:
|
|
|
|
Items that may be reclassified to the income
statement
|
|
|
|
Fair value movements on cash flow
hedges taken directly to other comprehensive income*
|
(16 585)
|
22 194
|
|
Fair value movements on debt
instruments at FVOCI taken directly to other comprehensive
income*
|
11 359
|
(52 843)
|
|
Gain on realisation of debt
instruments at FVOCI recycled through the income
statement*
|
(4 789)
|
(2 960)
|
|
Foreign currency adjustments on
translating foreign operations
|
(194 634)
|
(218 726)
|
|
Net equity movements of interests
in associate undertakings
|
257
|
-
|
|
Items that will not be reclassified to the income
statement
|
|
|
|
Effect of rate change on deferred
taxation relating to adjustment for IFRS 9
|
-
|
(7)
|
|
Fair value movements on equity
instruments at FVOCI taken directly to other comprehensive
income*
|
(14 415)
|
(657)
|
|
Movement in post-retirement
benefit liabilities*
|
(362)
|
75
|
|
Net gain attributable to own
credit risk*
|
748
|
104
|
|
Total comprehensive income from continuing
operations
|
432 890
|
492 705
|
|
Total comprehensive income
attributable to ordinary shareholders from continuing
operations
|
421 238
|
518 902
|
|
Total comprehensive loss
attributable to non-controlling interests from continuing
operations
|
(37 424)
|
(66 616)
|
|
Total comprehensive income
attributable to perpetual preferred securities and Other Additional
Tier 1 security holders from continuing operations
|
49 076
|
40 419
|
|
Total comprehensive income from continuing
operations
|
432 890
|
492 705
|
|
|
|
|
|
Profit after taxation from
discontinued operations
|
302 877
|
71 906
|
|
Other comprehensive income from discontinued
operations:
|
|
|
|
Items that may be reclassified to the income
statement
|
|
|
|
Foreign currency adjustments on
translating foreign operations
|
55 377
|
(85 455)
|
|
Total comprehensive income from discontinued
operations
|
358 254
|
(13 549)
|
|
Total comprehensive income
attributable to ordinary shareholders from discontinued
operations
|
346 488
|
(25 363)
|
|
Total comprehensive income
attributable to non-controlling interests from discontinued
operations
|
11
766
|
11 814
|
|
Total comprehensive income from discontinued
operations
|
358 254
|
(13 549)
|
|
|
|
|
|
Profit after taxation from total
Group
|
954 188
|
817 431
|
|
Other comprehensive income total Group:
|
|
|
|
Items that may be reclassified to the income
statement
|
|
|
|
Fair value movements on cash flow
hedges taken directly to other comprehensive income*
|
(16 585)
|
22 194
|
|
Fair value movements on debt
instruments at FVOCI taken directly to other comprehensive
income*
|
11 359
|
(52 843)
|
|
Gain on realisation of debt
instruments at FVOCI recycled through the income
statement*
|
(4 789)
|
(2 960)
|
|
Foreign currency adjustments on
translating foreign operations
|
(139 257)
|
(304 181)
|
|
Net equity movements of interests
in associate undertakings
|
257
|
-
|
|
Items that will never be reclassified to the income
statement
|
|
|
|
Effect of rate change on deferred
taxation relating to adjustment for IFRS 9
|
-
|
(7)
|
|
Fair value movements on equity
instruments at FVOCI taken directly to other comprehensive
income
|
(14 415)
|
(657)
|
|
Movement in post-retirement
benefit liabilities*
|
(362)
|
75
|
|
Net gain attributable to own
credit risk*
|
748
|
104
|
|
Total comprehensive income from total Group
|
791 144
|
479 156
|
|
Total comprehensive income
attributable to ordinary shareholders
|
767 726
|
493 539
|
|
Total comprehensive loss
attributable to non-controlling interests
|
(25 658)
|
(54 802)
|
|
Total comprehensive income
attributable to perpetual preferred securities and Other Additional
Tier 1 security holders
|
49 076
|
40 419
|
|
Total comprehensive income from total Group
|
791 144
|
479 156
|
|
|
|
|
^ Restated as
detailed below.
* These amounts are
net of taxation of £11.8 million (31 March
2023: £7.6 million).
Combined consolidated balance sheet
|
At
£'000
|
31 March
2024
|
31 March
2023^
|
31 March
2022^
|
|
Assets
|
|
|
|
|
Cash and balances at central
banks
|
6 279 088
|
6 437 709
|
5 998 270
|
|
Loans and advances to
banks
|
1 063 745
|
1 450 627
|
2 552 061
|
|
Non-sovereign and non-bank cash
placements
|
451 482
|
442 254
|
439 715
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
4 381 520
|
3 995 190
|
4 988 443
|
|
Sovereign debt
securities
|
4 943 147
|
4 404 243
|
3 776 596
|
|
Bank debt securities
|
647 951
|
915 686
|
1 519 860
|
|
Other debt securities
|
1 148 147
|
1 229 392
|
1 229 287
|
|
Derivative financial
instruments
|
853 938
|
1 363 912
|
1 583 526
|
|
Securities arising from trading
activities
|
1 596 260
|
1 836 327
|
1 312
951
|
|
Loans and advances to
customers
|
30 645 313
|
30 112 969
|
29 806 356
|
|
Own originated loans and advances
to customers securitised
|
269 034
|
272 879
|
375 763
|
|
Other loans and
advances
|
117 513
|
142 726
|
128 284
|
|
Other securitised
assets
|
139 143
|
103 151
|
123 888
|
|
Other financial instruments at
fair value through profit or loss in respect
of liabilities to customers**
|
154 738
|
110 891
|
59 549
|
|
Investment portfolio**
|
807 030
|
1 330 907
|
912 872
|
|
Interests in associated
undertakings and joint venture holdings
|
858 420
|
53 703
|
734 434
|
|
Current taxation assets
|
64 378
|
69 322
|
33 653
|
|
Deferred taxation
assets
|
204 861
|
234 034
|
223 794
|
|
Other assets
|
1 672 582
|
2 030 476
|
2 380 201
|
|
Property and equipment
|
238 072
|
278 561
|
335 420
|
|
Investment properties
|
105 975
|
722 481
|
820 555
|
|
Goodwill
|
75 367
|
262 632
|
258 404
|
|
Software
|
9 707
|
15 401
|
9 443
|
|
Other acquired intangible
assets
|
-
|
41 136
|
44 152
|
|
Non-current assets classified as
held for sale
|
22 270
|
35 761
|
79 229
|
|
|
56 749
681
|
57 892
370
|
59 726
706
|
|
Liabilities
|
|
|
|
|
Deposits by banks
|
3 446 776
|
3 617 524
|
3 178 668
|
|
Derivative financial
instruments
|
1 069 119
|
1 543 140
|
1 699 199
|
|
Other trading
liabilities
|
1 369 332
|
1 278 452
|
1 612 314
|
|
Repurchase agreements and cash
collateral on securities lent
|
915 208
|
938 107
|
863 285
|
|
Customer accounts
(deposits)
|
39 580 244
|
39 555 669
|
40 118 412
|
|
Debt securities in
issue
|
1 553 344
|
1 802 586
|
2 043 640
|
|
Liabilities arising on
securitisation of own originated loans and advances
|
208 571
|
163 787
|
238 370
|
|
Liabilities arising on
securitisation of other assets
|
71 751
|
81 609
|
95 885
|
|
Current taxation
liabilities
|
72 697
|
69 780
|
26 841
|
|
Deferred taxation
liabilities
|
5 198
|
26 545
|
19 624
|
|
Other liabilities
|
1
816 139
|
2 311 103
|
2 718 111
|
|
Liabilities to customers under
investment contracts**
|
139 120
|
108 370
|
56 475
|
|
Insurance liabilities, including
unit-linked liabilities**
|
15 769
|
2 521
|
3 074
|
|
|
50 263
268
|
51 499
193
|
52 673
898
|
|
Subordinated
liabilities
|
972 806
|
1 084 630
|
1 316 191
|
|
|
51 236
074
|
52 583
823
|
53 990
089
|
|
Equity
|
|
|
|
|
Ordinary share capital
|
247
|
247
|
247
|
|
Ordinary share premium
|
1 010 066
|
1 208 161
|
1 516 024
|
|
Treasury shares
|
(604 994)
|
(564 678)
|
(318 987)
|
|
Other reserves
|
(866 739)
|
(773 262)
|
(554 040)
|
|
Retained income
|
5 222 098
|
4 452 413
|
3 970 449
|
|
Ordinary shareholders' equity
|
4
760 678
|
4 322 881
|
4
613 693
|
|
Perpetual preference share capital
and premium
|
127 136
|
136 259
|
174 869
|
|
Shareholders' equity excluding non-controlling
interests
|
4 887 814
|
4
459 140
|
4
788 562
|
|
Other Additional Tier 1 securities
in issue
|
625 468
|
398 568
|
411 683
|
|
Non-controlling
interests
|
325
|
450 839
|
536 372
|
|
Total equity
|
5 513 607
|
5
308 547
|
5 736 617
|
|
Total liabilities and equity
|
56 749
681
|
57 892
370
|
59 726
706
|
^
Restated as detailed below.
**
During the year the group reassessed the order of
liquidity within the balance sheet and moved 'Investment portfolio'
to below 'Other financial instruments at fair value through profit
or loss in respect of liabilities to customers' as
it was found to be less liquid than the items that were listed
above it. In addition, 'Other financial instruments at fair value
through profit or loss in respect
of liabilities to customers', 'Liabilities to
customers under investment contracts' and 'Insurance liabilities,
including unit-linked liabilities' were moved higher up in the
order of balance sheet line items as these items were found to be
more liquid than those that follow them in the above presentation.
The reorder has also been applied to the prior year and notes where
the line items are listed.
Condensed consolidated statement of changes in
equity
|
£'000
|
Year to
31 March
2024
|
Year to
31 March
2023^
|
|
Balance at the beginning of the
year as previously reported
|
5 308 547
|
5 739 756
|
|
Restatement
|
-
|
(3 139)
|
|
Balance at the beginning of the
year restated
|
5 308 547
|
5 736 617
|
|
Total comprehensive
income
|
791 144
|
479 156
|
|
Share-based payments
adjustments
|
2 664
|
25 904
|
|
Dividends paid to ordinary
shareholders
|
(296 712)
|
(260 673)
|
|
Dividends paid to perpetual
preference shareholders included in non-controlling interests and
Other Additional Tier 1 security holders
|
(49 076)
|
(40 419)
|
|
Dividends paid to non-controlling
interests
|
(12 599)
|
(30 849)
|
|
Share buyback of ordinary share
capital
|
(17 408)
|
(56 863)
|
|
Repurchase of perpetual preference
shares
|
246
|
(19 379
|
|
Issue of Other Additional Tier 1
security instruments
|
382 130
|
22 787
|
|
Redemption of Other Additional
Tier 1 security instruments
|
(140 472)
|
(15 951)
|
|
Net equity impact of
non-controlling interest movements
|
(2 254)
|
118
|
|
Employee benefit liability
recognised
|
-
|
(9 224)
|
|
Movement of treasury
shares
|
(39 629)
|
(240 008)
|
|
Derecognition of non-controlling
interests on deconsolidation of subsidiary company
|
(412 974)
|
-
|
|
Distribution to ordinary
shareholders
|
-
|
(282 669)
|
|
Balance at the end of the year
|
5 513 607
|
5
308 547
|
^ Restated as
detailed below.
Condensed consolidated cash flow statement
|
£'000
|
Year to
31 March
2024
|
Year
to
31
March 2023^
|
|
Net cash inflow from operating
activities
|
131 453
|
422 407
|
|
Net cash outflow from investing
activities
|
(209 370)
|
(13 993)
|
|
Net cash outflow from financing
activities
|
(372 056)
|
(914 684)
|
|
Effects of exchange rates on cash
and cash equivalents
|
(95 500)
|
(109 104)
|
|
Net decrease in cash and cash equivalents
|
(545 473)
|
(615 374)
|
|
Cash and cash equivalents at the
beginning of the year
|
7 797 650
|
8 413 024
|
|
Cash and cash equivalents at the end of the
year
|
7 252 177
|
7 797 650
|
^ Restated as
detailed below.
