Wrap Text
Unaudited combined consolidated financial results for the year ended 31 March 2014
Investec plc
Incorporated in England and Wales
(Registration number 3633621)
JSE share code: INP
LSE share code: INVP
ISIN: GB00B17BBQ50
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06)
JSE share code: INL
NSX share code: IVD
BSE share code: INVESTEC
ISIN: ZAE000081949
Investec plc and Investec Limited (combined results)
2014 Unaudited combined consolidated financial results for the year ended 31 March 2014
Investec, the international specialist bank and asset manager, announces today its results for the year ended 31 March 2014
As the group's Pound Sterling results have been negatively impacted by the depreciation of the average Rand: Pounds Sterling
exchange rate of approximately 20% over the period, both Rand and Pound Sterling financial features are reflected in the highlights
and financial features summary below.
Highlights
- Operating profit before goodwill, acquired intangibles, non-operating items and taxation
and after other non-controlling interests ("operating profit") increased 28.0% in Rands to
R7.328 million (2013: R5.725 million)
- Recurring income as a percentage of total operating income amounted to 70.7%
(2013: 68.6%)
- Wealth & Investment's operating profit increased by 56.2% in Rands and Asset Management
reported operating profit in Rands 22.8% ahead of the prior year, with both divisions
benefiting from higher levels of average funds under management and combined net inflows
of R64 billion
- The Specialist Banking business reported an increase in operating profit of 25.0% in Rands
supported by a strong performance from the majority of its businesses in South Africa and a
significant decline in impairments in the UK
- The Australian business reported a loss impacted by strategic restructuring, with the pending
sale of a large portion of the business announced post the year-end
- The combined South African business reported operating profit 25.3% ahead of the prior year
in Rands, whilst the combined UK business posted a 24.4% increase in operating profit in
Pound Sterling
- Total group impairments have decreased by 18.3% in Rands, with the credit loss charge
as a percentage of average gross core loans and advances improving from 0.84% at
31 March 2013 to 0.68%
- Capital remained well in excess of current regulatory requirements. All our banking subsidiaries
meet current internal targets. Investec Limited and Investec plc should comfortably achieve a
common equity tier one ratio above 10% by March 2016
- Liquidity remains strong with cash and near cash balances amounting to R160 billion
Stephen Koseff, Chief Executive Officer
of Investec said:
"These are good results and very much in line
with expectations, despite the weakness of the
Rand. We have made significant strides to reshape
and simplify the group to focus on our core
businesses with the restructuring and sale of part
of our Australian businesses, the sale of our Trust
businesses, Lease Direct and strong interest in
Kensington. We are now a very different looking
business with a lean, well capitalised, focused
Specialist Bank sitting alongside our strong Asset
Management and Wealth & Investment businesses."
Bernard Kantor, Managing Director of
Investec said:
"We have dealt decisively with a number of legacy
issues and will continue to take action wherever
necessary to ensure that the group and its
shareholders benefit from strengthening global
economies. Strategically, we are now looking at
how best to redeploy capital to improve returns to
shareholders released through the pending sale of
the Australian businesses and the potential sale of
Kensington."
Financial features
Results in Rand Results in Pounds Sterling
Year to Year to Year to Year to
31 March 31 March % 31 March 31 March %
2014 2013 change 2014 2013 change
Operating profit before taxation* (million) R7 328 R5 725 28.0 GBP452 GBP426 6.0
Earnings attributable to shareholders (million) R5 348 R4 244 26.0 GBP332 GBP310 7.0
Adjusted earnings attributable to shareholders** (million) R5 313 R4 227 25.7 GBP328 GBP309 6.0
Adjusted earnings per share** 616c 494c 24.7 38.0p 36.1p 5.3
Basic earnings per share 554c 434c 27.6 34.4p 31.7p 8.5
Headline earnings per share 550c 425c 29.4 33.9p 31.0p 9.4
Dividends per share 327c 256c 27.7 19.0p 18.0p 5.6
Cost to income ratio 67.5% 65.7%
At At At At
31 March 31 March % 31 March 31 March %
2014 2013 change 2014 2013 change
Net asset value per share 6 597c 5 362c 23.0 375.7p 384.2p (2.2)
Total equity (million) R70 456 R55 008 28.1 GBP4 013 GBP3 942 1.8
Total assets (million) R827 649 R725 861 14.0 GBP47 142 GBP52 010 (9.4)
Core loans and advances (million) R301 244 R257 002 17.2 GBP17 157 GBP18 415 (6.8)
Cash and near cash balances (million) R160 411 R137 161 17.0 GBP9 135 GBP9 828 (7.1)
Customer deposits (million) R396 952 R341 377 16.3 GBP22 610 GBP24 461 (7.6)
Third party assets under management (million) R1 930 564 R1 544 639 25.0 GBP109 941 GBP110 678 (0.7)
Return on average adjusted shareholders' equity 10.1% 9.40%
Return on average risk-weighted assets 1.14% 1.06%
Defaults (net of impairments and before collateral)
as a percentage of net core loans 2.29% 2.73%
Loans and advances to customers as a percentage of
customer deposits 72.0% 71.5%
*Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests.
**Before goodwill, acquired intangibles, non-operating items and after total non-controlling interests.
Business highlights – operating profit in Rands
- Asset Management: increase of 22.8% to R2.318 million (2013: R1.888 million)
- Wealth & Investment: increase of 56.2% to R1.064 million (2013: R681 million)
- Specialist Banking: increase of 25.0% to R3.946 million (2013: R3.156 million)
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 8 200 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 R82 billion.
For further
information
Investec +27 (0) 11 286 7070 or +44 20 (0) 7597 5546
Stephen Koseff, Chief Executive Officer
Bernard Kantor, Managing Director
Ursula Nobrega, Investor Relations (mobile:+27 (0) 82 552 8808)
Brunswick (SA PR advisers)
Cecilia de Almeida
+27 (0) 11 502 7300
Presentation/conference call details
A presentation on the results will commence at 9:00 UK time/10:00 SA time. Viewing options as
below:
- Live on South African TV (Business day TV channel 412 DSTV)
- A live and delayed video webcast at www.investec.com
- Toll free numbers for the telephone conference facilities
– SA participants: 0800 200 648
– UK participants: 0808 162 4061
– rest of Europe and other participants: +800 246 78 700
– Australian participants: 1800 350 100
– USA participants: 1855 481 6362
Investec plc
Incorporated in England and Wales
(Registration number 3633621)
JSE share code: INP
LSE share code: INVP
ISIN: GB00B17BBQ50
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06)
JSE share code: INL
NSX share code: IVD
BSE share code: INVESTEC
ISIN: ZAE000081949
Registered office:
2 Gresham Street, London
EC2V 7QP, United Kingdom
Transfer secretaries:
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
Company secretary:
D Miller•
Registered office:
100 Grayston Drive
Sandown, Sandton, 2196
Transfer secretaries:
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
Company secretary:
B Coetsee
Directors:
Sir David J Prosser• (Joint Chairman),
F Titi (Joint Chairman),
S Koseff# (Chief Executive),
B Kantorp (Managing Director),
G F O Alford•, G R Burger#,
C A Carolus, P K O Crosthwaite•,
O C Dickson•,
H J du Toit#, B Fried•, D Friedland,
H Fukuda OBE•, I R Kantor,
M P Malungani, P R S Thomas
#Executive •British
S E Abrahams did not offer himself for reelection
at the AGM held on 08 August 2013.
