REG - Investec PLC - Final Results FY31/03/25
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RNS Number : 6832J Investec PLC 22 May 2025
Investec Limited Investec plc
Incorporated in the Republic of South Africa Incorporated in England and Wales
Registration number 1925/002833/06
Registration number 3633621
JSE share code: INL
LSE share code: INVP
JSE hybrid code: INPR JSE share code: INP
ISIN: GB00B17BBQ50
JSE debt code: INLV LEI: 2138007Z3U5GWDN3MY22
NSX share code: IVD
BSE share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Investec (comprising Investec plc and Investec Limited) - Unaudited combined
consolidated financial results for the year ended 31 March 2025
Fani Titi, Group Chief Executive commented:
"We are pleased to report a strong performance in a volatile operating
environment, with the Group generating a Return on Equity of 13.9%, in line
with guidance provided in May 2024. Pre-provision adjusted operating profit
grew 7.8% surpassing £1 billion for the first time in our history,
demonstrating the underlying strength of our differentiated client franchises.
We have maintained robust capital and liquidity levels, positioning us well to
support our clients and drive sustainable growth.
The Group has successfully executed the strategy to simplify and focus the
business as communicated at our capital markets day (CMD) in 2019. This
resulted in a 200bps structural improvement in Group returns and created a
strong foundation to power future growth.
We are scaling and leveraging our client franchises, allocating capital with
discipline and investing in clearly defined growth initiatives to enhance our
existing platforms. We expect to generate incremental returns of c.200bps over
the next five years, resulting in a ROE around the upper end of the upgraded
medium-term target range.
I would like to thank our colleagues for their dedication, our clients for
partnering with us, and our shareholders for their continued support."
Key financial metrics
£'millions Revenue Cost to income CLR Adjusted operating profit Adjusted EPS (pence) Basic EPS* (pence) HEPS (pence) ROE ROTE Total DPS (pence) NAV per share (pence) TNAV per share (pence)
FY2025 2 190.5 52.6% 38bps 920.0 79.1 72.8 72.6 13.9% 16.2% 36.5 587.7 506.3
FY2024 2 085.2 53.8% 28bps 884.5 78.1 105.3 72.9 14.6% 16.5% 34.5 563.9 477.5
% change in £ 5.0% 4.0% 1.3% (30.9%) (0.4%) 5.8% 4.2% 6.0%
% change in Rands 3.8% 2.8% 0.2% (31.6%) (1.6%) 3.3% 5.1%
Totals and variances are presented in £'millions which may result in rounding
differences. The Key financial metrics are defined on page 14.
* The Basic EPS decrease reflects the impact of significant net
gains from strategic actions executed in the prior year.
All prior year numbers in the financial commentary of this document are
presented on a pro-forma basis to provide information that is more comparable
to the current year, as a result of previously disclosed strategic actions
which completed in the first half of the prior financial year. The prior-year
statutory results are presented on a continuing and discontinuing basis in
line with the relevant accounting standards. Refer to pages 22 and 23 for the
reconciliation between the statutory and pro-forma prior year income
statement.
Group financial summary:
Pre-provision adjusted operating profit increased 7.8% to £1 039.2 million
(FY2024: £963.6 million), as revenue grew 5.0% against operating cost growth
of 2.8%, resulting in a positive jaws ratio.
Revenue was supported by client acquisition and ongoing entrenchment
strategies, strong net inflows in discretionary and annuity funds under
management (FUM) in the current and prior periods, as well as growth in
average interest earning assets. Net interest income (NII) benefitted from
higher average lending books and lower cost of funds in Southern Africa as a
result of our strategy to optimise the funding pool, partly offset by the
effects of deposit repricing in the UK. Non-interest revenue (NIR) growth
reflects strong growth in fees from our SA Wealth & Investment business,
as well as improved fee income generation from our Banking businesses.
Investment income also contributed positively to NIR growth driven by net fair
value gains and dividends received. Higher trading income from client flow
resulting from increased market liquidity was offset by the non-repeat of
prior-year risk management gains from hedging the remaining financial products
run down book in the UK.
The cost to income ratio improved to 52.6% (FY2024: 53.8%) as revenue grew
ahead of costs. Total operating costs increased by 2.8%. Fixed operating
expenditure growth reflects strategic investment in people and technology for
growth, and inflationary pressures. The prior year includes a £30 million
provision related to the FCA motor finance commission review. Variable
remuneration in each geography was in line with respective performance.
Credit loss ratio (CLR) on core loans was 38bps (FY2024: 28bps), within the
Group's through-the-cycle (TTC) range of 25bps to 45bps. Expected credit loss
(ECL) impairment charges increased to £119.2 million (FY2024: £79.1
million). The prior year benefitted from net recoveries from previously
impaired exposures in South Africa. The overall credit quality remained
strong, with no evidence of trend deterioration.
Return on equity (ROE) was 13.9% (FY2024: 14.6%) within the Group's
medium-term 13% to 17% target range, notwithstanding the increase in the
average equity base resulting from the net gain recognised on completion of
the combination of IW&I UK with Rathbones in the prior year. Return on
Tangible equity (ROTE) of 16.2% (FY2024: 16.5%) is within the Group's
medium-term 14% to 18% target range.
Distribution to shareholders The Board has proposed a final dividend of 20.0p
per share (FY2024: 19.0p) bringing the total dividend for the year to 36.5p
(FY2024: 34.5p), translating to a 46.1% payout ratio, within the Group's
current 35% to 50% payout policy. As part of the ongoing capital management
process, the Group intends to execute a share buy-back programme of c.R2.5
billion / c.£100 million to be implemented over the next twelve months.
Sustainable and transition finance targets: We continue to make progress on
our sustainability journey and have announced our target to facilitate £18
billion of sustainable and transition finance by 2030.
Net asset value (NAV) per share increased to 587.7p (31 March 2024: 563.9p),
driven by strong capital generation in the current period and foreign exchange
translation gains, partly offset by distribution to shareholders. Tangible net
asset value (TNAV) per share increased to 506.3p (31 March 2024: 477.5p).
Earnings attributable to other equity holders increased to £70.6 million
(FY2024: £49.1 million). The current financial year reflects the full year
impact of the £350 million Additional Tier 1 (AT1) issued in February 2024,
with a 10.5% coupon. The remaining £108 million AT1 from the 2017 issuance
(with 6.75% coupon) was settled in December 2024.
Key drivers:
Net core loans increased 4.7% to £32.4 billion (31 March 2024: £30.9
billion) and grew by 4.3% on a neutral currency basis; driven by strong
corporate lending in South Africa in the second half of the financial year and
growth from private clients lending in both geographies. Growth in corporate
lending turnover in the UK was offset by higher repayment rates given the high
interest rate environment.
Customer deposits increased by 4.1% to £41.2 billion (31 March 2024: £39.5
billion) and grew by 3.7% in neutral currency driven by strong growth in
non-wholesale and retail deposits in both geographies.
Funds under management (FUM) in the Southern African business increased by
11.8% to £23.4 billion (31 March 2024: £20.9 billion). Net inflows in our
discretionary and annuity funds of R16.9 billion (£727 million), were
partly offset by FX translation losses and non-discretionary outflows of
R9.8 billion (£420 million).
Our associate investment in Rathbones reported Funds Under Management and
Administration (FUMA) totalled £104.1 billion at 31 March 2025. Investec owns
41.25% of Rathbones.
Balance sheet strength:
The Group remained well capitalised in both our anchor geographies, with
Investec Limited reporting a CET1 ratio of 14.8% measured on the Advanced
Internal Ratings-Based approach and the Investec plc CET1 at 12.6% measured on
a standardised approach. The UK business continues to make progress in its
journey towards migrating its capital measurement from the standardised
approach to the internal ratings-based approach.
Sustainable and transition finance targets:
Following the publication of our enhanced Sustainable and Transition Finance
Classification Framework in May 2024, we are pleased to announce an
accompanying target to facilitate £18 billion of sustainable and transition
finance by 2030. This target is a vital component of our broader
sustainability agenda, underscoring our dedication to integrating
sustainability into our commercial strategies, and is one of several critical
levers towards achieving our net zero by 2050 ambition. Please refer to our
Investec Group year-end analyst book for further detail.
Financial Outlook:
The global macro-economic environment is facing heightened uncertainty,
creating volatility in economic forecasts and financial markets. We are
continuously monitoring the evolving environment. The guidance below is based
on our economic forecasts and expected business activity levels to date. The
group's medium-term targets remain unchanged.
FY2026 Outlook
Revenue momentum is expected to be underpinned by book growth, stronger client
activity levels and success in our client acquisition and entrenchment
strategies.
The Group currently expects:
• Group ROE to be c.14.0% within the 13.0% to 17.0% target range:
◦ Southern Africa is expected to report ROE of c.18.5%, within the
target range of 16.0% to 20.0%
◦ UK & Other is expected to report ROTE of c.14.0%, within the
target range of 13.0% to 17.0%
• Overall costs to be well managed in the context of inflationary
pressures and continued investment in the business, with the cost to income
ratio expected to be between 52.0% and 54.0%
• The credit loss ratio to be within the through-the-cycle range of
25bps to 45bps. Southern Africa is expected to be around the lower end of the
TTC range of 15bps to 35bps. UK & Other credit loss ratio is expected to
remain around the FY2025 reported levels.
The Group has maintained strong capital and liquidity levels well above
Board-approved minimums. The Group is well-positioned to manage the impacts of
external challenges and continue supporting our clients to navigate the
current economic uncertainty.
Medium term outlook
The Group is committed to its medium-term financial targets. We have a clear
and executable strategy to advance our ROE towards the upper end of the target
range by FY2030.
ROE expansion is expected to be underpinned by:
• continuing to build scale and leverage our existing client franchises
to generate higher returns,
• executing specific growth initiatives to enhance our current
specialisations and drive incremental returns,
• and managing capital optimally
Building scale and leveraging existing client franchises
Our established client franchises built over the past five decades offer an
extensive breadth of products and services to corporates and institutions,
complemented by a compelling private client offering and an international
wealth management proposition. Our distinct offering is built on enduring
relationships, deep specialisations and cross collaboration between divisions
and geographies. The Group operates in large and growing markets, presenting a
significant opportunity to grow our current lower market share through client
acquisition and unlocking the full potential of "One Investec".
Specific growth initiatives are expected to contribute significant incremental
returns by FY2030:
Building a Corporate mid-market transactional banking franchise
The Group is investing in platforms to enhance our corporate mid-market
proposition in both our anchor geographies. This capability will further
entrench and attract clients into our ecosystem, increase non-interest banking
revenues and enhance our transactional deposit franchises. We will facilitate
day to day banking needs for our clients, complementing our event-driven
specialisations.
Our well-established UK Corporate and Investment Banking franchise stands as
the only integrated and diversified specialist bank, providing the
capabilities of global investment banks to the corporate mid-market. We are
transitioning to end-to-end corporate banking, by adding transactional banking
capabilities. There is an opportunity to create significant value by
leveraging our high-touch approach and sector expertise to gain market share.
The Group plans to invest in this UK capability over the next three years. We
expect around 1 000 clients to have at least two products and to achieve a
market share of c.2% by FY2030.
In South Africa, our objective is to create a single platform for mid-sized
South African corporates to holistically manage their banking needs. We aspire
to be the primary banking partner that seamlessly combines high-touch lending
with an innovative, user-friendly transactional banking experience. Given our
current low market share in this large and growing segment, the potential to
create value for the Group is significant. We are well-positioned to become
the strategic partner that offers the Investec private client experience to
businesses. Our plan is to fast-track the delivery of this proposition,
enabling accelerated transactional banking client acquisition to around three
times the current base of 2 700, translating to a market share of c.8% by
FY2030.
Enhancing our Private Client offering
The Group is a leading provider of bespoke private client solutions,
encompassing a holistic private banking and international wealth offering.
This is complemented by our strategic partnership with Rathbones in the UK.
Our proposition is underpinned by a deep understanding of our clients'
personal and business objectives, offering tailored banking and investment
services both locally and internationally.
We are entering the next phase of growth for our UK Private Client business to
accelerate the execution of a comprehensive banking proposition. This will
deepen client engagement, increase client acquisition, support higher HNW
mortgage growth, and contribute to a reduced cost of funding. Our investment
in the private client transactional banking platform will facilitate the
delivery of a full-suite product offering, including multi-currency accounts
and credit cards, while improving our lending capabilities. We aim to increase
the current client base of 7 500 to approximately 18 500, resulting in a
market share of c.18% by FY2030.
In South Africa, we are accelerating our client acquisition strategy,
particularly in the high income segment. We will continue to invest in our
wealth-led international Private Client offering to provide an integrated
holistic global proposition to our clients.
