To view the PDF file, sign up for a MySharenet subscription.

INVESTEC PLC - INP/INL: Unaudited combined consolidated financial results for the six months ended 30 September 2014

Release Date: 20/11/2014 09:00
Code(s): INPP INPPR INP INL INPR     PDF:  
Wrap Text
INP/INL: Unaudited combined consolidated financial results for the six months ended 30 September 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)

Unaudited combined consolidated financial results for the six months ended 30 September 2014

Investec, the international specialist bank and asset manager, announces its results for the six months ended 30 September 2014

Highlights

-  Operating profit before goodwill, acquired intangibles, non-operating items and taxation
   and after other non-controlling interests ("operating profit") increased 26.9% in Rand to
   R4,286 million (2013: R3,376 million)
-  Recurring income as a percentage of total operating income amounted to 77.1%
   (2013: 70.9%)
-  Wealth & Investment's operating profit increased by 46.0% in Rand. Asset Management
   reported operating profit in Rand 26.7% ahead of the prior year. Both divisions benefited from
   higher levels of average funds under management and combined net inflows of R75 billion
-  The Specialist Banking business reported an increase in operating profit of 22.3% in Rand
   largely due to strong performances from the South African banking business and the UK
   Corporate and Institutional business, and a lower loss reported by Australia, partially offset by
   less investment income earned on the Hong Kong investment portfolio.
-  The combined South African business reported operating profit 21.5% ahead of the prior year
   in Rand, whilst the combined UK and Other businesses posted a 17.6% increase in operating
   profit in Pounds Sterling
-  The annualised credit loss charge as a percentage of average gross core loans and advances
   amounted to 0.70%, with impairments decreasing 5.3% in Rand
-  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. Leverage ratios remain in excess
   of 7%
-  Liquidity remains strong with cash and near cash balances amounting to R166 billion
-  As the group's Pounds Sterling results have been negatively impacted by the depreciation
   of the average Rand: Pounds Sterling exchange rate of approximately 19% over the period,
   both Rand and Pounds Sterling financial features are reflected in the highlights and financial
   features summary below

Overview of results

                                                                                   Results in Rand                         Results in Pounds Sterling
                                                                     Six months to        Six months to             Six months to      Six months to
                                                                      30 September         30 September         %    30 September       30 September            %
                                                                              2014                2013^    change            2014              2013^       change

Operating profit before taxation* (million)                                 R4 286               R3 376      26.9          GBP241             GBP222          8.6
Earnings attributable to shareholders (million)                             R1 742               R2 489    (30.0)          GBP122             GBP163       (25.6)
Adjusted earnings attributable to ordinary shareholders** (million)         R3 002               R2 486      20.8          GBP169             GBP163          3.6
Adjusted earnings per share**                                                 350c                 289c      21.1           19.7p              19.0p          3.7
Basic earnings per share                                                      157c                 247c    (36.4)           11.6p              16.2p       (28.4)
Headline earnings per share                                                   312c                 238c      31.1           17.6p              15.5p         13.5
Dividends per share                                                           146c                 131c      11.5            8.5p               8.0p          6.3
Cost to income ratio                                                                                                        67.8%              67.7%

Stephen Koseff, Chief Executive Officer of Investec said:
"These results demonstrate that we are delivering
on our promises. The results would have been
even stronger but for the continued weakness
of the Rand. The investments we have made in
the Asset Management and Wealth & Investment
businesses are supporting solid net inflows.
The performances in our South African bank and
the corporate and institutional bank in the UK
demonstrate the strength of our franchise."

                                                                                 At           At                       At           At
                                                                       30 September     31 March         %   30 September     31 March         %
                                                                               2014        2014^    change           2014        2014^    change
Balance sheet
Net asset value per share                                                    6 557c       6 603c     (0.7)         357.7p       376.0p     (4.9)
Tangible net asset value per share                                           5 487c       5 426c       1.1         299.4p       309.0p     (3.1)
Total equity (million)                                                      R72 033      R70 506       2.2       GBP3 931     GBP4 016     (2.1)
Total assets (million)                                                     R841 729     R827 649       1.7      GBP45 931    GBP47 142     (2.6)
Core loans and advances to customers (million)                             R292 869     R301 224     (2.8)      GBP15 981    GBP17 157     (6.9)
Cash and near cash balances (million)                                      R165 617     R160 405       3.2       GBP9 037     GBP9 135     (1.1)
Customer deposits (million)                                                R407 813     R396 952       2.7      GBP22 253    GBP22 610     (1.6)
Third party assets under management (million)                            R2 121 258   R1 930 564       9.9     GBP115 726   GBP109 941       5.3
Return on average adjusted shareholders' equity                                                                     10.7%        10.0%
Return on average risk-weighted assets                                                                              1.24%        1.14%
Defaults (net of impairments and before collateral) as a percentage
of net core loans                                                                                                   2.24%        2.30%
Loans and advances to customers as a percentage of customer deposits                                                70.0%        72.0%

 * 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.
^  Restated for IFRIC 21 – refer to commentary section of this report.

Bernard Kantor, Managing Director of Investec said:
"Whilst we have a good corporate and institutional
banking franchise in the UK, our focus remains
on developing our high income private banking
business and improving structural inefficiencies,
which we believe is key to unlocking future value in
the UK bank. Leveraging and growing our global
private client platform, together with Investec
Wealth & Investment presents an exciting
opportunity for the group."

Business highlights – operating profit in Rands

-  Asset Management: increase of 26.7% to R1 370 million (2013: R1 081 million)
-  Wealth & Investment: increase of 46.0% to R676 million (2013: R463 million)
-  Specialist Banking: increase of 22.3% to R2 240 million (2013: R1 832 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 two principal markets, the United Kingdom and South Africa 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 R85 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/11:00 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

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-

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:
100 Grayston Drive
Sandown, Sandton, 2196
Transfer secretaries:
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001

Company secretary:
N van Wyk

Directors:
F Titi (Chairman),
S Koseff# (Chief Executive),
B Kantor# (Managing Director),
G R Burger# (Group Risk and Finance Director),
C A Carolus, H J du Toit#, P K O Crosthwaite-,
Z B M Bassa*, C R Jacobs-^,
Lord Malloch-Brown-^, K L Shuenyane^,
B Fried-, D Friedland,
H Fukuda OBE-, I R Kantor,
P R S Thomas