Sponsor:
Investec Bank Limited
Combined consolidated income statement
Year to
GBP'000 31 March 2014 31 March 2013*
Interest income 1 905 383 2 132 715
Interest expense (1 253 704) (1 429 108)
Net interest income 651 679 703 607
Fee and commission income 1 136 902 1 110 398
Fee and commission expense (147 481) (143 578)
Investment income 166 809 181 992
Trading income arising from
– customer flow 103 914 70 859
– balance sheet management and other
trading activities 10 587 34 038
Other operating income 18 554 42 153
Total operating income before impairment
losses on loans and advances 1 940 964 1 999 469
Impairment losses on loans and advances (166 152) (251 012)
Operating income 1 774 812 1 748 457
Operating costs (1 306 102) (1 303 033)
Depreciation on operating leased assets (6 044) (16 072)
Operating profit before goodwill and
acquired intangibles 462 666 429 352
Impairment of goodwill (12 797) (15 175)
Amortisation of acquired intangibles (13 393) (13 313)
Operating costs arising from integration,
restructuring and partial disposal of
subsidiaries (20 890) (13 119)
Operating profit 415 586 387 745
Net gain on disposal of subsidiaries 9 821 –
Non-operational costs arising from
acquisition of subsidiary – (1 249)
Profit before taxation 425 407 386 496
Taxation on operating profit before goodwill (79 150) (79 064)
Taxation on acquired intangibles and
acquisition/disposal/integration of
subsidiaries 7 289 5 977
Profit after taxation 353 546 313 409
Profit attributable to Asset Management
non-controlling interests (11 031) (243)
Profit attributable to other
non-controlling interests (10 849) (3 074)
Earnings attributable to shareholders 331 666 310 092
Earnings attributable to shareholders 331 666 310 092
Impairment of goodwill 12 797 15 175
Amortisation of acquired intangibles,
net of taxation 10 313 9 852
Non-operational costs arising from
acquisition of subsidiary (including
integration costs), and net gain on
disposal of subsidiaries, net of taxation 6 860 11 852
Preference dividends paid (35 268) (39 104)
Additional earnings attributable to other
equity holders (386) 109
Currency hedge attributable to perpetual
equity instruments 1 842 1 334
Earnings before goodwill impairment and
non-operating items 327 824 309 310
Headline adjustments (35 361) (44 083)
Headline earnings 292 463 265 227
Earnings per share (pence)
– Basic 34.4 31.7
– Diluted 32.4 29.8
Adjusted earnings per share (pence)
– Basic 38.0 36.1
– Diluted 35.9 34.0
Headline earnings per share (pence)
– Basic 33.9 31.0
– Diluted 32.0 29.2
Number of weighted average shares – (million) 862.6 856.0
*Restated – refer to commentary section of this report.
Combined consolidated statement of comprehensive income
Year to
GBP'000 31 March 2014 31 March 2013*
Profit after taxation 353 546 313 409
Other comprehensive (loss)/income:
Items that may be reclassified to the
income statement:
Fair value movements on cash flow hedges
taken directly to other
comprehensive income** (3 582) (16 202)
Gains on realisation of available-for-sale
assets recycled through the income
statement** (2 972) (1 713)
Fair value movements on available-for-sale
assets through other comprehensive
income** 347 4 387
Foreign currency adjustments on translating
foreign operations (407 479) (182 532)
Items that will not be reclassified to
the income statement:
Remeasurement of net defined pension asset (5 870) (7 078)
Total comprehensive (loss)/income (66 010) 110 271
Total comprehensive loss attributable to
non-controlling interests (12 724) (15 815)
Total comprehensive (loss)/income
attributable to ordinary shareholders (88 554) 86 982
Total comprehensive income attributable
to perpetual preferred securities 35 268 39 104
Total comprehensive (loss)/income (66 010) 110 271
*Restated – refer to commentary section of this report.
**Net of taxation of GBP7.1 million (2013:GBP8.2 million).
Summarised combined consolidated cash flow statements
Year to
GBP'000 31 March 2014 31 March 2013*
Cash inflows from operations 669 866 711 136
Increase in operating assets (1 024 171) (4 263 520)
Increase in operating liabilities 1 309 245 2 151 009
Net cash inflow/(outflow) from operating
activities 954 940 (1 401 375)
Net cash inflow/(outflow) from investing
activities 171 040 (25 733)
Net cash (outflow)/inflow from financing
activities (357 317) 187 894
Effects of exchange rate changes on cash
and cash equivalents (281 225) (142 019)
Net increase/(decrease) in cash and cash
equivalents 487 438 (1 381 233)
Cash and cash equivalents at the beginning
of the year 3 561 573 4 942 806
Cash and cash equivalents at the end of
the year 4 049 011 3 561 573
*Restated – refer to commentary section of this report.
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).
Combined consolidated balance sheet
At
GBP'000 31 March 2014 31 March 2013* 31 March 2012*
Assets
Cash and balances at central banks 2 080 190 1 782 447 2 593 851
Loans and advances to banks 3 280 179 3 136 051 2 725 471
Non-sovereign and non-bank cash placements 515 189 420 960 642 480
Reverse repurchase agreements and cash
collateral on securities borrowed 1 388 980 2 358 672 975 992
Sovereign debt securities 3 215 432 4 077 217 4 067 093
Bank debt securities 1 568 097 1 879 105 3 081 061
Other debt securities 605 378 449 216 377 832
Derivative financial instruments 1 619 415 1 983 132 1 913 650
Securities arising from trading activities 870 088 931 603 640 146
Investment portfolio 825 745 928 893 863 664
Loans and advances to customers 16 281 612 17 484 524 17 192 208
Own originated loans and advances to
customers securitised 875 755 930 449 1 034 174
Other loans and advances 1 693 569 2 033 973 2 789 489
Other securitised assets 3 576 526 4 003 208 4 021 378
Interests in associated undertakings 24 316 27 950 27 506
Deferred taxation assets 131 142 165 457 150 381
Other assets 1 474 992 1 959 550 1 798 687
Property and equipment 108 738 134 101 175 773
Investment properties 509 228 451 975 407 295
Goodwill 433 571 466 906 468 320
Intangible assets 159 169 178 567 192 099
Non-current assets classified as held
for sale 41 637 – –
41 278 948 45 783 956 46 138 550
Other financial instruments at fair value
through profit or loss in respect of
liabilities to customers 5 862 959 6 226 142 6 265 846
47 141 907 52 010 098 52 404 396
Liabilities
Deposits by banks 2 721 170 3 047 636 3 035 323
Derivative financial instruments 1 170 232 1 443 325 1 421 130
Other trading liabilities 861 412 851 939 612 884
Repurchase agreements and cash collateral
on securities lent 1 316 087 1 940 158 1 864 137
Customer accounts (deposits) 22 609 784 24 460 666 25 275 876
Debt securities in issue 1 596 630 1 901 776 2 243 948
Liabilities arising on securitisation of
own originated loans and advances 729 534 926 335 1 036 674
Liabilities arising on securitisation of
other assets 3 041 435 3 303 606 3 314 737
Current taxation liabilities 208 041 210 475 209 609
Deferred taxation liabilities 96 362 109 628 102 478
Other liabilities 1 576 468 1 895 091 1 570 853
35 927 155 40 090 635 40 687 649
Liabilities to customers under investment
contracts 5 861 389 6 224 062 6 263 913
Insurance liabilities, including
unit-linked liabilities 1 570 2 080 1 933
41 790 114 46 316 777 46 953 495
Subordinated liabilities 1 338 752 1 751 806 1 492 776
43 128 866 48 068 583 48 446 271
Equity
Ordinary share capital 224 223 221
Perpetual preference share capital 153 153 153
Share premium 2 473 131 2 494 618 2 457 019
Treasury shares (85 981) (89 545) (72 820)
Other reserves (467 247) (93 537) 82 327
Retained income 1 649 179 1 349 560 1 195 118
Shareholders' equity excluding
non-controlling interests 3 569 459 3 661 472 3 662 018
Non-controlling interests 443 582 280 043 296 107
– Perpetual preferred securities issued by
subsidiaries 252 713 279 041 291 769
– Non-controlling interests in partially
held subsidiaries 190 869 1 002 4 338
Total equity 4 013 041 3 941 515 3 958 125
Total liabilities and equity 47 141 907 52 010 098 52 404 396
*Restated – refer to commentary section of this report.