The above growth initiatives are a natural evolution in our business model and
will facilitate increased market share, enhance the breadth of our client
offering and enable us to compete more effectively in the market. Our cost to
income ratio already incorporates investment spend on new growth initiatives
and thus we do not anticipate a significant increase in this ratio going
forward. Cost discipline remains a priority for the Group. Cost to income
ratio is expected to remain below 55% in the medium term.
Capital allocation
The Group is committed to optimising shareholder returns. We will be
allocating capital to activities that generate returns above our cost of
capital. The Group manages its capital dynamically, maintaining an appropriate
balance between total returns to shareholders, investment in the business and
holding strong capital levels. One of the Group's priorities is to increase
the earnings contribution from capital light activities, and as such the Group
continues to evaluate organic and inorganic opportunities to achieve this
objective.
The strategies outlined above represent our clear path to achieving returns
around the upper end of our medium-term target range by FY2030, expected to
collectively add an incremental return of c.200bps.
Upcoming business updates:
We intend to provide detailed updates on our specific growth initiatives at
the following results presentations:
20 November 2025: Corporate mid-market
21 May 2026: Private Client
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 2025 (FY2025). Unless stated otherwise, comparatives relate to
the Group's operations for the year ended 31 March 2024 (FY2024).
Basic earnings per share in the prior year 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.
Performance FY2025 FY2024^ Variance % Neutral currency
change % change
Operating income (£'m)* 2 190.5 2 085.2 105.2 5.0% 4.5%
Operating costs (£'m) (1 151.4) (1 120.2) (31.2) 2.8% 2.2%
Adjusted operating profit (£'m) 920.0 884.5 35.5 4.0% 3.4%
Adjusted earnings attributable to shareholders (£'m) 676.8 662.5 14.3 2.2% 1.7%
Adjusted basic earnings per share (pence) 79.1 78.1 1.0 1.3% 0.8%
Basic earnings per share (pence) 72.8 105.3 (32.5) (30.9%) (31.2%)
Headline earnings per share (pence) 72.6 72.9 (0.3) (0.4%) (1.0%)
Dividend per share (pence) 36.5 34.5
Dividend payout ratio 46.1% 44.2%
CLR (credit loss ratio) 0.38% 0.28%
Cost to income ratio 52.6% 53.8%
ROTE (return on tangible equity) 16.2% 16.5%
ROE (return on equity) 13.9% 14.6%
* Operating income has been prepared on a pro-forma basis for
the prior year. Refer to page 23 for the reconciliation between the statutory
and pro-forma prior year income statement.
^ Restated.
Balance sheet 31 March 31 March 2024 Variance % change Neutral currency % change
2025
Funds under management (£'bn)
IW&I Southern Africa 23.4 20.9 2.5 11.8% 8.4%
Rathbones/IW&I UK** 104.1 107.6 (3.5) (3.3%)
Customer accounts (deposits) (£'bn) 41.2 39.5 1.6 4.1% 3.7%
Net core loans and advances (£'bn) 32.4 30.9 1.5 4.7% 4.3%
Cash and near cash (£'bn) 16.9 16.4 0.5 3.0% 2.6%
TNAV per share (pence) 506.3 477.5 28.8 6.0% 6.1%
NAV per share (pence) 587.7 563.9 23.8 4.2% 4.3%
Totals and variances are presented in £'billions 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 2025,
Rathbones Group, of which Investec holds a 41.25% economic interest, had funds
under management of £104.1 billion (2024: £107.6 billion).
Salient features by geography FY2025 FY2024 Variance % change % change in Rands
Investec Limited (Southern Africa)
Adjusted operating profit (£'m) 463.0 429.0 34.0 7.9% 6.7%
Cost to income ratio 52.4% 52.9%
ROTE 18.4% 17.3%
ROE 18.3% 17.3%
CET1 14.8% 13.6%
Leverage ratio 6.2% 6.2%
Customer accounts (deposits) (£'bn) 19.7 18.8 0.9 5.2 % 4.2%
Net core loans and advances (£'bn) 15.6 14.3 1.3 8.6 % 7.6%
Investec plc (UK & Other)
Adjusted operating profit (£'m) 457.0 455.5 1.5 0.3%
Cost to income ratio 52.7% 54.4%
ROTE 14.5% 15.7%
ROE 11.2% 12.8%
CET1 12.6% 12.4%
Leverage ratio 9.9% 10.2%
Customer accounts (deposits) (£'bn) 21.4 20.8 0.6 3.2 %
Net core loans and advances (£'bn) 16.8 16.6 0.2 1.4%
Totals and variance are presented in £'billions, unless otherwise stated,
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 year end results presentation live from Johannesburg
and broadcast live in London today at 10h00 (SA)/ 09h00 (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 7,900+
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 7.8% to
£1 039.2 million (FY2024: £963.6 million).
Revenue increased 5.0% to £2 190.5 million (FY2024: £1 986.3 million)
Net interest income increased 1.5% to £1 358.1 million (FY2024: £1 338.7
million) benefitting from higher average interest earning assets and lower
cost of funding in Southern Africa as we continued to implement our strategies
to optimise the funding mix, while negatively impacted by the effects of
deposit repricing in the UK and the negative endowment impact arising from a
rate cutting cycle in both core geographies.
Non-interest revenue increased 11.5% to £832.4 million (FY2024: £746.6
million).
• Net fee and commission income increased 11.5% to £463.8 million
(FY2024: £416.2 million), driven by higher average discretionary FUM in the
SA wealth business, increased activity levels from various UK corporate client
franchises, and a higher contribution from Capitalmind (now Investec), our
European advisory franchise. The SA Bank reported muted net fee growth; higher
fees from our Private Banking and global markets franchises as a result of
increased client activity, were partly offset by lower M&A and trade
finance fees.
• Investment income of £130.7 million (FY2024: £63.4 million)
primarily reflects net fair value gains and dividends received on investment
portfolios.
• Share of post tax operating profit of associates and joint venture
holdings amounted to £75.8 million (FY2024: £91.8 million) primarily
consisting of Investec's share of Rathbones reported post-tax underlying
profit attributable to shareholders for their year ended 31 December 2024 of
£69.1 million (FY2024: £66.9 million). In the prior year, an associate of
the UK Bank had a significant realisation gain which did not repeat in the
current year.
• Trading income arising from customer flow decreased by 0.9% to £130.6
million (FY2024: £131.7 million). Higher equity trading income arising from
client flow in both anchor geographies as a result of increased market
liquidity was offset by lower risk management gains in hedging the remaining
and significantly reduced financial products run down book in the UK.
• Trading income from balance sheet management and other trading
activities decreased to £25.6 million (FY2024: £41.5 million). This
reflects lower gains from the unwind of interest rate swap hedges as part of
the implementation of the UK structural interest rate hedging programme and
net foreign currency translation losses on non-Rand denominated monetary
assets and liabilities on the SA balance sheet compared to a gain in the prior
year.
Expected credit loss (ECL) impairment charges amounted to £119.2 million
(FY2024: £79.1 million)
Asset quality remains within Group appetite limits, with exposures to a
carefully defined target market well covered by collateral. The increase in
the ECL impairment charges was primarily driven by higher specific impairments
on certain exposures, resulting in a credit loss ratio on core loans of 38bps
(FY2024: 28bps). The prior year benefitted from net recoveries from previously
impaired exposures in South Africa.
Operating costs increased by 2.8% to £1 151.4 million (FY2024: £1 120.2
million)
The cost-to-income ratio improved to 52.6% from 53.8% in FY2024. Fixed
operating expenditure (including Group costs) increased due to ongoing
strategic investment in technology and people to support growth ambitions, as
well as inflationary pressures. Higher personnel expenses relate to both
annual salary increases and growth in headcount. The prior year includes a
£30 million provision related to the FCA motor finance commission review.
Variable remuneration in each geography is in line with respective
performance.
Taxation
The taxation charge on adjusted operating profit was £169.6 million (FY2024:
£172.1 million), resulting in an effective tax rate of 20.1% (FY2024: 21.8%).
Investec plc effective tax rate is 19.3% (FY2024: 23.7%), reflecting the
weighted effective tax rate from multiple jurisdictions where Investec plc has
operations. Investec Limited effective tax rate is 20.7% (FY2024: 20.1%).
Funding and liquidity
Customer deposits increased 4.1% to £41.2 billion (FY2024: £39.5 billion) on
a reported basis and 3.7% in neutral currency. Customer deposits increased by
3.2% to £21.4 billion for Investec plc and increased by 4.2% to R468.1
billion for Investec Limited since 31 March 2024.
Cash and near cash of £16.9 billion (£9.1 billion in Investec plc and R184.3
billion in Investec Limited) at 31 March 2025 represents approximately 40.9%
of customer deposits (42.4% for Investec plc and 39.4% for Investec Limited).
Loans and advances to customers as a percentage of customer deposits was 78.4%
(FY2024: 79.7%) for Investec plc and 77.2% (FY2024: 75.1%) for Investec
Limited.
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 plc reported a LCR of 409% and a NSFR of 145% at 31 March
2025
• Investec Bank Limited (consolidated Group) reported a LCR of 194.7%
and an NSFR of 122.0% at 31 March 2025.
Capital adequacy and leverage ratios
Capital and leverage ratios remain sound, ahead of regulatory requirements.
The CET1 and leverage ratio were 14.8% and 6.2% for Investec Limited
(Advanced Internal Ratings Based scope) and 12.6% and 9.9% for Investec plc
(Standardised approach) respectively.
Segmental performance
Specialist Banking
Adjusted operating profit from Specialist Banking increased 3.5% to £839.0
million (FY2024: £810.5 million). Pre-provision adjusted operating profit
increased 7.7% to £958.3 million (FY2024: £889.6 million).
Specialist Banking Southern Africa UK & Other Total
FY2025 FY2024 Variance FY2025 FY2024 Variance FY2025 FY2024
£'m £'m £'m % Rands % £'m £'m £'m % £'m £'m
Operating income (before ECL) 868.7 770.4 98.3 12.8% 11.4% 1 090.3 1 109.5 (19.2) (1.7%) 1 959.0 1 880.0
ECL impairment charges (22.2) 6.9 (29.1) (>100.0%) (>100.0%) (97.0) (86.1) (11.0) (12.8%) (119.2) (79.1)
Operating costs (418.0) (372.9) (45.1) (12.1%) (10.7%) (582.9) (616.1) 33.2 5.4% (1 000.9) (989.0)
(Profit)/loss attributable to NCI 0.2 (0.2) 0.3 >100.0% >100.0% - (1.2) 1.2 100.0% 0.2 (1.4)
Adjusted operating profit 428.7 404.3 24.4 6.0% 4.8% 410.4 406.2 4.2 1.0% 839.0 810.5
Totals and variances are presented in £'million which may result in rounding
differences.
Southern Africa Specialist Banking (in Rands)
Pre-provision adjusted operating profit increased by 12.2% to R 10 492
million. Adjusted operating profit increased 4.8% to R9 976 million (FY2024:
R9 517 million), delivered against a backdrop of weak economic activity ahead
of the national election outcome in June 2024 and global macro-economic
uncertainty that prevailed over the year. Our core client franchises have
shown a positive momentum in the second half as we continue to execute our
client acquisition strategies. We remain focused on our strategy to deepen
client relationships, grow market share and drive cross divisional and cross
border collaboration.
Net core loans grew by 7.6% to R369.8 billion (FY2024: R343.7 billion);
subdued activity leading up to the national election outcome in 1H2025 was
followed by increased growth in the private client loan book and certain
corporate credit portfolios particularly in Energy and Infrastructure finance,
Aviation finance and Leveraged finance in the second half of the financial
year.
Revenue increased 11.4%, benefitting from higher average net interest margins,
increased activity levels and continued client acquisition in line with our
growth strategies. This was augmented by positive investment income.
• Net interest income (NII) growth of 8.8%; mainly driven by lower cost
of funds which benefitted from the execution of our strategies to optimise the
funding pool, as well as higher average advances. Our non-wholesale deposit
base continued to grow in line with our strategy to increase the proportion of
non-wholesale deposits in our funding pool.
• Non-interest revenue increased 17.3% driven by:
- Net fee and commission income increased by 1.5%; higher FX and equity
capital market fees in the corporate and investment banking business as well
as higher private banking fees from increased client activity, were offset by
lower investment banking fees and muted utilisation of trade finance
facilities.
- Higher trading income from customer flow reflects stronger client flows
from interest rate and equity derivatives desks given increased market
liquidity, partly offset by the net impact of hedge accounting implementation
in the credit investments portfolio.