# Executive
- British
* Appointed 01 November 2014
^ Appointed 08 August 2014

Sponsor:
Investec Bank Limited

Combined consolidated income statement
                                                                                  Six months to         Six months to          Year to
GBP'000                                                                       30 September 2014    30 September 2013*   31 March 2014*
Interest income                                                                         912 645               979 825        1 905 383
Interest expense                                                                      (580 259)             (661 411)      (1 253 704)
Net interest income                                                                     332 386               318 414          651 679
Fee and commission income                                                               590 666               561 079        1 136 902
Fee and commission expense                                                             (63 660)              (76 203)        (147 481)
Investment income                                                                        45 975                61 828          166 809
Trading income arising from
– customer flow                                                                          51 285                54 431          103 914
– balance sheet management and other trading activities                                 (9 199)                13 668           10 587
Other operating income                                                                    5 052                 8 577           18 554
Total operating income before impairment losses on loans
and advances                                                                            952 505               941 794        1 940 964
Impairment losses on loans and advances                                                (66 400)              (83 087)        (166 152)
Operating income                                                                        886 105               858 707        1 774 812
Operating costs                                                                       (645 204)             (634 667)      (1 307 243)
Depreciation on operating leased assets                                                 (1 089)               (3 856)          (6 044)
Operating profit before goodwill and acquired intangibles                               239 812               220 184          461 525
Impairment of goodwill                                                                  (4 783)                 (854)         (12 797)
Amortisation of acquired intangibles                                                    (7 394)               (6 702)         (13 393)
Operating costs arising from integration, restructuring and partial
disposal of subsidiaries                                                                      –              (15 239)         (20 890)
Operating profit                                                                        227 635               197 389          414 445
Net (loss)/profit on sale of subsidiaries and disposal groups held
for sale                                                                               (18 593)                     –            9 821
Profit before taxation                                                                  209 042               197 389          424 266
Taxation on operating profit before goodwill                                           (45 167)              (38 376)         (78 910)
Taxation on acquired intangibles and acquisition/disposal/integration
of subsidiaries                                                                        (33 852)                 5 827            7 289
Profit after taxation                                                                   130 023               164 840          352 645
Profit attributable to Asset Management non-controlling interests                       (9 356)               (2 950)         (11 031)
Loss/(profit) attributable to other non-controlling interests                               957                 1 493         (10 849)
Earnings attributable to shareholders                                                   121 624               163 383          330 765
Earnings attributable to shareholders                                                   121 624               163 383          330 765
Impairment of goodwill                                                                    4 783                   854           12 797
Amortisation of acquired intangibles                                                      7 394                 6 702           13 393
Operating costs arising from integration, restructuring and partial
disposal of subsidiaries                                                                      –                15 239           20 890
Net loss/(profit) on sale of subsidiaries and disposal groups held
for sale                                                                                 18 593                     –          (9 821)
Taxation on acquired intangibles and acquisition/disposal/integration
of subsidiaries                                                                          33 852               (5 827)          (7 289)
Preference dividends paid                                                              (21 935)              (23 961)         (35 268)
Accrual adjustment on earnings attributable to other equity holders                       4 869                 5 411            (386)
Currency hedge attributable to perpetual equity instruments                               (115)                 1 419            1 842
Earnings before goodwill impairment and non-operating items                             169 065               163 220          326 923
Headline adjustments                                                                   (18 203)              (29 783)         (35 361)
Headline earnings                                                                       150 862               133 437          291 562
Earnings per share (pence)
– Basic                                                                                    11.6                  16.2             34.3
– Diluted                                                                                  11.0                  15.3             32.3
Adjusted earnings per share (pence)
– Basic                                                                                    19.7                  19.0             37.9
– Diluted                                                                                  18.7                  18.0             35.8
Dividends per share (pence)
– Interim                                                                                   8.5                   8.0              8.0
– Final                                                                                     N/A                   N/A             11.0
Headline earnings per share (pence)
– Basic                                                                                    17.6                  15.5             33.8
– Diluted                                                                                  16.7                  14.7             32.3
Number of weighted average shares (million)                                               858.1                 859.6            862.6

* Restated for IFRIC 21 – refer to commentary section of this report.

Combined consolidated statement of comprehensive income
                                                                                  Six months to         Six months to          Year to
GBP'000                                                                       30 September 2014    30 September 2013*   31 March 2014*
Profit after taxation                                                                   130 023               164 840          352 645
Other comprehensive income/(loss):
Items that may be reclassified to the income statement:
Fair value movements on cash flow hedges taken directly to other
comprehensive income**                                                                  (5 124)               (7 772)          (3 582)
Gains on realisation of available-for-sale assets recycled through the
income statement**                                                                      (4 432)               (3 123)          (2 972)
Fair value movements on available-for-sale assets taken directly to other
comprehensive income**                                                                    9 158              (17 588)              347
Foreign currency adjustments on translating foreign operations                        (115 842)             (276 215)        (407 479)
Items that will not be reclassified to the income statement:
Remeasurement of net defined pension asset                                                    –                     –          (5 870)
Total comprehensive income/(loss)                                                        13 783             (139 858)         (66 911)
Total comprehensive income/(loss) attributable to non-controlling interests               9 698              (16 188)         (12 724)
Total comprehensive loss attributable to ordinary shareholders                         (17 850)             (147 631)         (89 455)
Total comprehensive income attributable to perpetual preferred securities                21 935                23 961           35 268
Total comprehensive income/(loss)                                                        13 783             (139 858)         (66 911)

*  Restated for IFRIC 21 – refer to commentary section of this report.
** Net of taxation GBP(0.9) million (six months for 30 September: GBP3.1 million, year to 31 March 2014: GBP7.1 million).

Summarised combined consolidated cash flow statements
                                                                                  Six months to         Six months to          Year to
GBP'000                                                                       30 September 2014    30 September 2013*   31 March 2014*
Cash inflows from operations                                                            308 376               338 959          668 725
(Increase)/decrease in operating assets                                               (986 865)               300 556        (979 947)
Increase/(decrease) in operating liabilities                                          1 638 568             (103 257)        1 290 173
Net cash inflow from operating activities                                               960 079               536 258          978 951
Net cash inflow from investing activities^                                               81 915               128 257           24 313
Net cash outflow from financing activities                                            (168 665)             (254 137)        (234 601)
Effects of exchange rate changes on cash and cash equivalent                           (46 188)             (195 790)        (281 225)
Net increase in cash and cash equivalents                                               827 141               214 588          487 438
Cash and cash equivalents at the beginning of the period                              4 049 011             3 561 573        3 561 573
Cash and cash equivalents at the end of the period                                    4 876 152             3 776 161        4 049 011

