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INVESTEC LIMITED - Unaudited combined consolidated financial results for the year to 31 March 2017

Release Date: 18/05/2017 08:00
Code(s): INL INP INPP INPPR INPR     PDF:  
 
Wrap Text
Unaudited combined consolidated financial results
for the year to 31 March 2017

Investec plc
Incorporated in England and Wales
(Registration number 3633621)
JSE ordinary share code: INP
LSE ordinary share code: INVP
ISIN: GB00B17BBQ50

Investec Limited
Incorporated in the Republic of South Africa
(Registration number 1925/002833/06)
JSE ordinary share code: INL
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949

Investec plc   
and Investec Limited

(combined results)

Unaudited combined
consolidated financial results
for the year to 31 March 2017

Unaudited combined consolidated financial results for the year ended 31 March 2017

This announcement covers the results of the Investec group for the year ended 31 March 2017.

BASIS OF PRESENTATION
Statutory basis
Statutory information is set out in a separate section in this announcement. In
order to present a more meaningful view of the group's performance the results
continue to be presented on an ongoing basis as explained further below.

Ongoing basis
The results presented on an ongoing basis exclude items that in
management's view could distort the comparison of performance between
periods. Based on this principle, the remaining legacy business in the UK
continues to be excluded from underlying profit.

This basis of presentation is consistent with the approach adopted for the
prior year ended 31 March 2016. A reconciliation between the statutory and
ongoing income statement is provided.

Unless the context indicates otherwise, all comparatives included in the
commentary relate to the year ended 31 March 2016. Group results
have benefited from an 11.1% appreciation of the average Rand: Pounds
Sterling exchange rate over the period. Amounts represented on a currency
neutral basis for income statement items assume that the relevant average
exchange rates for the year to 31 March 2017 remain the same as those
in the prior year. Amounts represented on a currency neutral basis for
balance sheet items assume that the relevant closing exchange rates at
31 March 2017 remain the same as those at 31 March 2016.

OVERVIEW OF RESULTS
STRONG CLIENT ACTIVITY LEVELS SUPPORTING
UNDERLYING PERFORMANCE

- Strong performance against a backdrop of continued macro uncertainty
  and volatility in the group's key operating geographies.

- The Asset Management and Wealth & Investment businesses have
  benefited from higher funds under management supported by rising
  market levels.

- The Specialist Banking business reported results ahead of the prior year
  supported by sound levels of corporate and private client activity.

- Growth in costs primarily reflects planned investment in growing the client
  franchise businesses.

- The group has successfully leveraged its ability to provide clients an
  international offering, increasing its client base and deepening its core
  franchise.

STATUTORY OPERATING PROFIT SALIENT FEATURES
- Statutory operating profit before goodwill, acquired intangibles,
  non-operating items and taxation and after other non-controlling
  interests ("operating profit") increased 18.5% to GBP599.1 million 
  (2016: GBP505.6 million) - an increase of 8.0% on a currency neutral basis.

- Statutory adjusted earnings per share (EPS) before goodwill, acquired
  intangibles and non-operating items increased 16.9% from 41.3 pence to
  48.3 pence - an increase of 6.3% on a currency neutral basis.

SOLID PERFORMANCE FROM THE ONGOING BUSINESS

- Ongoing operating profit increased 13.7% to GBP663.7 million
  (2016: GBP583.9 million) - an increase of 4.2% on a currency neutral
  basis.

- Ongoing adjusted EPS before goodwill, acquired intangibles and
  non-operating items increased 11.3% from 48.6 pence to 54.1 pence -
  an increase of 1.9% on a currency neutral basis.

- Recurring income as a percentage of total operating income amounted to
  72.0% (2016: 71.8%).

- The credit loss charge as a percentage of average gross core loans
  and advances amounted to 0.29% (2016: 0.26%), with impairments
  increasing by GBP15.8 million to GBP57.1 million.

- Third party assets under management increased 23.9% to
  GBP150.7 billion (31 March 2016: GBP121.7 billion) - an increase of
  14.8% on a currency neutral basis.

- Customer accounts (deposits) increased 21.1% to GBP29.1 billion
  (31 March 2016: GBP24.0 billion) - an increase of 5.5% on a currency
  neutral basis.

- Core loans and advances increased 26.8% to GBP22.2 billion
  (31 March 2016: GBP17.5 billion) - an increase of 8.5% on a currency
  neutral basis.

THE UK LEGACY PORTFOLIO CONTINUES TO BE ACTIVELY MANAGED DOWN

- The legacy portfolio reduced from GBP583 million at 31 March 2016 to
  GBP476 million through asset sales, redemptions and write-offs.

- The legacy business reported a loss before taxation of GBP64.6 million
  (2016: GBP78.3 million) with impairments on the legacy portfolio reducing
  20.3% from GBP68.1 million to GBP54.3 million.

MAINTAINED A SOUND BALANCE SHEET

- Capital remained in excess of current regulatory requirements. The group
  is comfortable with its common equity tier 1 ratio target at a 10% level, as
  its current leverage ratios for both Investec Limited and Investec plc are
  above 7%.