Summarised combined consolidated statement of changes in equity
Year to
GBP'000 31 March 2014 31 March 2013*
Balance at the beginning of the year 3 941 515 3 958 125
Total comprehensive (loss)/income for
the year (66 010) 110 271
Share based payments adjustments 66 905 63 154
Dividends paid to ordinary shareholders (150 053) (147 660)
Dividends paid to perpetual preference
shareholders (35 268) (39 104)
Dividends paid to non-controlling interests (5 838) (230)
Issue of ordinary shares 31 650 34 685
Issue of perpetual preference shares – 24 263
Issue of equity by subsidiaries 35 477 –
Acquisition of non-controlling interests (270) (3 814)
Non-controlling interests relating to disposal
of subsidiaries – 220
Movement of treasury shares (98 688) (58 395)
Capital conversion of subsidiary** 126 681 –
Non-controlling interests relating to
partial disposal of subsidiaries^ 166 940 –
Balance at the end of the year 4 013 041 3 941 515
* Restated – refer to commentary section of this report.
** On 16 August 2013 the Investec Property Fund converted subordinated debt into equity.
^ The increase in equity of GBP167 million relates to the 15% disposal of Investec Asset Management and a change in
shareholding in the Investec Property Fund.
Segmental geographic and business analysis of operating profit before goodwill, acquired
intangibles, non-operating items, taxation and after other non-controlling interests
Year to 31 March 2014
GBP'000 UK and Other Southern Africa Australia Total group
Asset Management 67 585 76 234 – 143 819
Wealth and Investment 46 065 20 034 – 66 099
Specialist Banking 54 602 201 153 (13 856) 241 899
ongoing business 157 354 201 153 (3 222) 355 285
legacy business (102 752) – (10 634) (113 386)
Total group 168 252 297 421 (13 856) 451 817
Other non-controlling interest – equity 10 849
Operating profit before goodwill and acquired intangibles 462 666
Segmental geographic and business analysis of operating profit before goodwill, acquired
intangibles, non-operating items, taxation and after other non-controlling interests
Year to 31 March 2013*
GBP'000 UK and Other Southern Africa Australia Total group
Asset Management 59 341 81 066 – 140 407
Wealth and Investment 33 910 16 757 – 50 667
Specialist Banking 42 049 189 754 3 401 235 204
ongoing business 128 249 189 754 23 928 341 931
legacy business (86 200) – (20 527) (106 727)
Total group 135 300 287 577 3 401 426 278
Other non-controlling interest – equity 3 074
Operating profit before goodwill and acquired intangibles 429 352
*Restated – refer to commentary section of this report.
Commentary
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year ended 31 March 2014
OVERALL GROUP PERFORMANCE
Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ("operating
profit") increased 6.0% to GBP451.8 million (2013: GBP426.3 million) – an increase of 20.3% on a currency neutral basis. Group results
have been negatively impacted by the depreciation of the Rand: Pounds Sterling exchange rate of approximately 20% over the period. The
combined South African business reported operating profit 25.3% ahead of the prior year in Rands, whilst the combined UK business posted a
24.4% increase in operating profit.
Wealth & Investment's operating profit increased by 30.5%. Asset Management reported operating profit marginally ahead of the prior year.
Both divisions benefited from higher levels of average funds under management and net inflows.
The South African Specialist Banking business reported operating profit 29.2% ahead of the prior year in Rands, whilst the UK Specialist Bank
benefited from a significant decline in impairments, reporting an increase in operating profit of 29.9%. The Australian business reported a loss
impacted by strategic restructuring. Consequently, the overall Specialist Banking business reported operating profit marginally ahead of the
prior year.
Salient features of the period under review are:
- Adjusted earnings attributable to shareholders before goodwill, acquired intangibles and non-operating items increased 6.0% to
GBP327.8 million (2013: GBP309.3 million) – an increase of 20.5% on a currency neutral basis.
- Adjusted earnings per share (EPS) before goodwill, acquired intangibles and non-operating items increased 5.3% from 36.1 pence to
38.0 pence – an increase of 19.7% on a currency neutral basis.
- Recurring income as a percentage of total operating income amounted to 70.7% (2013: 68.6%).
- The credit loss charge as a percentage of average gross core loans and advances has improved from 0.84% at 31 March 2013 to 0.68%,
with impairments decreasing by GBP84.9 million (i.e. 33.8%) to GBP166.2 million.
- Third party assets under management decreased 0.7% to GBP109.9 billion (2013: GBP110.7 billion) – an increase of 8.9% on a currency
neutral basis.
- Customer accounts (deposits) decreased 7.6% to GBP22.6 billion (2013: GBP24.5 billion) – an increase of 6.2% on a currency neutral
basis.
- Core loans and advances decreased 6.8% to GBP17.2 billion (2013: GBP18.4 billion) – an increase of 7.9% on a currency neutral basis.
- The board proposes a final dividend of 11.0 pence per ordinary share equating to a full year dividend of 19.0 pence (2013: 18.0 pence)
resulting in a dividend cover based on the group's adjusted EPS before goodwill and non-operating items of 2.0 times (2013: 2.0 times),
consistent with the group's dividend policy.
BUSINESS UNIT REVIEW
The group has made progress in simplifying and reshaping its business model through the pending sale of its Professional Finance and
Asset Finance and Leasing businesses in Australia, the sale of its Trust businesses, the sale of Lease Direct Finance, and the potential sale
of its Kensington business. The group's core businesses have sound franchises and have continued to broaden their client base and grow
organically. The asset management and wealth management businesses have invested in distribution platforms, IT and online infrastructure,
and experienced portfolio fund managers to support future revenue growth. The Specialist Banking businesses have continued to focus on
efficiency and balance sheet optimisation whilst managing down legacy portfolios.