* Restated for IFRIC 21 – refer to commentary section of this report.
^ Includes the cash flow effect on the sale of subsidiaries and disposal groups held for sale. 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                                                    30 September 2014   31 March 2014* 30 September 2013*   31 March 2013*
Assets
Cash and balances at central banks                                 3 178 509        2 080 190          1 943 845        1 782 447
Loans and advances to banks                                        2 598 625        3 280 179          2 420 703        3 136 051
Non-sovereign and non-bank cash placements                           567 683          515 189            474 151          420 960
Reverse repurchase agreements and cash
collateral on securities borrowed                                  1 120 419        1 388 980          1 565 256        2 358 672
Sovereign debt securities                                          2 656 672        3 215 432          3 465 113        4 077 217
Bank debt securities                                               1 422 390        1 568 097          1 733 907        1 879 105
Other debt securities                                                469 524          605 378            574 285          449 216
Derivative financial instruments                                   1 994 238        1 619 415          2 001 005        1 983 132
Securities arising from trading activities                           920 244          870 088            978 648          931 603
Investment portfolio                                                 909 407          825 745            852 199          928 893
Loans and advances to customers                                   15 577 508       16 281 612         16 519 838       17 484 524
Own originated loans and advances to
customers securitised                                                403 742          875 755            871 161          930 449
Other loans and advances                                             427 865        1 693 569          1 899 718        2 033 973
Other securitised assets                                             937 508        3 576 526          3 806 822        4 003 208
Interests in associated undertakings                                  23 664           24 316             25 728           27 950
Deferred taxation assets                                              87 070          131 142            132 750          165 457
Other assets                                                       1 562 378        1 474 992          1 720 278        1 959 550
Property and equipment                                                99 792          108 738            124 398          134 101
Investment properties                                                529 600          509 228            395 277          451 975
Goodwill                                                             363 518          433 571            456 284          466 906
Intangible assets                                                    149 892          159 169            167 871          178 567
Non-current assets/disposal groups
classified as held for sale                                        4 105 517           41 637                  –                –
                                                                  40 105 765       41 278 948         42 129 237       45 783 956
Other financial instruments at fair value through
profit or loss in respect of liabilities to customers              5 825 535        5 862 959          5 400 964        6 226 142
                                                                  45 931 300       47 141 907         47 530 201       52 010 098
Liabilities
Deposits by banks                                                  2 101 544        2 721 170          2 351 429        3 047 636
Derivative financial instruments                                   1 178 641        1 170 232          1 208 577        1 443 325
Other trading liabilities                                            886 628          861 412            850 068          851 939
Repurchase agreements and cash collateral on
securities lent                                                    1 282 672        1 316 087          1 333 388        1 940 158
Customer accounts (deposits)                                      22 253 475       22 609 784         23 231 372       24 460 666
Debt securities in issue                                           1 929 850        1 596 630          1 636 276        1 901 776
Liabilities arising on securitisation of own
originated loans and advances                                        105 266          729 534            892 173          926 335
Liabilities arising on securitisation of other assets                744 014        3 041 435          3 036 339        3 303 606
Current taxation liabilities                                         189 222          208 041            200 818          210 475
Deferred taxation liabilities                                         83 088           97 116            108 935          110 622
Other liabilities                                                  2 202 592        1 572 877          1 862 165        1 890 359
Liabilities directly associated with non-current
assets/disposal groups held for sale                               1 977 507                –                  –                –
                                                                  34 934 499       35 924 318         36 711 540       40 086 897
Liabilities to customers under investment
contracts                                                          5 824 152        5 861 389          5 399 181        6 224 062
Insurance liabilities, including unit-linked liabilities               1 383            1 570              1 782            2 080
                                                                  40 760 034       41 787 277         42 112 503       46 313 039
Subordinated liabilities                                           1 240 528        1 338 752          1 409 701        1 751 806
                                                                  42 000 562       43 126 029         43 522 204       48 064 845
Equity
Ordinary share capital                                                   225              224                224              223
Perpetual preference share capital                                       153              153                153              153
Share premium                                                      2 457 327        2 473 131          2 490 408        2 494 618
Treasury shares                                                     (93 650)         (85 981)           (62 762)         (89 545)
Other reserves                                                     (590 248)        (467 247)          (376 541)         (93 537)
Retained income                                                    1 640 801        1 652 016          1 546 285        1 353 298
Shareholders' equity excluding non-controlling
interests                                                          3 414 608        3 572 296          3 597 767        3 665 210
Other Additional Tier 1 securities in issue                           30 012                –                  –                –
Non-controlling interests                                            486 118          443 582            410 230          280 043
– Perpetual preferred securities issued by
  subsidiaries                                                       239 466          252 713            261 425          279 041
– Non-controlling interests in partially held
  subsidiaries                                                       246 652          190 869            148 805            1 002
Total equity                                                       3 930 738        4 015 878          4 007 997        3 945 253
Total liabilities and equity                                      45 931 300       47 141 907         47 530 201       52 010 098

* Restated for IFRIC 21 – refer to commentary section of this report.

Summarised combined consolidated statement of changes in equity

                                                                             Six months to         Six months to          Year to
GBP'000                                                                  30 September 2014    30 September 2013*   31 March 2014*

Balance at the beginning of the period                                           4 015 878             3 945 253        3 945 253
Total comprehensive income/(loss) for the period                                    13 783             (139 858)         (66 911)
Share-based payments adjustments                                                    28 710                33 204           66 905
Dividends paid to ordinary shareholders                                           (95 637)              (81 906)        (150 053)
Dividends paid to perpetual preference shareholders                                (3 233)              (23 961)         (35 268)
Dividends paid to non-controlling interests                                       (28 896)                 (265)          (5 838)
Issue of ordinary shares                                                            38 901                31 650           31 650
Issue of Other Additional Tier 1 securities in issue                                30 012                     –                –
Issue of equity by subsidiaries                                                      3 179                     –           35 477
Acquisition of non-controlling interests                                                35                 (254)            (270)
Non-controlling interest relating to disposal of subsidiaries                        1 214               164 067          166 940
Partial disposal of subsidiary                                                      39 818                     –                –
Movement of treasury shares                                                      (113 026)              (46 614)         (98 688)
Capital conversion of a subsidiary                                                       –               126 681          126 681
Balance at the end of the period                                                 3 930 738             4 007 997        4 015 878
* Restated for IFRIC 21 – refer to commentary section of this report.

Segmental geographic and business analysis of operating profit before goodwill, acquired
intangibles, non-operating items, taxation and after other non-controlling interests

For the six months to 30 September 2014
                                                                     UK and Other
GBP'000                                   UK and Other   Australia          Total   Southern Africa   Total group   
Asset Management                                37 684           –         37 684            38 996        76 680   
Wealth & Investment                             26 912           –         26 912            11 126        38 038   
Specialist Banking                              17 959     (4 988)         12 971           113 080       126 051   
Total group                                     82 555     (4 988)         77 567           163 202       240 769   
Other non-controlling interest – equity                                                                     (957)   
Operating profit                                                                                          239 812   

Commentary

Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the six months ended 30 September 2014

OVERALL GROUP PERFORMANCE
Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ("operating
profit") increased 8.6% to GBP240.8 million (2013: GBP221.7 million) – an increase of 21.8% on a currency neutral basis. Group results have
been negatively impacted by the depreciation of the average Rand: Pounds Sterling exchange rate of approximately 19% over the period.
The combined South African business reported operating profit 21.5% ahead of the prior period in Rand, whilst the combined UK and Other
businesses posted a 17.6% increase in operating profit in Pounds Sterling.

Wealth & Investment's operating profit increased by 23.3%. Asset Management reported operating profit 6.6% ahead of the prior period. Both
divisions benefited from higher levels of average funds under management and net inflows. Operating profit in the Specialist Banking business
increased 6.0% largely due to strong performances from the South African banking business and the UK Corporate and Institutional business,
and a lower loss reported by Australia, partially offset by less investment income earned on the Hong Kong investment portfolio.

Salient features of the period under review are:
-  Adjusted earnings attributable to shareholders before goodwill, acquired intangibles and non-operating items increased 3.6% to
   GBP169.1 million (2013: GBP163.2 million) – an increase of 16.4% on a currency neutral basis.
-  Adjusted earnings per share (EPS) before goodwill, acquired intangibles and non-operating items increased 3.7% from 19.0 pence to
   19.7 pence – an increase of 16.3% on a currency neutral basis.
-  Recurring income as a percentage of total operating income amounted to 77.1% (2013: 70.9%).
-  The annualised credit loss charge as a percentage of average gross core loans and advances amounted to 0.70%, with impairments
   decreasing by 20.1% to GBP66.4 million.
-  Third party assets under management increased 5.3% to GBP115.7 billion (31 March 2014: GBP109.9 billion).
-  Customer accounts (deposits) decreased 1.6% to GBP22.3 billion (31 March 2014: GBP22.6 billion), however, adjusting for the sale of
   Investec Bank (Australia) Limited (as detailed in the "Notes to the commentary" section below) results in an increase of 5.6%.
-  Core loans and advances decreased 6.9% to GBP16.0 billion (31 March 2014: GBP17.2 billion), however, adjusting for the sale of Investec
   Bank (Australia) Limited and Kensington (as detailed in the "Notes to the commentary" section below) results in an increase of 6.3%.
-  The board declared a dividend of 8.5 pence per ordinary share (2013: 8.0 pence) resulting in a dividend cover based on the group's
   adjusted EPS before goodwill and non-operating items of 2.3 times (2013: 2.4 times), consistent with the group's dividend policy.

