REG - Investec PLC - Results for the six months ended 30 September 2021
18/11/2021 07:00
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RNS Number : 7407S Investec PLC 18 November 2021
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
NSX share code: IVD JSE share code: INP
ISIN: GB00B17BBQ50
BSE share code: INVESTEC
LEI: 2138007Z3U5GWDN3MY22
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Reviewed combined consolidated financial results for the six months ended 30
September 2021
Highlights for 30 September 2021 (1H2022) compared to 30 September 2020
(1H2021)
• Revenue grew 30.5% supported by the strength of our client franchises
and improved market conditions.
• Adjusted earnings per share increased 134.8% to 26.3p (1H2021: 11.2p),
ahead of comparable pre-COVID levels (September 2019).
• Wealth & Investment funds under management (FUM) increased 8.6% to
£63.0 billion (31 March 2021: £58.0 billion) underpinned by net inflows of
£1.5 billion, market recovery and good investment performance.
• Loan books within Specialist Banking grew 7.2% to £28.3 billion (31
March 2021: £26.4 billion) given increased activity levels and continued
client acquisition in both geographies.
• The cost to income ratio improved to 64.0% (1H2021: 72.0%), with
operating costs increasing 11.7%. Fixed operating expenditure increased 3.3%
reflecting continued cost discipline.
• Pre-provision adjusted operating profit increased 61.2% to £336.0
million (1H2021: £208.5 million), 9.3% ahead of September 2019.
• Expected credit loss (ECL) impairment charges were 84.5% lower,
resulting in a credit loss ratio (CLR) of 7bps (31 March 2021: 35bps; 1H2021:
47bps), reflecting strong asset quality and higher recoveries.
• Return on equity (ROE) was 11.2% for the period (1H2021: 5.3%) and
return on tangible equity (ROTE) was 12.1% (1H2021: 5.8%).
• Tangible net asset value (TNAV) per share increased 10.2% (annualised)
to 445.2p (31 March 2021: 423.6p). Net asset value (NAV) per share increased
9.3% (annualised) to 479.2p (31 March 2021: 458.0p).
• Maintained strong capital, funding, and liquidity positions.
• The Board has proposed an interim dividend of 11.0p (1H2021: 5.5p)
resulting in a payout ratio of 41.8%.
• The Board has further resolved to distribute a 15% holding in Ninety
One to shareholders.
Updated guidance for 31 March 2022 (FY2022)
• Updated FY2022 adjusted earnings per share guidance of between 48p and
53p (Range guided in May 2021: 36p - 41p).
Fani Titi, Group Chief Executive commented:
"The group delivered a strong first half result, underpinned by resilient
client franchises, strong revenue momentum and sound asset quality - resulting
in adjusted earnings per share of 26.3p, ahead of comparable pre-COVID levels.
I am pleased to share that the Board has proposed an interim dividend of 11.0p
relative to 5.5p in 1H2021.
Further, in line with our strategy to optimise the allocation of capital, the
Board has resolved to distribute a 15% holding in Ninety One to our
shareholders.
I am grateful for the hard work and commitment of my colleagues, which has
enabled us to deliver this solid result.
The strength of the relationships we have built with our clients is reflected
in the trust they have continued to place in our people and our organisation.
The changes made to simplify and focus the group are bearing fruit,
positioning us well for the future. Our resilient business model and strong
balance sheet will support our drive to achieve sustainable long-term value
and growth for our colleagues, clients, shareholders, and societies in which
we live."
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 six
months ended 30 September 2021 (1H2022). Unless stated otherwise, comparatives
relate to the group's operations for the six-month period ended 30 September
2020 (1H2021). The average Rand/Pound Sterling exchange rate appreciated by
9.6% relative to 1H2021.
Performance 1H2022 1H2021 Variance % Neutral currency
change % change
Total operating income before expected credit losses (£'m) 951.1 729.0 222.1 30.5 % 24.8 %
Operating costs (£'m) 598.5 535.8 62.7 11.7 % 7.8 %
Adjusted operating profit (£'m) 325.7 142.5 183.2 128.6 % 116.9 %
Adjusted earnings attributable to shareholders (£'m) 242.3 104.4 137.9 132.2 % 121.2 %
Adjusted basic earnings per share (pence) 26.3 11.2 15.1 134.8 % 123.2 %
Basic earnings per share (pence) 25.0 9.6 15.4 160.4 % 146.9 %
Headline earnings per share (pence) 24.7 9.2 15.5 168.5 % 154.3 %
Dividend per share (pence) 11.0 5.5
Dividend payout ratio 41.8 % 49.1 %
CLR (credit loss ratio) 0.07 % 0.47 %
Cost to income ratio 64.0 % 72.0 %
ROE (return on equity) 11.2 % 5.3 %
ROTE (return on tangible equity) 12.1 % 5.8 %
Balance sheet 1H2022 FY2021 Variance % change Neutral currency % change
Funds under management (£'bn) 63.4 58.4 5.0 8.5 % 8.4 %
Customer accounts (deposits) (£'bn) 36.4 34.4 2.0 5.5 % 5.3 %
Core loans and advances (£'bn) 28.3 26.4 1.9 7.2 % 7.0 %
Cash and near cash (£'bn) 13.9 13.2 0.7 5.4 % 5.3 %
NAV per share (pence) 479.2 458.0 21.2 4.6 % 4.3 %
TNAV per share (pence) 445.2 423.6 21.6 5.1 % 4.8 %
Performance, capital and leverage by geography 1H2022 1H2021 Variance % change Neutral currency % change
Investec Limited (Southern Africa)
Adjusted operating profit (£'m) 191.9 99.1 92.8 93.6 % 73.5 %
Cost to income ratio 52.5 % 58.7 %
ROE 12.0 % 8.1 %
ROTE 12.0 % 8.1 %
CET1 13.9 % 12.2 %
Leverage 7.6 % 7.6 %
Investec plc (UK & Other)
Adjusted operating profit (£'m) 133.8 43.4 90.4 208.6 % n/a
Cost to income ratio 73.3 % 81.1 %
ROE 10.5 % 2.8 %
ROTE 12.2 % 3.3 %
CET1 11.1 % 11.2 %
Leverage 7.8 % 7.9 %
Interim dividend
The Board has proposed an interim dividend of 11.0p (1H2021: 5.5p),
translating to a 41.8% payout ratio, within the group's 30% to 50% payout
range.
Distribution of 15% holding in Ninety One
Given the group's strong capital generation; capital optimisation strategy;
and in line with previous communication that 15% of Ninety One is surplus to
our capital requirements, the Board has resolved to distribute the 15% holding
to shareholders whilst retaining an approximate 10% interest.
The distribution will be subject to regulatory, shareholder and other
approvals.
Announcements will be made in due course updating shareholders on the
distribution terms and process.
Outlook
Based on the group's performance to date, we have updated our FY2022 adjusted
earnings per share guidance to between 48p - 53p (Range guided in May 2021:
36p - 41p). We will provide further guidance in our March 2022 pre-close
briefing.
The macro-economic environment is improving; however, global recovery remains
uneven. Underlying consumer and business confidence in our core markets will
continue to be tested by the ongoing presence of COVID-19, along with the
consequences of Brexit in the UK and the slow progress in implementing
economic reforms in South Africa.
Enquiries
Investec Investor Relations
Results: Qaqambile Dwayi
Tel: +27 (0) 83 457 2134 (mobile)
General enquiries:
Tel: +27 (0) 11 286 7070 or investorrelations@investec.com
Brunswick (SA PR advisers)
Graeme Coetzee
Tel: +27 (0) 63 685 6053 (mobile)
Lansons (UK PR advisers)
Tom Baldock
Tel: +44 (0) 78 6010 1715 (mobile)
Presentation/conference call details
Investec management will host its interim results presentation on Thursday 18
November at 11:00 (SA) / 09:00 (UK).
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 8,200+
employees.
Investec has a dual listed company structure with primary listings on the
London and Johannesburg Stock Exchanges.
Johannesburg and London
Sponsor: Investec Bank Limited
Group financial performance
Overview
Our performance reflects higher income levels and significantly lower
impairment charges, partly offset by increased operating costs. The group's
underlying client franchises showed resilience with continued momentum in
client acquisition in both geographies which underpinned loan and deposit
growth within banking, and net inflows in wealth management.
The prior period was negatively impacted by the effects of general economic
contraction brought on by COVID-19 related lockdowns which affected
transactional levels, net interest margins, valuations, and impairments. In
this reporting period, we have experienced the positive effects of higher
client activity, favourable liability repricing and sustained market
improvement. Additionally, risk management and risk reduction costs associated
with the UK structured products book were immaterial in the current period.
Pre-provision adjusted operating profit increased 61.2% to £336.0 million
(1H2021: £208.5 million).
Revenue increased 30.5% to £951.1 million (1H2021: £729.0 million)
Net interest income increased 29.7% to £459.8 million (1H2021: £354.4
million) driven by higher average lending books and lower funding costs across
the group as liabilities repriced and as the UK business grew into the
elevated liquidity built up in the early months of the pandemic.