- Positive contribution from Investment income, driven by higher net fair
value gains from investment portfolios in our client franchises as South
African assets repriced following the successful formation of the Government
of National Unity (GNU)
Partly offset by:
- Income from Balance sheet management activities decreased; reflecting
net foreign currency translation losses on non-Rand denominated monetary
assets and liabilities. This was partly offset by MTM gains associated with
managing fixed deposit interest rate risk.
ECL impairment charges amounted to R517 million (FY2024: net release of R163
million), resulting in a credit loss ratio of 15bps (FY2024: net recovery of
4bps), driven by higher Stage 3 ECL charges and lower recoveries from
previously impaired exposures relative to the prior year.
The cost to income ratio improved to 48.1% (FY2024: 48.4%). Operating costs
increased by 10.7% driven by higher personnel expenses due to annual salary
increases and higher headcount, higher business expenses in line with
increased activity, as well as increased technology spend to support business
growth initiatives. Variable remuneration increased in line with performance.
UK & Other Specialist Banking
Pre-provision adjusted operating profit increased by 3.1% to £507.4 million.
Adjusted operating profit increased to £410.4 million (FY2024: £406.2
million); our established client franchises in the UK mid-market and selected
geographies performed well in a volatile macro-economic environment. We have
continued to execute our client acquisition and entrenchment strategies as we
focus on building scale and growing market share. Our breadth of capabilities
positions us well to become a distinctive corporate mid-market banking group
in Europe, anchored by the UK franchise which is both domestically relevant
and internationally connected.
To date, we have established a robust business foundation and demonstrated
strong performance. We are strategically investing in our transactional
banking capabilities in both private and corporate banking to complement our
existing core specialisations.
Net core loans grew 1.4% to £16.8 billion; driven by growth in the UK
residential mortgage lending portfolio, while the corporate lending segment
remained flat in a constrained market environment. Moderate growth across
various corporate lending portfolios was offset by higher levels of
repayments.
Revenue decreased by 1.7%; strong growth in net fee and commission income
generated from both our corporate and investment banking lending franchises
and our M&A advisory business in line with our strategy to grow capital
light earnings, was offset by lower net interest income and lower trading
income from customer flow. Investment income contributed positively to
revenue.
• Net interest income decreased by 4.4%, the benefit of a larger average
loan book was offset by higher cost of funding as deposits repriced higher and
lower average interest rates over the period.
• Non-interest revenue increased by 5.3% driven by:
- Higher arrangement fees generated by our corporate & investment
banking lending business driven by increased client activity. We have also
seen higher M&A advisory fees primarily from Capitalmind; reflecting both
improved performance and the impact of a full year of consolidated earnings as
it become a subsidiary in June 2023.
- Higher investment income largely driven by net fair value gains from
equity investments.
Partly offset by:
- Lower trading income from customer flow, primarily as a result of lower
risk management gains from hedging the significantly reduced financial
products run down book and lower volumes from interest rate and FX hedging
trading desks. This was partially offset by higher equity trading income from
customer flow.
- Lower trading income from balance sheet management and other trading
activities reflecting lower gains from the unwind of certain interest rate
swap hedges as part of the implementation of the structural interest rate
hedging programme relative to the prior year.
ECL impairment charges amounted to £97.0 million, resulting in a credit loss
ratio of 60bps (FY2024: 58bps) in line with guidance. The increase in ECL
charges was largely driven by Stage 3 ECL charges on certain exposures.
Overall asset quality of the book remained stable; Stage 3 exposures remained
at 3.3% of gross core loans subject to ECL (31 March 2024: 3.3%) and Stage 2
exposures decreasing to 8.1% (31 March 2024: 8.6%) of gross core loans subject
to ECL. We have seen a reduction in exposures migrating into Stage 3.
The cost to income ratio improved to 53.5% (FY2024: 55.6%). Total operating
costs decreased by 5.4%. Fixed operating costs increased by 4.0% excluding the
impact of the £30 million motor finance provision raised in the prior year,
reflecting investment in technology platforms and strategic projects to enable
future growth as well as inflationary pressure. Variable remuneration
decreased in line with business performance.
Based on the current available information, the Group has concluded that the
provision of £30 million raised in the prior year for the motor commission
review still remains appropriate. There remains 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 following the Court of Appeal decision and
FCA motor commission review. The Group notes that the ultimate financial
impact of the Court of Appeal decision and ongoing FCA investigation into
motor commission could materially vary, pending further guidance from the FCA
or the outcome of the appeal to the UK Supreme Court.
Wealth & Investment
Adjusted operating profit from the Wealth & Investment businesses
increased 8.2% to £112.3 million (FY2024: £103.8 million).
Wealth & Investment Southern Africa UK & Other Total
FY2025 FY2024 Variance FY2025 FY2024 Variance FY2025 FY2024
£'m £'m £'m % % in Rands £'m £'m £'m % £'m £'m
Operating income 143.7 123.8 19.8 16.0% 14.5% 69.1 66.9 2.3 3.4% 212.8 190.7
Operating costs (100.5) (86.9) (13.6) 15.7% 14.2% - - - -% (100.5) (86.9)
Adjusted operating profit 43.2 37.0 6.2 16.8% 15.3% 69.1 66.9 2.3 3.4% 112.3 103.8
Totals and variances are presented in £'million which may result in rounding
differences.
Southern Africa Wealth & Investment International Business (in Rands)
Adjusted operating profit increased by 15.3% to R1 004 million (FY2024: R871
million).
Total FUM increased by 10.8% to R555.2 billion (FY2024: R501.3 billion) driven
by discretionary and annuity net inflows of R16.9 billion and positive market
movements, partly offset by foreign currency translation impact on dollar
denominated portfolios as the South African Rand strengthened against the US
Dollar, and non-discretionary outflows of R9.8 billion. The business reported
strong client retention and acquisitions in a dynamic market, demonstrating
the strength and quality of our international wealth management offering.
Revenue grew by 14.5% underpinned by strong inflows in our discretionary and
annuity portfolios across local and offshore investment products in the
current and prior periods. We also experienced strong growth in fee income
generated from structured products. Non-discretionary brokerage increased in
the current period due to higher trading volumes. Revenue in Switzerland grew
by 3.1% in Pounds driven by higher net fee income as a result of higher
average FUM, this was partly offset by lower net interest income.
Operating costs increased 14.2%, driven by investment in people for continued
growth, higher technology spend, and higher variable remuneration in line with
performance. Fixed operating expenditure increased by 13.0%. Operating margins
increased to 30.1% (FY2024: 29.9%).
UK & Other Wealth & Investment
The all-share combination of IW&I UK and Rathbones successfully completed
at the end of 1H2024, creating a discretionary wealth manager with £104.1
billion FUMA at 31 March 2025.
In the current financial year the Group has equity accounted £69.1 million
(FY2024: £66.9 million) being the Group's 41.25% share of Rathbones post-tax
underlying profit attributable to shareholders for their year ended 31
December 2024 of £167.6 million.
Rathbones reported underlying operating margin of 25.4% for the year to 31
December 2024 (31 December 2023: 22.3%), showing progress towards the target
of a 30%+ margin.
Rathbones reported cost and revenue synergies well ahead of the first year
£15 million target, with run-rate synergy realisation of £30.1 million
reported at 31 December 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 held by the UK, as well
as Bud Group Holdings, Burstone Group (formerly known as IPF) and other equity
investments held in Southern Africa.
Group Investments Southern Africa UK & Other Total
FY2025 FY2024 Variance FY2025 FY2024 Variance FY2025 FY2024
£'m £'m £'m % % in Rands £'m £'m £'m % £'m £'m
Operating income (net of ECL charges) 7.7 2.9 4.8 >100.0% >100.0% 11.0 11.7 (0.7) (6.3%) 18.6 14.6
Operating costs - (0.2) 0.2 100.0% 98.7% - - - - - (0.2)
Adjusted operating profit 7.7 2.6 5.0 >100%.0 >100.0% 11.0 11.7 (0.7) (6.3%) 18.6 14.4
Totals and variances are presented in £'million which may result in rounding
differences.
Adjusted operating profit from Group Investments increased to £18.6 million
(FY2024: £14.4 million) driven by higher investment income on the fair value
measurement of our shareholding, and higher dividend income from our
investment in Burstone Group.
Further information
Additional information on each of the business units is provided in the Group
results analyst book published on the Group's website:
http://www.investec.com.
The maintenance and integrity of the Investec website are the responsibility
of the directors. The statutory auditors did not carry out a review of the
analyst booklets or any other financial information that is published on the
website.
On behalf of the Boards of Investec plc and Investec Limited.
Philip Hourquebie Fani Titi
Chair Group Chief Executive
22 May 2025
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 results reflect the results and financial position of the
combined DLC Group under UK adopted IFRS® Accounting Standards 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 2025
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
2025 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 2025 remain the same as those at 31
March 2024.
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 Mar 2025 31 Mar 2024
Currency Closing Average Closing Average
per GBP1.00
South African Rand 23.74 23.25 23.96 23.54
Euro 1.20 1.19 1.17 1.16
US Dollar 1.29 1.28 1.26 1.26
Profit Forecast
Revenue momentum is expected to be underpinned by book growth, stronger client
activity levels and continued success in our client acquisition and
entrenchment strategies.
The Group currently expects:
• Group ROE to be c.14.0%. Investec Limited is expected to report ROE of
c.18.5%, and Investec plc is expected to report ROTE of c.14.0%
• 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 between 52.0% and 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 be in line with FY2025 between 50bps and 60bps range.
The Group has maintained strong capital and liquidity levels and is well
positioned to continue supporting our clients and build to scale our
identified growth opportunities, in an improving economic environment.
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
21 May 2025.
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 2026.
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 2024 audited annual financial statements, which are in
accordance with UK adopted international accounting standards and IFRS®
Accounting Standards as issued by the International Accounting Standards Board
(IASB).
At 31 March 2025, UK adopted IFRS Accounting Standards 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.
• There have been no material changes to the Group's principal risks as
disclosed on pages 8 to 26 of the Investec Group Risk and Governance report
for the year ended 31 March 2024.
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, the
underlying model assumptions and economic scenarios all which are 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
• The estimates relating to dividends tax arbitrage and motor finance
provisions remain materially unchanged.
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 IFRS®
Accounting Standards 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 2025, 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 2025 are consistent with those in the audited financial
statements for year ended 31 March 2024.
The financial results have been prepared under the supervision of Nishlan
Samujh, the Group Finance Director. The financial statements for the year
ended 31 March 2025 will be 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 21 May 2025
• The information in the Group's announcement for the year ended 31
March 2025, which was approved by the Board of Directors on 21 May 2025, does
not constitute statutory accounts as defined in Section 435 of the UK
Companies Act 2006. The 31 March 2024 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 pro-forma profit before tax,
adjusted to remove goodwill, acquired intangibles and strategic actions
including such items within equity accounted earnings, and non-controlling
interests. Non-IFRS measures such as adjusted operating profit 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 attributable to shareholders refers to earnings
attributable to shareholders adjusted to remove goodwill, acquired intangible
assets, strategic actions, including such items within equity accounted
earnings 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 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
• Revenue refers to operating income as found on the face of the
condensed combined consolidated income statement
• 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
• Cash and near cash includes cash, near cash (other 'monetisable
assets' which largely include short-dated trading assets) and central bank
cash placements and guaranteed liquidity
• NCI is non-controlling interests.
Financial assistance
Shareholders are referred to Special Resolution number 3, which was approved
at the annual general meeting held on 8 August 2024, 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 2024 to 31 March 2025 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
appreciated by 1.2% against the comparative 31 March 2024, and the closing
rate has appreciated by 0.9% since 31 March 2024. 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 2025 Year to 31 March 2024 % Neutral currency^ Year to 31 March 2025 Neutral Year to 31 March 2025 Year to 31 March 2024 %
change currency change
%
change
Adjusted operating profit before taxation (million) £920 £885 4.0% £915 3.4% R21 400 R20 820 2.8%
Earnings attributable to shareholders (million) £693 £941 (26.4%) £689 (26.8%) R16 135 R22 161 (27.2%)
Adjusted earnings attributable to shareholders (million) £677 £662 2.2% £673 1.7% R15 747 R15 598 1.0%
Adjusted earnings per share 79.1p 78.1p 1.3% 78.7p 0.8% 1842c 1838c 0.2%
Basic earnings per share 72.8p 105.3p (30.9%) 72.4p (31.2%) 1695c 2478c (31.6%)
Headline earnings per share 72.6p 72.9p (0.4%) 72.2p (1.0%) 1690c 1717c (1.6%)
Results in Pounds Sterling Results in Rands
At 31 March 2025 At 31 March 2024* % Neutral currency^^ At 31 March 2025 Neutral At 31 March 2025 At 31 March 2024* %
change currency change
%
change
Net asset value per share 587.7p 563.9p 4.2% 588p 4.3% 13 954c 13 511c 3.3%
Tangible net asset value per share 506.3p 477.5p 6.0% 506.6p 6.1% 12 021c 11 441c 5.1%
Total equity (million) £5 655 £5 474 3.3% £5 635 2.9% R134 267 R131 159 2.4%
Total assets (million) £58 253 £56 894 2.4% £57 995 1.9% R1 383 105 R1 363 202 1.5%
Core loans (million) £32 364 £30 901 4.7% £32 223 4.3% R768 425 R740 400 3.8%
Cash and near cash balances (million) £16 851 £16 359 3.0% £16 780 2.6% R400 085 R391 978 2.1%
Customer accounts (deposits) (million) £41 164 £39 532 4.1% £40 985 3.7% R977 360 R947 202 3.2%
^ For income statement items we have used the average Rand: Pound
Sterling exchange rate that was applied in the prior year, i.e. 23.54.