STRATEGIC REVIEW
Over the past year the group has focused on simplifying and reshaping its Specialist Banking business with a view to improving returns and
has successfully restructured and sold certain businesses. These transactions include the sale of Investec Bank (Australia) Limited to the
Bank of Queensland Limited (which became effective on 31 July 2014) and the pending sales of the UK Kensington business and the Irish
Start mortgage business. Further information is provided in the "Notes to the commentary" section below. Upon completion of these pending
transactions the group is expected to bolster its common equity tier one ratio in Investec plc from 9.5% to approximately 11.0%; significantly
improve its leverage ratio in Investec plc from 7.6% to approximately 8.7%; reduce legacy assets in the UK by approximately GBP1.5 billion
and reduce total loans and securitised assets by approximately GBP4.1 billion.

BUSINESS UNIT REVIEW
Asset Management
Asset Management increased operating profit by 6.6% to GBP76.7 million (2013: GBP71.9 million) benefiting from higher average funds under
management and net inflows of GBP2.7 billion. Total funds under management amount to GBP71.7 billion (31 March 2014: GBP68.0 billion).
Operating margin has improved to 35.7%. 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 23.3% to GBP38.0 million (2013: GBP30.8 million) supported by higher average funds
under management, net inflows of GBP1.5 billion and improved operating margins. Total funds under management amount to GBP43.7 billion
(31 March 2014: GBP41.5 billion). The division in the UK has benefited from the investment in its platforms and the employment of additional
professional investment managers. The business in South Africa has continued to successfully leverage off the division's global investment
platform and the group's integrated Private Client offering ("One Place").

Specialist Banking
Specialist Banking operating profit increased by 6.0% to GBP126.1 million (2013: GBP118.9 million).

South Africa saw a strong increase in net interest income driven by loan book growth and a positive endowment impact. The unlisted
investment portfolio performed well during the period. The group continued to grow its professional finance business and the investment and
trading property portfolios delivered a sound performance. Corporate activity remained broadly in line with the prior period. The business
reported a decline in impairments with the credit loss ratio on average core loans and advances improving to 0.29% (31 March 2014: 0.42%).

In the UK the ongoing business reported operating profit of GBP70.2 million (2013:GBP75.0 million), whilst the legacy business reported a loss
of GBP52.2 million (2013: a loss of GBP49.2 million). The business reported an improvement in its cost of funding and experienced strong
growth in corporate fees, notably in the corporate finance and corporate treasury teams. Results were negatively impacted by lower returns
earned on the Hong Kong investment portfolio and marginally higher impairments.

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 increased by 1.1% to GBP952.5 million (2013: GBP941.8 million).

Net interest income increased by 4.4% to GBP332.4 million (2013: GBP318.4 million) largely due to book growth, lower cost of funding in
the UK and a positive endowment impact in South Africa. This was partially offset by a lower return earned on the legacy portfolios which are
running down and the sale of Investec Bank (Australia) Limited.

Net fee and commission income increased by 8.7% to GBP527.0 million (2013: GBP484.9 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 benefited from
a solid performance from the corporate finance and corporate treasury businesses, notably in the UK, and the professional private banking
business in South Africa continued to perform well.

Investment income decreased by 25.6% to GBP46.0 million (2013: GBP61.8 million). The group's unlisted investment portfolio in the UK and
South Africa delivered a solid performance. This was offset however, by a weaker performance from the Hong Kong portfolio.

Trading income arising from customer flow decreased by 5.8% to GBP51.3 million (2013: GBP54.4 million) whilst trading income from other
trading activities reflected a loss of GBP9.2 million (2013: profit of GBP13.7 million) due to foreign currency losses largely offset in non-
controlling interests as discussed below.

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 GBP83.1 million to GBP66.4 million. Since 31 March 2014 gross defaults have improved
from GBP658.7 million to GBP612.7 million. The percentage of default loans (net of impairments but before taking collateral into account) to
core loans and advances amounted to 2.23% (31 March 2014: 2.30%). The ratio of collateral to default loans (net of impairments) remains
satisfactory at 1.29 times (31 March 2014: 1.27 times).

Operating costs
The ratio of total operating costs to total operating income was 67.8% (2013: 67.7%). Total operating costs grew by 1.7% to GBP645.2 million
(2013: GBP634.7 million) reflecting: an increase in headcount in the asset management and wealth management businesses to support growth
initiatives; inflationary increases in fixed costs in the Specialist Bank in home currencies; an increase in variable remuneration given increased
profitability in certain businesses; a reduction in costs arising from the sale of certain businesses in Australia.

Impairment of goodwill
The goodwill impairment largely relates to the restructure of the Australian business.

Amortisation of acquired intangibles
Amortisation of acquired intangibles largely relates to the Wealth & Investment business and mainly comprises amortisation of amounts
attributable to client relationships.

Net loss after tax on sale of subsidiaries and disposal groups held for sale
Net loss on sale of subsidiaries and disposal groups held for sale comprises a net profit on the sale of Investec Bank (Australia) Limited offset
by a net loss on the pending sale of the Kensington UK and Start Irish operations as detailed in the "Notes to the commentary" section below.

The net loss after taxation can be analysed further as follows:

                                                                     GBP'million   
Net gain before goodwill and taxation                                       46.7   
Goodwill                                                                  (65.3)   
Net loss on sale of subsidiaries and disposal groups held for sale        (18.6)   
Related tax expense                                                       (35.4)   
Net loss after tax                                                        (54.0)   

Taxation
The effective tax rate amounts to 18.8% (2013:17.4%).

Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly comprises:
-   GBP9.4 million profit attributable to non-controlling interests in the Asset Management business.
-   GBP8.3 million profit attributable to non-controlling interests in the Investec Property Fund Limited.
-   A reduction of GBP9.6 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 2014:
-   Total shareholders' equity (including non-controlling interests) decreased by 2.1% to GBP3.9 billion. The weakening of the closing Rand
    exchange rate relative to Pounds Sterling has resulted in a reduction in total equity of GBP117 million.
-   Net asset value per share decreased 4.9% to 357.7 pence and net tangible asset value per share (which excludes goodwill and intangible
    assets) decreased by 3.1% to 299.4 pence largely as a result of the depreciation of the Rand as described above.
-   The return on adjusted average shareholders' equity increased from 10.0% to 10.7%.

Liquidity and funding
As at 30 September 2014 the group held GBP9.0 billion in cash and near cash balances (GBP4.5 billion in Investec plc and R82.3 billion in
Investec Limited) which amounted to 32.7% of its liability base. Loans and advances to customers as a percentage of customer deposits
amounted to 69.5% (31 March 2014: 72.0%).