Headline earnings per share
|
£'000
|
Year to
31 March
2023
|
Year
to
31 March
2023
|
|
Headline earnings from total Group
|
|
|
|
Earnings attributable to
shareholders
|
941 040
|
804 865
|
|
Impairment of goodwill
|
-
|
890
|
|
Financial impact of strategic
actions of discontinued operations excluding implementation
costs
|
(280 737)
|
-
|
|
Gain on distribution of associate
to shareholders
|
-
|
(155 146)
|
|
Taxation on strategic
actions
|
8 337
|
(14 501)
|
|
Dividends payable to perpetual
preference shareholders and Other Additional Tier 1 security
holders (other equity holders)
|
(49 076)
|
(40 419)
|
|
Property revaluation, net of
taxation and non-controlling interests**
|
(1 958)
|
(1 355)
|
|
Headline adjustments of
associates
|
-
|
561
|
|
Gain on repurchase of perpetual
preference shares
|
1 406
|
717
|
|
Headline earnings attributable to ordinary
shareholders
|
619 012
|
595 612
|
|
Weighted average number of shares
in issue during the year
|
848 806 687
|
891 940 412
|
|
Headline earnings per share - pence***
|
72.9
|
66.8
|
|
Diluted headline earnings per
share - pence***
|
70.0
|
64.2
|
Prior to becoming a subsidiary, the
investment in Capitalmind associates met the definition of a
venture capital investment as defined in the Headline Earnings
Circular 1/2023. During the period a gain of £4mn was recognised as
a result of a stepped acquisition of Capitalmind from 30% to 60%
that required a revaluation of the previously held 30%. This amount
was included in headline earnings.
** Taxation on property
revaluation headline earnings adjustments amounted to £0.7 million
(2023: £1.0 million) with an impact of £nil (2023: £3.6 million)
on earnings attributable to non-controlling interests. The
amount includes property revaluations included in equity accounted
earnings.
***
Headline earnings per share and diluted headline earnings per share
have been calculated and is disclosed in accordance with the JSE
listing requirements, and in terms of circular 1/2023 issued by the
South African Institute of Chartered Accountants.
Combined consolidated segmental analysis
Segmental geographical and
business analysis of adjusted operating profit before goodwill,
acquired intangibles, non-operating items, taxation and after
non-controlling interests.
|
|
Private
Client
|
|
|
|
|
|
|
|
|
|
Specialist
Banking
|
|
|
|
|
|
For the year to 31
March 2024
|
Wealth
& Investment
|
Private
Banking
|
Corporate, Investment Banking and Other
|
Group
Investments
|
Group
Costs
|
Total Group
|
% change
|
% of total
|
|
£'000
|
|
UK and Other
|
31 014
|
68 396
|
337 797
|
11 721
|
(29 248)
|
419 680
|
38.4%
|
46.8%
|
|
Southern Africa
|
36 973
|
148 155
|
256 148
|
(369)
|
(14 948)
|
425 959
|
(3.4%)
|
47.5%
|
|
Continuing operations adjusted operating
profit
|
67 987
|
216 551
|
593 945
|
11 352
|
(44 196)
|
845 639
|
13.6%
|
94.3%
|
|
Discontinued
operations*
|
47 828
|
-
|
-
|
3 012
|
-
|
50 840
|
(44.6%)
|
5.7%
|
|
Total Group adjusted operating profit
|
115 815
|
216 551
|
593 945
|
14 364
|
(44 196)
|
896 479
|
7.2%
|
100.0%
|
|
Non-controlling interests of
continuing operations
|
|
|
|
|
|
1 382
|
|
|
|
Non-controlling interests of
discontinued operations
|
|
|
|
|
|
11 766
|
|
|
|
Operating profit before non-controlling
interests
|
|
|
|
|
|
909 627
|
|
|
|
Operating profit before
non-controlling interests from continuing operations
|
|
|
|
|
|
847 021
|
|
|
|
Operating profit before
non-controlling interests of discontinued operations
|
|
|
|
|
|
62 606
|
|
|
|
%
change
|
(7.0) %
|
(13.3)%
|
24.4%
|
(19.2)%
|
31.7 %
|
7.2
%
|
|
|
%
of total
|
12.9%
|
24.2%
|
66.2%
|
1.6%
|
(4.9)%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Total assets £'mn
|
371
|
15 485
|
40 468
|
426
|
-
|
56 750
|
|
|
|
|
Private
Client
|
|
|
|
|
|
|
|
|
|
Specialist
Banking
|
|
|
|
|
|
For the year to 31 March 2023^
|
Wealth
& Investment^
|
Private
Banking
|
Corporate, Investment Banking and Other
|
Group
Investments^
|
Group
Costs
|
Total Group
|
|
% of total
|
|
£'000
|
|
UK and Other
|
-
|
70 154
|
233 234
|
18 103
|
(18 209)
|
303 282
|
|
36.3%
|
|
Southern Africa
|
32 799
|
179 616
|
244 141
|
(373)
|
(15 343)
|
440 840
|
|
52.7%
|
|
Continuing operations adjusted operating
profit
|
32 799
|
249 770
|
477 375
|
17 730
|
(33 552)
|
744 122
|
|
89.0%
|
|
Discontinued
operations*
|
91 756
|
-
|
-
|
50
|
-
|
91 806
|
|
11.0%
|
|
Total Group adjusted operating profit
|
124 555
|
249 770
|
477 375
|
17 780
|
(33 552)
|
835 928
|
|
100.0%
|
|
Non-controlling interests of
continuing operations
|
|
|
|
|
|
752
|
|
|
|
Non-controlling interests of
discontinued operations
|
|
|
|
|
|
11 814
|
|
|
|
Operating profit before non-controlling
interests
|
|
|
|
|
|
848 494
|
|
|
|
Operating profit before
non-controlling interests from continuing operations
|
|
|
|
|
|
744 874
|
|
|
|
Operating profit before
non-controlling interests of discontinued operations
|
|
|
|
|
|
103 620
|
|
|
|
%
of total
|
14.9%
|
29.9%
|
57.1%
|
2.1%
|
(4.0)%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets^ £'mn
|
1 225
|
15 662
|
39 477
|
1 528
|
-
|
57 892
|
|
|
^ Restated as
detailed below.
* Refer to
discontinued operations disclosure.
Pro-forma income statement
Given the nature of the IW&I
UK and IPF transactions, the Group's economic interest remained
similar before and after the transactions. To provide information
that will be more comparable to the future presentation of returns
from the Group's interest in these entities and given their new
holding structures, pro-forma information has been prepared as if
the transactions had been in effect from the beginning of the
period, i.e. IW&I UK has been presented as an equity accounted
investment and IPF as an investment at fair value through profit or
loss.
|
£'000
|
Year
to
31
March 2024
|
Re-presentation of discontinued operation - IPF
|
Re-presentation of discontinued operation - Investec Wealth
& Investment UK
|
Year to 31 March 2024
Pro-forma
|
|
Net interest income
|
1 338 693
|
-
|
-
|
1 338 693
|
|
Net fee and commission
income
|
416 187
|
-
|
-
|
416 187
|
|
Investment income
|
60 381
|
3 012
|
-
|
63 393
|
|
Share of post-taxation profit of
associates and joint venture holdings
|
55 949
|
-
|
35 855
|
91 804
|
|
Trading income arising
from
|
|
|
|
|
|
- customer flow
|
131 712
|
-
|
-
|
131 712
|
|
- balance sheet management and
other trading activities
|
41 496
|
-
|
-
|
41 496
|
|
Other operating income
|
1 961
|
-
|
-
|
1 961
|
|
Operating income
|
2 046
379
|
3 012
|
35 855
|
2 085
246
|
|
Expected credit loss impairment
charges
|
(79 113)
|
-
|
-
|
(79 113)
|
|
Operating income after expected credit loss impairment
charges
|
1 967
266
|
3 012
|
35 855
|
2 006
133
|
|
Operating costs
|
(1 120 245)
|
-
|
-
|
(1 120 245)
|
|
Operating profit before goodwill and acquired
intangibles
|
847 021
|
3 012
|
35 855
|
885 888
|
|
Operating profit before strategic
actions and non-controlling interests of discontinued
operations*
|
62 606
|
(14 778)
|
(47 828)
|
-
|
|
Taxation on operating profit
before goodwill and acquired intangibles
|
(172 066)
|
-
|
-
|
(172 066)
|
|
Taxation on operating profit
before goodwill and acquired intangibles of discontinued
operations*
|
(11 973)
|
-
|
11 973
|
-
|
|
|
725 588
|
(11 766)
|
-
|
713 822
|
|
Profit attributable to
non-controlling interests
|
(1 382)
|
-
|
-
|
(1 382)
|
|
Profit attributable to
non-controlling interests of discontinued operations*
|
(11 766)
|
11 766
|
-
|
-
|
|
|
712 440
|
-
|
-
|
712 440
|
|
Earnings attributable perpetual
preference shareholders and Other Additional Tier 1 security
holders (other equity holders)
|
(49 942)
|
-
|
-
|
(49 942)
|
|
Adjusted earnings attributable to ordinary shareholders
before goodwill, acquired intangibles and non-operating
items
|
662 498
|
-
|
-
|
662 498
|
* Refer to
discontinued operations disclosure.
|
£'000
|
Year
to
31
March 2023
|
Re-presentation of discontinued operation - IPF
|
Re-presentation of discontinued operation - Investec Wealth
& Investment UK
|
Year to
31 March 2023
Pro-forma
|
|
Net interest income
|
1 267 296
|
-
|
-
|
1 267 296
|
|
Net fee and commission
income
|
397 355
|
-
|
-
|
397 355
|
|
Investment income
|
29 303
|
50
|
-
|
29 353
|
|
Share of post-taxation profit of
associates and joint venture holdings
|
30 034
|
-
|
74 555
|
104 589
|
|
Trading income arising
from
|
|
|
|
|
|
- customer flow
|
169 110
|
-
|
-
|
169 110
|
|
- balance sheet management and
other trading activities
|
14 235
|
-
|
-
|
14 235
|
|
Other operating income
|
4 386
|
-
|
-
|
4 386
|
|
Operating income
|
1
911 719
|
50
|
74 555
|
1 986
324
|
|
Expected credit loss impairment
charges
|
(80 846)
|
-
|
-
|
(80 846)
|
|
Operating income after expected credit loss impairment
charges
|
1 830
873
|
50
|
74 555
|
1 905
478
|
|
Operating costs
|
(1 085 999)
|
-
|
-
|
(1 085 999)
|
|
Operating profit before goodwill and acquired
intangibles
|
744 874
|
50
|
74 555
|
819 479
|
|
Operating profit before strategic
actions and non-controlling interests of discontinued
operations*
|
103 620
|
(11 864)
|
(91 756)
|
-
|
|
Taxation on operating profit before
goodwill and acquired intangibles
|
(163 522)
|
-
|
-
|
(163 522)
|
|
Taxation on operating profit before
goodwill and acquired intangibles of discontinued
operations*
|
(16 182)
|
-
|
17 201
|
1 019
|
|
|
668 790
|
(11 814)
|
-
|
656 976
|
|
Profit attributable to
non-controlling interests
|
(752)
|
-
|
-
|
(752)
|
|
Profit attributable to
non-controlling interests of discontinued operations*
|
(11 814)
|
11 814
|
-
|
-
|
|
|
656 224
|
-
|
-
|
656 224
|
|
Earnings attributable perpetual
preference shareholders and Other Additional Tier 1 security
holders (other equity holders)
|
(41 872)
|
-
|
-
|
(41 872)
|
|
Adjusted earnings attributable to ordinary shareholders
before goodwill, acquired intangibles and non-operating
items
|
614 352
|
-
|
-
|
614 352
|
* Refer to
discontinued operations disclosure.
Discontinued operations
During the year, the Group had two
significant strategic actions which have been reflected as
discontinued operations.
The effective date of the
combination of Investec Wealth & Investment Limited and
Rathbones Group Plc was 21 September 2023, at which point the Group
deconsolidated its 100% holding in Investec Wealth & Investment
Limited and in return acquired a 41.25% interest in Rathbones Group
plc which is accounted for as an equity investment. The completion
date of the sale of the Investec Property Fund (IPF) management
companies was 6 July 2023 at which point the Group deconsolidated
its existing c.24.3% investment in IPF. The Investec Wealth &
Investment business and IPF have been disclosed as discontinued
operations. The Wealth & Investment business was disclosed in
the Wealth & Investment segment in the UK and other geography
and the IPF business was disclosed in the Group Investments segment
in the Southern Africa geography.