^^ For balance sheet items we have assumed that the Rand: Pound
Sterling closing exchange rate has remained neutral since 31 March 2024.
* Restated refer to page 28.
Condensed combined consolidated income statement
£'000 Year to Year to
31 March 2025
31 March 2024^
Interest income 4 160 769 4 124 150
Interest expense (2 802 663) (2 785 457)
Net interest income 1 358 106 1 338 693
Fee and commission income 518 106 456 991
Fee and commission expense (54 265) (40 804)
Investment income 130 716 60 381
Share of post-taxation profit of associates and joint venture holdings 40 170 33 694
Profit before amortisation and integration costs 75 797 55 949
Amortisation of acquired intangibles (6 812) (12 624)
Acquisition related and integration costs within associate (28 815) (9 631)
Trading income arising from
- customer flow* 130 566 131 712
- balance sheet management and other trading activities 25 615 41 496
Other operating income 5 833 1 961
Operating income 2 154 847 2 024 124
Expected credit loss impairment charges (119 230) (79 113)
Operating income after expected credit loss impairment charges 2 035 617 1 945 011
Operating costs (1 151 399) (1 120 245)
Amortisation of acquired intangibles - (1 483)
Financial impact of strategic actions (21 023) -
Closure and rundown of the Hong Kong direct investments business (47) (785)
Profit before taxation from continuing operations 863 148 822 498
Taxation (169 818) (171 187)
Taxation on operating profit before goodwill and acquired intangibles (169 623) (172 066)
Taxation on acquired intangibles and strategic actions (195) 879
Profit after taxation from continuing operations 693 330 651 311
Profit after taxation and financial impact of strategic actions from - 302 877
discontinued operations**
Operating profit before non-controlling interests from discontinued operations - 45 824
Financial impact of strategic actions net of taxation from discontinued - 257 053
operations
Profit after taxation from total Group 693 330 954 188
Loss/(profit) attributable to non-controlling interests 152 (1 382)
Profit attributable to non-controlling interests of discontinued operations - (11 766)
Earnings of total Group attributable to shareholders 693 482 941 040
Earnings attributable to ordinary shareholders 622 932 891 964
Earnings attributable to perpetual preferred securities and other Additional 70 550 49 076
Tier 1 security holders
^ Restated refer to page 28.
* Included in trading income arising from customer flow is
income of £283.3 million (2024: £241.4 million) and interest expense of
£152.8 million (2024: £109.7 million).
** Refer to discontinued operations disclosure on page 25.
Earnings per share
Year to Year to
31 March 2025
31 March 2024
Basic earnings for total Group per share - pence 72.8 105.3
Diluted basic earnings for total Group per share - pence 70.3 101.0
Basic earnings for continuing operations per share - pence 72.8 71.0
Diluted basic earnings for continuing operations per share - pence 70.3 68.1
Condensed combined consolidated statement of total comprehensive income
£'000 Year to Year to
31 March 2025
31 March 2024
Profit after taxation 693 330 954 188
Other comprehensive income:
Items that may be reclassified to the income statement
Fair value movements on cash flow hedges taken directly to other comprehensive (10 380) (16 585)
income*
Fair value movements on debt instruments at FVOCI taken directly to other (687) 11 359
comprehensive income*
Gain on realisation of debt instruments at FVOCI recycled through the income (3 409) (4 789)
statement*
Foreign currency adjustments on translating foreign operations (23) (139 257)
Items that will never be reclassified to the income statement
Share of other comprehensive (loss)/income of associates and joint venture (3 803) 257
holdings
Fair value movements on equity instruments at FVOCI taken directly to other (24 019) (14 415)
comprehensive income*
Movement in post-retirement benefit liabilities* 46 (362)
Net (loss)/gain attributable to own credit risk* (184) 748
Total comprehensive income 650 871 791 144
Total comprehensive income attributable to ordinary shareholders 580 500 767 726
Total comprehensive loss attributable to non-controlling interests (179) (25 658)
Total comprehensive income attributable to perpetual preferred securities and 70 550 49 076
Other Additional Tier 1 security holders
Total comprehensive income 650 871 791 144
* These amounts are net of taxation of a tax credit of £9.1
million (31 March 2024: tax expense £17.3 million).
Condensed combined consolidated balance sheet
At 31 March 2025 31 March 2024^ 1 April 2023^
£'000
Assets
Cash and balances at central banks 5 003 272 6 279 088 6 437 709
Loans and advances to banks 1 321 060 1 122 036 1 618 580
Non-sovereign and non-bank cash placements 425 375 460 559 466 960
Reverse repurchase agreements and cash collateral on securities borrowed 4 290 283 4 376 886 3 993 647
Sovereign debt securities 6 090 175 4 943 147 4 404 243
Bank debt securities 675 322 596 436 915 686
Other debt securities 1 197 741 1 148 147 1 229 392
Derivative financial instruments 844 360 1 031 366 1 457 838
Securities arising from trading activities 2 005 831 1 661 223 1 854 905
Loans and advances to customers 32 026 904 30 645 313 30 112 969
Own originated loans and advances to customers securitised 360 488 269 034 272 879
Other loans and advances 139 087 117 513 142 726
Other securitised assets - 66 704 103 151
Other financial instruments at fair value through profit or loss in respect 206 272 154 738 110 891
of liabilities to customers
Investment portfolio 697 582 807 030 1 330 907
Interests in associated undertakings and joint venture holdings 846 009 858 420 53 703
Current taxation assets 25 751 35 636 34 389
Deferred taxation assets 204 971 204 861 211 818
Other assets 1 453 429 1 664 745 2 019 026
Property and equipment 223 463 238 072 278 561
Investment properties 100 841 105 975 722 481
Goodwill 74 285 75 367 262 632
Software 7 452 9 707 15 401
Other acquired intangible assets - - 41 136
Non-current assets classified as held for sale 32 568 22 270 35 761
58 252 521 56 894 273 58 127 391
Liabilities
Deposits by banks 2 752 547 3 643 793 3 699 806
Derivative financial instruments 1 009 037 1 078 461 1 677 770
Other trading liabilities 1 587 927 1 338 597 1 266 517
Repurchase agreements and cash collateral on securities lent 1 157 856 1 006 272 967 077
Customer accounts (deposits) 41 164 221 39 531 563 39 607 597
Debt securities in issue 1 563 602 1 541 194 1 802 586
Liabilities arising on securitisation of own originated loans and advances 257 282 208 571 163 787
Liabilities arising on securitisation of other assets - 71 751 81 609
Current taxation liabilities 50 746 43 955 34 847
Deferred taxation liabilities 3 526 5 198 4 329
Other liabilities 1 820 820 1 822 981 2 317 398
Liabilities to customers under investment contracts 213 594 154 889 110 891
51 581 158 50 447 225 51 734 214
Subordinated liabilities 1 016 703 972 806 1 084 630
52 597 861 51 420 031 52 818 844
Equity
Ordinary share capital 243 247 247
Ordinary share premium 1 394 939 1 394 939 1 412 347
Treasury shares (574 560) (539 905) (498 883)
Other reserves (902 381) (856 111) (761 947)
Retained income 5 093 194 4 761 508 4 171 117
Ordinary shareholders' equity 5 011 435 4 760 678 4 322 881
Perpetual preference share capital and premium 128 072 127 136 136 259
Shareholders' equity excluding non-controlling interests 5 139 507 4 887 814 4 459 140
Other Additional Tier 1 securities in issue 516 364 586 103 398 568
Non-controlling interests (1 211) 325 450 839
Total equity 5 654 660 5 474 242 5 308 547
Total liabilities and equity 58 252 521 56 894 273 58 127 391
^ Restated refer to page 28.
Included in 'loans and advances to banks' £48 million (March 24: £19
million), 'reverse repurchase agreements and cash collateral on securities
borrowed' £235 million (March 24: £88 million), 'sovereign debt securities'
£340 million (March 24: £489 million), 'bank debt securities' £57 million
(March 24: £81 million), 'other debt securities' £nil (£41 million),
'securities arising from trading activities' £601 million (March 24: £237
million) and 'other loans and advances' £1 million (March 24: £3 million)
are assets provided as collateral where the transferee has the right to resell
or repledge.
Condensed combined consolidated statement of changes in equity
For the year to 31 March 2025 Ordinary shareholders' equity Perpetual preference share capital and share premium Shareholders' equity excluding non-controlling interests Other Additional Tier 1 securities in issue Non-controlling interests Total equity
Balance at the beginning of the year 4 760 678 127 136 4 887 814 586 103 325 5 474 242
Total comprehensive income 648 509 936 649 445 1 605 (179) 650 871
Share-based payments adjustments 71 531 - 71 531 - - 71 531
Dividends paid to ordinary shareholders (320 788) - (320 788) - - (320 788)
Dividends declared to perpetual preference shareholders and Other Additional (70 550) 11 546 (59 004) 59 004 - -
Tier 1 security holders
Dividends paid to perpetual preference and Other Additional Tier 1 security - (11 546) (11 546) (59 004) - (70 550)
holders
Dividends paid to non-controlling interests - - - - - -
Cancellation of special converting shares (4) - (4) - - (4)
Issue of Other Additional Tier 1 security instruments - - - 25 968 - 25 968
Redemption of Other Additional Tier 1 security instruments - - - (97 312) - (97 312)
Net equity impact of non-controlling interest movements 1 755 - 1 755 - (1 357) 398
Transfer to reserves (1 566) - (1 566) - - (1 566)
Acquisition of treasury shares (69 681) - (69 681) - - (69 681)
Net equity movements in associates and joint ventures (8 449) - (8 449) - - (8 449)
Balance at the end of the year 5 011 435 128 072 5 139 507 516 364 (1 211) 5 654 660
For the year to 31 March 2024 Ordinary shareholders' equity Perpetual preference share capital and share premium Shareholders' equity excluding non-controlling interests Other Additional Tier 1 securities in issue Non-controlling interests Total equity
Balance at the beginning of the year 4 322 881 136 259 4 459 140 398 568 450 839 5 308 547
Total comprehensive income 839 523 (9 383) 830 140 (13 338) (25 658) 791 144
Share-based payments adjustments^ 68 781 - 68 781 - - 68 781
Dividends paid to ordinary shareholders (296 712) - (296 712) - - (296 712)
Dividends declared to perpetual preference shareholders and Other Additional (49 076) 10 441 (38 635) 38 635 - -
Tier 1 security holders
Dividends paid to perpetual preference and Other Additional Tier 1 security - (10 441) (10 441) (38 635) - (49 076)
holders
Dividends paid to non-controlling interests - - - - (12 599) (12 599)
Share buyback of ordinary share capital (17 408) - (17 408) - - (17 408)
Repurchase of perpetual preference shares (14) 260 246 - - 246
Issue of Other Additional Tier 1 security instruments - - - 382 130 - 382 130
Redemption of Other Additional Tier 1 security instruments - - - (141 892) - (141 892)
Transaction with equity holders (2 971) - (2 971) - - (2 971)
Net equity impact of non-controlling interest movements - - - - 717 717
Gain on Additional Tier 1 security instruments callback 1 420 - 1 420 - - 1 420
Acquisition of treasury shares^ (105 746) - (105 746) - - (105 746)
Derecognition of non-controlling interests on deconsolidation of subsidiary - - - - (412 974) (412 974)
company
Other equity movements - - - (39 365) - (39 365)
Balance at the end of the year 4 760 678 127 136 4 887 814 586 103 325 5 474 242
^ Restated refer to page 82.