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 respectively. 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.

Segmental geographic and business analysis of operating profit before goodwill, acquired
intangibles, non-operating items, taxation and after other non-controlling interests*

For the six months to 30 September 2013

                                                                     UK and Other                                   
GBP'000                                   UK and Other   Australia          Total   Southern Africa   Total group   
Asset Management                                33 446           –         33 446            38 494        71 940   
Wealth & Investment                             20 690           –         20 690            10 151        30 841   
Specialist Banking                              25 740    (13 925)         11 815           107 081       118 896   
Total group                                     79 876    (13 925)         65 951           155 726       221 677   
Other non-controlling interest – equity                                                                   (1 493)   
Operating profit                                                                                          220 184   

* Restated for IFRIC 21 – refer to commentary section of this report.

                                                                     30 Sep 2014   31 Mar 2014   
Investec plc^                                                                                    
Capital adequacy ratio                                                     16.4%         15.3%   
Tier 1 ratio                                                               11.4%         10.5%   
Common equity tier 1 ratio                                                  9.5%          8.8%   
Common equity tier 1 ratio (anticipated Basel III "fully loaded"*)          9.6%          8.8%   
Leverage ratio (current)                                                    7.6%          7.4%   
Leverage ratio (anticipated Basel III "fully loaded"*)                      6.4%          6.2%   
Investec Limited                                                                                 
Capital adequacy ratio                                                     15.0%         14.9%   
Tier 1 ratio                                                               11.2%         11.0%   
Common equity tier 1 ratio                                                  9.5%          9.4%   
Common equity tier 1 ratio (anticipated Basel III "fully loaded"*)          9.4%          9.3%   
Leverage ratio (current*)                                                   8.2%          7.8%   
Leverage ratio (anticipated Basel III "fully loaded"*)                      7.2%          6.7%   

* 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 GBP54 million for Investec plc would be around 40 bps.

OUTLOOK
The group has reshaped its business model, both through the sales of businesses referred to above and the restructuring that has taken
place over the past few years. Whilst economic conditions have improved in the developed world, volatility and uncertainty remain a
feature. Additionally, South Africa's economic growth has been weak with a difficult outlook, which could negatively affect growth prospects.
Notwithstanding, the group believes that these strategic initiatives place Investec in a favourable position to make progress in its core client-
and geographic- markets.

On behalf of the boards of Investec plc and Investec Limited

Fani Titi                              Stephen Koseff                                      Bernard Kantor
Chairman                               Chief Executive Officer                             Managing Director

19 November 2014

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, the interim 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 six months ended
30 September 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 30 September 2014 when compared to 31 March 2014. 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 30 September 2014 when compared to 30 September 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:

                           Six months to                       Year to                   Six months to
                           30 Sep 2014                      31 Mar 2014                  30 Sep 2014
Currency per             Period                                                        Period
GBP1.00                     end            Average    Period end          Average         end            Average
South African Rand        18.33              17.86         17.56            16.12       16.29              15.03
Australian Dollar          1.85               1.81          1.80             1.72        1.73               1.63
Euro                       1.28               1.24          1.21             1.19        1.20               1.17
US Dollar                  1.62               1.68          1.67             1.59        1.62               1.54

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 18.8% and the closing rate has depreciated by 4.4%
since 31 March 2014.

SALE OF INVESTEC BANK (AUSTRALIA) LIMITED
The sale of Investec Bank (Australia) Limited's Professional Finance and Asset Finance and Leasing businesses and its deposit book to Bank
of Queensland Limited was effective 31 July 2014 for cash proceeds of GBP122 million.This has resulted in the derecognition of approximately
GBP2 billion of assets and approximately GBP2.2billion of liabilities associated with the businesses sold.

The group continues to have a presence in Australia, focusing on its core activities of Specialised Finance, Corporate Advisory, Property Fund
Management and Asset Management. The remaining business will operate as a non-banking subsidiary of the Investec group. As a result, the
group has decided to no longer report the activities of its Australian businesses separately with these activities now reported under the "UK and
Other" geographical segment and the "UK and Other" Specialist Banking segment.

PENDING SALES OF KENSINGTON GROUP PLC AND START MORTGAGE HOLDINGS LIMITED
On 9 September 2014 the group announced the sale of its UK intermediated mortgage business Kensington Group plc ("Kensington")
together with certain other Investec mortgage assets to funds managed by Blackstone Tactical Opportunities Advisors L.L.C. and TPG Special
Situations Partners for GBP180 million in cash based on a tangible net asset value of the business of GBP165 million at 31 March 2014.

On 15 September 2014 the group announced the sale of its Irish intermediated mortgage business Start Mortgage Holdings Limited ("Start")
together with certain other Irish mortgage assets to an affiliate of Lone Star Funds.

The Start transaction has been approved by the regulator, whilst the Kensington transaction is still subject to regulatory approval.

As the group views these transactions as highly probable, the group has accounted for these transactions in terms of IFRS 5 and has thus
reflected all assets and liabilities associated with the sale as a single asset and liability line on the face of the consolidated balance sheet as
described as "non-current assets/liabilities or disposal groups held for sale".

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 period to 30 September 2014 are consistent with those adopted in the
financial statements for the year ended 31 March 2014 except as noted below.

IFRIC 21 'Levies'
The group has adopted IFRIC 21 'Levies' from 1 April 2014. The interpretation clarifies that the obligating event that gives rise to a liability to
pay a levy is the activity that triggers the payment of the levy and an entity does not have a constructive obligation to pay a levy that will be
triggered in a future period as a result of being economically compelled to continue to operate in that future period. The new interpretation
has been applied retrospectively and its application has caused the recognition date for the Financial Services Compensation Scheme levy in
the UK to be changed from 31 December prior to the beginning of the relevant levy year to the following 1 April. The group has accordingly
restated the prior periods to reflect this change.

The impact of the restatement in the 6 months to 30 September 2013 is an increase in Operating Costs and Other liabilities of GBP1.1 million
and a decrease in Taxation on operating profit before goodwill and Deferred taxation liabilities of GBP0.2 million. The impact in the year
to 31 March 2013 is a decrease in Operating Costs and Other Liabilities of GBP4.7 million and an increase in Taxation on operating profit
before goodwill and Deferred taxation liabilities of GBP1.0 million. The net impact on Retained income at 31 March 2014 is an increase of
GBP2.8 million.

The financial results have been prepared under the supervision of Glynn Burger, the Group Risk and Finance Director. The financial statements
for the six months to 30 September 2014 will be posted to stakeholders on 28 November 2014. These accounts will be available on the
group's website at the same date.