Non-interest revenue (NIR) increased by 31.2% to £491.4 million (1H2021:
£374.6 million).
• Net fee and commission income increased by 18.6% to £391.2 million
(1H2021: £329.8 million) driven by improved client activity across the
specialist bank and higher average FUM in Wealth & Investment.
• Investment income decreased by 79.3% to £3.5 million (1H2021: £16.9
million) due to the non-repeat of realisations in the prior period.
• Share of post-taxation profit of associates and joint venture holdings
increased 155.1% to £41.5 million (1H2021: £16.3 million) due to improved
performance across the Group Investments' portfolio.
• Trading income arising from customer flow was £65.1 million compared
to a loss of £8.5 million in the prior period as risk management and risk
reduction costs associated with the UK structured products book were c.£52
million lower than the prior period (underpinned by risk mitigation strategies
implemented on the book and improving markets). We expect these costs to
remain immaterial should markets remain stable.
• Trading income arising from balance sheet management and other trading
activities cost £18.5 million compared to income of £8.1 million in the
prior period, mainly resulting from currency and interest rate hedges on the
balance sheet.
• Other operating income of £8.5 million (1H2021: £12.0 million)
reflects the fair value movements of the Ninety One shares held in the group's
staff share scheme. These shares are reflected on the group's balance sheet in
other assets. The corresponding liability is reflected in other liabilities
with changes in the value of the liability expensed through staff costs in
operating costs.
Expected credit loss (ECL) impairment charges decreased by 84.5% to £10.2
million (1H2021: £66.0 million) resulting in a credit loss ratio of 7bps (31
March 2021: 35bps; 2H2021: 24bps; 1H2021: 47bps)
Overall, the group has maintained prior period post-model adjustments and in
certain instances, introduced further adjustments following model driven
provision releases given improved macro-economic factors. The post-model
adjustments account for risks which management believe are not reflected in
the models.
Operating costs increased 11.7% to £598.5 million (1H2021: £535.8 million)
driven by higher variable remuneration
The cost to income ratio improved to 64.0% from 72.0% in the prior period.
Operating costs increased by 11.7%, with fixed costs increasing 3.3% in the
period.
Taxation
The taxation charge on adjusted operating profit was £63.7 million (1H2021:
£20.9 million), resulting in an effective tax rate of 21.2% (1H2021: 18.8%).
In the UK, the lower effective tax rate of 11.0% (1H2021: 18.5%) was driven by
higher deferred tax assets arising from enacted higher tax rates. We
anticipate this effect to reduce in the second half as the enacted bank
surcharge reduces from 8% to 3%. The surcharge is levied on bank profits in
addition to the UK corporation tax.
In SA, the higher rate of 27.1% (1H2021: 18.9%) was influenced by one-off
adjustments to certain deferred tax assets.
The effects of the above largely offset each other.
Profit or loss attributable to other non-controlling interests
The profit attributable to other non-controlling interests was £16.7 million
compared to a loss of £15.3 million in the prior period. This relates to the
profit and loss attributable to non-controlling interests in the Investec
Property Fund (IPF).
Funding and liquidity
Customer deposits grew 5.5% to £36.4 billion (31 March 2021: £34.5 billion).
Cash and near cash of £13.9 billion (£7.3 billion in Investec plc and R134.6
billion in Investec Limited) at 30 September 2021 represents 38.4% of customer
deposits.
The group comfortably exceeds Basel liquidity requirements for the Liquidity
Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
• Investec Bank Limited (consolidated group) ended the period to 30
September 2021 with the three-month average of its LCR at 158.0% and an NSFR
of 110.6%.
• For Investec plc, the LCR and NSFR are calculated using the relevant
EU regulation, applying our own interpretations where required. The LCR
reported to the PRA at 30 September 2021 was 284% and the internally
calculated NSFR was 127% at 30 September 2021.
Capital adequacy and leverage ratios
Capital and leverage ratios remain sound, ahead of Board-approved minimum
targets and regulatory requirements. The CET1 and leverage ratio were 13.9%
and 7.6% for Investec Limited (partial AIRB) and 11.1% and 7.8% for Investec
plc (standardised approach) respectively.
Segmental performance
Wealth & Investment
Adjusted operating profit from the Wealth & Investment business increased
by 41.4% to £57.7 million (1H2021: £40.8 million).
Wealth & Investment Southern Africa UK & Other
1H2022 1H2021 Variance 1H2022 1H2021 Variance
£'m £'m £'m % % in Rands £'m £'m £'m %
Operating income 49.4 36.5 12.9 35.4 % 22.6 % 173.9 155.1 18.8 12.1 %
Operating costs (33.8) (24.5) (9.3) 38.0 % 24.9 % (131.7) (126.2) (5.5) 4.4 %
Adjusted operating profit 15.6 12.0 3.6 30.1 % 17.8 % 42.2 28.9 13.3 46.1 %
Totals and variance determined in £'000 which may result in rounding
differences.
Southern Africa Wealth & Investment (in Rands)
Adjusted operating profit for SA Wealth & Investment increased 17.8%
(1H2021: R264 million).
The SA business reported 11.7% growth in FUM to R372.1 billion (31 March 2021:
R333.0 billion) supported by R10.1 billion of discretionary and annuity net
inflows (non-discretionary net inflows of R6.8 billion), strong investment
performance and favourable market conditions.
Revenue grew by 22.6% supported by sustained inflows into our offshore product
range and higher average discretionary and annuity assets.
Operating costs increased 24.9%, driven by higher variable remuneration and
increased average headcount of investment specialists, wealth managers and
information technology (IT) personnel. The cost to income ratio increased to
68.5% (1H2021: 67.2%).
UK & Other Wealth & Investment
Adjusted operating profit for UK & Other Wealth & Investment increased
46.1% to £42.2 million (1H2021: £28.9 million).
The business achieved record FUM during the period, reporting £44.7 billion
at 30 September 2021 (31 March 2021: £41.7 billion), supported by net inflows
of £627 million.
Revenue grew by 12.1% supported by higher market levels, positive net organic
growth in FUM of 3.0%, as well as favourable investment performance.
Commission income returned to normalised levels as the exceptionally high
trading volumes seen at the onset of COVID-19 were not repeated.
Operating costs were higher by 4.4% driven by continued investment in
technology, increased discretionary expenditure as COVID-19 related
restrictions eased and the normalisation of variable staff compensation in
line with business performance. One-off costs in the base of c.£3.5 million
(relating to headcount reduction) were not repeated.
The UK domestic business (which accounts for 97.1% of FUM) reported an
operating margin of 26.0% (1H2021: 20.5%), while a combined operating margin
for UK & Other of 24.3% (1H2021: 18.6%) was achieved.
Specialist Banking
Adjusted operating profit from Specialist Banking increased 143.8% to £257.9
million (1H2021: £105.8 million).
Specialist Banking Southern Africa UK & Other
1H2022 1H2021 Variance 1H2022 1H2021 Variance
£'m £'m £'m % % in Rands £'m £'m £'m %
Operating income 352.7 262.8 89.9 34.2 % 21.6 % 328.7 273.8 55.0 20.1 %
ECL impairment charges (4.0) (24.2) 20.2 (83.5 %) (84.8 %) (4.9) (39.9) 35.0 (87.8 %)
Operating costs (175.6) (145.6) (29.9) 20.5 % 9.1 % (239.4) (221.5) (17.9) 8.1 %
Loss attributable to NCI 0.3 - 0.3 100.0 % 100.0 % - 0.5 (0.5) (100.0 %)
Adjusted operating profit 173.4 92.9 80.5 86.7 % 69.1 % 84.5 12.9 71.6 554.8 %
Totals and variance determined in £'000 which may result in rounding
differences.
Southern Africa Specialist Banking (in Rands)
Adjusted operating profit for the SA bank increased 69.1% to R3 460 million
(1H2021: R2 046 million).
Strong revenue growth of 21.6%, was positively impacted by recovery in NIR as
the bank saw increased client activity levels across the board, liability
repricing, lower impairments, higher average loan balances and good client
acquisition. This was partly offset by higher investment write-downs on
certain portfolios in the current period, mark-to-market (MTM) losses in
balance sheet management and the non-repeat of prior period gains from hedging
non-ZAR investments.
Net interest income increased 17.4% driven by lower funding costs and higher
average lending books (particularly within the private bank).
Non-interest revenue increased 33.1% driven primarily by higher fee income on
the back of higher lending and forex (FX) turnover, increased structuring fees
and recovery in point-of-sale relative to the prior period. Client flow
trading income increased as equity derivatives, FX and interest rate trading
desks took advantage of favourable market movements in a more predictable
trading environment.