- Liquidity remained strong with cash and near cash balances amounting to
  GBP12.0 billion.

DIVIDEND INCREASE OF 9.5%
- The board proposes a final dividend of 13.0 pence per ordinary share
  equating to a full year dividend of 23.0 pence (2016: 21.0 pence) resulting
  in a dividend cover based on the group's adjusted EPS before goodwill
  and non-operating items of 2.1 times (2016: 2.0 times), consistent with
  the group's dividend policy.

Stephen Koseff, Chief Executive Officer of Investec said:
 
"For the first time our revenues have broken the GBP2 billion mark showing the
 strength and resilience of our businesses in the face of macro uncertainty in
 our two key markets. Our client focus, multiple income streams and long term
 investment strategy give us confidence for the future."

Bernard Kantor, Managing Director of Investec said:
 
"We have seen solid growth in all the core earnings drivers for our three
 business areas thanks to investment in our people, our infrastructure
 and our franchises. Strong, sustainable levels of corporate and private
 client activity are reaping rewards for the Specialist Bank while both Asset
 Management and Wealth & Investment are benefiting from higher funds
 under management."

FOR FURTHER INFORMATION PLEASE CONTACT:
INVESTEC +27 (0) 11 286 7070 OR +44 (0) 20 7597 5546
Stephen Koseff, Chief Executive Officer
Bernard Kantor, Managing Director
Ursula Nobrega, Investor Relations (mobile:+27 (0) 82 552 8808)
Carly Newton, Investor Relations (+44 (0) 20 7597 4493)

BRUNSWICK (SA PR ADVISERS)
Marina Bidoli
Tel: +2711 502 7405 / +2783 253 0478

NEWGATE (UK PR ADVISERS)
Jonathan Clare/Jason Nisse/Alistair Kellie/ Charlotte Coulson
Tel: +44 (0)20 7680 6550

PRESENTATION/CONFERENCE CALL DETAILS
A presentation on the results will commence at 9:00 UK time/10:00 SA time
on 18 May 2017. Viewing options as below:

- Live on South African TV (Business Day TV channel 412 DSTV)

- A live and delayed video webcast at https://protect-za.mimecast.com/s/NlbXBvUkwWAnin

- Toll free numbers for the telephone conference facilities

  - SA participants: 011 535 3600

  - UK participants: 0 808 162 4062

  - Rest of Europe and other participants: + 27 11 535 3600

  - Australian participants: 1 800 350 100

  - USA participants: 1 855 481 5362

ABOUT INVESTEC
Investec is an international specialist bank and asset manager that provides
a diverse range of financial products and services to a select client base in
three principal markets - the UK and Europe, South Africa and Asia/Australia
as well as certain other countries. The group was established in 1974 and
currently has approximately 9 700 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
GBP5.8 billion.

The commentary below largely focuses on the results of the ongoing
business.

OVERALL GROUP PERFORMANCE - ONGOING BASIS
Operating profit before goodwill, acquired intangibles, non-operating items
and taxation and after other non-controlling interests ("operating profit")
increased 13.7% to GBP663.7 million (2016: GBP583.9 million) - an increase
of 4.2% on a currency neutral basis.

The combined South African businesses reported operating profit 0.4%
ahead of the prior period (in Rands), whilst the combined UK and Other
businesses posted a 10.8% increase in operating profit in Pounds Sterling.

BUSINESS UNIT REVIEW - ONGOING BASIS
Asset Management
Asset Management operating profit increased by 22.3% to GBP164.8 million
(2016: GBP134.8 million) benefiting from higher average funds under
management largely driven by favourable market and currency movements.
Total funds under management amount to GBP95.3 billion (31 March 2016:
GBP75.7 billion).

Wealth & Investment
Wealth & Investment operating profit increased by 8.8% to GBP93.2 million
(2016: GBP85.7 million). The business benefited from higher average funds
under management supported by higher equity market levels and net inflows
of GBP1.2 billion. Total funds under management amount to GBP54.8 billion
(31 March 2016: GBP45.5 billion).

Specialist Banking
Specialist Banking operating profit increased by 11.0% to GBP454.4 million
(2016: GBP409.2 million).

The South African business reported a decrease in operating profit in Rands
of 3.3% as a consequence of the change in accounting treatment related
to the assets transferred to Investec Equity Partners in the prior year (refer
to additional information). Excluding the impact of this transaction operating
profit was considerably ahead of the prior period. The division reported
solid growth in net interest income and net fee and commission income
supported by continued growth in the Private Banking client base, sound
corporate activity and an increase in the scale of the property fund business.
Core loans and advances increased 8.4% to R236.2 billion (31 March 2016:
R218.0 billion), with the credit loss ratio at 0.29% (2016: 0.26%) remaining
at the lower end of its long term average despite the business reporting a
moderate increase in impairments.