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 19 November 2014.
-  The information in the announcement for the six months ended 30 September 2014, which was approved by the board of directors on
   19 November 2014, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2014
   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.
-  This announcement is available on the group's website: www.investec.com

Analysis of assets and liabilities at fair value and amortised cost 
                                                                                 Instruments
At 30 September 2014                                            Instruments     at amortised    Insurance   Non-financial
GBP'000                                                       at fair value             cost      related     instruments         Total
Assets
Cash and balances at central banks                                    6 491        3 172 018            –               –     3 178 509
Loans and advances to banks                                         118 182        2 480 443            –               –     2 598 625
Non-sovereign and non-bank cash placements                            1 319          566 364            –               –       567 683
Reverse repurchase agreements and cash collateral
on securities borrowed                                              641 269          479 150            –               –     1 120 419
Sovereign debt securities                                         2 464 490          192 182            –               –     2 656 672
Bank debt securities                                                614 217          808 173            –               –     1 422 390
Other debt securities                                               388 165           81 359            –               –       469 524
Derivative financial instruments                                  1 994 238                –            –               –     1 994 238
Securities arising from trading activities                          920 244                –            –               –       920 244
Investment portfolio                                                909 407                –            –               –       909 407
Loans and advances to customers                                     729 810       14 847 698            –               –    15 577 508
Own originated loans and advances to customers
securitised                                                               –          403 742            –               –       403 742
Other loans and advances                                                  –          427 865            –               –       427 865
Other securitised assets                                            796 778          140 730            –               –       937 508
Interests in associated undertakings                                      –                –            –          23 664        23 664
Deferred taxation assets                                                  –                –            –          87 070        87 070
Other assets                                                         33 388        1 213 577            –         315 413     1 562 378
Property and equipment                                                    –                –            –          99 792        99 792
Investment properties                                                     –                –            –         529 600       529 600
Goodwill                                                                  –                –            –         363 518       363 518
Intangible assets                                                         –                –            –         149 892       149 892
Non-current assets/disposal group classified
as held for sale                                                  4 065 628                –            –          39 889     4 105 517
                                                                 13 683 626       24 813 301            –       1 608 838    40 105 765
Other financial instruments at fair value through profit
or loss in respect of liabilities to customers                            –                –    5 825 535               –     5 825 535
                                                                 13 683 626       24 813 301    5 825 535       1 608 838    45 931 300
Liabilities
Deposits by banks                                                         –        2 101 544            –               –     2 101 544
Derivative financial instruments                                  1 178 641                –            –               –     1 178 641
Other trading liabilities                                           886 628                –            –               –       886 628
Repurchase agreements and cash collateral
on securities lent                                                  415 769          866 903            –               –     1 282 672
Customer accounts (deposits)                                        946 110       21 307 365            –               –    22 253 475
Debt securities in issue                                            508 785        1 421 065            –               –     1 929 850
Liabilities arising on securitisation of own originated loans
and advances                                                              –          105 266            –               –       105 266
Liabilities arising on securitisation of other assets               735 625            8 389            –               –       744 014
Current taxation liabilities                                              –                –            –         189 222       189 222
Deferred taxation liabilities                                             –                –            –          83 088        83 088
Other liabilities                                                    71 486        1 801 330            –         329 777     2 202 593
Liabilities directly associated with non-current assets/
disposal groups held for sale                                     1 977 507                –            –               –     1 977 507
                                                                  6 720 551       27 611 862            –         602 087    34 934 500
Liabilities to customers under investment contracts                       –                –    5 824 152               –     5 824 152
Insurance liabilities, including unit-linked liabilities                  –                –        1 382               –         1 382
                                                                  6 720 551       27 611 862    5 825 534         602 087    40 760 034
Subordinated liabilities                                                  –        1 240 528            –               –     1 240 528
                                                                  6 720 551       28 852 390    5 825 534         602 087    42 000 562
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

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. The linked assets are classified as level 1.

                                                                         Total          Level within the fair value hierarchy
at 30 September 2014                                               instruments
GBP'000                                                          at fair value          Level 1           Level 2           Level 3
Assets
Cash and balances at central banks                                       6 491            6 491                 –                 –
Loans and advances to banks                                            118 182          118 182                 –                 –
Non-sovereign and non-bank cash placements                               1 319                –             1 319                 –
Reverse repurchase agreements and cash collateral on
securities borrowed                                                    641 269                –          641 269                  –
Sovereign debt securities                                            2 464 490        2 464 490                 –                 –
Bank debt securities                                                   614 217          173 770           440 447                 –
Other debt securities                                                  388 165          350 540            17 399            20 226
Derivative financial instruments                                     1 994 238          937 140         1 027 045            30 053
Securities arising from trading activities                             920 244          920 244                 –                 –
Investment portfolio                                                   909 407          116 021           160 950           632 436
Loans and advances to customers                                        729 810                –           690 531            39 279
Other securitised assets                                               796 778                –                 –           796 778
Other assets                                                            33 388           33 388                 –                 –
Non-current assets/disposal groups classified as held for sale       4 065 628                –         4 065 628                 –
                                                                    13 683 626        5 120 266         7 044 588         1 518 772
Liabilities
Derivative financial instruments                                     1 178 641          385 035           787 616             5 990
Other trading liabilities                                              886 628          861 091            25 537                 –
Repurchase agreements and cash collateral on securities lent           415 769                –           415 769                 –
Customer accounts (deposits)                                           946 110                –           946 110                 –
Debt securities in issue                                               508 785                –           508 785                 –
Liabilities arising on securitisation of other assets                  735 625                –                 –           735 625
Other liabilities                                                       71 486           39 923            31 563                 –
Liabilities directly associated with non-current assets/disposal
groups held for sale                                                 1 977 507                –         1 977 507                 –
                                                                     6 720 551        1 286 049         4 692 887           741 615
Net assets                                                           6 963 075        3 834 217         2 351 701           777 157

Transfers between level 1 and level 2

There have been no transfers between level 1 and level 2 in the current period.

Level 3 instruments
                                                                       Total level 3            Fair value    Fair value movements
                                                                           financial     movements through           through other
GBP'000                                                                  instruments      income statement    comprehensive 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:
Net opening balance at 1 April 2014                                          869 172               844 026                  25 146
Total gains or losses                                                         18 613                18 393                     220
 In the income statement                                                      18 302                18 393                    (91)
 In the statement of comprehensive income                                        311                     –                     311
Purchases                                                                     35 732                35 722                      10
Sales                                                                      (154 973)             (154 383)                   (590)
Issues                                                                         1 338                 1 338                       –
Settlements                                                                   10 200                10 200                       –
Transfers into level 3                                                        60 227                60 227                       –
Transfers out of level 3                                                         403                   403                       –
Transfer into non-current assets/disposal groups held for sale              (43 602)              (43 602)                       –
Foreign exchange adjustments                                                (19 953)              (19 953)                       –
Balance as at 30 September 2014                                              777 157               752 371                  24 786

The following table quantifies the gains or losses included in the income statement and other comprehensive income recognised on level 3
financial instruments:

Six months to 30 September 2014
GBP'000                                                                       Total               Realised             Unrealised
Total gains or losses included in the income statement for
the period
Net interest expense                                                          (456)                  (456)                      –
Fee and commission expense                                                 (14 144)               (15 333)                  1 189
Investment income                                                            27 069                (9 043)                 36 112
Trading income arising from customer flow                                     5 336                  (206)                  5 542
Trading income arising from balance sheet management and other
trading activities                                                              445                  (202)                    647
Other operating income                                                           52                      –                     52
                                                                             18 302               (25 240)                 43 542
Six months to 30 September 2014
GBP'000                                                                       Total               Realised             Unrealised

Total gains or losses included in other comprehensive income for
the period
Fair value movements on available-for-sale assets taken directly
to other comprehensive income                                                   311                      –                     311
                                                                                311                      –                     311

For the period ended 30 September 2014, instruments to the value of (GBP2.3 million) were transferred from level 3 into level 2 due to the
valuation methodologies being reviewed and observable inputs are used to determine the fair value. GBP1.9 million worth of assets have been
transferred from level 3 to level 2 due to an observable market input becoming available.