Condensed combined consolidated cash flow statement
£'000 Year to Year to
31 March 2024
31 March 2025
Cash flows from operating activities
Profit before taxation adjusted for non-cash, non-operating items and other 1 115 023 997 131
required adjustments
Taxation paid (145 791) (178 708)
Increase in operating assets (2 570 311) (2 395 897)
Increase in operating liabilities 1 033 287 1 708 927
Net cash (outflow)/inflow from operating activities (567 792) 131 453
Cash flows from investing activities
Cash flow on disposal of Group operations - 11 870
Cash flow on acquisition of Group operations, net of cash acquired - (28 559)
Derecognition of cash on disposal of subsidiaries - (174 953)
Cash flows from other investing activities 11 042 (17 728)
Net cash inflow/(outflow) from investing activities 11 042 (209 370)
Cash flows from financing activities
Dividends paid to ordinary shareholders (320 788) (296 712)
Dividends paid to other equity holders (74 417) (57 808)
Proceeds on issue of other Additional Tier 1 securities in issue 25 968 382 130
Repayment of other Additional Tier 1 securities in issue (97 312) (140 472)
Share buyback of ordinary share capital - (17 408)
Proceeds on subordinated liabilities raised 21 059 52 169
Repayment of subordinated liabilities - (153 688)
Cash flows from other financing activities (113 736) (140 267)
Net cash outflow from financing activities (559 226) (372 056)
Effects of exchange rates on cash and cash equivalents 559 (95 500)
Net decrease in cash and cash equivalents (1 115 417) (545 473)
Cash and cash equivalents at the beginning of the year 7 252 177 7 797 650
Cash and cash equivalents at the end of the year 6 136 760 7 252 177
In line with best practice, the detail of the cash flow statement has been
expanded.
Cash and cash equivalents comprise 'cash and balances at central banks' and
'loans and advances to banks', excluding £148.4 million (2024: £149.4
million) of balances that are not short term in nature, and net of £38.4
million (2024: nil) of overdrafts.
Headline earnings per share
£'000 Year to Year to
31 March 2025
31 March 2024
Headline earnings
Earnings attributable to shareholders 693 482 941 040
Financial impact of strategic actions of discontinued operations excluding - (280 737)
implementation costs
Taxation on strategic actions - 8 337
Dividends paid to perpetual preference shareholders and Other Additional Tier (70 550) (49 076)
1 security holders (other equity holders)
Property revaluation, net of taxation and non-controlling interests** (3 196) (1 958)
Impairment of software** 1 242 -
Gain on repurchase of perpetual preference shares - 1 406
Headline earnings attributable to ordinary shareholders 620 978 619 012
Weighted average number of shares in issue during the year 855 460 320 848 806 687
Headline earnings per share - pence*** 72.6 72.9
Diluted headline earnings per share - pence*** 70.0 70.0
Prior to becoming a subsidiary, the investment in Investec Continental Europe
Advisory met the definition of a venture capital investment as defined in the
Headline Earnings Circular 1/2023. During the prior period a gain of £4
million was recognised as a result of a stepped acquisition of Investec
Continental Europe Advisory from 30% to 60% that required a revaluation of the
previously held 30%. This amount was included in headline earnings.
** Taxation on property revaluation and impairment of software
adjustments amounted to £0.7 million (March 2024: £0.7 million) with no
impact on earnings attributable to non-controlling interests.
*** 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.
Adjusted earnings per share
£'000 Year to Year to
31 March 2025
31 March 2024
Adjusted earnings
Earnings attributable to shareholders 693 482 941 040
Amortisation of acquired intangibles - 7 907
Equity accounted amortisation of acquired intangibles 6 812 12 624
Equity accounted acquisition related and integration costs 28 815 9 631
Financial impact of strategic actions 21 023 -
Closure and rundown of the Hong Kong direct investments business 47 785
Financial impact of strategic actions of discontinued operations - (265 390)
Taxation on acquired intangibles and strategic actions 195 (879)
Taxation on acquired intangibles and strategic actions of discontinued - 6 722
operations
Dividends paid to perpetual preference shareholders and Other Additional Tier (70 550) (49 076)
1 security holders (other equity holders)
Accrual adjustment on earnings attributable to other equity holders* (3 029) (866)
Adjusted earnings attributable to ordinary shareholders 676 795 662 498
Weighted average number of shares in issue during the year 855 460 320 848 806 687
Adjusted earnings per share - pence 79.1 78.1
Diluted adjusted earnings per share - pence 76.3 74.9
* In accordance with IFRS® Accounting Standards, dividends
attributable to equity holders are accounted for when a constructive liability
arises i.e. on declaration by the Board of Directors and approval by the
shareholders where required. Investec's preference is to view EPS by adjusting
for earnings that are attributed to equity instruments (other than ordinary
shares) on an accrual basis and therefore adjusts the paid dividend on such
instruments to accrued in arriving at adjusted EPS.
Management's measure of segmental profit or loss
Management's measure of operating profit, 'adjusted operating profit', is
calculated based on pro-forma profit before taxation, adjusted to remove
goodwill, acquired intangibles and strategic actions, including such items
within equity accounted earnings, and non-controlling interests.
For the year to 31 March 2025 2024
£'000
Profit before taxation from continuing operations 863 148 822 498
Amortisation of acquired intangibles - 1 483
Financial impact of strategic actions* 21 023 -
Closure and rundown of the Hong Kong direct investments business 47 785
Adjustments related to equity accounted earnings 35 627 22 255
Amortisation of acquired intangibles 6 812 12 624
Acquisition related and integration costs within associate 28 815 9 631
Loss/(profit) attributable to non-controlling interests 152 (1 382)
Adjusted operating profit for continuing operations 919 997 845 639
Profit before taxation from discontinued operations - 50 633
Profit attributable to non-controlling interests of discontinued operations - (11 766)
Adjusted operating profit for total Group 919 997 884 506
* Included within this line in the current year are movements in
value on deferred considerations on various transactions, continuing
integration costs resulting from the Rathbones deal as well as various capital
costs incurred in contemplation of potential transactions. In the prior year,
strategic actions largely comprised the Rathbones and Burstone transactions,
and thus were included in discontinued operations.
Combined consolidated segmental analysis
Segmental geographical and business analysis of pro-forma 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 2025 Wealth & Investment Private Banking Corporate, Investment Banking and Other Group Investments Group Costs Total Group % change % of total
£'000
UK and Other 69 147 47 128 363 250 10 977 (33 522) 456 980 0.3% 49.7%
Southern Africa 43 169 154 555 274 113 7 667 (16 487) 463 017 7.9% 50.3%
Adjusted operating profit for Group 112 316 201 683 637 363 18 644 (50 009) 919 997 4.0% 100.0%
% change 8.2 % (2.5)% 5.6 % 29.8 % 13.2 % 4.0%
% of total 12.2% 21.9% 69.3% 2.0% (5.4) % 100.0%
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 % of total
£'000
UK and Other 66 869 58 739 347 454 11 721 (29 248) 455 535 51.5%
Southern Africa 36 973 148 155 256 148 2 643 (14 948) 428 971 48.5%
Adjusted operating profit for Group 103 842 206 894 603 602 14 364 (44 196) 884 506 100.0%
% of total 11.7% 23.4% 68.2% 1.6% (5.0) % 100.0%
^ Comparative figures have been restated to align with the
proforma results, as described above, to align with the way that financial
information is reported to the chief operating decision makers. In addition,
following a strategic review of our Private Capital business, previously
reported as part of our Private Banking segment, the business is now reported
in the Corporate, Investment Banking and Other segment. The comparative period
has been restated to reflect this change.
Pro-forma income statement
Given the nature of the IW&I UK and IPF transactions, the Group
essentially retained similar economic interest to these investments before and
after the transactions. To provide information that is more comparable to the
current year, the prior year has been presented on a pro-forma basis as if the
transactions had been in effect from the beginning of the prior year, 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 from the start of the prior
year.
£'000 Statutory income statement for the year to Re-presentation of discontinued operation - IPF Re-presentation of discontinued operation - Investec Wealth & Investment Year to 31 March 2024 Pro-forma
UK
31 March 2024
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 loss 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)
Profit attributable to non-controlling interests (1 382) - (1 382)
Adjusted operating profit 845 639 3 012 35 855 884 506
Operating profit before strategic actions and non-controlling interests of 62 606 (14 778) (47 828) -
discontinued operations*
Taxation on operating profit before goodwill and acquired intangibles (172 066) - - (172 066)
Taxation on operating profit before goodwill and acquired intangibles of (11 973) - 11 973 -
discontinued operations
724 206 (11 766) - 712 440
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 (49 942) - - (49 942)
Tier 1 security holders (other equity holders)
Adjusted earnings attributable to ordinary shareholders before goodwill, 662 498 - - 662 498
acquired intangibles and non-operating items
• Refer to discontinued operations disclosure on page 25.
Combined consolidated segmental geographical analysis of total assets and
total liabilities
At 31 March 2025 2024^
£'mn UK and Other Southern Africa Total Group UK and Other Southern Africa Total Group
Total assets 29 818 28 435 58 253 30 000 26 894 56 894
Total liabilities 26 306 26 292 52 598 26 501 24 919 51 420
^ Restated refer to page 28.
Combined consolidated segmental geographical analysis of operating income
Private Client
Specialist Banking
For the year to 31 March 2025 Wealth & Investment Private Banking Corporate, Investment Banking and Other Group Investments Total Group
£'000
UK and Other 69 147 100 570 989 763 10 977 1 170 457
Southern Africa 143 655 368 002 500 690 7 670 1 020 017
Operating income 212 802 468 572 1 490 453 18 647 2 190 474
Adjustments related to equity accounted earnings (35 627)
Amortisation of acquired intangibles (6 812)
Acquisition related and integration costs within associate (28 815)
Operating income per income statement 2 154 847
Private Client
Specialist Banking
For the year to 31 March 2024 Wealth & Investment Private Banking Corporate, Investment Banking and Other Group Investments Total Group
£'000
UK and Other 66 869 112 862 996 658 11 721 1 188 110
Southern Africa 123 820 313 521 456 918 2 877 897 136
Operating income pro-forma basis 190 689 426 383 1 453 576 14 598 2 085 246
Pro-forma adjustments (35 855) - - (3 012) (38 867)
Operating income 154 834 426 383 1 453 576 11 586 2 046 379
Adjustments related to equity accounted earnings (22 255)
Amortisation of acquired intangibles (12 624)
Acquisition related and integration costs within associate (9 631)
Operating income per income statement 2 024 124
Discontinued operations
During the 2024 financial 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 2024 2024
£'000
Operating profit before strategic actions and non-controlling interests 62 606
Amortisation of acquired intangibles (6 424)
Taxation on operating profit (11 973)
Taxation on amortisation of acquired intangibles 1 615
Operating profit before strategic actions and non-controlling interests from 45 824
discontinued operations
Financial impact of strategic actions net of taxation 257 053
Financial impact of strategic actions 265 390
Taxation on strategic actions (8 337)
Profit after taxation and financial impact of strategic actions from 302 877
discontinued operations
Profit attributable to non-controlling interests of discontinued operations (11 766)
Earnings from discontinued operations attributable to shareholders 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 2024.
For the year to 31 March 2024
£'000 UK and Southern Total
Other Africa
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
Financial impact of strategic actions of discontinued operations
For the year to 31 March 2024
£'000
Remeasurement on deconsolidation of IPF, net of gain on sale of IPF management (93 949)
business
Gain on the loss of control on the combination with Rathbones Group 359 339
Net financial impact of strategic actions of discontinued operations 265 390
Taxation on financial impact of strategic actions (8 337)
Net financial impact of strategic actions of discontinued operations 257 053
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 2024 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 (405 755)
(including goodwill)
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 242 355
Other assets 360 378
Other liabilities (369 573)
Net asset value of Investec Wealth & Investment previously consolidated 405 755
(including goodwill)
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 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
prior period, wholly owned by the Group and that the majority of directors of
IPF were associated with the Group. In the prior 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 2024 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 (545 891)
interests)
Non-controlling interest derecognised previously included in the consolidation 412 974
of IPF at 6 July 2023
Foreign currency translation reserve recycled to the income statement on (55 377)
distribution
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 (101 452)
and implementation costs
Major classes of assets and liabilities at date of deconsolidation
£'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 545 891
interests)
Balance sheet restatements
Derecognition of derivative assets and liabilities
Post the review of the accounting treatment of an aviation lease structure, it
was identified that at March 2024 'derivative financial instruments' assets of
£42.4 million (March 2023: £39.7 million) and 'derivative financial
instruments' liabilities of £63.4 million (March 2023: £59.0 million) were
incorrectly bifurcated from leases in the past. These have now been
derecognised in the comparative balances and included in the measurement of
associated lease contracts, leading to a reduction in 'other assets' of £14.1
million (March 2023: £13.0 million) and an increase in 'other liabilities' of
£6.8 million (March 2023: £6.3 million).