Expected credit loss impairment charges decreased 84.8% to R81 million,
resulting in a CLR of 4bps (31 March 2021: 18bps; 1H2021: 35bps). The decline
was mainly driven by higher recoveries in the period and lower specific
impairments. Modelled impairments (stage 1 and 2) reduced given the improved
economic outlook. Post-model overlays were retained given the uncertainty that
remains.
The cost to income ratio was lower at 49.7% (1H2021: 55.4%) given continued
cost discipline and higher revenues. Total operating costs increased 9.1%,
with fixed costs increasing by 3.7%.
Net core loans grew by 3.4% to R297.1 billion (31 March 2021: R287.3 billion)
driven primarily by the private clients' loan book. Strong growth in corporate
lending turnover was offset by elevated repayment rates as clients used excess
liquidity to pay down facilities.
UK & Other Specialist Banking
Adjusted operating profit for the UK bank increased substantially to £84.5
million (1H2021: £12.9 million).
Revenue grew by 20.1% influenced by lower cost of funds, increased loan
origination, FX flows, reduced structured products book costs, and client
acquisition within Private Banking. Corporate lending activity increased
across portfolios supported by new client acquisition.
Net interest income increased 24.6% driven by lower cost of funding and higher
average lending books, partially offset by the impact of the disposal of the
Australian corporate book in March 2021.
Non-interest revenue increased 10.9% mainly attributable to:
• Lower risk management and risk reduction costs associated with the UK
structured products book (£1.2 million in 1H2022 vs £53.0 million in
1H2021), offset by
• Decreased investment income due to lower net realisations in the
current period, and
• Reduced balance sheet management and other trading activities, driven
by costs associated with the early redemption of a senior bond and interest
rate hedges on the balance sheet.
Expected credit loss impairment charges decreased 87.8% to £4.9 million,
resulting in a credit loss ratio of 9bps (31 March 2021: 56bps; 1H2021:
60bps). Specific impairments in the period and run-rate ECL charges on the
performing book totalled £8.1 million and the effect of updated
macro-economic scenarios together with the new management overlay and in-model
adjustments resulted in an ECL release of £3.2 million. This includes an
increase in post-model ECL overlay provisions of £5.0 million to £21.0
million, taking into consideration the uncertainties that management believe
remain in the environment.
Operating costs increased 8.1% driven by higher variable remuneration and
discretionary spend in line with revenue growth. The increase was offset by
cost savings from reduced headcount across the business. Fixed costs were well
contained, declining 3.5% over the period. The cost to income ratio reduced to
72.8% (1H2021: 80.7%).
Net core loans grew by 11.0% (12.4% excluding Australia) to £13.7 billion (31
March 2021: £12.3 billion) driven by strong private clients book growth (up
19.6%) in the period and continued client acquisition. Demand for corporate
credit was strong across several portfolios with book growth of 7.8% (9.5%
excluding Australia) since year end.
Group Investments
Group Investments includes the group's 25% holding in Ninety One, 47.4% stake
in the IEP Group, 24.31% held in the Investec Property Fund (IPF) and some
other equity investments.
Group Investments Southern Africa UK & Other
1H2022 1H2021 Variance 1H2022 1H2021 Variance
£'m £'m £'m % % in Rands £'m £'m £'m %
Operating income (net of ECL charges) 28.6 (12.7) 41.3 325.1 % 306.3 % 16.5 11.8 4.7 39.9 %
Operating costs (0.9) (0.6) (0.3) 60.8 % 44.6 % - - - -
(Profit) /loss attributable to NCI (17.0) 14.7 (31.7) (215.5 %) (206.8 %) - - - -
Adjusted operating profit 10.7 1.4 9.2 647.5 % 643.7 % 16.5 11.8 4.7 39.9 %
Totals and variance determined in £'000 which may result in rounding
differences.
Adjusted operating profit from Group Investments increased by 105.5% to £27.2
million (1H2021: £13.2 million) driven by:
• improved performance in the underlying investee companies within IEP,
• growth in earnings from Ninety One in the period under review, and
• lower negative fair value adjustments in the property portfolio and
the non-repeat of prior period losses in IPF's UK associate investment.
Group Costs
Group Costs decreased by 1.7% to £17.0 million (1H2021: £17.3 million).
Further information
Additional information on each of the business units is provided in the group
interim report published on the group's website: http://www.investec.com.
On behalf of the boards of Investec plc and Investec Limited
Philip Hourquebie Fani Titi
Chair Group Chief Executive
17 November 2021
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 in which the
economic and voting rights of ordinary shareholders of the companies are
maintained in equilibrium relative to each other. 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 interim results reflect the results and financial position
of the combined DLC group under UK adopted International Financial Reporting
Standards (IFRS) which comply with IFRS as issued by the International
Accounting Standards Board (IASB), 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 including the ongoing
impact of the COVID-19 pandemic, 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 six month period ended 30 September 2021 has
accordingly been prepared on the going concern basis.
Unless the context indicates otherwise, all comparatives included in the
commentary above relate to the period ended 30 September 2020.
Amounts represented on a neutral currency basis for income statement items
assume that the relevant average exchange rates for the period ended 30
September 2021 remain the same as those in the prior period. Amounts
represented on a neutral currency basis for balance sheet items assume that
the relevant closing exchange rates at 30 September 2021 remain the same as
those at 31 March 2021.
Neutral currency information is considered as pro-forma financial information
as per the JSE Listings Requirements and is therefore the responsibility of
the group's board of directors. Pro-forma financial information was prepared
for illustrative purposes and because of its nature may not fairly present the
issuer's financial position, changes in equity, or results of operations. The
external auditors performed a review of the pro-forma financial information
and the opinion is available for inspection at the registered office of
Investec upon request.
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 and US Dollars. 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:
Six months to Year ended Six months to
30 September 2021 31 March 2021 30
Se
pt
em
be
r
20
20
Currency Closing Average Closing Average Closing Average
per GBP1.00
South African Rand 20.29 19.94 20.36 21.33 21.58 22.05
Australian Dollar 1.86 1.85 1.81 1.82 1.80 1.85
Euro 1.16 1.16 1.17 1.12 1.10 1.12
US Dollar 1.35 1.39 1.38 1.31 1.29 1.27
Profit Forecast
The following matters highlighted in this announcement contain forward-looking
statements:
• Adjusted EPS is expected to be between 48p and 53p in FY2022
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
17 November 2021.
This forward looking statement represents a profit forecast under the Listing
Rules. The Profit Forecast relates to the year ending 31 March 2022.
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 30 September 2021 reviewed interim financial statements, which are in
accordance with IFRS.
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 COVID-19 or otherwise.
• The Rand/Pound Sterling 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.
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 the private equity,
direct investments portfolios and embedded derivatives. Key valuation inputs
are based on the most relevant observable market inputs, adjusted where
necessary for factors that specifically apply to the individual investments
and recognising market volatility.
• The determination of ECL against assets that are carried at amortised
cost and ECL relating to debt instruments at fair value through other
comprehensive income (FVOCI) involves the assessment of future cash flows
which is judgmental in nature.
• Valuation of investment properties is performed by capitalising the
budget 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.
Accounting policies, significant judgements and disclosures
These reviewed condensed combined consolidated financial results have been
prepared in terms of the recognition and measurement criteria of 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 30 September 2021, 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 six
months ended 30 September 2021 are consistent with those adopted in the
financial statements for year ended 31 March 2021.
The combined consolidated financial results for the period ended 30 September
2021 have been reviewed by Ernst & Young LLP and Ernst & Young Inc.,
who expressed an unmodified review conclusion. A copy of the auditors review
opinion is available for inspection at the company's registered office
together with the financial statements identified in the auditors report or on
our website.
The financial results have been prepared under the supervision of Nishlan
Samujh, the Group Finance Director. The interim financial statements for the
six months ended 30 September 2021 are available on the group's website:
www.investec.com
Proviso
• Please note that matters discussed in this announcement may contain
forward-looking statements which are subject to various risks and
uncertainties and other factors, including, but not limited to:
- changes in the political and/or economic environment that would
materially affect the Investec group
- changes in the economic environment caused by the resulting lockdowns
and government programmes aimed to stimulate the economy
- 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 actual 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 17 November 2021.
• The information in the group's announcement for the six months ended
30 September 2021, which was approved by the board of directors on 17 November
2021, does not constitute statutory accounts as defined in Section 435 of the
UK Companies Act 2006. The 31 March 2021 financial statements were filed with
the registrar and were unqualified with the audit report containing no
statements in respect of sections 498(2) or 498(3) of the UK Companies Act.
• The financial information on which forward-looking statements are
based is the responsibility of the directors of the group and has not been
reviewed and reported on by the group's auditors.
This announcement is available on the group's website:
www.investec.com
Definitions
• Adjusted operating profit refers to operating profit before goodwill,
acquired intangibles and strategic actions and after adjusting for earnings
attributable to other non-controlling interests. Non-IFRS measures such as
adjusted operating profit are 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. The external auditors performed a review of the
pro-forma financial information and the opinion is available for inspection at
the registered office of Investec upon request.