In addition GBP43.6 million of instruments previously classified as level 3 were transferred to level 2 as a result of being held as assets and
liabilities held for sale at 30 September 2014. This has resulted in a change in valuation technique from their original holding at fair value to
fair value less costs to sell which is in accordance with IFRS 5 and is measured by reference to the agreed sale documents. The assets and
liabilities held for sale also include assets and liabilities which were previously measured at amortised cost which are now held at fair value less
costs to sell.

There were transfers from level 2 to the level 3 category to the value of GBP60.2 million because the underlying circumstances of the instrument
changed and as a result, the significant valuation inputs became unobservable in the market.

The group transfers between levels within the fair value hierarchy when the observability of inputs change or if the valuation methods change.

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:

                                                                                                Range which  Reflected in the income statement
                        Balance                                                                unobservable               (GBP'000)
                          sheet                             Significant unobservable         input has been      Favourable       Unfavourable
                          value   Valuation method          input changed                          stressed         changes            changes

Assets
Other debt securities    20 226                                                                                         394              (443)
                                  Discounted cash flows     Credit spreads                       (5%) – 5%*             118              (118)
                                  Other                     Other                                (6%) – 5%*             276              (325)
Derivative financial     30 053                                                                                      13 710            (6 263)
instruments
                                  Discounted cash flows     Volatilities                         (2%) – 2%*           2 212              (810)
                                  Discounted cash flows     Credit spreads                  (50bps) – 50bps             873              (817)
                                  Black Scholes             Volatilities                           20%/50%*           1 684            (1 053)
                                  Other***                  Various***                                  ***           7 099            (2 908)
                                                            Other                              (11%) – 10%*           1 842              (675)
Investment portfolio    607 651                                                                                     109 116           (68 241)
                                  Price earnings multiple   EBITDA                         (10%) –10% or 5x           1 096            (4 344)
                                                                                                     EBITDA
                                  Other***                  Various***                                  ***          96 210           (54 577)
                                                            Other                               (10%) – 10%          11 810            (9 320)
Loans and advances       39 279                                                                                       2 223            (5 197)
to customers                      Discounted cash flows     Cash flows                           (9%) – 3%*           1 102            (3 755)
                                                            Other                                                     1 121            (1 442)
Other securitised       796 778                                                                                      20 693           (21 300)
assets^                           Other                     Underlying market price                (5%)/5%*          19 493           (19 493)
                                  Discounted cash flows     Credit spreads                      – 6 months/
                                                                                                 + 12-month
                                                                                              adjustment to
                                                                                                  CDR curve           1 200            (1 807)
Liabilities
Derivative financial      5 990                             Basis risk and yield curve     (10 bps) – 10bps           2 429              (609)
instruments
Liabilities arising     735 625   Modelled bond prices      Credit spreads                (6.5bps) – 6.5bps           1 210              (751)
on securitisation
of other assets^
                                  Other                     Underlying market price                (5%)/5%*          22 244           (21 679)
                        752 372                                                                                     172 019          (124 483)

                                                                                                Range which    Reflected in   other comprehensive
                        Balance                                                                unobservable          income   (GBP'000)
                          sheet                             Significant unobservable         input has been      Favourable       Unfavourable
                          value   Valuation method          input changed                          stressed         changes            changes

Assets
Investment portfolio     24 785                                                                                       1 333              (884)
                                  Price earnings multiple   EBITDA                             (10%) – 10%*           1 304              (855)
                                                                                               or 5x EBITDA
                                                            Other                              (10%) – 10%*              29               (29)

^   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 for the private equity and embedded derivatives (profit share) portfolios 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 investments cannot be determined through the adjustment of a single input.

In determining the value of level 3 financial instruments, the following are the principal inputs 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 are the interest rates used to discount future cash flows in a discounted cash flow valuation method. The discount rate takes into
account time value of money and uncertainty of 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
A company's earnings before interest, taxes, depreciation and amortisation. This is the main input into a price earnings multiple valuation method.

Level 2 financial assets and financial liabilities
The following table sets out the group's principal valuation techniques at 30 September 2014 used in determining the fair value of its financial
assets and financial liabilities that are classified within level 2 of the fair value hierarchy:

                                         Valuation basis/techniques                    Main inputs

Assets
Non-sovereign and non-bank cash          Discounted cash flow model                    Discount rates
placements
Reverse repurchase agreements and        Discounted cash flow model, Hermite           Discount rates
cash collateral on securities borrowed   interpolation
                                         Black-Scholes                                 Volatilities
Bank debt securities                     Discounted cash flow model                    Discount rates, swap curves and NCD curves
Other debt securities                    Discounted cash flow models                   Discount rates, swap curves and
                                                                                       NCD curves, external prices, broker quotes
Derivative financial instruments         Discounted cash flow model, Hermite           Discount rate, risk free rate, volatilities, forex
                                         interpolation, Industry standard derivative   forward points and spot rates, interest rate swap
                                         pricing models including Black-Scholes        curves and credit curves
Investment portfolio                     Discounted cash flow model, net asset value   Discount rate and fund unit price, cash flows
                                         model
                                         Comparable quoted inputs                      Net assets
Loans and advances to customers          Discounted cash flow model                    Discount rates
Liabilities
Derivative financial instruments         Discounted cash flow model, Hermite           Discount rate, risk free rate, volatilities, forex
                                         interpolation, Industry standard derivative   forward points and spot rates, interest rate swap,
                                         pricing models including Black-Scholes        credit and curves
Other trading liabilities                Discounted cash flow model                    Discount rates
Repurchase agreements and cash           Discounted cash flow model, Hermite           Discount rates
collateral on securities lent            interpolation
Customer accounts (deposits)             Discounted cash flow model                    Discount rates
Debt securities in issue                 Discounted cash flow model                    Discount rates
Other liabilities                        Discounted cash flow model                    Discount rates

Fair value of financial assets and liabilities measured at amortised cost

at 30 September 2014
GBP'000                                                                      Carrying amount   Fair value
Assets
Cash and balances at central banks                                                 3 172 018    3 172 018
Loans and advances to banks                                                        2 480 443    2 471 517
Non-sovereign and non-bank cash placements                                           566 364      566 364
Reverse repurchase agreements and cash collateral on securities borrowed             479 150      479 211
Sovereign debt securities                                                            192 182      197 676
Bank debt securities                                                                 808 173      840 461
Other debt securities                                                                 81 359       95 212
Loans and advances to customers                                                   14 847 698   14 894 765
Own originated loans and advances to customers securitised                           403 742      403 742
Other loans and advances                                                             427 865      382 224
Other securitised assets                                                             140 730      140 730
Other assets                                                                       1 213 577    1 193 654
                                                                                  24 813 301   24 837 574
Liabilities
Deposits by banks                                                                  2 101 544    2 168 127
Repurchase agreements and cash collateral on securities lent                         866 903      893 314
Customer accounts (deposits)                                                      21 307 365   21 179 286
Debt securities in issue                                                           1 421 065    1 464 481
Liabilities arising on securitisation of own originated loans and advances           105 266      109 877
Liabilities arising on securitisation of other assets                                  8 389        8 389
Other liabilities                                                                  1 801 330    1 786 345
Subordinated liabilities                                                           1 240 528    1 322 059
                                                                                  28 852 390   28 931 878
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 19 November 2014.
- The information in the announcement for the six months to 30 September 2014, which was approved by the board of directors on
  19 November 2014, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March
  2014 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 25