Asset Management
Asset Management increased operating profit 2.4% to GBP143.8 million (2013: GBP140.4 million) benefiting from higher average funds under
management and net inflows of GBP2.6 billion. Total funds under management amount to GBP68.0 billion (2013: GBP69.8 billion). Operating
margin has remained stable at 34.7%. The division's long-term investment performance remains solid with 87% of portfolios outperforming
benchmarks on a 10-year annualised basis. The sale of the 15% stake in the business to management was completed on 31 July 2013.
Wealth & Investment
Wealth & Investment operating profit increased by 30.5% to GBP66.1 million (2013: GBP50.7 million) supported by higher average funds
under management, net inflows of GBP1.4 billion and improved operating margins. Total funds under management amount to GBP41.5 billion
(2013: GBP40.4 billion). The business in the UK has expanded its operations across the region through the investment in infrastructure and
recruitment of senior portfolio managers. In addition, the business in South Africa has benefited from an integrated offering to both Wealth &
Investment and Private Banking clients, and has made progress in leveraging off the division's global investment platform.
Specialist Banking
Specialist Banking operating profit increased by 2.8% to GBP241.9 million (2013: GBP235.2 million).
South Africa saw strong growth in net fee and commission income driven largely by an increase in corporate and property fund management
fees. Improved customer flow activity has resulted in an increase in trading income. The unlisted private equity portfolio performed well during
the period. The group continued to grow its Private Banking business and the investment and trading property portfolios delivered a sound
performance. The business reported a decline in impairments with the credit loss ratio on average gross core loans and advances improving to
0.42% (2013: 0.61%).
In the UK the ongoing business reported operating profit of GBP157.4 million (2013: GBP128.2 million), whilst the legacy business reported
a loss of GBP102.8 million (2013: loss of GBP86.2 million). The principal investment portfolios performed well and the division recorded
good growth in its professional mortgages and asset finance loan portfolios. Lower fee and commission income was recorded, however,
deal pipelines remain sound. Investment and trading income was negatively impacted by lower returns earned on the fixed income portfolio.
Impairments declined significantly from GBP171.2 million to GBP104.8 million.
Following a review conducted in Australia, a number of businesses which lacked scale or alignment with the greater group were closed during
the year. The restructure costs resulting from this action are included in the current year's results. On 11 April 2014, the group announced that it
had entered into a definitive contract with Bank of Queensland Limited to purchase Investec Bank (Australia) Limited's Professional Finance and
Asset Finance and Leasing Businesses and its deposit book at a premium of AUD210 million to tangible net asset value. The transaction is still
subject to regulatory approval.
Further information on key developments within each of the business units is provided in a detailed report published on the group's website:
http://www.investec.com
FINANCIAL STATEMENT ANALYSIS
Total operating income
Total operating income before impairment losses on loans and advances decreased by 2.9% to GBP1,941.0 million (2013:
GBP1,999.5 million).
Net interest income decreased by 7.4% to GBP651.7 million (2013: GBP703.6 million) largely due to a lower return earned on certain higher
yielding assets and on the legacy portfolios which are running down. This was partially offset by loan book growth and lower cost of funding,
notably in the UK and Australia.
Net fee and commission income increased by 2.3% to GBP989.4 million (2013: GBP966.8 million) as a result of higher average funds under
management and net inflows in the asset management and wealth management businesses. The Specialist Banking business recorded a
decrease in net fees and commissions due to lower corporate fees earned in the UK and Australia, with the South African business benefiting
from increased client activity.
Investment income decreased by 8.3% to GBP166.8 million (2013: GBP182.0 million). The group's private equity and property fund portfolios
performed well, however, results were offset by lower income earned on the fixed income portfolio in the UK and investment property activity in
South Africa.
Trading income arising from customer flow increased b y 46.6% to GBP103.9 million (2013:GBP70.9 million) whilst trading income from other
trading activities decreased by 68.9% to GBP10.6 million (2013: GBP34.0 million) due to gains arising from the sale of bonds not repeated in
the current year.
Other operating income includes associate income and income earned on an operating lease portfolio.
Impairment losses on loans and advances
Impairments on loans and advances decreased from GBP251.0 million to GBP166.2 million. Impairments in the UK and South Africa were
much improved, whilst Australia reported an increase over the year.
Since 31 March 2013 gross defaults have improved from GBP792.2 million to GBP658.7 million. The percentage of default loans (net of
impairments but before taking collateral into account) to core loans and advances amounted to 2.30% (2013: 2.73%). The ratio of collateral to
default loans (net of impairments) remains satisfactory at 1.27 times (2013: 1.26 times).
Operating costs
The ratio of total operating costs to total operating income was 67.5% (2013: 65.7%).
Total operating costs grew by 0.2% to GBP1,306.1 million (2013: GBP1,303.0 million) largely as a result of an increase in growth in the asset
management and wealth management businesses. Fixed costs in the Specialist Bank have increased by inflation in home currencies.
Impairment of goodwill
The current year's goodwill impairment relates to the restructure of the Australian business and certain Asset Management businesses acquired
in prior years.
Amortisation of acquired intangibles
Amortisation of acquired intangibles relates to the Wealth & Investment business and mainly comprises amortisation of amounts attributable to
client relationships.
Operating costs arising from integration, restructuring and partial disposal of subsidiaries
Operating costs arising from integration, restructuring and partial disposal of subsidiaries includes costs associated with the restructuring of the
Australian business, as mentioned above, and operational costs associated with the implementation of the Asset Management transaction.
Net gain on disposal of subsidiaries
Net gain on disposal of subsidiaries comprises a loss on the sale of the Trust businesses offset by a gain on disposal of Lease Direct Finance.
Taxation
The effective tax rate amounts to 17.1% (2013: 18.4%).
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly comprises:
- GBP11.0 million profit attributable to non-controlling interests in the Asset Management business.
- GBP15.8 million profit attributable to non-controlling interests in Investec Property Fund.
- A loss of GBP3.8 million relating to Euro denominated preferred securities issued by a subsidiary of Investec plc which are reflected on the
balance sheet as part of non-controlling interests. (The transaction is hedged and a forex transaction loss arising on the hedge is reflected
in operating profit before goodwill with the equal and opposite impact reflected in earnings attributable to non-controlling interests).
BALANCE SHEET ANALYSIS
Since 31 March 2013:
- Total shareholders' equity (including non-controlling interests) increased by 1.8% to GBP4.0 billion – an increase of 12.2% on a currency
neutral basis. The weakening of the closing Rand and Australian exchange rates relative to Pounds Sterling has resulted in a reduction in
total equity of GBP407.5 million.
- Net asset value per share decreased 2.2% to 375.7 pence and net tangible asset value per share (which excludes goodwill and intangible
assets) decreased by 0.7% to 308.7 pence largely as a result of the depreciation of the Rand as described above. On a currency neutral
basis net asset value per share and net tangible asset value per share increased by 9.1% and 12.9%, respectively.
