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Interim Management Statement
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 JSE share code: INP
ISIN: ZAE000081949 ISIN: GB00B17BBQ50
Investec (comprising Investec plc and Investec Limited) – Interim Management Statement released
on 26 July 2012
This Interim Management Statement is issued by Investec in accordance with the UK Listing Authority's
Disclosure and Transparency Rules. Unless stated otherwise, key trends and figures highlighted below refer
to the three months ended 30 June 2012 and the corresponding period in the previous year.
Salient features of the three month period to 30 June 2012 compared to the three month period to 30 June
2011:
• Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after
non-controlling interests is in line with the prior year.
• The group’s South African operations have performed strongly in home currency. Sterling results
have been negatively impacted by the 17% depreciation of the average Rand: Sterling exchange
rate from 11.02 in the prior period to 12.85 in the current period.
• The operating results referred to above have been affected by the ongoing weakness in the macro-
economic environment.
• The credit loss charge as a percentage of average gross loans and advances annualised for the
period amounted to 0.61% (31 March 2012: 1.12%).
• Recurring income as a percentage of total operating income amounted to approximately 72% (2011:
71%), supported by higher average funds under management.
• As at 30 June 2012 the capital adequacy ratio of Investec plc (applying UK Financial Services
Authority rules to its capital base) was 16.9% and the capital adequacy ratio of Investec Limited
(applying South African Reserve Bank rules to its capital base) was 15.8%.
• The group had approximately GBP9.0 billion of cash and near cash available to support its activities.
• Since 31 March 2012 (the end of the group’s financial year):
o Third party assets under management were flat at GBP96.6 billion – an increase of 2.0% on
a currency neutral basis. The group recorded net inflows of GBP1.6 billion.
o Customer accounts (deposits) decreased 2.7% to GBP24.7 billion – flat on a currency
neutral basis.
o Core loans and advances remained flat at GBP18.2 billion - an increase of 2.5% on a
currency neutral basis.
• Loans and advances as a percentage of customer deposits were 69.9% (31 March 2012:67.8%).
The group will be holding a pre-close briefing on 13 September 2012.
On behalf of the board
Fani Titi (Joint Chairman), Sir David Prosser (Joint Chairman), Stephen Koseff (Chief Executive Officer) and
Bernard Kantor (Managing Director)
Notes:
1. The financial information on which this statement is based has not been reviewed and reported on by the
group’s auditors.
2. Please note that matters highlighted above may contain forward looking statements which are subject to
various risks and uncertainties and other factors, including, but not limited to:
– the further development of standards and interpretations under International Financial Reporting
Standards (IFRS) applicable to past, current and future periods, evolving practices with regard to
the interpretation and application of standards under IFRS.
– domestic and global economic and business conditions.
– market related risks.
• 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 26 July 2012.
3. 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 the group’s individual
companies are reported in the local currencies in which they are domiciled, including Rands, Australian
Dollars, Euros and Dollars. These results are then translated into Pounds Sterling at the applicable
foreign currency exchange rates for inclusion in our 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:
Three months to Year to Three months to
30-Jun-12 31-Mar-12 30-Jun-11
Currency Period Average Period Average Period Average
end end end
per GBP1.00
South African Rand 12.88 12.85 12.27 11.85 10.85 11.02
Australian Dollar 1.53 1.56 1.54 1.52 1.50 1.53
Euro 1.24 1.23 1.2 1.16 1.11 1.13
US Dollar 1.57 1.58 1.60 1.60 1.61 1.64
4. The following disclosures are made with respect to Basel quarterly disclosure requirements:
The group holds capital in excess of regulatory requirements targeting a minimum tier one capital ratio
range of 11% to 12% and a total capital adequacy ratio range of 15% to 18% on a consolidated basis for
each of Investec plc and Investec Limited. As per the table below, all regulated entities met these targets
at the reporting date.
Investec Investec
Basel 2.5 plc^ IBP*^ IBAL* Limited^ IBL*
As at 30 Jun 2012 GBP 'mn GBP 'mn A$'mn ZAR 'mn ZAR 'mn
Primary capital (Tier 1) 1,517 1,315 584 23,456 21,542
Other capital (Tier 2) 776 622 93 8,716 8,716
2,293 1,937 677 32,172 30,258
Less: deductions -36 -26 -153 -374 -374
Net qualifying capital 2,257 1,911 524 31,798 29,884
Risk-weighted assets (banking
and trading) 13,347 11,982 3,163 201,468 182,887
Capital requirements 1,068 959 411 19,139 18,325
Credit risk 809 745 350 13,867 13,703
Securitisation exposures 17 17 - 410 410
Equity risk 39 39 7 2,615 2,564
Market risk 65 61 4 445 404
Operational risk 138 97 50 1,802 1,244
Capital adequacy ratio 16.9% 15.9% 16.5% 15.8% 15.5%
Tier 1 ratio 11.4% 11.0% 13.8% 11.5% 11.1%
*IBP is Investec Bank plc; IBAL is Investec Bank (Australia) Limited and IBL is Investec Bank Limited. ^Investec plc includes IBP. IBP
includes IBAL. Investec Limited includes IBL.
Timetable:
Pre-close briefing: 13 September 2012
Interim period: 30 September 2012
Release of interim results: 20 November 2012
For further information please contact:
Investec Investor Relations
UK: +44 (0) 207 597 5546
South Africa: +27 (0) 11 286 7070
investorrelations@investec.com
About Investec
Investec is an international specialist bank and asset manager that provides a diverse range of financial
products and services to a niche client base in three principal markets, the United Kingdom, South Africa and
Australia as well as certain other countries. The group was established in 1974 and currently has
approximately 7 800 employees.
Investec focuses on delivering distinctive profitable solutions for its clients in three core areas of activity
namely, Asset Management, Wealth & Investment and Specialist Banking.
In July 2002 the Investec group implemented a dual listed company structure with listings on the London and
Johannesburg Stock Exchanges. The combined group’s current market capitalisation is approximately
GBP3.5 billion.
26 July 2012
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