Variation margin balances
Historically, certain variation margin balances were offset against related
derivative trades. In the current year, the legal contracts and settlement
mechanisms were reconsidered. Because of the gross settlement mechanism, it
was concluded that these balances did not qualify for offset. Subsequently,
the derivative and margin balances have been grossed up, reflecting margin
accounts on the appropriate line items determined based on whether they are
to, or from, banking or non-banking counterparties.
Repurchase agreements
Certain equity stock trades entered into at the same time as related forward
purchase agreements, in respect of the same assets, were booked as separate
trades rather than in line with the true substance of the transaction, as a
single repurchase agreement. As a result, trading assets were derecognised or
short positions in respect of the same stock were incorrectly recognised
within 'other trading liabilities'. To appropriately reflect these
transactions, comparatives have been corrected to recognise the repurchase
agreements and stock positions, including reducing the short trading
securities positions, included in 'other trading liabilities', and the
financial instruments, previously recognised as reverse repurchase assets and
repurchase liabilities.
Presentation of taxation balances
In prior years, current tax assets and liabilities were incorrectly grossed
up. At 31 March 2023, deferred tax assets and liabilities were similarly
incorrectly grossed up. The prior year balance sheets have therefore been
restated to present the correct amounts.
Reclassification between treasury shares and other reserves
Historically, differences arising on re-issuing treasury shares held in
respect of staff share schemes have been inconsistently presented between
Group entities. In the current year, we have restated comparatives to align
this treatment, with the group policy of treasury shares held now being
reflected at cost and all movements on re-issuing treasury shares when
employee awards vest being recognised in equity within 'retained income'.
While implementing this change, we elected to transfer the capital reserve
account, which housed various historic equity adjustments including those from
past restructures to retained income as it does not provide useful information
to users. Share premium has also been restated to accurately reflect the legal
position, rather than incorporating further capital reserve amounts, which
have now instead been incorporated into retained income.
These changes had no impact on the income statement or earnings per share. The
movements in operating assets and liabilities within the cash flow statement
were affected due to these restatements, with a net nil impact on operating
cash flows.
The impact of these changes on the 31 March 2024 and 31 March 2023 balance
sheets are:
At 31 March 2024 Derecognition of derivative assets and liabilities Variation margin balances Repurchase agreements Presentation of taxation balances Reclassification between treasury shares and other reserves At 31 March 2024
as previously reported restated
£'000
Assets
Loans and advances to banks 1 063 745 - 58 291 - - - 1 122 036
Non-sovereign and non-bank cash placements 451 482 - 9 077 - - - 460 559
Reverse repurchase agreements and cash collateral on securities borrowed 4 381 520 - - (4 634) - - 4 376 886
Derivative financial instruments 853 938 (42 439) 219 867 - - - 1 031 366
Securities arising from trading activities 1 596 260 - - 64 963 - - 1 661 223
Current taxation assets 64 378 - - - (28 742) - 35 636
Other assets 1 672 582 (14 126) 6 289 - - 1 664 745
Total assets 56 625 727 (56 565) 293 524 60 329 (28 742) - 56 894 273
Liabilities
Deposits by banks 3 446 776 - 197 017 - - - 3 643 793
Derivative financial instruments 1 069 119 (63 407) 72 749 - - - 1 078 461
Other trading liabilities 1 369 332 - - (30 735) - - 1 338 597
Repurchase agreements and cash collateral on securities lent 915 208 - - 91 064 - - 1 006 272
Customer accounts (deposits) 39 507 805 - 23 758 - - - 39 531 563
Current taxation liabilities 72 697 (28 742) 43 955
Other liabilities 1 816 139 6 842 - - - - 1 822 981
Total liabilities 51 151 485 (56 565) 293 524 60 329 (28 742) - 51 420 031
Equity
Ordinary share premium 1 010 066 - - - - 384 873 1 394 939
Treasury shares (604 994) - - - - 65 089 (539 905)
Other reserves (866 739) - - - - 10 628 (856 111)
Retained income 5 222 098 - - - - (460 590) 4 761 508
Total equity 5 474 242 - - - - - 5 474 242
At 31 March 2023 Derecognition of derivative assets and liabilities Variation margin balances Repurchase agreements Presentation of taxation balances Reclassification between treasury shares and other reserves At 1 April 2023
as previously reported restated
£'000
Assets
Loans and advances to banks 1 450 627 - 167 953 - - - 1 618 580
Non-sovereign and non-bank cash placements 442 254 - 24 706 - - - 466 960
Reverse repurchase agreements and cash collateral on securities borrowed 3 995 190 - - (1 543) - - 3 993 647
Derivative financial instruments 1 363 912 (39 658) 133 584 - - - 1 457 838
Securities arising from trading activities 1 836 327 - - 18 578 - - 1 854 905
Current taxation assets 69 322 - - - (34 933) - 34 389
Deferred taxation assets 234 034 - - - (22 216) - 211 818
Other assets 2 030 476 (12 997) 1 547 - - - 2 019 026
Total assets 57 892 370 (52 655) 327 790 17 035 (57 149) - 58 127 391
Liabilities
Deposits by banks 3 617 524 - 82 282 - - - 3 699 806
Derivative financial instruments 1 543 140 (58 950) 193 580 - - - 1 677 770
Other trading liabilities 1 278 452 - - (11 935) - - 1 266 517
Repurchase agreements and cash collateral on securities lent 938 107 - - 28 970 - - 967 077
Customer accounts (deposits) 39 555 669 - 51 928 - - - 39 607 597
Current taxation liabilities 69 780 - - - (34 933) - 34 847
Deferred taxation liabilities 26 545 - - - (22 216) - 4 329
Other liabilities 2 311 103 6 295 - - - - 2 317 398
Total liabilities 52 583 823 (52 655) 327 790 17 035 (57 149) - 52 818 844
Equity
Ordinary share premium 1 208 161 - - - - 204 186 1 412 347
Treasury shares (564 678) - - - - 65 795 (498 883)
Other reserves (773 262) - - - - 11 315 (761 947)
Retained income 4 452 413 - - - - (281 296) 4 171 117
Total equity 5 308 547 - - - - - 5 308 547
Income statement restatements
Investec's Rewards programme revenue recognition
Investec's Rewards programme awards cardholders points in proportion to
eligible transactions. These points are, in substance, a reduction in fees.
Historically, these have been incorrectly reflected as 'fee and commission
expense', therefore a restatement has been performed to reduce 'fee and
commission income' for the points allocated within the prior period.
Re-presentation of strategic actions and associates
In prior periods, Investec's equity accounted income was split between
operating profit and loss and non-operating items such as amortisation of
intangibles and profit and loss impacts from strategic actions on the face of
the income statement. We have amended the presentation whereby Investec's
total share of earnings of associates and joint ventures is now presented as a
single line on the face of the income statement. As a consequence, some of the
subtotals previously presented are no longer appropriate and have been
removed.
These changes had no impact on earnings per share or cash flow statement.
£'000 Year to Investec's Rewards programme revenue recognition Re-presentation of strategic actions and associates Year to
31 March 2024 31 March 2024 restated
as previously
reported
Interest income 4 124 150 - - 4 124 150
Interest expense (2 785 457) - - (2 785 457)
Net interest income 1 338 693 - - 1 338 693
Fee and commission income 482 668 (25 677) - 456 991
Fee and commission expense (66 481) 25 677 - (40 804)
Investment income 60 381 - - 60 381
Share of post-taxation profit of associates and joint venture holdings 55 949 - (22 255) 33 694
Profit before amortisation and integration costs 55 949 - - 55 949
Amortisation of acquired intangibles - - (12 624) (12 624)
Acquisition related and integration costs within associate - - (9 631) (9 631)
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 - (22 255) 2 024 124
Expected credit loss impairment charges (79 113) - - (79 113)
Operating income after expected credit loss impairment charges 1 967 266 - (22 255) 1 945 011
Operating costs (1 120 245) - - (1 120 245)
Amortisation of acquired intangibles (1 483) - - (1 483)
Amortisation of acquired intangibles of associates (5 679) - 5 679 -
Closure and rundown of the Hong Kong direct investments business (785) - - (785)
Financial impact of strategic actions (16 576) - 16 576 -
Profit before taxation from continuing operations 822 498 - - 822 498
Taxation (171 187) - - (171 187)
Taxation on operating profit before goodwill and acquired intangibles (172 066) - - (172 066)
Taxation on acquired intangibles and net gain on distribution of associate to 879 - - 879
shareholders
Profit after taxation from continuing operations 651 311 - - 651 311
Profit after taxation and financial impact of strategic actions from 302 877 - - 302 877
discontinued operations
Operating profit before non-controlling interests from discontinued operations 45 824 - - 45 824
Financial impact of strategic actions net of taxation from discontinued 257 053 - - 257 053
operations
Profit after taxation from total Group 954 188 - - 954 188
Profit attributable to non-controlling interests (1 382) - - (1 382)
Profit attributable to non-controlling interests of discontinued operations (11 766) - - (11 766)
Earnings of total Group attributable to shareholders 941 040 - - 941 040
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 and is reassessed at each reporting date.
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
Investec Group (the Group) notes the recent Court of Appeal decisions on
Wrench, Johnson and Hopcraft relating to motor commission arrangements and the
lender's appeal to the UK Supreme Court which was heard on 1 April to 3 April
2025. Judgement is expected by July 2025.
The Court of Appeal has determined that motor dealers acting as credit brokers
owe certain duties to disclose to their customers commission payable to them
by lenders, and that lenders may have primary or secondary liability for motor
dealers' non-disclosures. This sets a higher bar for the disclosure of and
consent to the existence, nature, and quantum of any commission paid than had
been understood to be required or applied across the motor finance industry
prior to the Court of Appeal ruling. Our approach to compliant disclosure was
built on FCA / regulatory guidance and previous legal authorities. These
decisions relate to commission disclosures and consent obligations which go
beyond the scope of the current FCA motor commissions review. The UK Supreme
Court granted relevant lenders permission to appeal the Wrench, Johnson and
Hopcraft judgement on 1 April to 3 April 2025, to which we are awaiting the
outcome from.
In establishing the provision estimate, the Group has created a number of
scenarios to address uncertainties around a number of key assumptions. These
include the potential outcomes of the UK Supreme Court appeal, any steps that
the FCA may take and outcomes in relation to the extent of harm and remedies.
Other key assumptions include applicable commission models, commission rates,
time periods, response rates, uphold rates, levels of redress / interest
applied and costs to deliver. Based on this approach the Group has concluded
that the £30 million provision still remains appropriate based on information
currently available.
The Group will continue to assess developments and potential impacts,
including the outcome of the appeals, any announcement by the FCA of their
next steps, and any action by other regulators or government bodies. Given
that there is significant uncertainty across the motor finance 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 following the Court of Appeal decision and FCA motor commission
review. The Group therefore notes that the ultimate financial impact of the
Court of Appeal decision and ongoing FCA investigation into motor commission
arrangements could materially vary, pending further guidance from the FCA or
the outcome of the appeal to the Supreme Court.
Events after the reporting period
There have been no significant events subsequent to the reporting date that
would require adjustment to or disclosure in the financial statements. In the
ordinary course of business, events may occur that influence the credit
quality of loans and advances. At the date of this report, we have concluded
that no changes are required to our ECL provisions or there is insufficient
new information available since 31 March 2025 of any conditions which existed
at the balance sheet date to reliably estimate any adjustments to these ECL
provisions
Net fee and commission income
For the year to 31 March 2025 UK and Southern Total
£'000 Other Africa
Wealth & Investment net fee and commission income - 128 505 128 505
Fund management fees/fees for funds under management - 74 026 74 026
Private client transactional fees - 58 883 58 883
Fee and commission expense - (4 404) (4 404)
Specialist Banking net fee and commission income 171 463 164 233 335 696
Specialist Banking fee and commission income* 184 319 200 878 385 197
Specialist Banking fee and commission expense (12 856) (36 645) (49 501)
Group Investments net fee and commission income - (360) (360)
Group Investments fee and commission income - - -
Group Investments fee and commission expense - (360) (360)
Net fee and commission income 171 463 292 378 463 841
Fee and commission income 184 319 333 787 518 106
Fee and commission expense (12 856) (41 409) (54 265)
Net fee and commission income 171 463 292 378 463 841
Annuity fees (net of fees payable) 27 889 210 446 238 335
Deal fees 143 574 81 932 225 506
For the year to 31 March 2024 UK and Southern Total
£'000 Other Africa^
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* 164 043 181 609 345 652
Specialist Banking fee and commission expense (15 458) (21 725) (37 183)
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 164 043 292 948 456 991
Fee and commission expense (15 458) (25 346) (40 804)
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
^ Restated refer to page 28.