- The return on adjusted average shareholders' equity increased from 9.4% to 10.1%.
- The return on average risk-weighted assets increased from 1.06% to 1.14%.
Liquidity and funding
As at 31 March 2014 the group held GBP9.1 billion in cash and near cash balances (GBP4.3 billion in Investec plc and R84.5 billion in Investec
Limited) which amounted to 31.0% of its liability base. Loans and advances to customers as a percentage of customer deposits amounted to
72.0% (2013: 71.5%).
Capital adequacy and leverage ratios
The group is targeting a minimum common equity tier one capital ratio above 10% by March 2016 and a total capital adequacy ratio range of
14% to 17% on a consolidated basis for each of Investec plc and Investec Limited. Basel lll has had a moderate effect on capital ratios. The
group's anticipated fully loaded Basel III common equity tier 1 capital adequacy ratios in both Investec plc and Investec Limited are reflected in
the table below.
31 Mar 2014 31 Mar 2013
Investec plc^
Capital adequacy ratio (as reported in terms of Basel II in 2013 and Basel III in 2014) 15.3% 16.7%
Tier 1 ratio (as reported in terms of Basel II in 2013 and Basel III in 2014) 10.5% 11.0%
Common equity tier 1 ratio (as reported in terms of Basel II in 2013 and Basel III in 2014) 8.8% 8.8%
Common equity tier 1 ratio (anticipated Basel III "fully loaded"*) 8.8%
Leverage ratio (current) 7.4%
Leverage ratio (anticipated Basel III "fully loaded"*) 6.2%
Investec Limited
Capital adequacy ratio (as reported in terms of Basel III) 14.9% 15.5%
Tier 1 ratio (as reported in terms of Basel III) 11.0% 10.8%
Common equity tier 1 ratio (as reported in terms of Basel III) 9.4% 8.9%
Common equity tier 1 ratio (anticipated Basel III "fully loaded"*) 9.3%
Leverage ratio (current) 7.2%
Leverage ratio (anticipated Basel III "fully loaded"*) 6.2%
* Based on the group's understanding of current and draft regulations. "Fully loaded" is based on Basel III capital requirements as fully phased in by 2022.
^ The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent basis of calculation across the jurisdictions in
which the group operates. For Investec plc this does not include the deduction of foreseeable dividends when calculating CET1 as now required under the CRR and EBA technical standards. The impact of the final proposed ordinary and preference dividends totalling GBP61 million for Investec plc would be around 50 bps.
OUTLOOK
Economic conditions in the developed world have continued to improve. The UK economy has gained momentum which is evident in the
increased activity levels experienced by Investec's businesses. The South African economy is going through a period of weakness. However,
the group is still seeing encouraging levels of activity across its client base.
The significant restructuring effort that has taken place over the past year, together with the strategic initiatives currently underway should
enable Investec to benefit from the upturn in global economic conditions and generate appropriate returns for its shareholders.
On behalf of the boards of Investec plc and Investec Limited
Sir David J Prosser Fani Titi Stephen Koseff Bernard Kantor
Joint Chairman Joint Chairman Chief Executive Officer Managing Director
21 May 2014
NOTES TO THE COMMENTARY SECTION ABOVE
PRESENTATION OF FINANCIAL INFORMATION
Investec operates under a Dual Listed Companies (DLC) structure with premium/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, the year-end results for Investec plc and Investec Limited present the results and financial position of the combined DLC group
under International Financial Reporting Standards (IFRS), 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.
Unless the context indicates otherwise, all comparatives included in the commentary above relate to the year ended 31 March 2013.
Amounts represented on a currency neutral basis for balance sheet items assume that the closing exchange rates of the group's relevant
exchange rates, as reflected below, remain the same as at 31 March 2014 when compared to 31 March 2013. Amounts represented on a
currency neutral basis for income statement items assume that the average exchange rates of the group's relevant exchange rates, as reflected
below, remain the same as at 31 March 2014 when compared to 31 March 2013.
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 position of the 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:
Year to Year to
31 Mar 2014 31 Mar 2013
Currency per Period Period
GBP1.00 end Average end Average
South African Rand 17.56 16.12 13.96 13.44
Australian Dollar 1.80 1.72 1.46 1.53
Euro 1.21 1.19 1.18 1.23
US Dollar 1.67 1.59 1.52 1.58
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 exchange rate over the period has depreciated by 19.9% and the closing rate has depreciated by 25.8%
since 31 March 2013.
Accounting policies and disclosures
These unaudited summarised combined consolidated financial results have been prepared in terms of the recognition and measurement criteria
of International Financial Reporting Standards, and the presentation and disclosure requirements of IAS 34, (Interim Financial Reporting).
The accounting policies applied in the preparation of the results for the year ended 31 March 2014 are consistent with those adopted in the
financial statements for the year ended 31 March 2013 except as noted below.
The group has adopted the following new standards and amendments to standards, including any consequential amendments to other
standards: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interest in Other Entities,
IFRS 13 Fair Value Measurement, Presentation of other comprehensive income (Amendments to IAS 1), IAS19 Employee Benefits.
IFRS 13 has been applied prospectively from 1 April 2013. The standard defines fair value as being an exit price based measurement and
sets out in a single IFRS a framework for the measurement of fair value. Application of the standard has not had a material impact on the
measurement of assets and liabilities of the Group, but has resulted in additional disclosures.
The impact to the comparative balance sheets and income statements as a result of adopting IFRS 10 and IAS 19 was provided in the group's
interim results disclosures published on the 21 November 2013 on SENS and the group's website.
The financial results have been prepared under the supervision of Glynn Burger, the Group Risk and Finance Director. The audited financial
statements and the integrated annual report for the year ended 31 March 2014 will be posted to stakeholders on 30 June 2014. These
accounts will be available on the group's website at the same date.