Reconciliation of profit after
taxation and financial impact of strategic actions from
discontinued operations as disclosed in the income statement to
earnings from discontinued operations attributable to shareholders
provided in the tables below
|
For the year to 31
March
|
Year to 31 March
2024
|
Year to
31 March 2023
|
|
£'000
|
|
Operating profit before strategic
actions and non-controlling interests
|
62 606
|
103 620
|
|
Amortisation of acquired
intangibles
|
(6 424)
|
(12 625)
|
|
Taxation on operating
profit
|
(11 973)
|
(16 182)
|
|
Taxation on amortisation of
acquired intangibles
|
1 615
|
2 031
|
|
Operating profit before strategic
actions and non-controlling interests from discontinued
operations
|
45 824
|
76 844
|
|
Financial impact of strategic
actions
|
265 390
|
(4 938)
|
|
Taxation on strategic
actions
|
(8 337)
|
-
|
|
Profit after taxation and financial impact of strategic
actions from discontinued operations
|
302 877
|
71 906
|
|
Profit attributable to
non-controlling interests of discontinued operations
|
(11 766)
|
(11 814)
|
|
Earnings from discontinued operations attributable to
shareholders
|
291 111
|
60 092
|
The table below presents the income
statement from discontinued operations included in the total Group
income statement for the year to 31 March 2024.
|
For the year to 31 March 2024
|
|
£'000
|
UK
and
Other
|
Southern
Africa
|
Total
|
|
Net interest
income/(expense)
|
17 324
|
(6
194)
|
11
130
|
|
Net fee and commission
income
|
161 610
|
13 088
|
174 698
|
|
Investment income
|
-
|
3 390
|
3 390
|
|
Trading income/(loss) arising
from
|
|
|
|
|
- customer flow
|
-
|
(9 749)
|
(9 749)
|
|
- balance sheet management and
other trading activities
|
-
|
17
181
|
17 181
|
|
Operating income
|
178 934
|
17 716
|
196 650
|
|
Expected credit loss impairment
charges
|
-
|
(267)
|
(267)
|
|
Operating income after expected credit loss impairment
charges
|
178 934
|
17 449
|
196 383
|
|
Operating costs
|
(131 106)
|
(2 671)
|
(133 777)
|
|
Operating profit before strategic actions and non-controlling
interests
|
47 828
|
14
778
|
62 606
|
|
Profit attributable to
non-controlling interests from discontinued operations
|
-
|
(11 766)
|
(11 766)
|
|
Operating profit before strategic actions
|
47 828
|
3 012
|
50 840
|
|
Amortisation of acquired
intangibles
|
(6 424)
|
-
|
(6 424)
|
|
Financial impact of strategic
actions
|
359 339
|
(93 949)
|
265 390
|
|
Profit/(loss) before taxation
|
400 743
|
(90 937)
|
309 806
|
|
Taxation on operating profit
before strategic actions
|
(11 973)
|
-
|
(11 973)
|
|
Taxation on financial impact of
strategic actions and acquired intangibles
|
781
|
(7 503)
|
(6 722)
|
|
Earnings/(loss) from discontinued operations attributable to
shareholders
|
389 551
|
(98 440)
|
291 111
|
The table below presents the income
statement from discontinued operations included in the total Group
income statement for the year to 31 March 2023.
|
For the year to 31 March
2023
|
|
£'000
|
UK
and
Other
|
Southern
Africa
|
Total
|
|
Net interest
income/(expense)
|
22 763
|
(21 213)
|
1 550
|
|
Net fee and commission
income
|
324 907
|
50 001
|
374 908
|
|
Investment loss
|
-
|
(46 448)
|
(46 448)
|
|
Share of post-taxation loss of
associates and joint venture holdings
|
-
|
(885)
|
(885)
|
|
Trading income/(loss) arising
from
|
|
|
|
|
- customer flow
|
-
|
(10 995)
|
(10 995)
|
|
- balance sheet management and
other trading activities
|
-
|
43 479
|
43 479
|
|
Operating income
|
347 670
|
13 939
|
361 609
|
|
Expected credit loss impairment
charges
|
-
|
(243)
|
(243)
|
|
Operating income after expected credit loss impairment
charges
|
347 670
|
13 696
|
361 366
|
|
Operating costs
|
(255 914)
|
(1 832)
|
(257 746)
|
|
Operating profit before strategic actions and non-controlling
interests
|
91 756
|
11 864
|
103 620
|
|
Profit attributable to
non-controlling interests from discontinued operations
|
-
|
(11 814)
|
(11 814)
|
|
Operating profit before strategic actions
|
91 756
|
50
|
91 806
|
|
Amortisation of acquired
intangibles
|
(12 625)
|
-
|
(12 625)
|
|
Financial impact of strategic
actions
|
(4 938)
|
-
|
(4 938)
|
|
Profit before taxation
|
74 193
|
50
|
74 243
|
|
Taxation on operating profit
before strategic actions
|
(17 201)
|
1 019
|
(16 182)
|
|
Taxation on acquired
intangibles
|
2 031
|
-
|
2 031
|
|
Earnings from discontinued operations attributable to
shareholders
|
59 023
|
1 069
|
60 092
|
Financial impact of strategic actions of discontinued
operations
|
For the year to 31
March
|
2024
|
2023
|
|
£'000
|
|
Remeasurement on deconsolidation
of IPF, net of gain on sale of IPF management business
|
(93 949)
|
-
|
|
Gain/(costs) on the loss of
control on the combination with Rathbones Group
|
359 339
|
(4 938)
|
|
Net financial impact of strategic actions of discontinued
operations
|
265 390
|
(4 938)
|
|
Taxation on financial impact of
strategic actions
|
(8 337)
|
-
|
|
Net financial impact of strategic actions of discontinued
operations
|
257 053
|
(4 938)
|
Investec Wealth & Investment
Limited
On 21 September 2023, the Investec
Group successfully completed the all-share combination of Investec
Wealth & Investment Limited and Rathbones Group Plc. On
completion Rathbones issued new Rathbones shares in exchange for
100% of Investec Wealth & Investment Limited share capital.
Investec Group now owns 41.25% of the economic interest in the
enlarged Rathbones Group's share capital, with Investec Group's
voting rights limited to 29.9%.The Group's holding in Rathbones
Group Plc is equity accounted for as an interest in associated
undertakings and joint venture holdings in accordance with IAS
28.
Gain on loss of control of Investec Wealth & Investment
Limited
|
For the year to 31 March
£'000
|
2024
|
|
The gain is calculated as
follows:
|
|
|
Fair value of % received in
Rathbones Group
|
779 421
|
|
Net asset value of Investec Wealth
& Investment previously consolidated (including
goodwill)
|
(405 755)
|
|
Gain on the combination of Rathbones Group before
taxation
|
373 666
|
|
Implementation costs
|
(14 327)
|
|
Gain on combination of Rathbones Group before
taxation
|
359 339
|
|
Taxation on gain
|
(834)
|
|
Gain on combination of Rathbones Group
|
358 505
|
Major classes of assets and
liabilities
|
£'000
|
2024
|
|
Loans and advances to
banks
|
172 595
|
|
Goodwill
|
242 354
|
|
Other assets
|
360 379
|
|
Other liabilities
|
(369 573)
|
|
Net asset value of Investec Wealth & Investment
previously consolidated (including goodwill)
|
405 755
|
Remeasurement on deconsolidation
of IPF, net of gain on sale of IPF management business
The completion date of the sale of
the IPF management companies was 6 July 2023 at which point the
Group deconsolidated its current c.24.3% investment in IPF.
Historically, IPF has been controlled by the Group because of the
power over relevant activities held by the IPF management function
which were, until the current period, wholly owned by the Group and
that the majority of directors of IPF were associated with the
Group. In the current period, the management companies were sold
into the fund, and as a result the Group lost control of both these
functions and the executive directors transferred employment from
Investec to IPF reducing the number of directors associated with
Investec to less than majority. The investment in IPF is now held
as an associate company. In accordance with the Group's accounting
policies, associates that are held with no strategic intention
should be accounted for at fair value through profit or loss by
applying the venture capital exemption as provided in IAS 28. The
investment is disclosed in the investment portfolio line on the
balance sheet. Investec Limited, through its ordinary course of
business, has been classified as a venture capital entity and this
exemption provided in IAS 28 has been applied.
Loss on sale of IPF asset management function and
deconsolidation
|
For the year to 31 March
£'000
|
2024
|
|
The loss is calculated as
follows:
|
|
|
Fair value of the
consideration
|
34 330
|
|
Fair value of investment at 6 July
2023
|
61 035
|
|
Net asset value of IPF previously
consolidated (including non-controlling interests)
|
(545 891)
|
|
Non-controlling interest
derecognised previously included in the consolidation of IPF at 6
July 2023
|
412 974
|
|
Foreign currency translation
reserve recycled to the income statement on distribution
|
(55 377)
|
|
Loss before taxation and costs
|
(92 929)
|
|
Implementation costs
|
(1 020)
|
|
Loss before taxation
|
(93 949)
|
|
Taxation
|
(7 503)
|
|
Loss on sale of IPF management function and deconsolidation
net of taxation and implementation costs
|
(101 452)
|
Major classes of assets and
liabilities
|
£'000
|
2024
|
|
Investment properties
|
568 568
|
|
Investment portfolio
|
425 863
|
|
Other assets
|
88 056
|
|
Deposits by banks
|
(258 403)
|
|
Debt securities in
issue
|
(208 464)
|
|
Other liabilities
|
(69 729)
|
|
Net asset value of IPF previously consolidated (including
non-controlling interests)
|
545 891
|
Balance sheet, cash flow statement
and statement of total comprehensive income restatements
Non-sovereign and non-bank cash
placements and loans and advances to customers
Change in classification from
non-sovereign and non-bank cash placements to loans and advances to
customers
Following a revision of
management's internal policies defining the instruments to be
included as non-sovereign and non-bank cash placements and loans
and advances, management concluded that £201.8 million (March 2022:
£245.3 million) previously classified in 'non-sovereign and
non-bank cash placements' should be disclosed within 'loans and
advances to customers' (based on the revised policies). The change
in classification is considered more relevant on the basis that
certain short term facilities to small and medium enterprises are
better reflected as loans and advances to customers as it forms
part of the funding strategy of these clients. The comparative
balance sheets have been restated for the reclassification. This
change has no impact on the income statements or statements of
changes in equity.
Restatement of non-sovereign and
non-bank cash placements in the cash flow statement
Non-sovereign and non-bank cash
placements' amounting to £644.1 million net of ECL of £2.3 million
(March 2022: £685.0 million net of ECL of £1.7 million) were
previously classified as cash and cash equivalents for the purposes
of the cash flow statement. Management concluded that whilst these
balances are available on demand, the nature of these products and
the underlying credit risk more closely aligns with operating cash
flow rather than cash and cash equivalents. The comparative cash
flow statement has been restated to more appropriately reflect the
nature of these balances. This change has no impact on the income
statements, balance sheets or statement of changes in
equity.
Restatement of the application of
hedge accounting and the correction of the valuation of certain
fair value instruments
It was identified that the
application of hedge accounting (cash flow and fair value hedging)
applied in prior years, for certain portfolios within Investec Bank
Limited, did not meet the requirements to apply hedge accounting
under IAS 39 Financial Instruments: Recognition and
Measurement. It was further identified that certain financial
instruments were incorrectly fair valued.
Accordingly, the related 'cash flow
hedge reserve' and 'fair value reserve' through OCI reserves
totalling £77.5 million (March 2022: £96.2 million) have
been restated retrospectively to 'retained income'. In addition,
certain fair value hedge adjustments made in the balance sheet to
hedged items (£23.8 million (March 2022: £4.7 million))
have been reversed to 'retained income' and the valuation of a
specific portfolio of fair value instruments was corrected to
retained income. These adjustments resulted in a reduction of
taxable income for certain prior periods to which these matters
relate to and resulted in a reduction in 'current taxation
liabilities' of £13.4 million (March 2022: £14.8 million)
recognised against 'retained income' for the recovery of those
income taxes. The associated deferred taxation of £24.1 (March
2022: 35.6 million) previously raised on the cash flow hedge
reserve was also derecognised. All changes were retrospectively
restated. These changes have no impact on the cash flow
statement.