* Included in Specialist Banking fee and commission income is
£9.0 million (2024: £7.1 million) for operating lease income which is out of
the scope of IFRS 15 - Revenue from Contracts with Customers.
Analysis of financial assets and liabilities by category of financial
instrument
At 31 March 2025 Total Amortised Non-financial Total
instruments at cost instruments or
fair value scoped out of
IFRS 9
£'000
Assets
Cash and balances at central banks - 5 003 272 - 5 003 272
Loans and advances to banks - 1 321 060 - 1 321 060
Non-sovereign and non-bank cash placements 38 171 387 204 - 425 375
Reverse repurchase agreements and cash collateral on securities borrowed 668 034 3 622 249 - 4 290 283
Sovereign debt securities 2 823 133 3 267 042 - 6 090 175
Bank debt securities 451 176 224 146 - 675 322
Other debt securities 308 681 889 060 - 1 197 741
Derivative financial instruments 844 360 - - 844 360
Securities arising from trading activities 2 005 831 - - 2 005 831
Loans and advances to customers 3 015 417 29 011 487 - 32 026 904
Own originated loans and advances to customers securitised - 360 488 - 360 488
Other loans and advances - 139 087 - 139 087
Other financial instruments at fair value through profit or loss in respect of 206 272 - - 206 272
liabilities to customers
Investment portfolio 697 582 - - 697 582
Interests in associated undertakings and joint venture holdings - - 846 009 846 009
Current taxation assets - - 25 751 25 751
Deferred taxation assets - - 204 971 204 971
Other assets 124 717 868 692 460 020 1 453 429
Property and equipment - - 223 463 223 463
Investment properties - - 100 841 100 841
Goodwill - - 74 285 74 285
Software - - 7 452 7 452
Non-current assets classified as held for sale - - 32 568 32 568
11 183 374 45 093 787 1 975 360 58 252 521
Liabilities
Deposits by banks - 2 752 547 - 2 752 547
Derivative financial instruments 1 009 037 - - 1 009 037
Other trading liabilities 1 587 927 - - 1 587 927
Repurchase agreements and cash collateral on securities lent 679 756 478 100 - 1 157 856
Customer accounts (deposits) 2 246 002 38 918 219 - 41 164 221
Debt securities in issue - 1 563 602 - 1 563 602
Liabilities arising on securitisation of own originated loans and advances - 257 282 - 257 282
Current taxation liabilities - - 50 746 50 746
Deferred taxation liabilities - - 3 526 3 526
Other liabilities 41 913 1 179 944 598 963 1 820 820
Liabilities to customers under investment contracts 213 594 - - 213 594
5 778 229 45 149 694 653 235 51 581 158
Subordinated liabilities - 1 016 703 - 1 016 703
5 778 229 46 166 397 653 235 52 597 861
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 2025 Total Level 1 Level 2 Level 3
instruments at
fair value
£'000
Assets
Non-sovereign and non-bank cash placements 38 171 - 38 171 -
Reverse repurchase agreements and cash collateral on securities borrowed 668 034 - 668 034 -
Sovereign debt securities 2 823 133 2 823 133 - -
Bank debt securities 451 176 425 552 25 624 -
Other debt securities 308 681 98 332 162 663 47 686
Derivative financial instruments 844 360 - 838 008 6 352
Securities arising from trading activities 2 005 831 1 897 139 108 692 -
Loans and advances to customers 3 015 417 - 408 430 2 606 987
Other financial instruments at fair value through profit or loss in respect of 206 272 139 120 40 168 26 984
liabilities to customers
Investment portfolio 697 582 224 634 5 024 467 924
Other assets 124 717 124 717 - -
11 183 374 5 732 627 2 294 814 3 155 933
Liabilities
Derivative financial instruments 1 009 037 - 1 008 210 827
Other trading liabilities 1 587 927 354 129 1 233 798 -
Repurchase agreements and cash collateral on securities lent 679 756 - 679 756 -
Customer accounts (deposits) 2 246 002 - 2 246 002 -
Other liabilities 41 913 - 41 913 -
Liabilities to customers under investment contracts 213 594 4 229 182 381 26 984
5 778 229 358 358 5 392 060 27 811
Net financial assets/(liabilities) at fair value 5 405 145 5 374 269 (3 097 246) 3 128 122
Transfers between level 1 and level 2
There were no significant 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 Discount rate, risk-free rate, volatilities, forex forward points and spot
derivative pricing models including Black-Scholes and Local Volatility rates, interest rate swap curves and credit curves
Securities arising from trading activities Discounted cash flow model Interest rate curves, implied bond spreads and yield curves
Loans and advances to customers Discounted cash flow model Yield curves
Other financial instruments at fair value through profit or loss in respect of Current price of underlying unitised assets Listed prices
liabilities to customers
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 Discount rate, risk-free rate, volatilities, forex forward points and spot
derivative pricing models including Black-Scholes. rates, interest rate swap curves and credit curves
Other trading liabilities Discounted cash flow model, Hermite interpolation and including Local Discount rate, risk-free rates forex forward points and spot rates, interest
Volatility 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
Other liabilities Discounted cash flow model Yield curves
Liabilities to customers under investment contracts 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 Loans and Other securitised Other balance Total
portfolio advances to assets sheet assets^
customers^
Assets
Balance at 1 April 2024 559 637 2 125 400 66 704 85 935 2 837 676
Total gains 36 528 233 577 724 11 968 282 797
In the income statement 36 528 214 459 724 11 968 263 679
In the statement of comprehensive income - 19 118 - - 19 118
Purchases 27 834 3 201 706 - 6 804 3 236 344
Sales (10 834) (1 166 693) - (421) (1 177 948)
Issues - 2 142 - - 2 142
Settlements (110 610) (1 746 979) (8 403) (15 559) (1 881 551)
Transfer to associated undertakings and joint venture holdings (34 497) - - - (34 497)
Transfers out of level 3 - (1 825) - - (1 825)
Deconsolidation of subsidiaries - - (59 025) (1 998) (61 023)
Foreign exchange adjustments (134) (40 341) - (5 707) (46 182)
Balance at 31 March 2025 467 924 2 606 987 - 81 022 3 155 933
£'000 Liabilities arising Other balance Total
on securitisation sheet liabilities^
of other assets
Liabilities
Balance at 1 April 2024 71 751 16 686 88 437
Total losses in the income statement 311 9 865 10 176
Purchases - 1 326 1 326
Settlements (7 637) - (7 637)
Deconsolidation of subsidiaries (64 425) (136) (64 561)
Foreign exchange adjustments - 70 70
Balance at 31 March 2025 - 27 811 27 811
^ Derivatives within 'other balance sheet assets' and 'other
balance sheet liabilities' have been restated as per page 28. At 1 April 2024,
certain fair value loans within 'loans and advances to customers' with a value
of £45.7m were deemed to have significant unobservable inputs in their
valuation and therefore were corrected from level 2 to level 3. Additionally,
the opening balances were restated by £15.8m to reflect unquoted investments
which were previously reflected as level 2 instruments within 'other financial
instruments at fair value through profit or loss in respect of liabilities to
customers' and 'liabilities to customers under investment contracts' included
in 'other balance sheet assets' and 'other balance sheet liabilities'
respectively.
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. There were no material transfers into or out of level 3 during the
current 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 2025 Total Realised Unrealised
£'000
Total gains included in the income statement for the year
Net interest income 224 967 198 564 26 403
Fee and commission income 5 5 -
Investment income/(loss) 29 273 (10 338) 39 611
Trading loss from customer flow (742) - (742)
253 503 188 231 65 272
Total gains included in other comprehensive income for the year
Gain on realisation on debt instruments at FVOCI recycled through the income 268 268 -
statement
Fair value movements on debt instruments at FVOCI taken directly to other 19 118 - 19 118
comprehensive income
19 386 268 19 118
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. Reasonable possible changes are
determined depending on the nature of the instrument, for example, for credit
related inputs, this is a one rating grade movement up or down. In other
instances, the extent of a reasonable change is based on market experience.
At 31 March 2025 Balance sheet Principal valuation technique Significant unobservable input changed Range of unobservable input used Favourable Unfavourable
value changes changes
£'000 £'000 £'000
Assets
Other debt securities 47 686 Potential impact on income statement 1 918 (3 213)
Discounted cash flows Cash flow adjustments CPR 13.94% 256 (164)
Underlying asset value Underlying asset value^^ ^^ 1 361 (2 700)
Discounted cash flows Credit spreads 0.36% - 1.5% 57 (105)
Other Other ^ 244 (244)
Derivative financial instruments 6 352 Potential impact on income statement 1 058 (702)
Option pricing model Volatilities 7.5% - 16.95% - (1)
Underlying asset value Underlying asset value^^ ^^ 1 (3)
Other Other^ ^ 1 057 (698)
Loans and advances to customers 2 606 987 Potential impact on income statement 26 700 (34 457)
Discounted cash flows Credit spreads 0.14% - 4.65% 6 263 (14 212)
Underlying asset value Property value ** 12 750 (15 376)
Price earnings Price earnings multiple 4.5x 675 (1 101)
Underlying asset value Underlying asset value^^ ^^ 5 455 (2 211)
Discounted cash flows Credit spreads 37.33 % 1 557 (1 557)
Potential impact on other comprehensive income 17 712 (32 737)
Discounted cash flows Credit spreads 0.16% - 5.72% 17 712 (32 737)
Investment portfolio 467 924 Potential impact on income statement 55 895 (78 677)
Price earnings Price earnings multiple 1.6x - 7.5x 5 662 (10 660)
Underlying asset value Underlying asset value^^ ^^ 9 320 (18 487)
Price earnings EBITDA ** 18 863 (18 668)
Price earnings Price earnings multiple 3.3x - 7.8x 2 768 (5 502)
Discounted cash flows Cash flows ** 912 (912)
Underlying asset value Underlying asset value^^ ^^ 1 364 (1 821)
Discounted cash flows Discount rates ** 1 472 (458)
Discounted cash flows Discount rates 10% - 15% 4 446 (8 314)
Other Other^ ^ 11 088 (13 855)
Other financial instruments at fair value through profit or loss in respect of 26 984 Potential impact on income statement 2 698 (2 698)
liabilities to customers
Underlying asset value Underlying asset value^^ ^^ 2 698 (2 698)
Total level 3 assets 3 155 933 105 981 (152 484)
Liabilities
Derivative financial instruments 827 Potential impact on income statement (12) -
Other Other^ ^ (12) -
Liabilities to customers under investment contracts 26 984 Potential impact on income statement (2 698) 2 698
Underlying asset value Underlying asset value^^ ^^ (2 698) 2 698
Total level 3 liabilities 27 811 (2 710) 2 698
Net level 3 assets 3 128 122 103 271 (149 786)
^ Other - The valuation sensitivity has been
assessed by adjusting various inputs such as expected cash flows, probability
of recovery, 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 earnings before interest, taxes, depreciation and amortisation of the
company being valued. 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
The property value 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. To the extent possible, 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 2025 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 5 003 272 5 003 272 - -
Loans and advances to banks 1 321 060 1 321 060 - -
Non-sovereign and non-bank cash placements 387 204 387 204 - -
Reverse repurchase agreements and cash collateral on securities borrowed 3 622 249 2 696 837 925 412 925 960
Sovereign debt securities 3 267 042 491 101 2 775 941 2 789 425
Bank debt securities 224 146 12 898 211 248 207 638
Other debt securities 889 060 90 779 798 281 800 698
Loans and advances to customers 29 011 487 14 265 926 14 745 561 14 716 697
Own originated loans and advances to customers securitised 360 488 360 488 - -
Other loans and advances 139 087 90 899 48 188 48 165
Other assets 868 692 868 692 - -
45 093 787 25 589 156 19 504 631 19 488 582
Liabilities
Deposits by banks 2 752 547 477 452 2 275 095 2 300 261
Repurchase agreements and cash collateral on securities lent 478 100 395 634 82 466 82 126
Customer accounts (deposits) 38 918 219 24 157 994 14 760 225 14 860 105
Debt securities in issue 1 563 602 273 171 1 290 431 1 298 278
Liabilities arising on securitisation of own originated loans and advances 257 282 257 282 - -
Other liabilities 1 179 944 1 179 252 692 189
Subordinated liabilities 1 016 703 334 489 682 214 712 548
46 166 397 27 075 274 19 091 123 19 253 507
Analysis of gross core loans, asset quality and ECL
The loan book has maintained its strong positioning. Stage 3 exposures have
reduced as a proportion of the loan book to 2.8% of gross core loans subject
to ECL (or £912 million) from 3.4% (or £1 040 million) at 31 March 2024,
demonstrating continued resilience of the overall portfolio in the current
conditions. The Group's credit loss ratio of 38bps at 31 March 2025 (31 March
2024: 28bps), remains within the through-the-cycle range of 25-45bps and in
line with guidance. This was driven by a small number of increased
idiosyncratic impairments in the UK, in part given higher for longer rates
and challenges in achieving anticipated exit valuations. Additionally, there
were fewer post write off recoveries in South Africa when compared to last
financial year.