Analysis of assets and liabilities at fair value and amortised cost
Financial
instruments
Financial at Non-
At 31 March 2014 instruments amortised Insurance financial
GBP'000 at fair value cost related instruments Total
Assets
Cash and balances at central banks 7 143 2 073 047 – – 2 080 190
Loans and advances to banks 112 148 3 168 031 – – 3 280 179
Non-sovereign and non-bank cash placements 1 561 513 628 – – 515 189
Reverse repurchase agreements and cash
collateral on securities borrowed 645 449 743 531 – – 1 388 980
Sovereign debt securities 3 021 966 193 466 – – 3 215 432
Bank debt securities 687 979 880 118 – – 1 568 097
Other debt securities 545 748 59 630 – – 605 378
Derivative financial instruments 1 619 415 – – – 1 619 415
Securities arising from trading activities 870 088 – – – 870 088
Investment portfolio 825 745 – – – 825 745
Loans and advances to customers 788 963 15 492 649 – – 16 281 612
Own originated loans and advances to
customers securitised – 875 755 – – 875 755
Other loans and advances – 1 693 569 – – 1 693 569
Other securitised assets 1 230 452 2 346 074 – – 3 576 526
Interests in associated undertakings – – – 24 316 24 316
Deferred taxation assets – – – 131 142 131 142
Other assets 34 679 1 149 019 – 291 294 1 474 992
Property and equipment – – – 108 738 108 738
Investment properties – – – 509 228 509 228
Goodwill – – – 433 571 433 571
Intangible assets – – – 159 169 159 169
Non-current assets classified as held
for sale – – – 41 637 41 637
10 391 336 29 188 517 – 1 699 095 41 278 948
Other financial instruments at fair value
through profit or loss in respect of
liabilities to customers – – 5 862 959 – 5 862 959
10 391 336 29 188 517 5 862 959 1 699 095 47 141 907
Liabilities
Deposits by banks 60 2 721 110 – – 2 721 170
Derivative financial instruments 1 170 232 – – – 1 170 232
Other trading liabilities 861 412 – – – 861 412
Repurchase agreements and cash collateral
on securities lent 525 335 790 752 – – 1 316 087
Customer accounts (deposits) 1 109 161 21 500 623 – – 22 609 784
Debt securities in issue 501 634 1 094 996 – – 1 596 630
Liabilities arising on securitisation of
own originated loans and advances – 729 534 – – 729 534
Liabilities arising on securitisation of
other assets 1 182 147 1 859 288 – – 3 041 435
Current taxation liabilities – – – 208 041 208 041
Deferred taxation liabilities – – – 96 362 96 362
Other liabilities 61 141 1 065 962 – 449 365 1 576 468
5 411 122 29 762 265 – 753 768 35 927 155
Liabilities to customers under investment
contracts – – 5 861 389 – 5 861 389
Insurance liabilities, including
unit-linked liabilities – – 1 570 – 1 570
5 411 122 29 762 265 5 862 959 753 768 41 790 114
Subordinated liabilities – 1 338 752 – – 1 338 752
5 411 122 31 101 017 5 862 959 753 768 43 128 866
Financial instruments carried 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 that the entity
can access at measurement date.
Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (ie as prices) or indirectly (ie derived from prices)
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs)
Assets and liabilities related to the long-term assurance business attributable to policyholders have been
excluded from the analysis as the change in fair value of related assets is attributable to policyholders.
These are all level 1 assets.
Financial Level within the
At 31 March instruments fair value hierarchy
GBP'000 at fair value Level 1 Level 2 Level 3
2014
Assets
Cash and balances at central banks 7 143 7 143 – –
Loans and advances to banks 112 148 110 650 1 498 –
Non-sovereign and non-bank cash placements 1 561 – 1 561 –
Reverse repurchase agreements and cash
collateral on securities borrowed 645 449 169 625 475 824 –
Sovereign debt securities 3 021 966 3 021 966 – –
Bank debt securities 687 979 203 016 484 963 –
Other debt securities 545 748 302 417 171 222 72 109
Derivative financial instruments 1 619 415 163 639 1 347 463 108 313
Securities arising from trading activities 870 088 870 088 – –
Investment portfolio 825 745 109 922 107 456 608 367
Loans and advances to customers 788 963 – 745 810 43 153
Other securitised assets 1 230 452 1 – 1 230 451
Other assets 34 679 33 406 426 847
10 391 336 4 991 873 3 336 223 2 063 240
Liabilities
Deposits by banks 60 – 60 –
Derivative financial instruments 1 170 232 242 043 916 884 11 305
Other trading liabilities 861 412 823 368 38 044 –
Repurchase agreements and cash collateral
on securities lent 525 335 168 772 356 563 –
Customer accounts (deposits) 1 109 161 – 1 109 161 –
Debt securities in issue 501 634 – 501 018 616
Liabilities arising on securitisation of
other assets 1 182 147 – – 1 182 147
Other liabilities 61 141 31 662 29 479 –
5 411 122 1 265 845 2 951 209 1 194 068
Net assets 4 980 214 3 726 028 385 014 869 172
Fair value Fair value
Total movements movements
level 3 through through
For the year to 31 March financial income comprehensive
GBP'000 instruments statement income
The following table is a reconciliation
of the opening balances to the closing
balances for fair value measurements
in level 3 of the fair value hierarchy:
Balance as at 31 March 2013 489 762 460 838 28 924
Reclassfication due to application of
IFRS 13^ 533 098 533 098 –
Total gains or losses recognised 66 317 67 634 (1 317)
In the income statement 67 533 67 533 –
In the statement of comprehensive income (1 216) 101 (1 317)
Purchases 124 005 124 005 –
Sales (91 555) (88 478) (3 077)
Issues (10 343) (10 343) –
Settlements (22 380) (22 374) (6)
Transfers into level 3 46 227 46 227 –
Transfers out of level 3 (87 103) (27 631) (59 472)
Transfer into non-current assets
held for sale (41 637) (41 637) –
Foreign exchange adjustments (137 219) (137 250) 31
Balance as at 31 March 2014 869 172 904 089 (34 917)
^ All reclassifications into Level 3 at 1 April 2013 occurred as a result of inputs to the valuation model being
regarded as unobservable as a result of applying the principles in IFRS 13. Observable inputs are defined as inputs
that are developed using market data, such as publicly available information about actual events or transactions,
and that reflect the assumptions that market participants would use when pricing the asset or liability. All other
inputs have been considered to be unobservable.
The group transfers between levels within the fair value hierarchy when the observability of inputs change or if the
valuation methods change.
The following table quantifies the gains or (losses) included in the income statement and other comprehensive income
recognised on level 3 financial instruments:
for the year ended 31 March
GBP'000 2014
Total gains or (losses) included in the income statement
for the year
Net interest income 14 896
Fee and commission expense (485)
Investment income 55 712
Trading income arising from customer flow 2 294
Trading income arising from balance sheet management and
other trading activities (5 731)
Other operating income 847
67 533
Total gains or (losses) included in other comprehensive
income for the year
Fair value movements on available-for-sale assets taken
directly to other comprehensive income (1 317)
Gains on realisation of available-for-sale assets recycled
through the income statement 101
(1 216)
For the year ended 31 March 2014, GBP53.8 mn of the total gains and losses recognised in the group are unrealised and is
included in investement income.