This restatement was previously
presented in the 30 September 2023 interim results and has
subsequently been revised for purposes of 31 March 2024 reporting
to accurately reflect the impact of this matter. As a result,
the comparative interim period in the 30 September 2024 interim
financial statements will be restated when they are
published.
The income statements impacts are
disclosed in the income statement restatement
section.
Gross-up and gross-down of balance
sheet line items
Gross-ups within the trading
portfolio of equity securities and client trading
accounts
Certain client and exchange
settlement balances and equity positions (long and short equity
positions) held were previously incorrectly offset (in terms of IAS
32) and presented on a net basis. These have been grossed up to
appropriately reflect both the settlement receivables and payables
as well as the correct asset and liability positions. The gross up
resulted in a £448.8 million (March 2022: £415.3 million) increase
in 'other assets' and 'other liabilities' and a £235.1 million
(March 2022: £489.6 million) increase in 'securities arising from
trading activities' and 'other trading liabilities'. The
comparative balance sheets have been restated. This change has no
impact on the income statement, cash flow statement or statement of
changes in equity.
Gross-down of capital guarantee
products
Investec Bank Limited traded a
capital guarantee product with clients. The traded positions were
incorrectly duplicated and booked on a gross basis to 'securities
arising from trading activities' and 'derivative financial
instruments'. The capital guarantee represents a single derivative
contract that should be accounted for on a net basis in 'derivative
financial instruments' liabilities. An amount of £31.2 million
(March 2022: £34.4 million) was accordingly adjusted downwards in
'securities arising from trading activities' and 'derivative
financial instruments' to reflect a net derivative position. The
comparative balance sheets have been restated. This change has no
impact on the income statement, cash flow statement or statement of
changes in equity.
Reclassifications
Reclassification of a
reverse repurchase agreement
Investec Bank Limited purchased
listed bond positions and entered into a future sale agreement to
sell the positions back to the same counterparty at a fixed price.
The bond and the forward purchase were incorrectly accounted for in
'sovereign debt securities' and 'derivative financial instruments'
asset respectively. The two separate positions of £361.0 million
(March 2022: £378.7 million) were reclassified to 'reverse
repurchase agreements and cash collateral on securities borrowed'
to more accurately reflect a collateralised lending transaction.
The comparative balance sheets have been restated. This change has
no impact on the income statement, cash flow statement or statement
of changes in equity.
Reclassification of fully funded
trading positions
Investec Limited enters into fully
funded credit and equity linked trading positions with clients. The
positions were incorrectly accounted for as a derivative as a fully
funded position does not meet the definition of a derivative as per
IFRS 9 Financial Instruments.£841.1 million (March 2022: £847.1
million) was reclassified from 'derivative financial instruments'
liabilities to 'other trading liabilities'. The comparative balance
sheets have been restated. This change has no impact on the income
statement, cash flow statement or statement of changes in
equity.
The impact of these changes on the
31 March 2023 and 31 March 2022 balance sheets are:
|
|
At 31
March 2023
as
previously reported
|
Change
in classification from non-sovereign and non-bank cash placements
to loans and advances to customers
|
Restatement of the application of hedge accounting and the
correction of the valuation of certain fair value
instruments
|
Gross-up
and gross-down of balance sheet line items
|
Reclassifications
|
At 31 March
2023
restated
|
|
£'000
|
|
Assets
|
|
|
|
|
|
|
|
Non-sovereign and non-bank cash
placements
|
644 065
|
(201 811)
|
-
|
-
|
-
|
442 254
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
3 632 658
|
-
|
-
|
1 543
|
360 989
|
3 995 190
|
|
Sovereign debt
securities
|
4 751 646
|
-
|
-
|
-
|
(347 403)
|
4 404 243
|
|
Bank debt securities
|
939 509
|
-
|
(23 823)
|
-
|
-
|
915 686
|
|
Derivative financial
instruments
|
1 386 134
|
-
|
-
|
-
|
(22 222)
|
1 363 912
|
|
Securities arising from trading
activities
|
1 632 391
|
-
|
-
|
203 936
|
-
|
1 836 327
|
|
Loans and advances to
customers
|
29 911 158
|
201 811
|
-
|
-
|
-
|
30 112 969
|
|
Deferred taxation
assets
|
258 126
|
-
|
(24 092)
|
-
|
|
234 034
|
|
Other assets
|
1 581 693
|
-
|
-
|
448 783
|
-
|
2 030 476
|
|
Total assets
|
57 294 659
|
-
|
(47 915)
|
654 262
|
(8 636)
|
57 892 370
|
|
Liabilities
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
2 424 036
|
|
-
|
(31 198)
|
(849 698)
|
1 543 140
|
|
Other trading
liabilities
|
202 256
|
|
-
|
235 134
|
841 062
|
1 278 452
|
|
Repurchase agreements and cash
collateral on securities lent
|
936 564
|
-
|
-
|
1 543
|
-
|
938 107
|
|
Current taxation
liabilities
|
83 183
|
-
|
(13 403)
|
-
|
-
|
69 780
|
|
Other liabilities
|
1 873 714
|
-
|
(11 394)
|
448 783
|
-
|
2 311 103
|
|
Total liabilities
|
51 962 994
|
-
|
(24 797)
|
654 262
|
(8 636)
|
52 583 823
|
|
Equity
|
|
|
|
|
|
|
|
Other reserves
|
(850 742)
|
-
|
77 480
|
-
|
-
|
(773 262)
|
|
Retained income
|
4 553 011
|
-
|
(100 598)
|
-
|
-
|
4 452 413
|
|
Total equity
|
5 331 665
|
-
|
(23 118)
|
-
|
-
|
5 308 547
|
|
|
At 31
March 2022
as
previously reported
|
Change
in classification from non-sovereign and non-bank cash placements
to loans and advances to customers
|
Restatement of the application of hedge accounting and the
correction of the valuation of certain fair value
instruments
|
Gross-up
and gross-down of balance sheet line items
|
Reclassifications
|
At 31 March
2022
restated
|
|
£'000
|
|
Assets
|
|
|
|
|
|
|
|
Non-sovereign and non-bank cash
placements
|
684 983
|
(245 268)
|
-
|
-
|
-
|
439 715
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
4 609 778
|
-
|
-
|
-
|
378 665
|
4 988 443
|
|
Sovereign debt
securities
|
4 148 867
|
-
|
-
|
-
|
(372 271)
|
3 776 596
|
|
Bank debt securities
|
1 515 210
|
-
|
4 650
|
-
|
-
|
1 519 860
|
|
Derivative financial
instruments
|
1 590 513
|
|
|
|
(6 987)
|
1 583 526
|
|
Securities arising from trading
activities
|
683 329
|
-
|
-
|
629 622
|
-
|
1 312 951
|
|
Loans and advances to
customers
|
29 561 088
|
245 268
|
-
|
-
|
-
|
29 806 356
|
|
Deferred taxation
assets
|
259 370
|
-
|
(35 576)
|
-
|
-
|
223 794
|
|
Other assets
|
2 139 354
|
-
|
-
|
240 847
|
-
|
2 380 201
|
|
Total assets
|
58 887 756
|
-
|
(30 926)
|
870 469
|
(593)
|
59 726 706
|
|
Liabilities
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
2 581 315
|
-
|
-
|
(34 380)
|
(847 736)
|
1 699 199
|
|
Other trading
liabilities
|
275 589
|
-
|
-
|
489 582
|
847 143
|
1 612 314
|
|
Current taxation
liabilities
|
41 631
|
-
|
(14 790)
|
-
|
-
|
26 841
|
|
Other liabilities
|
2 315 841
|
-
|
(12 997)
|
415 267
|
-
|
2 718 111
|
|
Total liabilities
|
53 148 000
|
-
|
(27 787)
|
870 469
|
(593)
|
53 990 089
|
|
Equity
|
|
|
|
|
|
|
|
Other reserves
|
(650 228)
|
|
96 188
|
-
|
-
|
(554 040)
|
|
Retained income
|
4 069 776
|
|
(99 327)
|
-
|
-
|
3 970 449
|
|
Total equity
|
5 739 756
|
-
|
(3 139)
|
-
|
-
|
5 736 617
|
The impact of the above changes on
the 31 March 2023 cash flow statement is:
|
|
At 31
March 2023
as
previously reported
|
Change
in classification from non-sovereign and non-bank cash placements
to loans and advances to customers
|
At 31 March
2023
restated
|
|
£'000
|
|
Net cash inflow from operating
activities
|
469 757
|
(47 350)
|
422 407
|
|
Effects of exchange rate changes
on cash and cash equivalents
|
(196 806)
|
87 702
|
(109 104)
|
|
Cash and cash equivalents at the
beginning of the year
|
9 099 740
|
(686 716)
|
8 413 024
|
|
Cash and cash equivalents at the
end of the year
|
8 444 014
|
(646 364)
|
7 797 650
|
The impact of the above changes on
the 31 March 2023 statement of total comprehensive income
is:
|
|
At 31
March 2023
as
previously reported
|
Restatement of the application of hedge accounting and the
correction of a derivative valuation
|
At 31 March
2023
restated
|
|
£'000
|
|
Fair value movements on cash flow
hedges taken directly to other comprehensive income
|
39 717
|
(17 523)
|
22 194
|
|
Fair value movements on debt
instruments at FVOCI taken directly to other comprehensive
income
|
(48 515)
|
(4 328)
|
(52 843)
|
|
Foreign currency adjustments on
translating foreign operations
|
(306 053)
|
1 872
|
(304 181)
|
|
Total comprehensive
income
|
499 135
|
(19 979)
|
479 156
|
Income statement restatements
Discontinued operations
The effective date of the
combination of Investec Wealth & Investment Limited and
Rathbones Group Plc was 21 September 2023, at which point the Group
deconsolidated its 100% holding in Investec Wealth & Investment
Limited. The completion date of the sale of the Investec Property
Fund (IPF) management companies was 6 July 2023 at which point the
Group deconsolidated its existing c.24.3% investment in IPF. The
Investec Wealth & Investment business and IPF have been
disclosed as discontinued operations and the income statement for
the prior periods have been appropriately re-presented.
Fee and commission expense and
operating costs
Management concluded that £7.1
million of costs relating to fee and commission income previously
reported in operating costs, would be more appropriately disclosed
within fee and commission expense, due to the nature of these
costs. As a result, fee and commission expense and operating costs
for the prior periods have been voluntarily restated. The
restatement has no impact on operating profit in the income
statement, headline earnings, the cash flow statement and balance
sheet.
Reclassifications between interest
income, interest expense and trading income/(loss)
The interest consequences of
certain financial instrument liabilities were incorrectly accounted
for in the interest income line rather than the interest expense
line. This resulted in a reclassification of 'interest income' of
£36.8 million to 'interest expense'.
Fair value adjustments on certain
derivative instruments, not formally designated in a hedge
relationship, were accounted for in either 'interest income' or
'interest expense'. The fair value adjustments of £1.8 million were
reclassified to 'trading income arising from customer
flow".
In addition, realised cash flows
on interest rate swaps (formally designated in a hedge
relationship) were incorrectly grossed up and separately recognised
as 'interest income' and 'interest expense'. The two lines were
appropriately reduced for the gross cash flows of £153.3 million,
and the net movement was accounted for in either 'interest income'
or 'interest expense' (depending if it was an asset or liability
being hedged).
Restatement of the application of
hedge accounting and the correction of the valuation of certain
fair value instruments
It was identified that the
application of hedge accounting (cash flow and fair value hedging)
applied in prior years, for certain portfolios within Investec Bank
Limited, did not meet the requirements to apply hedge accounting
under IAS 39 Financial Instruments: Recognition and
Measurement.
As a result of not applying hedge
accounting, adjustments previously made to 'interest income' of
£28.7 million has been reclassified to 'trading income/(loss)
arising from customer flow'.