• Adjusted earnings is calculated by adjusting basic earnings
attributable to shareholders for the amortisation of acquired intangible
assets, non-operating items including strategic actions, and earnings
attributable to perpetual preference shareholders and other additional tier 1
security holders.
• Adjusted basic earnings per share is calculated as adjusted earnings
attributable to shareholders divided by the weighted average number of
ordinary shares in issue during the year.
• Headline earnings is adjusted earnings plus the after tax financial
effect of strategic actions and the amortisation of acquired intangible
assets. Headline earnings is an earnings measure required to be calculated and
disclosed by the JSE and is calculated in accordance with the guidance
provided in Circular 1/2021.
• 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.
• The credit loss ratio is calculated as expected credit loss (ECL)
impairment charges on gross core loans as a percentage of average gross core
loans subject to ECL.
• The cost to income ratio is calculated as: operating costs divided by
operating income before expected credit loss impairment charges (net of
operating profits or losses attributable to other non-controlling interests).
• Return on average ordinary shareholders' equity (ROE) is calculated as
adjusted earnings attributable to ordinary shareholders divided by average
ordinary shareholders' equity.
• Return on average tangible ordinary shareholders' equity (ROTE) is
calculated as adjusted earnings attributable to ordinary shareholders divided
by average tangible ordinary shareholders' equity.
• Core loans is defined as net loans to customers plus net own
originated securitised assets.
• NCI is non-controlling interests.
Financial assistance
Shareholders are referred to Special Resolution number 30, which was approved
at the annual general meeting held on 5 August 2021, 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 2021 to 30 September 2021 to various group subsidiaries.
Johannesburg and London
Sponsor: Investec Bank Limited
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 9.6% against the comparative six-month period ended 30
September 2020, and the closing rate has appreciated by 0.3% since 31 March
2021. The following tables provide an analysis of the impact of the Rand on
our reported numbers.
Results in Pounds Sterling Results in Rands
Six months to 30 Sept 2021 Six months to 30 Sept 2020 % Neutral currency^ Six months to 30 Sept 2021 Neutral Six months to 30 Sept 2021 Six months to 30 Sept 2020 %
change currency change
%
change
Adjusted operating profit before taxation (million) £326 £142 128.6 % £308 116.9 % R6 496 R3 143 106.7 %
Earnings attributable to shareholders (million) £250 £109 129.4 % £236 117.4 % R4 977 R2 405 106.9 %
Adjusted earnings attributable to shareholders (million) £242 £104 132.2 % £230 121.2 % R4 832 R2 309 109.3 %
Adjusted earnings per share 26.3 p 11.2 p 134.8 % 25.0p 123.2 % 524c 248c 111.3 %
Basic earnings per share 25.0 p 9.6 p 160.4 % 23.7p 146.9 % 499c 212c 135.4 %
Headline earnings per share 24.7 p 9.2 p 168.5 % 23.4p 154.3 % 494c 213c 131.9 %
Results in Pounds Sterling Results in Rands
At 30 Sept 2021 At 31 March 2021 % Neutral currency^^ At 30 Sept 2021 Neutral At 30 Sept 2021 At 31 March 2021 %
change currency change
%
change
Net asset value per share 479.2 p 458.0 p 4.6 % 477.9p 4.3 % 9 723c 9 326c 4.3 %
Tangible net asset value per share 445.2 p 423.6 p 5.1 % 443.9p 4.8 % 9 033c 8 624c 4.7 %
Total equity (million) £5 514 £5 312 3.8 % £5 503 3.6 % R111 880 R108 161 3.4 %
Total assets (million) £53 454 £51 512 3.8 % £53 356 3.6 % R1 084 593 R1 048 867 3.4 %
Core loans (million) £28 336 £26 438 7.2 % £28 284 7.0 % R574 951 R538 320 6.8 %
Cash and near cash balances (million) £13 949 £13 229 5.4 % £13 926 5.3 % R283 028 R269 364 5.1 %
Customer accounts (deposits) (million) £36 353 £34 449 5.5 % £36 284 5.3 % R737 610 R701 446 5.2 %
Funds under management (million) £63 419 £58 436 8.5 % £63 352 8.4 % R1 286 775 R1 189 872 8.1 %
^ For income statement items we have used the average Rand: Pound
Sterling exchange rate that was applied in the prior period, i.e. 22.05.
^^ For balance sheet items we have assumed that the Rand: Pound
Sterling closing exchange rate has remained neutral since 31 March 2021.
Condensed combined consolidated income statement
£'000 Six months to Six months to Year to
30 Sept 2021
30 Sept 2020^ 31 March 2021
Interest income 985 473 1 009 374 1 922 299
Interest expense (525 699) (654 971) (1 144 193)
Net interest income 459 774 354 403 778 106
Fee and commission income 414 181 349 668 791 153
Fee and commission expense (22 966) (19 842) (42 275)
Investment income 3 491 16 859 32 002
Share of post-taxation profit of associates and joint venture holdings 41 502 16 272 42 459
Trading income/(loss) arising from
- customer flow 65 141 (8 527) 35 566
- balance sheet management and other trading activities (18 452) 8 144 (18 903)
Other operating income 8 461 11 983 22 953
Total operating income before expected credit loss impairment charges 951 132 728 960 1 641 061
Expected credit loss impairment charges (10 237) (65 974) (99 438)
Operating income 940 895 662 986 1 541 623
Operating costs (598 453) (535 755) (1 164 513)
Operating profit before goodwill, acquired intangibles and strategic actions 342 442 127 231 377 110
Impairment of goodwill - - (11 599)
Impairment of associates and joint venture holdings - - (16 773)
Amortisation of acquired intangibles (7 773) (7 603) (15 287)
Amortisation of acquired intangibles of associates (4 628) (4 625) (9 268)
Closure and rundown of the Hong Kong direct investments business (596) (2 158) 7 386
Profit before taxation 329 445 112 845 331 569
Taxation on operating profit before goodwill, acquired intangibles and (63 720) (20 892) (74 539)
strategic actions
Taxation on acquired intangibles and strategic actions 620 1 558 1 712
Profit after taxation 266 345 93 511 258 742
Loss/(profit) attributable to other non-controlling interests (16 712) 15 255 472
Loss attributable to non-controlling interests relating to impairments of - - 9 126
associates
Earnings attributable to shareholders 249 633 108 766 268 340
^ Restated as detailed below.
Earnings per share
Six months to Six months to Year to
30 Sept 2021
30 Sept 2020 31 March 2021
Earnings per share - pence 25.0 9.6 25.2
Diluted earnings per share - pence 24.4 9.5 24.9
Consolidated statement of total comprehensive income
£'000 Six months to Six months to Year to
30 Sept 2021
30 Sept 2020 31 March 2021
Profit after taxation 266 345 93 511 258 742
Other comprehensive income:
Items that may be reclassified to the income statement
Fair value movements on cash flow hedges taken directly to other comprehensive (5 822) (4 427) 242
income^
Fair value movements on debt instruments at FVOCI taken directly to other 4 004 84 566 152 355
comprehensive income^
Gain on realisation of debt instruments at FVOCI recycled through the (847) (1 446) (717)
income statement^
Foreign currency adjustments on translating foreign operations 14 903 17 837 111 779
Items that will never be reclassified to the income statement
Effect of rate change on deferred taxation relating to adjustment for IFRS 9 1 049 828 380
Fair value movements on equity instruments at FVOCI taken directly to other 1 043 736 1 778
comprehensive income^
Remeasurement of net defined benefit pension liability - (32) (39)
Net gain/(loss) attributable to own credit risk^ 4 928 (1 725) (850)
Total comprehensive income 285 603 189 848 523 670
Total comprehensive income attributable to ordinary shareholders 247 456 171 379 448 637
Total comprehensive income/(loss) attributable to non-controlling interests 18 780 (1 159) 37 846
Total comprehensive income attributable to perpetual preferred securities 19 367 19 628 37 187
Total comprehensive income 285 603 189 848 523 670
^ Net of taxation of £3.4 million (30 September 2020: £22.3
million; 31 March 2021: £38.5 million).