Sensitivity of fair values to reasonably possible alternative assumptions by Level 3 instrument type
The fair value of financial instruments in level 3 are measured using valuation techniques that incorporate assumptions that
are not evidenced by prices from observable market data. The following table shows the sensitivity of these fair values to
reasonably possible alternative assumptions, determined at a transactional level:
Reflected in the income
Balance Range which statement
sheet Significant unobservable Favourable Unfavourable
value unobservable input has been changes changes
(GBP'000) Valuation method input changed stressed (GBP'000) (GBP'000)
Assets
Other debt securities 72 109 6 227 (4 770)
Discounted cash flows Discount rates (5)%-5% 670 (3 829)
Discounted cash flows Credit spreads (2)%-3% 4 693 (310)
Other Other (6%)-5% 864 (631)
Derivative financial
instruments 108 313 12 354 (6 430)
Discounted cash flows Volatilities (2)%-2% 601 (698)
Discounted cash flows Credit spreads(6.5bps)-6.5bps 256 (684)
Black Scholes Volatilities 20%/50% 4 204 (2 307)
Other *** Various*** *** 3 182 (1 344)
Other (11)%-10% 4 111 (1 397)
Investment portfolio 583 221 105 995 (59 688)
Discounted cash flows Volatilities (10%)-10% 4 (4)
Price earnings multiple EBITDA (10%)-10% or 5x
EBITDA 606 (9 665)
Other *** Various*** *** 88 849 (48 503)
Other (10%)-10% 16 536 (1 516)
Loans and advances to
customers 43 153 2 439 (5 615)
Discounted cash flows Cash flows (9%)-3% 1 337 (4 076)
Other 1 102 (1 539)
Other securitised assets* 1 230 451 38 432 (39 120)
Discounted cash flows Credit spreads -6 months/
+12 months
adjustment to
CDR curve 8 122 (8 810)
Other Market price
adjustments (5%)/5% 30 310 (30 310)
Other assets 847 Discounted cash flows Discount rates (5%)-5% 30 (28)
Liabilities
Derivative financial
instruments 11 305 Discounted cash flows Volatilities (4)%-4% 648 (438)
Debt securities in issue 616 Discounted cash flows Volatilities (2)%-4% 15 (8)
Liabilities arising on
securitisation of other
assets* 1 182 147 40 225 (39 600)
Modelled bond prices Credit spreads (6.5bps)-6.5bps 6 078 (6 120)
Other Market price
adjustments (5%)/5% 34 147 (33 480)
206 365 (155 697)
***Other – The valuation sensitivity for the private equity and embedded derivatives (profit share portfolios) has been assessed on an
adjustment to various inputs such as expected cash flows, discount rates, PE ratios. It is deemed appropriate to reflect the outcome in
totality for the purposes of this analysis.
*The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other
securitised assets asset.
Reflected in other comprehensive
Range which income
Balance unobservable Favourable Unfavourable
sheet Significant input has been changes changes
value unobservable stressed (GBP'000) (GBP'000)
(GBP'000) Valuation method input changed
Assets
Investment portfolio 25 146 13 001 (1 007)
Price earnings multiple EBITDA
Other (10%)-10% or 5x
EBITDA 12 769 (891)
(10%)-10% 232 (116)
Fair value of financial assets and liabilities at amortised cost
At 31 March Carrying Fair
GBP'000 value Value
Assets
Cash and balances at central banks 2 073 047 2 073 043
Loans and advances to banks 3 168 031 3 161 681
Non-sovereign and non-bank cash placements 513 628 513 628
Reverse repurchase agreements and cash collateral on securities borrowed 743 531 743 531
Sovereign debt securities 193 466 197 972
Bank debt securities 880 118 912 490
Other debt securities 59 630 67 022
Loans and advances to customers 15 492 649 15 509 586
Own originated loans and advances to customers securitised 875 755 893 352
Other loans and advances 1 693 569 1 529 812
Other securitised assets 2 346 074 2 382 226
Other assets 1 149 019 1 139 700
29 188 517 29 124 043
Liabilities
Deposits by banks 2 721 110 2 734 972
Repurchase agreements and cash collateral on securities lent 790 752 793 772
Customer accounts (deposits) 21 500 623 21 494 701
Debt securities in issue 1 094 996 1 396 714
Liabilities arising on securitisation of own originated loans and advances 729 534 729 535
Liabilities arising on securitisation of other assets 1 859 288 1 780 745
Other liabilities 1 065 962 1 052 587
Subordinated liabilities 1 338 752 1 339 355
31 101 017 31 322 381
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:
– the further development of standards and interpretations under 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 21 May 2014.
- The information in the announcement for the year ended 31 March 2014, which was approved by the board of directors on 21 May 2014,
does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2013 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.
Investec plc
Ordinary dividend announcement
Registration number: 3633621
Share code: INP
ISIN: GB00BI7BBQ50
Declaration of dividend number: 24
In terms of the DLC structure, Investec plc shareholders who are not South African resident shareholders 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 who are South African residents, 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.
Notice is hereby given that a final dividend number 24 of 11 pence (2013: 10 pence) per ordinary share has been recommended by the board
in respect of the financial year ended 31 March 2014 payable to shareholders recorded in the members' register of the company at the close of
business on Friday, 01 August 2014, which will be paid as follows:
- for non-South African resident Investec plc shareholders, through a dividend payment by Investec plc from income reserves of 11 pence
per ordinary share
- for South African resident shareholders of Investec plc, through a dividend payment by Investec plc of 4 pence per ordinary share and
through a dividend paid by Investec Limited, on the SA DAS share equivalent to 7 pence per ordinary share.
The relevant dates for the payment of dividend number 24 are as follows:
Last day to trade cum-dividend
On the London Stock Exchange (LSE) Tuesday, 29 July 2014
On the Johannesburg Stock Exchange (JSE) Friday, 25 July 2014
Shares commence trading ex-dividend
On the London Stock Exchange (LSE) Wednesday, 30 July 2014
On the Johannesburg Stock Exchange (JSE) Monday, 28 July 2014
Record date (on the JSE and LSE) Friday, 01 August 2014
Payment date (on the JSE and LSE) Friday, 15 August 2014
Share certificates on the South African branch register may not be dematerialised or rematerialised between Monday, 28 July 2014 and Friday,
01 August 2014, both dates inclusive, nor may transfers between the UK and SA registers take place between Monday, 28 July 2014 and
Friday, 01 August 2014, both dates inclusive.
Additional information for South African resident shareholders of Investec plc
- Shareholders registered on the South African register are advised that the distribution of 11 pence, equivalent to a gross dividend of
196 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, 21 May 2014.
- Investec plc UK tax reference number: 2683967322360
- The issued ordinary share capital of Investec plc is 608 756 343 ordinary shares.
- The dividend paid by Investec plc to South African resident shareholders and the dividend paid by Investec Limited on the SA DAS share
are subject to South African Dividend Tax of 15% (subject to any available exemptions as legislated).
- Shareholders registered on the South African register who are exempt from paying the Dividend Tax will receive a net dividend of 196 cents
per share, comprising 124.60000 cents per share paid by Investec Limited on the SA DAS share and 71.40000 cents per ordinary share
paid by Investec plc.
- Shareholders registered on the South African register who are not exempt from paying the Dividend Tax will receive a net dividend of
166.6000 cents per share, comprising:
- 105.91000 cents per share paid by Investec Limited on the SA DAS share (gross dividend of 124.60000 cents per share less Dividend
Tax of 18.69000 cents per share, and
- 60.69000 cents per share paid by Investec plc (gross dividend of 71.40000 cents per share less Dividend Tax of 10.71000 cents
per share).
By order of the board
D Miller
Company Secretary
21 May 2014
Investec Limited
Ordinary share dividend announcement
Registration number: 1925/002833/06
Share code: INL
ISIN: ZAE000081949
Declaration of dividend number 117
Notice is hereby given that a final dividend number 117 of 196 cents (2013: 144 cents) per ordinary share has been recommended by the
board from income reserves in respect of the financial year ended 31 March 2014 payable to shareholders recorded in the shareholder's
register of the company at the close of business on Friday, 01 August 2014.