These reclassifications in the
income statement for the prior period is shown in the table that
follows:
|
£'000
|
Year
to
31
March 2023
as
previously reported
|
Re-presentation as a discontinued operation
|
Fee and
commission expense and operating costs reclassification
|
Reclassification between interest income and interest
expense
|
Restatement of the application of hedge accounting and the
correction of the valuation of certain fair value
instruments
|
Year to
31 March
2023
restated
|
|
Interest income
|
3 397 341
|
(27 919)
|
-
|
(153 324)
|
(28 678)
|
3 187 420
|
|
Interest expense
|
(2 101 584)
|
26 369
|
-
|
155 091
|
|
(1 920 124)
|
|
Net interest income
|
1 295 757
|
(1 550)
|
-
|
1 767
|
(28 678)
|
1 267 296
|
|
Fee and commission
income
|
832 213
|
(378 543)
|
-
|
-
|
-
|
453 670
|
|
Fee and commission
expense
|
(52 860)
|
3 635
|
(7 090)
|
-
|
-
|
(56 315)
|
|
Investment
(loss)/income
|
(17 145)
|
46 448
|
-
|
-
|
-
|
29 303
|
|
Share of post taxation profit of
associates and joint venture holdings
|
29 149
|
885
|
-
|
-
|
-
|
30 034
|
|
Trading income/(loss) arising
from
|
|
|
|
|
|
|
|
- customer flow
|
131 204
|
10 995
|
-
|
(1 767)
|
28 678
|
169 110
|
|
- balance sheet management and
other trading activities
|
57 714
|
(43 479)
|
-
|
-
|
-
|
14 235
|
|
Other operating income
|
4 386
|
-
|
-
|
-
|
-
|
4 386
|
|
Operating income
|
2 280 418
|
(361 609)
|
(7 090)
|
-
|
-
|
1 911
719
|
|
Expected credit loss impairment
charges
|
(81 089)
|
243
|
-
|
-
|
-
|
(80 846)
|
|
Operating income after expected credit loss impairment
charges
|
2 199 329
|
(361 366)
|
(7 090)
|
-
|
-
|
1 830 873
|
|
Operating costs
|
(1 350 835)
|
257 746
|
7 090
|
-
|
-
|
(1 085 999)
|
|
Operating profit before goodwill and acquired
intangibles
|
848 494
|
(103 620)
|
-
|
-
|
-
|
744 874
|
|
Impairment of goodwill
|
(890)
|
-
|
-
|
-
|
-
|
(890)
|
|
Amortisation of acquired
intangibles
|
(15 160)
|
12 625
|
-
|
-
|
-
|
(2 535)
|
|
Amortisation of acquired
intangibles of associates
|
(1 542)
|
-
|
-
|
-
|
-
|
(1 542)
|
|
Closure and rundown of the Hong
Kong direct investments business
|
(450)
|
-
|
-
|
-
|
-
|
(450)
|
|
Operating profit
|
830 452
|
(90 995)
|
-
|
-
|
-
|
739 457
|
|
Net gain on distribution of
associate to shareholders
|
154 438
|
-
|
-
|
-
|
-
|
154 438
|
|
Financial impact of strategic
actions
|
(4 968)
|
4 938
|
-
|
-
|
-
|
(30)
|
|
Profit before taxation
|
979 922
|
(86 057)
|
-
|
-
|
-
|
893 865
|
|
Taxation on operating profit
before goodwill and acquired intangibles
|
(179 704)
|
16 182
|
-
|
-
|
-
|
(163 522)
|
|
Taxation on acquired intangibles
and net gain on distribution of associate to
shareholders
|
17 213
|
(2 031)
|
-
|
-
|
-
|
15 182
|
|
Profit after taxation from continuing
operations
|
817 431
|
(71 906)
|
-
|
-
|
-
|
745 525
|
|
Profit after taxation from discontinued
operations
|
-
|
71 906
|
-
|
-
|
-
|
71 906
|
|
Profit after taxation
|
817 431
|
-
|
-
|
-
|
-
|
817 431
|
|
Profit attributable to
non-controlling interests
|
(12 566)
|
11 814
|
-
|
-
|
-
|
(752)
|
|
Profit attributable to
non-controlling interests of discontinued operations
|
-
|
(11 814)
|
-
|
-
|
-
|
(11 814)
|
|
Earnings attributable to shareholders
|
804
865
|
-
|
-
|
-
|
-
|
804 865
|
|
Earnings per share (pence)
|
|
|
|
|
|
|
|
- Basic
|
85.8
|
|
|
|
|
85.8
|
|
- Diluted
|
82.5
|
|
|
|
|
82.5
|
|
- Basic for continuing
operations
|
n/a
|
|
|
|
|
79.1
|
|
- Diluted for continuing
operations
|
n/a
|
|
|
|
|
76.0
|
|
Adjusted earnings per share (pence)
|
|
|
|
|
|
|
|
- Basic
|
68.9
|
|
|
|
|
68.9
|
|
- Diluted
|
66.3
|
|
|
|
|
66.3
|
|
- Basic for continuing
operations
|
n/a
|
|
|
|
|
60.4
|
|
- Diluted for continuing
operations
|
n/a
|
|
|
|
|
58.1
|
|
Headline earnings per share (pence)
|
|
|
|
|
|
|
|
- Basic
|
66.8
|
|
|
|
|
66.8
|
|
- Diluted
|
64.2
|
|
|
|
|
64.2
|
|
- Basic for continuing
operations
|
n/a
|
|
|
|
|
59.9
|
|
- Diluted for continuing
operations
|
n/a
|
|
|
|
|
57.6
|
Contingent liabilities, provisions and legal
matters
Historical German dividend tax
arbitrage transactions
Investec Bank plc has previously
been notified by the Office of the Public Prosecutor in Cologne,
Germany, that it and certain of its current and former employees
may be involved in possible charges relating to historical
involvement in German dividend tax arbitrage transactions (known as
cum-ex transactions). Investigations are ongoing and no formal
proceedings have been issued against Investec Bank plc by the
Office of the Public Prosecutor. In addition, Investec Bank plc
received certain enquiries in respect of client tax reclaims for
the periods 2010-2011 relating to the historical German dividend
arbitrage transactions from the German Federal Tax Office (FTO) in
Bonn. The FTO has provided more information in relation to their
claims and Investec Bank plc has sought further information and
clarification.
Investec Bank plc is cooperating
with the German authorities and continues to conduct its own
internal investigation into the matters in question. A provision is
held to reflect the estimate of financial outflows that could arise
as a result of this matter. There are factual issues to be resolved
which may have legal consequences, including financial
penalties.
In relation to potential civil
claims; whilst Investec Bank plc is not a claimant nor a defendant
to any civil claims in respect of cum-ex transactions, Investec
Bank plc has received third party notices in relation to two civil
proceedings in Germany and may elect to join the proceedings as a
third party participant. Investec Bank plc has itself served third
party notices on various participants to these historic
transactions in order to preserve the statute of limitations on any
potential future claims that Investec Bank plc may seek to bring
against those parties, should Investec Bank plc incur any liability
in the future. Investec Bank plc has also entered into standstill
agreements with some third parties in order to suspend the
limitation period in respect of the potential civil claims. While
Investec Bank plc is not a claimant nor a defendant to any civil
claims at this stage, it cannot rule out the possibility of civil
claims by or against Investec Bank plc in future in relation to the
relevant transactions.
The Group has not provided further
disclosure with respect to these historical dividend arbitrage
transactions because it has concluded that such disclosure may be
expected to seriously prejudice its outcome.
Motor commission review
Following a review into the motor
vehicle financing market completed by the (Financial Conduct
Authority) FCA in March 2019 and subsequent policy statement issued
in July 2020, the use of discretionary commission arrangements was
prohibited with effect from the 28th January 2021 on the
basis that such arrangements had the potential to cause consumer
detriment. The Group fully complied with this
requirement.
On 11th January 2024, the
FCA announced a further review of historical motor finance
commissions arrangements, in order to assess whether such
arrangements had in practice caused consumer detriment. The FCA
currently plans to communicate a decision on next steps towards the
end of the third quarter of 2024 on the basis of the evidence
collated as part of this review. The FCA has indicated that such
steps could include establishing an industry-wide consumer redress
scheme.
The Group has to date received a
small number of complaints in respect of motor finance commissions
and is actively engaging with the FOS (Financial Ombudsman Service)
in its assessment of these complaints. The Group continues to
believe that its historical practices were compliant with the law
and regulations in place at the time, and welcomes the FCA
intervention through its industry wide review. Nevertheless, the
Group recognises that costs and awards could arise in the event
that the FCA concludes there has been industry wide misconduct and
customer loss that requires remediation. Those costs and awards
could arise as the result of a redress scheme, or from adverse
FOS/litigation decisions.
Accordingly, in response to
the FCA announcement, the Group has recognised a provision of £30
million. This includes estimates for operational and legal costs,
including litigation costs, together with estimates for potential
awards, based on various scenarios using a range of assumptions.
The time period applied in the calculations is between June 2015,
the commencement of the business and 28 January 2021, the date that
discretionary commissions arrangements were prohibited.
While the FCA review is
progressing there is significant uncertainty across the industry as
to the extent of any misconduct and customer loss that may be
identified, and/or the nature, extent and timing of any remediation
action that may subsequently be required. The Group therefore notes
that the ultimate financial impact of the FCA investigation could
be either higher or lower than the amount provided for, but is
satisfied that the provision it has currently made is
reasonable.
Acquisitions
During the reporting period the
Group completed a stepped acquisition increasing its shareholding
in the Capitalmind associate from 30% to 60% for a consideration of
£43.5 million and therefore as at 31 March 2024 has consolidated
these entities as subsidiaries. The non-controlling interest has
been measured as the proportionate share of the identifiable net
assets. Goodwill of £56.3 million, including a deferred taxation
liability of £0.2 million and an intangible asset of £0.9 million
have been recognised as a consequence of this increased
shareholding.
The goodwill recognised is in
relation to the purchase price for the additional 30% acquired, the
fair value of the previously held 30% and the non-controlling
interest measured at its proportionate share of 40% of net asset
value compared to the fair value of the identifiable assets on
transaction date.
Net fee and commission income
|
For the year to 31
March 2024
£'000
|
UK and
Other
|
Southern
Africa
|
Total
|
|
Wealth & Investment net fee and commission
income
|
-
|
107 721
|
107 721
|
|
Fund management fees/fees for
funds under management
|
-
|
68 457
|
68 457
|
|
Private client transactional
fees*
|
-
|
42 885
|
42 885
|
|
Fee and commission
expense
|
-
|
(3 621)
|
(3 621)
|
|
Specialist Banking net fee and commission
income
|
148 585
|
159 884
|
308 469
|
|
Specialist Banking fee and
commission income**
|
164 043
|
207 286
|
371 329
|
|
Specialist Banking fee and
commission expense
|
(15 458)
|
(47 402)
|
(62 860)
|
|
Group Investments net fee and commission
income
|
-
|
(3)
|
(3)
|
|
Group Investments fee and
commission income
|
-
|
(3)
|
(3)
|
|
Group Investments fee and
commission expense
|
-
|
-
|
-
|
|
Net fee and commission income
|
148 585
|
267 602
|
416 187
|
|
Fee and commission
income
|
164 043
|
318 625
|
482 668
|
|
Fee and commission
expense
|
(15 458)
|
(51 023)
|
(66 481)
|
|
Net fee and commission income
|
148 585
|
267 602
|
416 187
|
|
Annuity fees (net of fees
payable)
|
11 922
|
189 356
|
201 278
|
|
Deal fees
|
136 663
|
78 246
|
214 909
|
|
For the year to 31 March 2023^
£'000
|
UK and
Other
|
Southern
Africa
|
Total
|
|
Wealth & Investment net fee and commission
income
|
-
|
108 063
|
108 063
|
|
Fund management fees/fees for
funds under management
|
-
|
66 418
|
66 418
|
|
Private client transactional
fees*
|
-
|
44 614
|
44 614
|
|
Fee and commission
expense
|
-
|
(2 969)
|
(2 969)
|
|
Specialist Banking net fee and commission
income
|
108 760
|
180 532
|
289 292
|
|
Specialist Banking fee and
commission income**
|
123 511
|
219
127
|
342 638
|
|
Specialist Banking fee and
commission expense
|
(14 751)
|
(38 595)
|
(53 346)
|
|
Group Investments net fee and commission
income
|
-
|
-
|
-
|
|
Group Investments fee and
commission income
|
-
|
-
|
-
|
|
Group Investments fee and
commission expense
|
-
|
-
|
-
|
|
Net fee and commission income
|
108 760
|
288 595
|
397 355
|
|
Fee and commission
income
|
123 511
|
330 159
|
453 670
|
|
Fee and commission
expense
|
(14 751)
|
(41 564)
|
(56 315)
|
|
Net fee and commission income
|
108 760
|
288 595
|
397 355
|
|
Annuity fees (net of fees
payable)
|
15 743
|
195 802
|
211 545
|
|
Deal fees
|
93 017
|
92 793
|
185 810
|
^ Restated as
detailed above.