Combined consolidated balance sheet
At 30 Sept 2021 31 March 2021 30 Sept 2020^
£'000
Assets
Cash and balances at central banks 3 957 654 3 517 100 2 477 636
Loans and advances to banks 2 602 105 2 699 317 3 079 807
Non-sovereign and non-bank cash placements 475 875 439 841 363 350
Reverse repurchase agreements and cash collateral on securities borrowed 3 820 376 3 575 713 4 964 729
Sovereign debt securities 3 837 115 3 711 623 4 264 692
Bank debt securities 1 440 998 1 121 730 590 173
Other debt securities 1 246 231 1 364 235 1 427 174
Derivative financial instruments 1 206 299 1 714 743 1 885 399
Securities arising from trading activities 1 085 375 1 024 671 658 552
Investment portfolio 928 741 909 050 994 543
Loans and advances to customers 27 966 330 26 041 087 24 855 877
Own originated loans and advances to customers securitised 372 602 401 912 307 532
Other loans and advances 109 006 102 135 100 659
Other securitised assets 133 690 140 087 122 892
Interests in associated undertakings and joint venture holdings 695 756 679 157 722 227
Current taxation assets 38 141 60 325 61 523
Deferred taxation assets 216 290 246 622 256 581
Other assets 1 733 188 2 165 438 1 850 502
Property and equipment 344 729 329 972 341 343
Investment properties 788 540 832 061 799 588
Goodwill 259 842 259 805 270 991
Software 11 363 12 574 13 045
Other acquired intangible assets 51 700 58 968 66 224
Non-current assets classified as held for sale 75 752 51 783 87 248
53 397 698 51 459 949 50 562 287
Other financial instruments at fair value through profit 56 662 52 405 37 178
or loss in respect of liabilities to customers
53 454 360 51 512 354 50 599 465
Liabilities
Deposits by banks 2 294 873 2 403 712 3 319 727
Derivative financial instruments 1 973 996 2 190 487 1 727 813
Other trading liabilities 225 498 326 189 577 821
Repurchase agreements and cash collateral on securities lent 1 179 581 1 003 312 1 692 050
Customer accounts (deposits) 36 353 007 34 449 430 32 551 697
Debt securities in issue 1 971 123 1 892 319 1 815 257
Liabilities arising on securitisation of own originated loans and advances 155 200 160 646 73 042
Liabilities arising on securitisation of other assets 104 215 108 281 109 107
Current taxation liabilities 54 104 78 790 95 940
Deferred taxation liabilities 19 448 40 333 50 727
Other liabilities 2 116 098 2 013 003 2 025 931
46 447 143 44 666 502 44 039 112
Liabilities to customers under investment contracts 54 018 49 798 34 494
Insurance liabilities, including unit-linked liabilities 2 644 2 607 2 684
46 503 805 44 718 907 44 076 290
Subordinated liabilities 1 436 763 1 480 951 1 447 948
47 940 568 46 199 858 45 524 238
Equity
Ordinary share capital 247 247 247
Ordinary share premium 1 517 852 1 517 852 1 517 852
Treasury shares (296 714) (267 508) (261 729)
Other reserves (767 299) (788 222) (910 668)
Retained income 3 939 028 3 772 628 3 699 652
Ordinary shareholders' equity 4 393 114 4 234 997 4 045 354
Perpetual preference share capital and premium 174 579 174 053 172 349
Shareholders' equity excluding non-controlling interests 4 567 693 4 409 050 4 217 703
Other Additional Tier 1 securities in issue 373 705 335 111 296 809
Non-controlling interests 572 394 568 335 560 715
- Perpetual preferred securities issued by subsidiaries 73 006 72 750 71 106
- Non-controlling interests in partially held subsidiaries 499 388 495 585 489 609
Total equity 5 513 792 5 312 496 5 075 227
Total liabilities and equity 53 454 360 51 512 354 50 599 465
^ Restated as detailed below.
Condensed consolidated statement of changes in equity
£'000 Six months to Six months to Year to
30 Sept 2021
30 Sept 2020 31 March 2021
Balance at the beginning of the period 5 312 496 4 897 632 4 897 632
Total comprehensive income 285 603 189 848 523 670
Share-based payments adjustments 9 515 18 353 19 121
Dividends paid to ordinary shareholders (72 361) - (53 346)
Dividends paid to perpetual preference shareholders included in (19 367) (19 628) (37 187)
non-controlling interests and Other Additional Tier 1 security holders
Dividends paid to non-controlling interests (14 721) (11 029) (32 385)
Redemption of perpetual preference shares - - (6 274)
Issue of Other Additional Tier 1 securities in issue 38 294 - 35 508
Net equity impact of non-controlling interest movements - 1 687 (6 128)
Movement of treasury shares (26 718) (1 861) (10 161)
Net equity movements of interests in associated undertakings 1 051 225 (17 954)
Balance at the end of the period 5 513 792 5 075 227 5 312 496
Condensed consolidated cash flow statement
£'000 Six months to Six months to Year to
30 Sept 2021
30 Sept 2020^ 31 March 2021
Net cash inflow/(outflow) from operating activities 551 100 (2 250 741) (557 837)
Net cash inflow/(outflow) from investing activities 35 705 (6 967) 1 414
Net cash outflow from financing activities (204 181) (65 532) (134 626)
Effects of exchange rates on cash and cash equivalents 6 554 49 930 146 030
Net increase/(decrease) in cash and cash equivalents 389 178 (2 273 310) (545 019)
Cash and cash equivalents at the beginning of the period 6 551 511 7 096 530 7 096 530
Cash and cash equivalents at the end of the period 6 940 689 4 823 220 6 551 511
Cash and cash equivalents is defined as including: cash and balances at
central banks, on demand loans and advances to banks and non-sovereign and
non-bank cash placements (all of which have a maturity profile of less than
three months).
^ Restated as detailed below.
Combined consolidated segmental analysis
Segmental geographical and business analysis of adjusted operating profit
before goodwill, acquired intangibles, non-operating items, taxation and after
other non-controlling interests.
Specialist Banking^
Private Client
For the six months to 30 September 2021 Wealth & Investment Private Banking Corporate, Investment Banking and Other Group Investments Group costs Total group % change % of total
£'000
UK and Other 42 175 11 290 73 205 16 490 (9 339) 133 821 208.6 % 41.1 %
Southern Africa 15 559 100 735 72 644 10 674 (7 703) 191 909 93.6 % 58.9 %
Adjusted operating profit 57 734 112 025 145 849 27 164 (17 042) 325 730 128.6 % 100.0 %
Non-controlling interest* 16 712
Adjusted operating profit before non-controlling interests 342 442
% change 41.4 % 170.6 % 126.6 % 105.5 % (1.7 %) 128.6 %
% of total 17.7 % 34.4 % 44.8 % 8.3 % (5.2) % 100.0 %
Total assets £'mn 1 369 14 970 35 293 1 822 - 53 454
Specialist Banking^
Private Client
For the six months to 30 September 2020^ Wealth & Investment Private Banking Corporate, Investment Banking and Other Group Investments Group costs Total group % of total
£'000
UK and Other 28 877 (3 148) 16 051 11 791 (10 208) 43 363 31.8 %
Southern Africa 11 960 44 550 48 320 1 428 (7 135) 99 123 68.2 %
Adjusted operating profit 40 837 41 402 64 371 13 219 (17 343) 142 486 100.0 %
Non-controlling interest* (15 255)
Adjusted operating profit before non-controlling interests 127 231
% of total 28.7 % 29.0 % 45.2 % 9.3 % (12.2) % 100.0 %
Total assets £'mn 1 332 12 332 34 941 1 994 - 50 599
* Profit/(loss) attributable to other non-controlling interests
predominantly relates to the Investec Property Fund Limited.
^ The results of Investec Private Banking and Investec Corporate,
Investment Banking and Other were disclosed as separate segments for the first
time in the 31 March 2021 results. Investec Private Banking and Investec
Corporate, Investment Banking and Other were previously presented as
components of the Investec Specialist Bank. Comparatives have been restated.
Net fee and commission income
For the six months to 30 September 2021 UK and Southern Total
£'000 Other Africa
Wealth & Investment net fee and commission income 173 045 47 494 220 539
Fund management fees/fees for funds under management 152 287 27 354 179 641
Private client transactional fees 21 103 20 978 42 081
Fee and commission expense (345) (838) (1 183)
Specialist Banking net fee and commission income 57 982 87 167 145 149
Specialist Banking fee and commission income^ 64 916 100 154 165 070
Specialist Banking fee and commission expense (6 934) (12 987) (19 921)
Group Investments net fee and commission income - 25 527 25 527
Group Investments fee and commission income - 27 389 27 389
Group Investments fee and commission expense - (1 862) (1 862)
Net fee and commission income 231 027 160 188 391 215
Annuity fees (net of fees payable) 159 969 123 067 283 036
Deal fees 71 058 37 121 108 179
^ Included in Specialist Banking is fee income of £40.2 million
(2020: £32.7 million) for operating lease income which is out of the scope of
IFRS 15 - Revenue from contracts with customers.
Income statement restatements
Interest income and fee and commission income restatement
For the six months to 30 September 2020, management identified that revenue
relating to services rendered to customers (for the facilitation of import and
export transactions) was previously reported within interest income rather
than within fee and commission income.
As a result, interest income and fee and commission income for the prior
period have been restated. The restatement has no impact on total operating
income in the income statement, headline earnings, the statement of cash flows
and the balance sheet.
The impact of the restatement on the 30 September 2020 income statement is:
Reclassification
Six months to Six months to
30 Sept 2020 30 Sept 2020
as previously reported restated
£'000
Interest income 1 014 392 (5 018) 1 009 374
Fee and commission income 344 650 5 018 349 668
Balance sheet restatements
Current taxation assets and other assets
At 31 March 2021, current taxation assets, which were previously reported
within other assets, were reported as a separate line item in accordance with
IAS 1 Presentation of Financial Statements. As at 30 September 2020, current
taxation assets of £61.5 million have been re-presented to reflect the same
basis.