UK and Other Southern Africa Total Group
£'million 31 March 2025 31 March 2024 31 March 2025 31 March 2024 31 March 2025 31 March 2024
Gross core loans 16 956 16 744 15 688 14 460 32 644 31 204
Gross core loans at FVPL (excluding fixed rate loans) 572 641 61 64 633 705
Gross core loans subject to ECL(*) 16 384 16 103 15 627 14 396 32 011 30 499
Stage 1 14 520 14 181 14 842 13 543 29 362 27 724
Stage 2 1 328 1 391 409 344 1 737 1 735
of which past due greater than 30 days 60 150 32 28 92 178
Stage 3(#) 536 531 376 509 912 1 040
ECL(^) (165) (187) (115) (116) (280) (303)
Stage 1 (34) (43) (21) (27) (55) (70)
Stage 2 (31) (33) (11) (11) (42) (44)
Stage 3 (100) (111) (83) (78) (183) (189)
Coverage ratio
Stage 1 and 2 0.4% 0.5% 0.2% 0.3% 0.3% 0.4%
Stage 3 18.7% 20.9% 22.1% 15.3% 20.1% 18.2%
Total coverage ratio 1.0% 1.2% 0.7% 0.8% 0.9% 1.0%
Credit loss ratio 0.60% 0.58% 0.15% (0.04%) 0.38% 0.28%
ECL impairment (charges)/releases on core loans (97) (90) (22) 5 (119) (85)
Average gross core loans subject to ECL 16 244 15 631 15 011 14 644 31 255 30 275
* Includes portfolios for which ECL is not required for IFRS
purposes, but which management evaluates on this basis. These are fixed rate
loans which have passed the solely payments of principal and interest (SPPI)
test and are held in a business model to collect contractual cash flows but
have been designated at FVPL to eliminate accounting mismatches (interest rate
risk is being economically hedged). The underlying loans have been fair valued
and management performs an ECL calculation in order to obtain a reasonable
estimate of the credit risk component. The portfolio is managed on the same
basis as gross core loans measured at amortised cost. £0.3 billion of the
drawn exposure falls into Stage 1 (31 March 2024: £0.6 billion), £1 million
in Stage 2 (31 March 2024: £1 million) and the remaining £47 million in
Stage 3 (31 March 2024: £42 million). The ECL on the Stage 1 portfolio is £1
million (31 March 2024: £1 million), ECL on the Stage 2 portfolio is £nil
(31 March 2024: £nil) and ECL on the Stage 3 portfolio is £8 million (31
March 2024: £5 million).
(#) Stage 3 exposures disclosed above are net of suspended
interest of £36 million (31 March 2024: £31 million).
^ Comprises ECL held against both amortised cost and FVOCI
loans.
Macro-economic scenarios
UK and Other
For Investec plc, four macro-economic scenarios are used in the measurement of
ECL. These scenarios incorporate a base case, an upside case and two downside
cases.
As part of the annual scenario review and in light of the current
macro-economic environment, the composition of the downside scenarios have
been adjusted to incorporate downside 1 - trade war scenario which replaces
the downside 1 - inflation scenario that was used at 31 March 2024. The
downside 2 - global stress (cautious easing, severe recession scenario), has
also been replaced with the downside 2 - global synchronised downturn
scenario. This is designed as a severe economic shock to act as a proxy for a
variety of unforeseen tail risks.
A review of the probability weightings of the scenarios also took place to
take into account the latest economic circumstances and the associated risks
to the outlook. Since 31 March 2024, the probability weighting on the upside
and base case scenarios remained at 10% and 60% respectively. The downside 1 -
trade war scenario which was allocated a 20% weighting, the downside 2 -
global synchronised downturn scenario was given a 10% weight. The risks to
economic activity remain skewed to the downside, with the weightings
calibrated to consider the risk of an escalated global trade war and the
ramifications for inflation, monetary policy and activity. The risk of an
unanticipated global demand shock is taken into account with downside 2 -
global synchronised downturn scenario.
South Africa
For Investec Limited, five macro-economic scenarios incorporate a base case,
two upside cases and two downside cases.
As at 31 March 2025 all five scenarios were updated to incorporate the latest
available data. Scenario weightings have been adjusted since 31 March 2024
with a decreased weighting to the lite down case (43% to 32%), increased
weighting to the up case and extreme up case (2% to 15%) and (1% to 2%)
respectively, increased weighting to the base case (45% to 50%) and decreased
weighting to the severe down case (9% to 1%). The base case includes the view
that economic growth is modest but improves year-on-year in a five year period
on sufficient domestic policy support measures, while global financial market
risk sentiment is neutral to positive.
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 45
Notice is hereby given that final dividend number 45, being a gross dividend
of 20.00000 pence (2024: 19.00000 pence) per ordinary share has been declared
by the Board from income reserves in respect of the year ended 31 March 2025,
payable to shareholders recorded in the shareholders' register of the Company
at the close of business on Friday, 15 August 2025 .
• For Investec plc shareholders, registered on the United Kingdom share
register, through a dividend payment by Investec plc from income reserves of
20.00000 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 20.00000 pence per ordinary share.
The relevant dates relating to the payment of dividend number 45 are as
follows:
Last day to trade cum-dividend Tuesday 12 August 2025
On the Johannesburg Stock Exchange (JSE) Wednesday 13 August 2025
On the London Stock Exchange (LSE)
Shares commence trading ex-dividend Wednesday 13 August 2025
On the Johannesburg Stock Exchange (JSE) Thursday 14 August 2025
On the London Stock Exchange (LSE)
Record date (on the JSE and LSE) Friday 15 August 2025
Payment date (on the JSE and LSE) Friday 29 August 2025
Share certificates on the South African branch register may not be
dematerialised or rematerialised between Wednesday 13 August 2025 and Friday
15 August 2025, both dates inclusive, nor may transfers between the United
Kingdom share register and the South African branch register take place
between Wednesday 13 August 2025 and Friday 15 August 2025, 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 20.00000 pence, equivalent to a gross
dividend of 483.98400 cents per share (rounded to 484.00000 cents per ordinary
share), has been arrived at using the Rand/Pound Sterling average buy/sell
forward rate of 24.19920, as determined at 11h00 (SA time) on Wednesday
21 May 2025
• 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 484.00000
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
387.20000 cents per share (gross dividend of 484.00000 cents per share less
Dividend Tax of 96.80000 cents per share), paid by Investec Limited on the SA
DAS share.
By order of the Board
David Miller
Company Secretary
21 May 2025
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 138
Notice is hereby given that final dividend number 138, being a gross dividend
of 484.00000 cents (2024: 444.00000 cents) per ordinary share has been
declared by the Board from income reserves in respect of the year ended
31 March 2025 payable to shareholders recorded in the shareholders' register
of the Company at the close of business on Friday 15 August 2025.
The relevant dates relating to the payment of dividend number 138 are as
follows:
Last day to trade cum-dividend Tuesday 12 August 2025
Shares commence trading ex-dividend Wednesday 13 August 2025
Record date Friday 15 August 2025
Payment date Friday 29 August 2025
The final gross dividend of 483.98400 cents per share (rounded to 484.00000
cents per ordinary share) has been determined by converting the Investec plc
distribution of 20.00000 pence per ordinary share into Rands using the
Rand/Pound Sterling average buy/sell forward rate of 24.19920 at 11h00 (SA
time) on Wednesday 21 May 2025.
Share certificates may not be dematerialised or rematerialised between
Wednesday 13 August 2025 and Friday 15 August 2025, both dates inclusive,
nor may transfers between the South African share register and the United
Kingdom, Botswana and/or Namibia branch register/s take place between
Wednesday 13 August 2025 and Friday 15 August 2025, both dates inclusive.
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 484.00000 cents per ordinary share
• Shareholders who are not exempt from paying the Dividend Tax will
receive a net dividend of 387.20000 cents per ordinary share (gross dividend
of 484.00000 cents per ordinary share less Dividend Tax of 96.80000 cents per
ordinary share).
By order of the Board
Niki van Wyk
Company Secretary
21 May 2025
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 38
Notice is hereby given that preference dividend number 38 has been declared by
the Board from income reserves in respect of the year ended 31 March 2025
amounting to a gross preference dividend of 28.55478 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 13 June 2025.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of
28.55478 pence per preference share is equivalent to a gross dividend of
687.65050 cents per share, which has been determined using the Rand/Pound
Sterling average buy/sell forward rate of 24.08180 as at 11h00 (SA time) on
Wednesday 21 May 2025.
The relevant dates relating to the payment of dividend number 38 are as
follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday 10 June 2025
On the International Stock Exchange (TISE) Wednesday 11 June 2025
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday 11 June 2025
On the International Stock Exchange (TISE) Thursday 12 June 2025
Record date (on the JSE and TISE) Friday 13 June 2025
Payment date (on the JSE and TISE) Friday 27 June 2025
Share certificates may not be dematerialised or rematerialised between
Wednesday 11 June 2025 and Friday 13 June 2025, both dates inclusive, nor
may transfers between the United Kingdom share register and the South African
branch register take place between Wednesday 11 June 2025 and Friday 13 June
2025, both dates inclusive.
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 should be regarded as a 'foreign dividend' for
South African Income Tax purposes and is subject to South African Dividend Tax
(Dividend Tax) of 20% (subject to any available exemptions as legislated) as
it is paid from the United Kingdom
• The net dividend amounts to 550.12040 cents per preference share for
preference shareholders liable to pay the Dividend Tax and 687.65050 cents per
preference share for preference shareholders exempt from paying the Dividend
Tax.
By order of the Board
David Miller
Company Secretary
21 May 2025
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 28
Notice is hereby given that preference dividend number 28 has been declared by
the Board from income reserves in respect of the year ended 31 March 2025
amounting to a gross preference dividend of 532.26027 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, 13 June 2025 .
The relevant dates relating to the payment of dividend number 28 are as
follows:
Last day to trade cum-dividend Tuesday 10 June 2025
Shares commence trading ex-dividend Wednesday 11 June 2025
Record date Friday 13 June 2025
Payment date Friday 20 June 2025
Share certificates may not be dematerialised or rematerialised between
Wednesday 11 June 2025 and Friday 13 June 2025, both dates inclusive.
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 should be regarded as a 'foreign dividend' for
South African Income Tax purposes and is subject to South African Dividend Tax
(Dividend Tax) of 20% (subject to any available exemptions as legislated) as
it is paid from the United Kingdom
• The net dividend amounts to 425.80822 cents per preference share for
preference shareholders liable to pay the Dividend Tax and 532.26027 cents per
preference share for preference shareholders exempt from paying the Dividend
Tax.
By order of the Board
David Miller
Company Secretary
21 May 2025
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 41
Notice is hereby given that preference dividend number 41 has been declared by
the Board from income reserves in respect of the year ended 31 March 2025
amounting to a gross preference dividend of 435.83160 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 13 June 2025.
The relevant dates for the payment of dividend number 41 are as follows:
Last day to trade cum-dividend Tuesday 10 June 2025
Shares commence trading ex-dividend Wednesday 11 June 2025
Record date Friday 13 June 2025
Payment date Friday 20 June 2025
Share certificates may not be dematerialised or rematerialised between
Wednesday 11 June 2025 and Friday 13 June 2025, both dates inclusive.
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 348.66528 cents per preference share for
shareholders liable to pay the Dividend Tax and 435.83160 cents per preference
share for preference shareholders exempt from paying the Dividend Tax.
By order of the Board
Niki van Wyk
Company Secretary
21 May 2025
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
Auditor
Deloitte LLP
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
Auditors
Deloitte & Touche
PricewaterhouseCoopers Inc.
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 Hourquebie(1, 2) (Chair)
Fani Titi(2) (Chief Executive)
Nishlan Samujh(2) (Finance Director)
Henrietta Baldock(1) (Senior Independent Director)
Vivek Ahuja(3)
Stephen Koseff (2, 4)
Nicky Newton-King(1, 2)
Jasandra Nyker(2
) Vanessa Olver(2
) Diane Radley(2
) Brian Stevenson(1)
1 British
2 South African
3 Singaporean
4 Australian
Zarina Bassa and Philisiwe Sibiya stepped down from the Board on 8 August
2024.
Vivek Ahuja was appointed to the Board on 6 May 2025.
Sponsor
Investec Bank Limited
100 Grayston Drive
Sandown, Sandton
2196, South Africa
PO Box 785700, Sandton
2146, South Africa
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