* Trust and
fiduciary fees amounted to £0.4 million (2023: £0.4 million) and
are included in Private client transactional
fees.
** Included in Specialist
Banking is fee and commission income of £7.1 million (2023:
£6.8 million) for operating lease income
which is out of the scope of IFRS 15 - Revenue from contracts with
customers.
Analysis of assets and liabilities by measurement
category
|
At 31 March 2024
|
Total
instruments at
fair
value
|
Amortised
cost
|
Non-financial
instruments or
scoped
out of
IFRS
9
|
Total
|
|
£'000
|
|
Assets
|
|
|
|
|
|
Cash and balances at central
banks
|
-
|
6 279 088
|
-
|
6 279 088
|
|
Loans and advances to
banks
|
-
|
1 063 745
|
-
|
1 063 745
|
|
Non-sovereign and non-bank cash
placements
|
12 073
|
439 409
|
-
|
451 482
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
1 556 623
|
2 824 897
|
-
|
4 381 520
|
|
Sovereign debt
securities
|
2 432 299
|
2 510 848
|
-
|
4 943 147
|
|
Bank debt securities
|
432 159
|
215 792
|
-
|
647 951
|
|
Other debt securities
|
321 720
|
826 427
|
-
|
1 148 147
|
|
Derivative financial
instruments
|
853 938
|
-
|
-
|
853 938
|
|
Securities arising from trading
activities
|
1 596 260
|
-
|
-
|
1 596 260
|
|
Loans and advances to
customers
|
2 787 395
|
27 857 918
|
-
|
30 645 313
|
|
Own originated loans and advances
to customers securitised
|
-
|
269 034
|
-
|
269 034
|
|
Other loans and
advances
|
-
|
117 513
|
-
|
117 513
|
|
Other ecuritizat assets
|
66 702
|
72 441
|
-
|
139 143
|
|
Other financial instruments at
fair value through profit or loss in respect of liabilities to
customers
|
154 738
|
-
|
-
|
154 738
|
|
Investment portfolio
|
807 030
|
-
|
-
|
807 030
|
|
Interests in associated
undertakings and joint venture holdings
|
-
|
-
|
858 420
|
858 420
|
|
Current taxation assets
|
-
|
-
|
64 378
|
64 378
|
|
Deferred taxation
assets
|
-
|
-
|
204 861
|
204 861
|
|
Other assets
|
276 828
|
876 272
|
519 482
|
1 672 582
|
|
Property and equipment
|
-
|
-
|
238 072
|
238 072
|
|
Investment properties
|
-
|
-
|
105 975
|
105 975
|
|
Goodwill
|
-
|
-
|
75 367
|
75 367
|
|
Software
|
-
|
-
|
9 707
|
9 707
|
|
Non-current assets classified as
held for sale
|
-
|
-
|
22 270
|
22 270
|
|
|
11 297 765
|
43 353 384
|
2 098 532
|
56 749 681
|
|
Liabilities
|
|
|
|
|
|
Deposits by banks
|
-
|
3 446 776
|
-
|
3 446 776
|
|
Derivative financial
instruments
|
1 069 119
|
-
|
-
|
1 069 119
|
|
Other trading
liabilities
|
1 369 332
|
-
|
-
|
1 369 332
|
|
Repurchase agreements and cash
collateral on securities lent
|
171 979
|
743 229
|
-
|
915 208
|
|
Customer accounts
(deposits)
|
2 583 214
|
36 997 030
|
-
|
39 580 244
|
|
Debt securities in
issue
|
9 823
|
1 543 521
|
-
|
1 553 344
|
|
Liabilities arising on
ecuritization of own originated loans and advances
|
-
|
208 571
|
-
|
208 571
|
|
Liabilities arising on
ecuritization of other assets
|
71 751
|
-
|
-
|
71 751
|
|
Current taxation
liabilities
|
-
|
-
|
72 697
|
72 697
|
|
Deferred taxation
liabilities
|
-
|
-
|
5 198
|
5 198
|
|
Other liabilities
|
34 060
|
1 088 955
|
693 124
|
1 816 139
|
|
Liabilities to customers under
investment contracts
|
139 120
|
-
|
-
|
139 120
|
|
Insurance liabilities, including
unit-linked liabilities
|
15 769
|
-
|
-
|
15 769
|
|
|
5 464 167
|
44 028
082
|
771 019
|
50 263
268
|
|
Subordinated
liabilities
|
-
|
972 806
|
-
|
972 806
|
|
|
5 464 167
|
45 000 888
|
771 019
|
51 236
074
|
Financial instruments at fair value
The table below analyses recurring
fair value measurements for financial assets and financial
liabilities. These fair value measurements are categorised into
different levels in the fair value hierarchy based on the inputs to
the valuation technique used.
The different levels are
identified as follows:
Level 1 - quoted (unadjusted)
prices in active markets for identical assets or
liabilities.
Level 2 - inputs other than
quoted prices included within level 1 that are observable for the
asset or liability, either directly
(i.e. as prices) or indirectly (i.e.
derived from prices).
Level 3 - inputs for the asset
or liability that are not based on observable market data
(unobservable inputs).
|
|
Fair value
category
|
|
At 31 March 2024
|
Total
instruments
at
fair value
|
Level
1
|
Level
2
|
Level
3
|
|
£'000
|
|
Assets
|
|
|
|
|
|
Non-sovereign and non-bank cash
placements
|
12 073
|
-
|
12 073
|
-
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
1 556 623
|
-
|
1 556 623
|
-
|
|
Sovereign debt
securities
|
2 432 299
|
2 432 299
|
-
|
-
|
|
Bank debt securities
|
432 159
|
413 306
|
18 853
|
-
|
|
Other debt securities
|
321 720
|
104 854
|
157 254
|
59 612
|
|
Derivative financial
instruments
|
853 938
|
-
|
800 928
|
53 010
|
|
Securities arising from trading
activities
|
1 596 260
|
1 426 104
|
170 156
|
-
|
|
Loans and advances to
customers
|
2 787 395
|
-
|
707 724
|
2 079 671
|
|
Other securitised
assets
|
66 702
|
-
|
-
|
66 702
|
|
Other financial instruments at
fair value through profit or loss in respect of liabilities to
customers
|
154 738
|
154 738
|
-
|
-
|
|
Investment portfolio
|
807 030
|
244 883
|
2 510
|
559 637
|
|
Other assets
|
276 828
|
276 828
|
-
|
-
|
|
|
11 297
765
|
5
053 012
|
3 426 121
|
2 818 632
|
|
Liabilities
|
|
|
|
|
|
Derivative financial
instruments
|
1 069 119
|
-
|
1 004 778
|
64 341
|
|
Other trading
liabilities
|
1 369 332
|
1
017 074
|
352 258
|
-
|
|
Repurchase agreements and cash
collateral on securities lent
|
171 979
|
-
|
171 979
|
-
|
|
Customer accounts
(deposits)
|
2 583 214
|
-
|
2 583 214
|
-
|
|
Debt securities in
issue
|
9 823
|
-
|
9 823
|
-
|
|
Liabilities arising on
securitisation of other assets
|
71 751
|
-
|
-
|
71 751
|
|
Other liabilities
|
34 060
|
-
|
34 060
|
-
|
|
Liabilities to customers under
investment contracts
|
139 120
|
-
|
139 120
|
-
|
|
Insurance liabilities, including
unit-linked liabilities
|
15 769
|
-
|
15 769
|
-
|
|
|
5 464 167
|
1 017 074
|
4 311 001
|
136 092
|
|
Net financial assets/(liabilities) at fair
value
|
5
833 598
|
4
035 938
|
(884 880)
|
2
682 540
|
Transfers between level 1 and
level 2
There were no transfers between
level 1 and level 2 in the current year.
Measurement of financial assets
and liabilities at level 2
The table below sets out
information about the valuation techniques used at the end of the
reporting period in measuring financial instruments categorised as
level 2 in the fair value hierarchy:
|
|
Valuation
basis/techniques
|
Main
inputs
|
|
Assets
|
|
Non-sovereign and non-bank cash
placements
|
Discounted cash flow
model
|
Yield curves
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
Discounted cash flow model,
Hermite interpolation, Black-Scholes
|
Yield curves, discount rates,
volatilities
|
|
Bank debt securities
|
Discounted cash flow
model
|
Yield curves
|
|
Other debt securities
|
Discounted cash flow
model
|
Yield curves, NCD curves and swap
curves, discount rates, external prices, broker quotes
|
|
Derivative financial
instruments
|
Discounted cash flow model,
Hermite interpolation, industry standard derivative pricing models
including Black-Scholes and Local Volatility
|
Discount rate, risk-free rate,
volatilities, forex forward points and spot rates, interest rate
swap curves and credit curves
|
|
Securities arising from trading
activities
|
Standard industry derivative
pricing model, Discounted cash flow model
|
Interest rate curves, implied bond
spreads, equity volatilities, yield curves
|
|
Loans and advances to
customers
|
Discounted cash flow
model
|
Yield curves
|
|
Investment portfolio
|
Discounted cash flow model,
relative valuation model comparable quoted inputs
|
Discount rate and fund unit price,
net assets
|
|
Liabilities
|
|
Derivative financial
instruments
|
Discounted cash flow model,
Hermite interpolation, industry standard derivative pricing models
including Black-Scholes and Local Volatility
|
Discount rate, risk-free rate,
volatilities, forex forward points and spot rates, interest rate
swap curves and credit curves
|
|
Other trading
liabilities
|
Discounted cash flow model,
Hermite interpolation, industry standard derivative pricing models
including Local Volatility
|
Discount rate, risk-free rate,
volatilities, forex forward points and spot rates, interest rate
swap curves and credit curves
|
|
Repurchase agreements and cash
collateral on securities lent
|
Discounted cash flow model,
Hermite interpolation
|
Yield curves, discount
rates
|
|
Customer accounts
(deposits)
|
Discounted cash flow
model
|
Yield curves, discount
rates
|
|
Debt securities in
issue
|
Discounted cash flow model,
Hermite interpolation, industry standard derivative pricing models
including Local Volatility
|
Discount rate, risk-free rate,
volatilities, forex forward points and spot rates, interest rate
swap curves and credit curves
|
|
Other liabilities
|
Discounted cash flow
model
|
Yield curves
|
|
Liabilities to customers under
investment contracts
|
Current price of underlying
unitised assets
|
Listed prices
|
|
Insurance liabilities, including
unit-linked liabilities
|
Current price of underlying
unitised assets
|
Listed prices
|
Level 3 financial
instruments
The following tables show a
reconciliation of the opening balances to the closing balances for
level 3 financial instruments. All instruments are at fair
value through profit or loss.
|
£'000
|
Investment
portfolio
|
Loans
and
advances to
customers
|
Other
securitised
assets
|
Other
balance
sheet assets
|
Total
|
|
Assets
|
|
|
|
|
|
|
Balance at 1 April 2023
|
1 127 964
|
1 336 871
|
78 231
|
151 118
|
2 694 184
|
|
Total (losses) or gains
|
3 465
|
179 000
|
(1 495)
|
5 307
|
186 277
|
|
In the income statement
|
3 465
|
180 786
|
(1 495)
|
5 307
|
188 063
|
|
In the statement of comprehensive
income
|
-
|
(1 786)
|
-
|
-
|
(1 786)
|
|
Purchases
|
46 964
|
2 551 558
|
-
|
39 709
|
2 638 231
|
|
Sales
|
(105 258)
|
(1 058 680)
|
-
|
(14 481)
|
(1 178 419)
|
|
Issues
|
-
|
6 527
|
-
|
-
|
6 527
|
|
Settlements
|
(59 236)
|
(901 459)
|
(10 034)
|
(74 870)
|
(1 045 599)
|
|
Discontinued operations
|
(425 844)
|
-
|
-
|
-
|
(425 844)
|
|
Foreign exchange
adjustments
|
(28 418)
|
(34 146)
|
-
|
5 839
|
(56 725)
|
|
Balance at 31 March
2024
|
559 637
|
2 079 671
|
66 702
|
112 622
|
2 818 632
|
|
£'000
|
Liabilities arising
on
securitisation
of
other assets
|
Other
balance
sheet liabilities
|
Total
|
|
Liabilities
|
|
|
|
|
Balance at 1 April 2023
|
81 609
|
111 858
|
193 467
|
|
Total losses in the income
statement
|
1 190
|
6 183
|
7 373
|
|
Disposal of
subsidiaries
|
-
|
(3 933)
|
(3 933)
|
|
Settlements
|
(11 048)
|
(7 608)
|
(18 656)
|
|
Discontinued operations
|
-
|
(45 387)
|
(45 387)
|
|
Foreign exchange
adjustments
|
-
|
3 228
|
3 228
|
|
Balance at 31 March
2024
|
71 751
|
64 341
|
136 092
|
The Group transfers between levels
within the fair value hierarchy when the significance of the
unobservable inputs change or if the valuation methods change.