The relevant dates for the payment of dividend number 117 are as follows:
Last day to trade cum-dividend Friday, 25 July 2014
Shares commence trading ex-dividend Monday, 28 July 2014
Record date Friday, 01 August 2014
Payment date Friday, 15 August 2014
The final gross dividend of 196 cents per ordinary share has been determined by converting the Investec plc distribution of 11 pence per
ordinary share into Rands using the Rand/Pounds Sterling average buy/sell forward rate at 11h00 (SA time) on Wednesday, 21 May 2014.
Share certificates may not be dematerialised or rematerialised between Monday, 28 July 2014 and Friday, 01 August 2014, both dates
inclusive.
Additional information to take note of:
- The Investec Limited company tax reference number: 9800/181/71/2
- The issued ordinary share capital of Investec Limited is 282 934 529 ordinary shares.
- The dividend paid by Investec Limited is subject to South African Dividend Tax (Dividend Tax) of 15% (subject to any available exemptions as
legislated).
- No Secondary Tax on Companies ("STC") credits have been utilised in respect of this ordinary share dividend declaration.
- Shareholders who are exempt from paying the Dividend Tax will receive a net dividend of 196 cents per ordinary share.
- Shareholders who are not exempt from paying the Dividend Tax will receive a net dividend of 166.60000 cents per ordinary share (gross
dividend of 196 cents per ordinary share less Dividend Tax of 29.40000 cents per ordinary share).
By order of the board
B Coetsee
Company Secretary
21 May 2014
Investec plc
Preference share dividend announcement
Registration number: 3633621
Share code: INPP
ISIN: GB00B19RX541
Non-redeemable non-cumulative non-participating preference shares ("preference shares")
Declaration of dividend number 16
Notice is hereby given that preference dividend number 16 has been declared for the period 01 October 2013 to 31 March 2014 amounting
to 7.47945 pence per preference share payable to holders of the non-redeemable non-cumulative non-participating preference shares as
recorded in the books of the company at the close of business on Friday, 13 June 2014.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 7.47945 pence per preference share is equivalent to a gross
dividend of 132.10205 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00
(SA Time) on Wednesday, 21 May 2014.
The relevant dates relating to the payment of dividend number 16 are as follows:
Last day to trade cum-dividend
On the Channel Islands Stock Exchange (CISX) Tuesday, 10 June 2014
On the Johannesburg Stock Exchange (JSE) Friday, 06 June 2014
Shares commence trading ex-dividend
On the Channel Islands Stock Exchange (CISX) Wednesday, 11 June 2014
On the Johannesburg Stock Exchange (JSE) Monday, 09 June 2014
Record date (on the JSE and CISX) Friday, 13 June 2014
Payment date (on the JSE and CISX) Tuesday, 24 June 2014
Share certificates may not be dematerialised or rematerialised between Monday, 09 June 2014 and Friday, 13 June 2014, both dates inclusive,
nor may transfers between the UK and SA registers may take place between Monday, 09 June 2014 and Friday, 13 June 2014 both dates
inclusive.
For SA resident preference shareholders, additional information to take note of:
- Investec plc tax reference number: 2683967322360
- The issued preference share capital of Investec plc is 15 081 149 preference shares
- The dividend paid by Investec plc to South African resident shareholders is subject to South African Dividend Tax (Dividends Tax) of 15%
(subject to any available exemptions as legislated)
- No Secondary Tax on Companies ("STC") credits have been utilised in respect of this preference share dividend declaration
- The net dividend amounts to 112.28674 cents per preference share for preference shareholders liable to pay the Dividends Tax and
132.10205 cents per preference share for preference shareholders exempt from paying the Dividends Tax.
By order of the board
D Miller
Company Secretary
21 May 2014
Investec plc
Rand denominated preference share dividend announcement
Registration number: 3633621
Share code: INPPR
ISIN: GB00B4B0Q974
Rand denominated non-redeemable, non-cumulative, non-participating perpetual preference shares ("preference shares")
Declaration of dividend number 6
Notice is hereby given that preference dividend number 6 has been declared for the period 01 October 2013 to 31 March 2014 amounting
to 410.58218 cents per preference share payable to holders of the Rand denominated non-redeemable non-cumulative non-participating
perpetual preference shares as recorded in the books of the company at the close of business on Friday, 13 June 2014.
The relevant dates relating to the payment of dividend number 6 are as follows:
Last day to trade cum-dividend Friday, 06 June 2014
Shares commence trading ex-dividend Monday, 09 June 2014
Record date Friday, 13 June 2014
Payment date Tuesday, 24 June 2014
Share certificates may not be dematerialised or rematerialised between Monday, 09 June 2014 and Friday, 13 June 2014, both dates inclusive.
For SA resident preference shareholders, additional information to take note of:
- Investec plc tax reference number: 2683967322360
- The issued preference share capital of Investec plc is 2 275 940 preference shares
- The dividend paid by Investec plc to South African resident shareholders is subject to South African Dividends Tax (Dividends Tax) of 15%
(subject to any available exemptions as legislated)
- No Secondary Tax on Companies ("STC") credits have been utilised in respect of this preference share dividend declaration
- The net dividend amounts to 348.99485 cents per preference share for preference shareholders liable to pay the Dividends Tax and
410.58218 cents per preference share for preference shareholders exempt from paying the Dividends Tax.
By order of the board
D Miller
Company Secretary
21 May 2014
Investec Limited
Preference share dividend announcement
Registration number: 1925/002833/06
Share code: INPR
ISIN: ZAE000063814
Non-redeemable non-cumulative non-participating preference shares ("preference shares")
Declaration of dividend number 19
Notice is hereby given that preference dividend number 19 has been declared for the period 01 October 2013 to 31 March 2014 amounting to
336.11555 cents per share payable to holders of the non-redeemable non-cumulative non-participating preference shares as recorded in the
books of the company at the close of business on Friday, 13 June 2014.
The relevant dates for the payment of dividend number 19 are as follows:
Last day to trade cum-dividend Friday, 06 June 2014
Shares commence trading ex-dividend Monday, 09 June 2014
Record date Friday, 13 June 2014
Payment date Tuesday, 24 June 2014
Share certificates may not be dematerialised or rematerialised between Monday, 09 June 2014 and Friday, 13 June 2014, both dates inclusive.
Additional information to take note of:
- The Investec Limited company tax reference number: 9800/181/71/2
- The issued preference share capital of Investec Limited is 32 214 499 preference shares in this specific class.
- The dividend paid by Investec Limited is subject to South African Dividend Tax (Dividend Tax) of 15% (subject to any available exemptions as
legislated).
- No Secondary Tax on Companies ("STC") credits have been utilised in respect of this preference share dividend declaration.
- The net dividend amounts to 285.69822 cents per preference share for shareholders liable to pay the Dividend Tax and 336.11555 cents
per preference share for preference shareholders exempt from paying the dividend tax.
By order of the board
B Coetsee
Company Secretary
21 May 2014
Sponsor
Investec Bank Limited
Date: 22/05/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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