Gilts and total return swaps reclassification
As at 31 March 2021, amounts previously reported within sovereign debt
securities, derivative financial instruments and securities arising from
trading were corrected to present them as reverse repurchase agreements and
cash collateral on securities borrowed. This change in accounting treatment
has been made where sovereign debt securities have been purchased at the same
time as total return swaps with the same counterparty, such that the combined
position has the economic substance of secured lending. The prior year balance
sheet has been restated to reflect the same basis. This change has no impact
on the income statement.
The impact of this change on the 30 September 2020 balance sheet is:
At 30 Sept 2020 Reclassification At 30 Sept 2020
as previously reported restated
£'000
Assets
Reverse repurchase agreements and cash collateral on securities borrowed 4 124 591 840 138 4 964 729
Sovereign debt securities 4 898 936 (634 244) 4 264 692
Derivative financial instruments 1 885 922 (523) 1 885 399
Securities arising from trading activities 929 143 (270 591) 658 552
Total assets 50 664 685 (65 220) 50 599 465
Liabilities
Derivative financial instruments 1 793 033 (65 220) 1 727 813
Total liabilities 45 589 458 (65 220) 45 524 238
Cash flow statement restatements
As at 31 March 2021, amounts previously reported within loans and advances to
banks were correctly presented as cash and cash equivalents. This change has
been made to include items previously reported as loans and advances to banks
identified as short term in nature, with a maturity date of less than three
months, which therefore meet the definition of cash and cash equivalents.
The prior year has been restated as follows:
Six months to Restatement Six months to
30 Sept 2020 30 Sept 2020
as previously reported restated
£'000
Net cash outflow from operating activities (3 038 706) 787 965 (2 250 741)
Net cash outflow from investing activities (6 967) - (6 967)
Net cash outflow from financing activities (59 855) (5 677) (65 532)
Effects of exchange rate changes on cash and cash equivalents 41 935 7 995 49 930
Net (decrease)/increase in cash and cash equivalents (3 063 593) 790 283 (2 273 310)
Cash and cash equivalents at the beginning of the period 6 193 708 902 822 7 096 530
Cash and cash equivalents at the end of the period 3 130 115 1 693 105 4 823 220
In addition to the above, we have also re-presented the operating section of
the cash flow statement in our preliminary financial results as the
disaggregation between operating assets and operating liabilities does not
provide additional meaningful information to users.
Contingent liabilities
The group assessed its exposure to legal proceedings and the appropriateness
of related provisions recognised on the balance sheet as at 30 September 2021.
It was concluded that the provisions held as at 31 March 2021, in relation to
the matters set out in Note 54 of the Annual Financial Statements, continue to
reflect our best estimate of the potential financial outflows that may arise.
Analysis of assets and liabilities by measurement category
At 30 September 2021 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 - 3 957 654 - 3 957 654
Loans and advances to banks - 2 602 105 - 2 602 105
Non-sovereign and non-bank cash placements 11 747 464 128 - 475 875
Reverse repurchase agreements and cash collateral on securities borrowed 829 570 2 990 806 - 3 820 376
Sovereign debt securities 3 249 220 587 895 - 3 837 115
Bank debt securities 852 836 588 162 - 1 440 998
Other debt securities 654 361 591 870 - 1 246 231
Derivative financial instruments 1 206 299 - - 1 206 299
Securities arising from trading activities 1 085 375 - - 1 085 375
Investment portfolio 928 741 - - 928 741
Loans and advances to customers 2 402 915 25 563 415 - 27 966 330
Own originated loans and advances to customers securitised - 372 602 - 372 602
Other loans and advances - 109 006 - 109 006
Other securitised assets 101 851 31 839 - 133 690
Interests in associated undertakings and joint venture holdings - - 695 756 695 756
Current taxation assets - - 38 141 38 141
Deferred taxation assets - - 216 290 216 290
Other assets 272 394 991 181 469 613 1 733 188
Property and equipment - - 344 729 344 729
Investment properties - - 788 540 788 540
Goodwill - - 259 842 259 842
Software - - 11 363 11 363
Other acquired intangible assets - - 51 700 51 700
Non-current assets classified as held for sale 23 373 - 52 379 75 752
11 618 682 38 850 663 2 928 353 53 397 698
Other financial instruments at fair value through profit or loss in respect of 56 662 - - 56 662
liabilities to customers
11 675 344 38 850 663 2 928 353 53 454 360
Liabilities
Deposits by banks - 2 294 873 - 2 294 873
Derivative financial instruments 1 973 996 - - 1 973 996
Other trading liabilities 225 498 - - 225 498
Repurchase agreements and cash collateral on securities lent 50 237 1 129 344 - 1 179 581
Customer accounts (deposits) 1 358 492 34 994 515 - 36 353 007
Debt securities in issue 89 476 1 881 647 - 1 971 123
Liabilities arising on securitisation of own originated loans - 155 200 - 155 200
and advances
Liabilities arising on securitisation of other assets 104 215 - - 104 215
Current taxation liabilities - - 54 104 54 104
Deferred taxation liabilities - - 19 448 19 448
Other liabilities 99 214 1 249 058 767 826 2 116 098
3 901 128 41 704 637 841 378 46 447 143
Liabilities to customers under investment contracts 54 018 - - 54 018
Insurance liabilities, including unit-linked liabilities 2 644 - - 2 644
3 957 790 41 704 637 841 378 46 503 805
Subordinated liabilities 336 750 1 100 013 - 1 436 763
4 294 540 42 804 650 841 378 47 940 568
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 30 September 2021 Total instruments at fair value Level 1 Level 2 Level 3
£'000
Assets
Non-sovereign and non-bank cash placements 11 747 - 11 747 -
Reverse repurchase agreements and cash collateral on securities borrowed 829 570 - 829 570 -
Sovereign debt securities 3 249 220 3 249 220 - -
Bank debt securities 852 836 338 939 513 897 -
Other debt securities 654 361 76 211 489 081 89 069
Derivative financial instruments 1 206 299 4 897 1 156 603 44 799
Securities arising from trading activities 1 085 375 1 075 735 4 628 5 012
Investment portfolio 928 741 30 692 11 319 886 730
Loans and advances to customers 2 402 915 - 1 058 205 1 344 710
Other securitised assets 101 851 - - 101 851
Other assets 272 394 272 394 - -
Non-current assets classified as held for sale 23 373 - - 23 373
Other financial instruments at fair value through profit or loss in respect of 56 662 56 662 - -
liabilities to customers
11 675 344 5 104 750 4 075 050 2 495 544
Liabilities
Derivative financial instruments 1 973 996 34 526 1 892 559 46 911
Other trading liabilities 225 498 92 365 133 133 -
Repurchase agreements and cash collateral on securities lent 50 237 - 50 237 -
Customer accounts (deposits) 1 358 492 - 1 358 492 -
Debt securities in issue 89 476 - 89 476 -
Liabilities arising on securitisation of other assets 104 215 - - 104 215
Other liabilities 99 214 - 52 876 46 338
Liabilities to customers under investment contracts 54 018 - 54 018 -
Insurance liabilities, including unit-linked liabilities 2 644 - 2 644 -
Subordinated liabilities 336 750 336 750 - -
4 294 540 463 641 3 633 435 197 464
Net financial assets at fair value 7 380 804 4 641 109 441 615 2 298 080
Transfers between level 1 and level 2
There were no transfers between level 1 and level 2 in the current period.
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 Standard industry derivative pricing model Discounted cash flow model Interest rate curves, implied bond spreads, equity volatilities, yield curves
Investment portfolio Discounted cash flow model, relative valuation model comparable quoted inputs Discount rate and fund unit price, net assets
Loans and advances to customers Discounted cash flow model Yield curves
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 and Local Volatility rates, interest rate swap curves and credit curves
Other trading liabilities Discounted cash flow model, Hermite interpolation, industry standard Discount rate, risk-free rate, volatilities, forex forward points and spot
derivative pricing models including Local Volatility rates, interest rate swap curves and credit curves
Repurchase agreements and cash collateral on securities lent Discounted cash flow model, Hermite interpolation Yield curves, discount rates
Customer accounts (deposits) Discounted cash flow model Yield curves, discount rates
Debt securities in issue Discounted cash flow model, Hermite interpolation, industry standard Discount rate, risk-free rate, volatilities, forex forward points and spot
derivative pricing models including Local Volatility rates, interest rate swap curves and credit curves
Other liabilities Discounted cash flow model Yield curves
Liabilities to customers under investment contracts Current price of underlying unitised assets Listed prices
Insurance liabilities, including unit-linked liabilities Current price of underlying unitised assets Listed prices
Level 3 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 2021 862 528 1 047 390 107 259 176 250 2 193 427
Total gains 10 417 29 787 864 20 974 62 042
In the income statement 10 417 28 292 864 20 974 60 547
In the statement of comprehensive income - 1 495 - - 1 495
Purchases 54 937 1 102 958 - 18 962 1 176 857
Sales (30 177) (566 082) - (18 892) (615 151)
Settlements (16 688) (315 936) (6 272) (38 868) (377 764)
Transfers into level 3 - 34 095 - - 34 095
Foreign exchange adjustments 5 713 12 498 - 3 827 22 038
Balance at 30 September 2021 886 730 1 344 710 101 851 162 253 2 495 544
For the period ended 30 September 2021, £34.1 million of loans and advances
to customers measured at fair value has been transferred from level 2 to level
3, due to inputs related to the measurement of credit risk becoming
unobservable in the market.