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 an interim dividend number 25 of 8.5 pence (2013: 8.0 pence) per ordinary share has been declared by the board
from income reserves in respect of the six months ended 30 September 2014 payable to shareholders recorded in the members' register of
the company at the close of business on Friday, 12 December 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 8.5 pence
  per ordinary share
- for South African resident shareholders of Investec plc, through a dividend payment by Investec plc from income reserves of 8.5 pence
  per ordinary share

The relevant dates for the payment of dividend number 25 are as follows:

Last day to trade cum-dividend
On the London Stock Exchange (LSE)                 Wednesday, 10 December 2014
On the Johannesburg Stock Exchange (JSE)              Friday, 05 December 2014
Shares commence trading ex-dividend
On the London Stock Exchange (LSE)                  Thursday, 11 December 2014
On the Johannesburg Stock Exchange (JSE)              Monday, 08 December 2014
Record date (on the JSE and LSE)                      Friday, 12 December 2014
Payment date (on the JSE and LSE)                     Monday, 29 December 2014

Share certificates on the South African branch register may not be dematerialised or rematerialised between Monday, 08 December 2014
and Friday, 12 December 2014, both dates inclusive, nor may transfers between the UK and SA registers take place between Monday,
08 December 2014 and Friday, 12 December 2014, both dates inclusive.

Additional information for South African resident shareholders of Investec plc
- Investec plc UK tax reference number: 2683967322360.
- Shareholders registered on the South African register are advised that the distribution of 8.5 pence, equivalent to a gross dividend of
  146 cents per share, has been arrived at using the Rand/Pound Sterling average buy/sell forward rate, as determined at 11:00 (SA time)
  on Wednesday, 19 November 2014.
- The issued ordinary share capital of Investec plc is 613 609 642 ordinary shares.
- The dividend paid by Investec plc to South African resident shareholders 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 registered on the South African register who are exempt from paying the Dividend Tax will receive a net dividend of
  146.00000 cents per share.
- Shareholders registered on the South African register who are not exempt from paying the Dividend Tax will receive a net dividend of
  124.10000 cents per share (gross dividend of 146.0000 cents per share less Dividend Tax of 21.9000 cents per share).

By order of the board

D Miller
Company Secretary
19 November 2014

Investec Limited
Ordinary share dividend announcement
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

Declaration of dividend number 118

Notice is hereby given that an interim dividend number 118 of 146 cents (2013: 131 cents) per ordinary share has been declared by the
board from income reserves in respect of the six months ended 30 September 2014 payable to shareholders recorded in the shareholders'
register of the company at the close of business on Friday, 12 December 2014.

The relevant dates for the payment of dividend number 118 are as follows:

Last day to trade cum-dividend            Friday, 05 December 2014
Shares commence trading ex-dividend       Monday, 08 December 2014
Record date (on the JSE)                  Friday, 12 December 2014
Payment date (on the JSE)                 Monday, 29 December 2014

The interim gross dividend of 146 cents per ordinary share has been determined by converting the Investec plc distribution of 8.5 pence per
ordinary share into Rands using the Rand/Pounds Sterling average buy/sell forward rate at 11:00 (SA time) on Wednesday, 19 November 2014.

Share certificates may not be dematerialised or rematerialised between Monday, 08 December 2014 and Friday, 12 December 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 285 748 623 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 credits ("STC") 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 146.00000 cents per ordinary share.
- Shareholders who are not exempt from paying the Dividend Tax will receive a net dividend of 124.10000 cents per ordinary share (gross
  dividend of 146.00000 cents per ordinary share less Dividend Tax of 21.90000 cents per ordinary share).

By order of the board

N van Wyk
Company Secretary
19 November 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 17

Notice is hereby given that preference dividend number 17 has been declared from income reserves for the period 01 April 2014 to 30 September
2014 amounting to 7.52055 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, 05 December 2014.

For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 7.52055 pence per preference share is equivalent to a gross
dividend of 129.54100 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11:00
(SA Time) on Wednesday, 19 November 2014.

The relevant dates relating to the payment of dividend number 17 are as follows:

                                                      Last day to trade cum-dividend
On the Channel Islands Stock Exchange (CISX)             Wednesday, 03 December 2014
On the Johannesburg Stock Exchange (JSE)                    Friday, 28 November 2014
                                                 Shares commence trading ex-dividend
On the Channel Islands Stock Exchange (CISX)              Thursday, 04 December 2014
On the Johannesburg Stock Exchange (JSE)                    Monday, 01 December 2014
Record date (on the JSE and CISX)                           Friday, 05 December 2014
Payment date (on the JSE and CISX)                          Monday, 15 December 2014

Share certificates may not be dematerialised or rematerialised between Monday, 01 December 2014 and Friday, 05 December 2014 both
dates inclusive, nor may transfers between the UK and SA registers may take place between Monday, 01 December 2014 and Friday,
05 December 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 (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 110.10985 cents per preference share for preference shareholders liable to pay the Dividend Tax and
  129.54100 cents per preference share for preference shareholders exempt from paying the Dividend Tax.

By order of the board

D Miller
Company Secretary
19 November 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 7

Notice is hereby given that preference dividend number 7 has been declared from income reserves for the period 01 April 2014 to
30 September 2014 amounting to 433.55137 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,
05 December 2014.

The relevant dates relating to the payment of dividend number 7 are as follows:

Last day to trade cum-dividend           Friday, 28 November 2014
Shares commence trading ex-dividend      Monday, 01 December 2014
Record date                              Friday, 05 December 2014
Payment date                             Monday, 15 December 2014

Share certificates may not be dematerialised or rematerialised between Monday, 01 December 2014 and Friday, 05 December 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 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 368.51866 cents per preference share for preference shareholders liable to pay the Dividend Tax and
  433.55137 cents per preference share for preference shareholders exempt from paying the Dividend Tax.

By order of the board

D Miller
Company Secretary
19 November 2014

Investec Limited
Preference share dividend announcement
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

Non-redeemable non-cumulative non-participating preference shares ("preference shares")
Declaration of dividend number 20

Notice is hereby given that preference dividend number 20 has been declared from income reserves for the period 01 April 2014 to
30 September 2014 amounting to 354.91885 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, 05 December 2014.

The relevant dates for the payment of dividend number 20 are as follows:

Last day to trade cum-dividend             Friday, 28 November 2014
Shares commence trading ex-dividend        Monday, 01 December 2014
Record date                                Friday, 05 December 2014
Payment date                               Monday, 15 December 2014

Share certificates may not be dematerialised or rematerialised between Monday, 01 December 2014 and Friday, 05 December 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 301.68102 cents per preference share for shareholders liable to pay the Dividend Tax and 354.91885 cents
  per preference share for preference shareholders exempt from paying the dividend tax.

By order of the board

N van Wyk
Company Secretary
19 November 2014

Sponsor
Investec Bank Limited

www.investec.com
Date: 20/11/2014 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story