Transfers are deemed to occur at the end of each semi-annual
reporting period.
The following table quantifies the
gains or (losses) included in the income statement and statement of
other comprehensive income recognised on level 3 financial
instruments:
|
For the year to 31 March
2024
|
Total
|
Realised
|
Unrealised
|
|
£'000
|
|
Total gains included in the income statement for the
year
|
|
|
|
|
Net interest income
|
174 272
|
156 645
|
17 627
|
|
Investment
income/(loss)
|
8 563
|
34 133
|
(25 570)
|
|
Trading income loss from customer
flow
|
(2 145)
|
-
|
(2 145)
|
|
|
180 690
|
190 778
|
(10 088)
|
|
Total gains included in other comprehensive income for the
year
|
|
|
|
|
Gain on realisation on debt
instruments at FVOCI recycled through the income
statement
|
534
|
534
|
-
|
|
Fair value movements on debt
instruments at FVOCI taken directly to other comprehensive
income
|
(1 786)
|
-
|
(1 786)
|
|
|
(1 252)
|
534
|
(1 786)
|
Sensitivity of fair values to
reasonably possible alternative assumptions by level 3 instrument
type
The fair value of financial
instruments in level 3 are measured using valuation techniques that
incorporate assumptions that are not evidenced by prices from
observable market data. The following table shows the sensitivity
of these fair values to reasonably possible alternative
assumptions, determined at a transactional level:
|
At
31 March 2024
|
Balance
sheet
value
|
Significant unobservable input changed
|
Range which unobservable
input has been changed
|
Favourable
changes
|
Unfavourable
changes
|
|
£'000
|
£'000
|
£'000
|
|
Assets
|
|
|
|
|
|
|
Other debt securities
|
59 612
|
Potential impact on income
statement
|
|
2 192
|
(3 713)
|
|
|
|
Cash flow adjustments
|
CPR
7.62%-11.08%
|
214
|
(160)
|
|
|
|
Credit spreads
|
0.75%-0.86%
|
40
|
(68)
|
|
|
|
Other
|
^
|
1 938
|
(3 485)
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
53 010
|
Potential impact on income
statement
|
|
5 329
|
(5 420)
|
|
|
|
Volatilities
|
7.5%-19.1%
|
1
|
(3)
|
|
|
|
Underlying asset
value^^
|
^^
|
4 574
|
(4 619)
|
|
|
|
Cash flow adjustment
|
CPR
7.62%
|
2
|
(2)
|
|
|
|
Other^
|
^
|
752
|
(796)
|
|
|
|
|
|
|
|
|
Loans and advances to
customers
|
2 079 671
|
Potential impact on income
statement
|
|
26 131
|
(45 642)
|
|
|
|
Credit spreads
|
0.10% -
37.8%
|
10 840
|
(24 697)
|
|
|
|
Property value
|
**
|
10 040
|
(10 560)
|
|
|
|
Price earnings multiple
|
3.8x
|
2 762
|
(6 893)
|
|
|
|
Underlying asset
value^^
|
^^
|
1 499
|
(1 695)
|
|
|
|
Other^
|
^
|
990
|
(1 797)
|
|
|
|
|
|
|
|
|
|
|
Potential impact on other
comprehensive income
|
|
12 783
|
(24 177)
|
|
|
|
Credit spreads
|
0.14% -
5.0%
|
12 783
|
(24 177)
|
|
|
|
|
|
|
|
|
Other securitised
assets*
|
66 702
|
Potential impact on income
statement
|
|
|
|
|
|
|
Cash flow adjustments
|
CPR
7.62%
|
770
|
(1 291)
|
|
|
|
|
|
|
|
|
Investment portfolio
|
559 637
|
Potential impact on income
statement
|
|
57 968
|
(85 545)
|
|
|
|
Price earnings multiple
|
3.8x-9x
|
6 485
|
(13 200)
|
|
|
|
Underlying asset
value^^
|
^^
|
9 798
|
(18 625)
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
**
|
7 716
|
(8 747)
|
|
|
|
EBITDA
|
(10%)-10%
|
17 961
|
(17 961)
|
|
|
|
Cash flows
|
**
|
1 997
|
(1 739)
|
|
|
|
Underlying asset
value^^
|
^^
|
1 192
|
(2 480)
|
|
|
|
Precious and industrial metal
prices
|
(5%)-5%
|
935
|
(1 870)
|
|
|
|
Other^
|
^
|
11 884
|
(20 923)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total level 3 assets
|
2 818 632
|
|
|
105 173
|
(165 788)
|
|
Liabilities
|
|
|
|
|
|
|
Derivative financial
instruments
|
64 341
|
Potential impact on income
statement
|
|
(5 552)
|
3 507
|
|
|
|
Volatilities
|
9%-23.3%
|
(1)
|
2
|
|
|
|
Underlying asset
value^^
|
^^
|
(5 550)
|
3 505
|
|
|
|
Other
|
^
|
(1)
|
-
|
|
|
|
|
|
|
|
|
Liabilities arising on
securitisation of other assets*
|
71 751
|
Potential impact on income
statement
|
|
|
|
|
|
|
Cash flow adjustments
|
CPR
7.62%
|
(805)
|
440
|
|
Total level 3
liabilities
|
136 092
|
|
|
(6 357)
|
3 947
|
|
Net level 3 assets
|
2 682 540
|
|
|
98 816
|
(161 841)
|
* The sensitivity
of the fair value of liabilities arising on securitisation of other
assets has been considered together with other securitised
assets.
^
Other - The valuation sensitivity has been
assessed by adjusting various inputs such as expected cash flows,
discount rates, earnings multiples rather than a single input. It
is deemed appropriate to reflect the outcome on a portfolio basis
for the purposes of this analysis as the sensitivity of the assets
cannot be determined through the adjustment of a single
input.
^^
Underlying asset values are calculated by
reference to a tangible asset, for example property, aircraft or
shares.
∗∗
The EBITDA, cash flows and property values have been stressed on an
investment-by-investment and loan-by-loan basis in order to obtain
favourable and unfavourable valuations.
In determining the value of level
3 financial instruments, the following are the principal input that
can require judgement:
Credit spreads
Credit spreads reflect the
additional yield that a market participant would demand for taking
exposure to the credit risk of an instrument. The credit spread for
an instrument forms part of the yield used in a discounted cash
flow calculation. In general a significant
increase in a credit spread in isolation will result in a movement
in fair value that is unfavourable for the holder of a financial
instrument.
Discount rates
Discount rates (including WACC)
are used to adjust for the time value of money when using a
discounted cash flow valuation method. Where relevant, the discount
rate also accounts for illiquidity, market conditions and
uncertainty of future cash flows.
Volatilities
Volatility is a key input in the
valuation of derivative products containing optionality. Volatility
is a measure of the variability or uncertainty in returns for a
given derivative underlying. It represents an estimate of how much
a particular underlying instrument, parameter or index will change
in value over time.
Cash flows
Cash flows relate to the future
cash flows which can be expected from the instrument and requires
judgement.
EBITDA
The Company being valued earnings
before interest, taxes, depreciation and amortisation. This is the
main input into a price-earnings multiple valuation
method
Price-earnings multiple
The price-to-earnings ratio is an
equity valuation multiple. It is a key driver in the valuation of
unlisted investments.
Property value and precious and
industrial metals
The property value and precious
and industrial metals is a key driver of future cash flows on these
investments.
Underlying asset value
In instances where cash flows have
links to referenced assets, the underlying asset value is used to
determine the fair value. The underlying asset valuation is derived
using observable market prices sourced from broker quotes,
specialist valuers or other reliable pricing sources.
Fair value of financial assets and liabilities at amortised
cost
|
At 31 March 2024
|
Carrying
amount
|
Fair value approximates
carrying amount
|
Balances where fair values
do not approximate carrying amounts
|
Fair value of balances that
do not approximate carrying amounts
|
|
£'000
|
|
Assets
|
|
|
|
|
|
Cash and balances at central
banks
|
6 279 088
|
6 279 088
|
-
|
-
|
|
Loans and advances to
banks
|
1 063 745
|
868 376
|
195 369
|
195 531
|
|
Non-sovereign and non-bank cash
placements
|
439 409
|
439 409
|
-
|
-
|
|
Reverse repurchase agreements and
cash collateral on securities borrowed
|
2 824 897
|
1 139 859
|
1 685 038
|
1 684 862
|
|
Sovereign debt
securities
|
2 510 848
|
4 253
|
2 506 595
|
2 495 777
|
|
Bank debt securities
|
215 792
|
4 402
|
211 390
|
209 358
|
|
Other debt securities
|
826 427
|
103 705
|
722 722
|
726 213
|
|
Loans and advances to
customers
|
27 857 918
|
12 930 225
|
14 927 693
|
14 728 302
|
|
Own originated loans and advances
to customers securitised
|
269 034
|
269 034
|
-
|
-
|
|
Other loans and
advances
|
117 513
|
71 466
|
46 047
|
46 167
|
|
Other securitised
assets
|
72 441
|
72 441
|
-
|
-
|
|
Other assets
|
876 272
|
876 272
|
-
|
-
|
|
|
43 353
384
|
23 058
530
|
20 294
854
|
20 086
210
|
|
Liabilities
|
|
|
|
|
|
Deposits by banks
|
3 446 776
|
318
941
|
3 127 835
|
3 170 276
|
|
Repurchase agreements and cash
collateral on securities lent
|
743 229
|
451 943
|
291 286
|
292 807
|
|
Customer accounts
(deposits)
|
36 997 030
|
19 530 607
|
17 466 423
|
17 468 884
|
|
Debt securities in
issue
|
1 543 521
|
248 430
|
1 295 091
|
1 294 598
|
|
Liabilities arising on
securitisation of own originated loans and advances
|
208 571
|
208 571
|
-
|
-
|
|
Other liabilities
|
1 088 955
|
1 087 329
|
1 626
|
536
|
|
Subordinated
liabilities
|
972 806
|
303 999
|
668 807
|
661 143
|
|
|
45 000 888
|
22 149
820
|
22 851 068
|
22 888
244
|
Investec plc
Incorporated in England and
Wales
Registration number: 3633621
LSE ordinary share code: INVP
JSE ordinary share code: INP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22
Ordinary share dividend
announcement
In terms of the DLC structure,
Investec plc shareholders registered on the United Kingdom share
register may receive all or part of their dividend entitlements
through dividends declared and paid by Investec plc on their
ordinary shares and/or through dividends declared and paid on the
SA DAN share issued by Investec Limited.
Investec plc shareholders
registered on the South African branch register may receive all or
part of their dividend entitlements through dividends declared and
paid by Investec plc on their ordinary shares and/or through
dividends declared and paid on the SA DAS share issued by Investec
Limited.
Declaration of dividend number
43
Notice is hereby given that final
dividend number 43, being a gross dividend
of 19.00000 pence (2023: 17.50000 pence) per ordinary share has been declared
by the Board from income reserves in respect of the year ended
31 March 2024, payable to
shareholders recorded in the shareholders' register of the Company
at the close of business on Friday
23 August 2024.
• For Investec plc shareholders, registered on the United
Kingdom share register, through a dividend payment by Investec plc
from income reserves of 19.00000
pence per ordinary share.