£'000 Liabilities arising Other balance Total
on securitisation sheet liabilities
of other assets
Liabilities
Balance at 1 April 2021 108 281 73 592 181 873
Total losses in the income statement 627 20 664 21 291
Repayment - (1 179) (1 179)
Settlements (4 693) (803) (5 496)
Foreign exchange adjustments - 975 975
Balance as at 30 September 2021 104 215 93 249 197 464
The group transfers between levels within the fair value hierarchy when the
significance of the unobservable inputs change or if the valuation methods
change.
The following table quantifies the gains or (losses) included in the income
statement recognised on level 3 financial instruments:
For the year to 30 September 2021 Total Realised Unrealised
£'000
Total gains or (losses) included in the income statement for the year
Net interest income 31 876 21 955 9 921
Fee and commission (expense) - - -
Investment income* 8 534 13 426 (4 892)
Trading income arising from customer flow (1 154) - (1 154)
Trading income arising from balance sheet management and other trading - - -
activities
39 256 35 381 3 875
Total gains or (losses) included in other comprehensive income for the year
Gains on realisation on debt instruments at FVOCI recycled through the income 302 302 -
statement
Fair value movements on debt instruments at FVOCI taken directly to other 1 495 - 1 495
comprehensive income
1 797 302 1 495
* Included within the investment income statement balance are
unrealised gains of £0.3 million presented within operational items in the
income statement.
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 below valuations have been considered
taking the ongoing global pandemic of COVID-19 into consideration. The
following table shows the sensitivity of these fair values to reasonably
possible alternative assumptions, determined at a transactional level:
At 30 September 2021 Balance sheet Significant unobservable input changed Range which unobservable input has been changed Favourable Unfavourable
value changes changes
£'000 £'000 £'
00
0
Assets
Other debt securities 89 069 Potential impact on income statement 3 390 (6 327)
Credit spreads 0.7%-1.0% 86 (219)
Cash flow adjustments CPR 6.1% 3 (63)
Other^ ^ 3 301 (6 045)
Derivative financial instruments 44 799 Potential impact on income statement 3 839 (4 309)
Volatilities 5.3% - 12.6% 4 (8)
Underlying asset value^^ ^^ 3 363 (3 363)
Cashflow adjustment CPR 6.1% 7 (7)
Other^ ^ 465 (931)
Securities arising from trading activities 5 012 Potential impact on income statement
Cash flow adjustments CPR 9.8% 647 (879)
Investment portfolio 886 730 Potential impact on income statement 103 097 (135 820)
Price earnings multiple 5.5x-15.5x 14 125 (26 689)
Underlying asset value^^ ^^ 1 681 (3 356)
EBITDA ** 19 278 (19 188)
Discount rate 17.5%-18.5% 4 462 (5 379)
Cash flows ** 1 857 (1 379)
Underlying asset value^^ ** 2 916 (3 442)
Precious and industrial metal prices (5%)-5% 1 350 (1 350)
Property values # 39 330 (39 330)
Other^ ^ 18 098 (35 707)
Loans and advances to customers 1 344 710 Potential impact on income statement 31 560 (50 142)
Credit spreads 0.2% -34.3% 8 390 (16 486)
Price earnings multiple 3.5x-4.1x 8 158 (6 011)
Underlying asset value^^ ^^ 4 380 (8 457)
Property values ^ 5 159 (8 242)
Other^ ^ 5 473 (10 946)
Potential impact on other comprehensive income
Credit spreads 0.3% -3.4% 5 740 (12 345)
Other securitised assets 101 851 Potential impact on income statement
Cash flow adjustments CPR 6.1% 1 344 (1 247)
Non-current assets classified as held for sale 23 373 Potential impact on income statement
Discount rates 13%-15% 657 (780)
Total level 3 assets 2 495 544 150 274 (211 849)
Liabilities
Derivative financial instruments 46 911 Potential impact on income statement (3 400) 3 436
Volatilities 5.3% -20.5% (37) 73
Underlying asset value^^ ^^ (3 363) 3 363
Liabilities arising on securitisation of other assets 104 215 Potential impact on income statement
Cash flow adjustments CPR 6.1% (131) 225
Other liabilities 46 338 Potential impact on income statement
Property values # (5 462) 5 462
Total level 3 liabilities 197 464 (8 993) 9 123
Net level 3 assets 2 298 080
* The sensitivity of the fair value of liabilities arising on
securitisation of other assets has been considered together with other
securitised assets.
^ Other - The valuation sensitivity has been assessed by adjusting
various inputs such as expected cash flows, discount rates, earnings multiples
rather than a single input. It is deemed appropriate to reflect the outcome on
a portfolio basis for the purposes of this analysis as the sensitivity of the
assets cannot be determined through the adjustment of a single input.
^^ Underlying asset values are calculated by reference to a tangible
asset, for example property, aircraft or shares.
∗∗ The EBITDA, cash flows and property values have been stressed
on an investment-by-investment and loan-by-loan basis in order to obtain
favourable and unfavourable valuations.
# Property values are the underlying input for the valuations where
the capitalisation rate when valuing these properties has been stressed by
0.25bps.
In determining the value of level 3 financial instruments, the following are
the principal input that can require judgement:
Credit spreads
Credit spreads reflect the additional yield that a market participant would
demand for taking exposure to the credit risk of an instrument. The credit
spread for an instrument forms part of the yield used in a discounted cash
flow calculation. In general a significant increase in a credit spread in
isolation will result in a movement in fair value that is unfavourable for the
holder of a financial instrument.
Discount rates
Discount rates (including WACC) are used to adjust for the time value of money
when using a discounted cash flow valuation method. Where relevant, the
discount rate also accounts for illiquidity, market conditions and uncertainty
of future cash flows.
Volatilities
Volatility is a key input in the valuation of derivative products containing
optionality. Volatility is a measure of the variability or uncertainty in
returns for a given derivative underlying. It represents an estimate of how
much a particular underlying instrument, parameter or index will change in
value over time.
Cash flows
Cash flows relate to the future cash flows which can be expected from the
instrument and requires judgement.
EBITDA
The company's earnings before interest, taxes, depreciation and amortisation.
This is the main input into a price earnings multiple valuation method.
Price-earnings multiple
The price earnings ratio is an equity valuation multiple. It is a key driver
in the valuation of unlisted investments.
Property value and precious and industrial metals
The property value and precious and industrial metals is a key driver of
future cash flows on these investments.
Underlying asset value
In instances where cash flows have links to referenced assets, the underlying
asset value is used to determine the fair value. The underlying asset
valuation is derived using observable market prices sourced from broker
quotes, specialist valuers or other reliable pricing sources
Fair value of financial assets and liabilities at amortised cost
At 30 September 2021 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 3 957 654 3 957 654 - -
Loans and advances to banks 2 602 105 2 596 469 5 636 5 349
Non-sovereign and non-bank cash placements 464 128 464 128 - -
Reverse repurchase agreements and cash collateral on securities borrowed 2 990 806 1 155 867 1 834 939 1 836 036
Sovereign debt securities 587 895 4 297 583 598 589 101
Bank debt securities 588 162 54 779 533 383 546 062
Other debt securities 591 870 160 542 431 328 434 595
Loans and advances to customers 25 563 415 12 968 122 12 595 293 12 571 064
Own originated loans and advances to customers securitised 372 602 372 602 - -
Other loans and advances 109 006 61 954 47 052 46 845
Other securitised assets 31 839 31 839 - -
Other assets 991 181 991 011 170 165
38 850 663 22 819 264 16 031 399 16 029 217
Liabilities
Deposits by banks 2 294 873 283 588 2 011 285 2 042 693
Repurchase agreements and cash collateral on securities lent 1 129 344 384 937 744 407 744 730
Customer accounts (deposits) 34 994 515 16 954 659 18 039 856 18 110 720
Debt securities in issue 1 881 647 291 594 1 590 053 1 617 229
Liabilities arising on securitisation of own originated loans and advances 155 200 155 200 - -
Other liabilities 1 249 058 1 245 124 3 934 2 999
Subordinated liabilities 1 100 013 78 132 1 021 881 1 145 770
42 804 650 19 393 234 23 411 416 23 664 141
This note has been restated to separately present those items where fair value
approximates the carrying value.