• For Investec plc shareholders, registered on the South
African branch register, through a dividend payment by
Investec Limited, on the SA DAS share, payable from income
reserves, equivalent to 19.00000
pence per ordinary share.
|
The relevant dates relating to the
payment of dividend number 43 are as
follows:
|
|
Last day to trade
cum-dividend
On the Johannesburg Stock Exchange
(JSE)
On the London Stock Exchange
(LSE)
Shares commence trading
ex-dividend
On the Johannesburg Stock Exchange
(JSE)
On the London Stock Exchange
(LSE)
Record date (on the JSE and LSE)
Payment date (on the JSE and LSE)
|
Tuesday 20 August
2024
Wednesday 21 August
2024
Wednesday 21 August
2024
Thursday 22 August
2024
Friday 23 August
2024
Friday 6 September
2024
|
|
Share certificates on the South
African branch register may not be dematerialised or rematerialised
between Wednesday 21 August 2024 and
Friday 23 August 2024, both dates
inclusive, nor may transfers between the United Kingdom share
register and the South African branch register take place between
Wednesday 21 August 2024 and
Friday 23 August 2024, both dates
inclusive.
|
Additional information for South
African resident shareholders of Investec plc
• Shareholders
registered on the South African branch register are advised that
the distribution of 19.00000 pence,
equivalent to a gross dividend of 443.57590 cents per share (rounded to 444.00000 cents per ordinary share), has been arrived
at using the Rand/Pound Sterling average buy/sell forward rate of
23.34610, as determined at 11h00 (SA time)
on Wednesday 22 May 2024
• Investec plc United
Kingdom tax reference number: 2683967322360
• The issued ordinary
share capital of Investec plc is 696 082 618 ordinary shares
• The dividend paid by
Investec plc to South African resident shareholders registered on
the South African branch register and the dividend paid by Investec
Limited to Investec plc shareholders on the SA DAS share are
subject to South African Dividend Tax (Dividend Tax) of 20%
(subject to any available exemptions as legislated)
• Shareholders
registered on the South African branch register who are exempt from
paying the Dividend Tax will receive a net dividend of 444.00000 cents per share paid by Investec Limited on
the SA DAS share
• Shareholders
registered on the South African branch register who are not exempt
from paying the Dividend Tax will receive a net dividend of
355.20000 cents per share (gross dividend
of 444.00000 cents per share less Dividend
Tax of 88.80000 cents per share) per share
paid by Investec Limited on the SA DAS share.
By order of the Board
David Miller
Company Secretary
22 May 2024
Sponsor: Investec Bank
Limited
Investec Limited
Incorporated in the Republic of
South Africa
Registration number: 1925/002833/06
JSE share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Ordinary share dividend
announcement
Declaration of dividend
number 136
Notice is hereby given that final
dividend number 136, being a gross
dividend of 444.00000 cents (2023:
423.00000 cents) per ordinary share has
been declared by the Board from income reserves in respect of the
year ended 31 March 2024 payable to
shareholders recorded in the shareholders' register of the Company
at the close of business on Friday
23 August 2024.
|
The relevant dates relating to the
payment of dividend number 136 are as
follows:
|
|
Last day to trade
cum-dividend
Shares commence trading
ex-dividend
Record date
Payment date
|
Tuesday 20 August
2024
Wednesday 21 August
2024
Friday 23 August
2024
Friday 6 September
2024
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The final gross dividend of
443.57590 cents per share (rounded to
444.00000 cents per ordinary share) has
been determined by converting the Investec plc distribution of
19.00000 pence per ordinary share into
Rands using the Rand/Pound Sterling average buy/sell forward rate
of 23.34610 at 11h00 (SA time) on
Wednesday 22 May 2024.
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Share certificates may not be
dematerialised or rematerialised between Wednesday 21 August 2024 and Friday 23 August 2024, both dates
inclusive.
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Additional information to take note
of
• Investec Limited South African tax reference number:
9800/181/71/2
• The issued ordinary
share capital of Investec Limited is 295 125 806 ordinary shares
• The dividend paid by Investec Limited is subject to South
African Dividend Tax (Dividend Tax) of 20% (subject to any
available exemptions as legislated)
• Shareholders who are exempt from paying the Dividend Tax will
receive a net dividend of 444.00000 cents
per ordinary share
• Shareholders who are
not exempt from paying the Dividend Tax will receive a net dividend
of 355.20000 cents per ordinary share (gross dividend of
444.00000 cents per ordinary share less Dividend
Tax of 88.80000 cents per ordinary share).
By order of the Board
Niki van Wyk
Company Secretary
22 May 2024
Sponsor: Investec Bank
Limited
Investec plc
Incorporated in England and
Wales
Registration number: 3633621
Share code: INPP
ISIN: GB00B19RX541
LEI: 2138007Z3U5GWDN3MY22
Preference share dividend
announcement
Non-redeemable non-cumulative
non-participating preference shares ("preference
shares")
Declaration of dividend number
36
Notice is
hereby given that preference dividend number 36 has been declared by the Board from income reserves
in respect of the year ended 31 March
2024 amounting to a gross preference dividend of
31.33562 pence per preference share
payable to holders of the non-redeemable non-cumulative
non-participating preference shares as recorded in the books of the
Company at the close of business on Friday
14 June 2024.
For shares trading on the
Johannesburg Stock Exchange (JSE), the dividend of 31.33562 pence per preference share is equivalent to a
gross dividend of 727.24647 cents per
share, which has been determined using the Rand/Pound Sterling
average buy/sell forward rate of 23.20830
as at 11h00 (SA time) on Wednesday 22 May 2024.
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The relevant dates relating to the
payment of dividend number 36 are as
follows:
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Last day to trade
cum-dividend
On the Johannesburg Stock Exchange
(JSE)
On the International Stock
Exchange (TISE)
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Tuesday 11 June
2024
Wednesday 12 June
2024
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Shares commence trading
ex-dividend
On the Johannesburg Stock Exchange
(JSE)
On the International Stock
Exchange (TISE)
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Wednesday 12 June
2024
Thursday 13 June
2024
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Record date (on the JSE and TISE)
Payment date (on the JSE and TISE)
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Friday 14 June
2024
Friday 28 June
2024
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Share certificates may not be
dematerialised or rematerialised between Wednesday 12 June 2024 and Friday 14 June 2024, both dates inclusive, nor
may transfers between the United Kingdom share register and the
South African branch register take place between Wednesday 12 June 2024 and Friday 14 June 2024, both dates
inclusive.
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Additional information for South
African resident shareholders of Investec plc
• Investec plc United Kingdom tax reference number:
2683967322360
• The issued
preference share capital of Investec plc is 2 754 587
preference shares
• The dividend paid by Investec plc to shareholders recorded on
the South African branch register is subject to South African
Dividend Tax (Dividend Tax) of 20% (subject to any available
exemptions as legislated)
• The net dividend amounts to 581.79718 cents per preference
share for preference shareholders liable to pay the Dividend Tax
and 727.24647 cents per preference share
for preference shareholders exempt from paying the Dividend
Tax.
By order of the Board
David Miller
Company Secretary
22 May 2024
Sponsor: Investec Bank
Limited
Investec plc
Incorporated in England and
Wales
Registration number: 3633621
JSE share code: INPPR
ISIN: GB00B4B0Q974
LEI: 2138007Z3U5GWDN3MY22
Rand-denominated preference share
dividend announcement
Rand-denominated non-redeemable
non-cumulative non-participating perpetual preference shares
("preference shares")
Declaration of dividend number
26
Notice is hereby given that
preference dividend number 26 has been
declared by the Board from income reserves in respect of the year
ended 31 March 2024 amounting to a
gross preference dividend of 559.65411 cents
per preference share payable to holders of the Rand-denominated
non-redeemable non-cumulative non-participating perpetual
preference shares as recorded in the books of the Company at the
close of business on Friday 14 June
2024.
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The relevant dates relating to the
payment of dividend number 26 are as
follows:
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Last day to trade
cum-dividend
Shares commence trading
ex-dividend
Record date
Payment date
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Tuesday 11 June
2024
Wednesday 12 June
2024
Friday 14 June
2024
Friday 28 June
2024
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Share certificates may not be
dematerialised or rematerialised between Wednesday 12 June 2024 and Friday
14 June
2024, both dates inclusive.
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Additional information for South
African resident shareholders of Investec plc
• Investec plc United
Kingdom tax reference number: 2683967322360
• The issued
Rand-denominated preference share capital of Investec plc is
131 447 preference shares
• The dividend paid by
Investec plc to shareholders recorded on the South African branch
register is subject to South African Dividend Tax (Dividend Tax) of
20% (subject to any available exemptions as legislated)
• The net dividend
amounts to 447.72329 cents per preference
share for preference shareholders liable to pay the Dividend Tax
and 559.65411 cents per preference share
for preference shareholders exempt from paying the Dividend
Tax.
By order of the Board
David Miller
Company Secretary
22 May 2024
Sponsor: Investec Bank
Limited
Investec Limited
Incorporated in the Republic of
South Africa
Registration number: 1925/002833/06
JSE share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000063814
LEI: 213800CU7SM6O4UWOZ70
Preference share dividend
announcement
Non-redeemable non-cumulative
non-participating preference shares ("preference
shares")
Declaration of dividend number
39
Notice is hereby given that
preference dividend number 39 has been
declared by the Board from income reserves in respect of the year
ended 31 March 2024 amounting to a gross preference dividend of
455.64697 cents per
preference share payable to holders of the non-redeemable
non-cumulative non-participating preference shares as recorded in
the books of the Company at the close of
business on Friday 14 June
2024.
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The relevant dates for the payment
of dividend number 39 are as
follows:
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Last day to trade
cum-dividend
Shares commence trading
ex-dividend
Record date
Payment date
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Tuesday 11 June
2024
Wednesday 12 June
2024
Friday 14 June
2024
Friday 28 June
2024
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Share certificates may not be
dematerialised or rematerialised between Wednesday 12 June 2024 and Friday 14 June 2024, both dates
inclusive.
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Additional information to take note
of
• Investec Limited
South African tax reference number: 9800/181/71/2
• The issued
preference share capital of Investec Limited is 24 835 843 preference shares
• The dividend paid by
Investec Limited is subject to South African Dividend Tax (Dividend
Tax) of 20% (subject to any available exemptions as
legislated)
• The net dividend
amounts to 364.51758 cents per preference
share for shareholders liable to pay the Dividend Tax and
455.64697 cents per preference share for
preference shareholders exempt from paying the Dividend
Tax.
By order of the Board
Niki van Wyk
Company Secretary
22 May 2024
Sponsor: Investec Bank
Limited
Investec plc
Incorporated in England and
Wales
Registration number 3633621
JSE ordinary share code: INP
LSE ordinary share code: INVP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22
Registered office
30 Gresham Street, London
EC2V 7QP, United Kingdom
Auditors
Ernst & Young LLP
Ernst & Young Inc.
PricewaterhouseCoopers Inc.
Registrars in the United
Kingdom
Computershare Investor Services
PLC
The Pavilions, Bridgwater Road, Bristol
BS99 6ZZ, United Kingdom
Company Secretary
David Miller
Investec Limited
Incorporated in the Republic of
South Africa
Registration number 1925/002833/06
JSE ordinary share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Registered office
100 Grayston Drive
Sandown, Sandton
2196 South Africa
Transfer secretaries in South
Africa
Computershare Investor Services
(Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank
2196 South Africa
Company Secretary
Niki van Wyk
Directors
Philip Hourquebie1
(Chair)
Fani Titi2 (Chief Executive)
Nishlan Samujh2 (Finance Director)
Henrietta Baldock1
Zarina Bassa2 (Senior Independent Director)
Diane Radley2
Stephen Koseff2
Nicky Newton-King2
Jasandra Nyker2
Vanessa Olver2
Philisiwe Sibiya2
Brian
Stevenson1
1
British
2 South
African
Richard Wainwright, Ciaran Whelan
and Khumo Shuenyane stepped down from the Board on 3 August
2023
Diane Radley was appointed to the
Board on 6 March 2024
Sponsor
Investec Bank Limited