Investec plc
Incorporated in England and Wales
Registration number: 3633621
LSE ordinary share code: INVP
JSE share code: INP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22
Ordinary share dividend announcement
Shareholders are referred to the company's unaudited combined consolidated
financial results for the year ended 31 March 2021 and the accompanying
dividend announcements released on SENS on 20 May 2021 and are advised that
the dividend number stated in the announcement was incorrectly disclosed as
dividend number 38 and should have referred to dividend number 37.
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 38
Notice is hereby given that a final dividend number 38, being a gross dividend
of 11.00000 pence (2020: 5.50000 pence) per ordinary share has been declared
by the Board from income reserves in respect of the six months ended 30
September 2021 payable to shareholders recorded in the shareholders' register
of the company at the close of business on Friday,
10 December 2021.
• For Investec plc shareholders, registered on the United Kingdom share
register, through a dividend payment by Investec plc from income reserves of
11.00000 pence per ordinary share
• For Investec plc shareholders, registered on the South African branch
register, through a dividend payment by
Investec plc of 1.00000 pence per ordinary share and through a dividend paid
by Investec Limited, on the SA DAS share, payable from income reserves,
equivalent to 10.00000 pence per ordinary share.
The relevant dates relating to the payment of dividend number 38 are as
follows:
Last day to trade cum-dividend Tuesday, 7 December 2021
On the Johannesburg Stock Exchange (JSE)
On the London Stock Exchange (LSE) Wednesday, 8 December 2021
Shares commence trading ex-dividend Wednesday, 8 December 2021
On the Johannesburg Stock Exchange
On the London Stock Exchange Thursday, 9 December 2021
Record date (on the JSE and LSE) Friday, 10 December 2021
Payment date (on the JSE and LSE) Wednesday, 22 December 2021
Share certificates on the South African branch register may not be
dematerialised or rematerialised between Wednesday, 8 December 2021 and
Friday, 10 December 2021, both dates inclusive, nor may transfers between the
United Kingdom share register and the South African branch register take place
between Wednesday, 8 December 2021 and Friday, 10 December 2021, 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 11.00000 pence, equivalent to a gross
dividend of 230.00000 cents per share, has been arrived at using the
Rand/Pound Sterling average buy/sell forward rate, as determined at 11h00 (SA
time) on Wednesday, 17 November 2021
• 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 230.00000
cents per share on the SA DAS share, comprising 209.09091 cents per share paid
by Investec Limited on the SA DAS share and 20.90909 cents per ordinary share
paid by Investec plc.
• Shareholders registered on the South African branch register who are
not exempt from paying the Dividend Tax will receive a net dividend of
184.00000 cents per share (gross dividend of 230.00000 cents per share less
Dividend Tax of 46.00000 cents per share) comprising 167.27273 cents per share
paid by Investec Limited on the SA DAS share and 16.72727 cents per ordinary
share paid by Investec plc.
By order of the board
David Miller
Company Secretary
17 November 2021
Investec Limited
Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE ordinary share code: INL
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Ordinary share dividend announcement
Declaration of dividend number 131
Notice is hereby given that interim dividend number 131, being a gross
dividend of 230.00000 cents (2020: 112.00000 cents) per ordinary share has
been declared by the board from income reserves in respect of the six months
ended 30 September 2021 payable to shareholders recorded in the shareholders'
register of the company at the close of business on Friday, 10 December 2021.
The relevant dates relating to the payment of dividend number 131 are as
follows:
Last day to trade cum-dividend
Tuesday, 7 December 2021
Shares commence trading ex-dividend
Wednesday, 8 December 2021
Record date
Friday, 10 December 2021
Payment date
Wednesday, 22 December 2021
The interim gross dividend of 230.00000 cents per ordinary share has been
determined by converting the Investec plc distribution of 11.00000 pence per
ordinary share into Rands using the Rand/Pound Sterling average buy/sell
forward rate at 11h00 (SA time) on Wednesday, 17 November 2021.
Share certificates may not be dematerialised or rematerialised between
Wednesday, 8 December 2021 and Friday, 10 December 2021, 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 318 904 709
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 230.00000 cents per ordinary share
• Shareholders who are not exempt from paying the Dividend Tax will
receive a net dividend of 184.00000 cents per ordinary share (gross dividend
of 230.00000 cents per ordinary share less Dividend Tax of 46.00000 cents per
ordinary share).
By order of the board
Niki van Wyk
Company Secretary
17 November 2021
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 31
Notice is hereby given that preference dividend number 31 has been declared by
the board from income reserves for the period 1 April 2021 to 30 September
2021 amounting to a gross preference dividend of 5.51508 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, 03 December 2021.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of
5.51508 pence per preference share is equivalent to a gross dividend of
115.02306 cents per share, which has been determined using the Rand/Pound
Sterling average buy/sell forward rate as at 11h00 (SA time) on Wednesday, 17
November 2021.
The relevant dates relating to the payment of dividend number 31 are as
follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE)
Tuesday, 30 November 2021
On the International Stock Exchange (TISE)
Wednesday, 1 December 2021
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE)
Wednesday, 1 December 2021
On the International Stock Exchange (TISE)
Thursday, 2 December 2021
Record date (on the JSE and TISE)
Friday, 3 December 2021
Payment date (on the JSE and TISE)
Monday, 13 December 2021
Share certificates may not be dematerialised or rematerialised between
Wednesday, 1 December 2021 and Friday, 3 December 2021, both dates inclusive,
nor may transfers between the United Kingdom share register and the South
African branch register take place between Wednesday, 1 December 2021 and
Friday, 3 December 2021 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 is subject to South African Dividend Tax
(Dividend Tax) of 20% (subject to any available exemptions as legislated)
• The net dividend amounts to 92.01845 cents per preference share for
preference shareholders liable to pay the Dividend Tax and 115.02306 cents per
preference share for preference shareholders exempt from paying the Dividend
Tax.
By order of the board
David Miller
Company Secretary
17 November 2021
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 21
Notice is hereby given that preference dividend number 21 has been declared by
the board from income reserves for the period 1 April 2021 to 30 September
2021 amounting to a gross preference dividend of 333.41097 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, 10 December 2021.
The relevant dates relating to the payment of dividend number 21 are as
follows:
Last day to trade cum-dividend
Tuesday, 7 December 2021
Shares commence trading ex-dividend
Wednesday, 8 December 2021
Record date
Friday, 10 December 2021
Payment date
Monday, 13 December 2021
Share certificates may not be dematerialised or rematerialised between
Wednesday, 8 December 2021 and Friday, 10 December 2021, 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 is subject to South African Dividend Tax
(Dividend Tax) of 20% (subject to any available exemptions as legislated)
• The net dividend amounts to 266.72878 cents per preference share for
preference shareholders liable to pay the Dividend Tax and 333.41097 cents per
preference share for preference shareholders exempt from paying the Dividend
Tax.
By order of the board
David Miller
Company Secretary
17 November 2021
Investec Limited
Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE share code: INPR
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 34
Notice is hereby given that preference dividend number 34 has been declared by
the board from income reserves for the period 1 April 2021 to 30 September
2021 amounting to a gross preference dividend of 272.94074 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, 10 December 2021.
The relevant dates for the payment of dividend number 34 are as follows:
Last day to trade cum-dividend
Tuesday, 7 December 2021
Shares commence trading ex-dividend
Wednesday, 8 December 2021
Record date
Friday, 10 December 2021
Payment date
Monday, 13 December 2021
Share certificates may not be dematerialised or rematerialised between
Wednesday, 8 December 2021 and Friday, 10 December 2021, 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 30 756 461
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 218.35259 cents per preference share for
shareholders liable to pay the Dividend Tax and 272.94074 cents per preference
share for preference shareholders exempt from paying the Dividend Tax.
By order of the board
Niki van Wyk
Company Secretary
17 November 2021
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
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
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Registered office:
100 Grayston Drive
Sandown, Sandton
2196 South Africa
Transfer secretaries in South Africa:
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank
2196 South Africa
Company Secretary:
Niki van Wyk
Directors:
Philip Hourquebie(1) (Chair)
Fani Titi(2) (Chief Executive)
Nishlan Samujh(2) (Finance Director)
Richard Wainwright(2*) (executive director)
Ciaran Whelan(3) (executive director)
Henrietta Baldock(1)
Zarina Bassa(2) (Senior Independent Director)
David Friedland(2)
Stephen Koseff(2)
Nicky Newton-King(2*)
Jasandra Nyker(2*)
Khumo Shuenyane(2)
Philisiwe Sibiya(2)
Brian Stevenson(1^)
1 British
2 South African
3 Irish
* Appointed 21 May 2021
^ Appointed 22 June 2021
Charles Jacobs resigned 30 June 2021
Perry Crosthwaite and Lord Malloch-Brown resigned 5 August 2021
Sponsor:
Investec Bank Limited
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