The UK and Other businesses reported an 8.2% increase in operating profit
supported by robust levels of corporate client activity across the lending,
advisory and client flow trading businesses. Costs grew ahead of revenue
largely due to the investment in building out the private client banking
offering. Core loans grew to GBP8.1 billion, an increase of 8.8% on a
currency neutral basis. Impairments increased marginally with the credit loss
ratio amounting to 0.27% (2016: 0.26%).

Further information on key developments within each of the business
units is provided in a detailed report published on the group's website:
https://protect-za.mimecast.com/s/bJOZBLsm73rZtV

Group costs
These largely relate to group brand and marketing costs and a portion of
executive and support functions which are associated with group level
activities. These costs are not incurred by the operating divisions and are
necessary to support the operational functioning of the group. These costs
amounted to GBP48.8 million (2016: GBP45.8 million).

FINANCIAL STATEMENT ANALYSIS - ONGOING BASIS
Total operating income
Total operating income before impairment losses on loans and advances
increased by 18.1% to GBP2,285.9 million (2016: GBP1,934.8 million).

Net interest income increased by 19.0% to GBP680.5 million
(2016: GBP571.9 million) supported by sound levels of lending activity
across the banking businesses.

Net fee and commission income increased by 20.1% to GBP1,271.6 million
(2016: GBP1,058.3 million) as a result of higher average funds under
management in the Asset Management and Wealth Management
businesses. In addition, the Specialist Banking business benefited from an
increase in the scale of the property fund business in South Africa and from
a good performance in the corporate and advisory businesses, notably
in the UK.

Investment income reduced by 20.2% to GBP135.6 million
(2016: GBP169.9 million) primarily as a result of the change in accounting
treatment from fair value to equity accounting for the assets transferred to
Investec Equity Partners in South Africa in the prior year (refer to additional
information). In the UK the group's unlisted investment portfolio delivered
a sound performance; however, this was offset by the write down of an
investment in the Hong Kong portfolio.

Share of post-taxation operating profit of associates of GBP18.9 million in the
current period largely reflects earnings in relation to the group's investment in
Investec Equity Partners (refer to additional information).

Trading income arising from customer flow increased considerably to
GBP158.0 million (2016: GBP110.9 million) supported by robust client
activity levels and market volatility. Trading income from other trading
activities amounted to GBP8.1 million (2016: GBP11.6 million) predominantly
impacted by currency volatility over the period.

Impairment losses on loans and advances
Impairments on loans and advances increased from GBP41.4 million to
GBP57.1 million; however, the group's credit loss ratio remains at the lower
end of its long term average at 0.29% (2016: 0.26%). Since 31 March 2016
gross defaults have increased to GBP249.8 million largely due to a few
specific defaults in the South African banking business. The percentage of
default loans (net of impairments but before taking collateral into account) to
core loans and advances amounted to 0.69% (31 March 2016: 0.78%).

Operating costs
The ratio of total operating costs to total operating income remained
at 65.8%. Total operating costs grew by 18.1% to GBP1,502.6 million
(2016: GBP1,272.1 million) reflecting planned spend on IT infrastructure and
headcount across divisions to support increased activity levels and growth
initiatives, notably the build out of the UK private client offering. Costs are
also impacted by additional premises expenses relating to the London
office's future premises move and an increase in variable remuneration given
improved profitability across the group.

Taxation
The effective tax rate amounts to 18.5% (2016: 19.1%).

Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly comprises:

- GBP20.3 million profit attributable to non-controlling interests in the Asset
  Management business.

- GBP59.9 million profit attributable to non-controlling interests in the
  Investec Property Fund Limited.

BALANCE SHEET ANALYSIS
Since 31 March 2016:

- Total shareholders' equity (including non-controlling interests) increased
  by 24.6% to GBP4.8 billion due to foreign currency translation gains,
  an increase in retained earnings and the issuance of shares during the
  period.

- Net asset value per share increased 22.3% to 431.0 pence and net
  tangible asset value per share (which excludes goodwill and intangible
  assets) increased by 28.1% to 377.0 pence.

- The return on adjusted average shareholders' equity increased from
  11.5% to 12.5%.

- The return on adjusted average shareholders' equity of the ongoing
  business increased from 13.9% to 14.2%.

Liquidity and funding
As at 31 March 2017 the group held GBP12.0 billion in cash and near
cash balances (GBP5.0 billion in Investec plc and R117.6 billion in Investec
Limited) which amounted to 41.4% of customer deposits. Loans and
advances to customers as a percentage of customer deposits amounted
to 76.2% (31 March 2016: 73.6%). Cash balances have been successfully
managed down to more appropriate levels, reducing the surplus that was
raised in anticipation of the EU referendum in the UK. The group will continue
to focus on maintaining an optimal overall liquidity and funding profile.
The group comfortably meets Basel liquidity requirements for the Liquidity
Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). The LCR
reported to the Prudential Regulatory Authority at 31 March 2017 was 829%
for Investec plc and 885% for Investec Bank plc (solo basis). Investec Bank
Limited (solo basis) ended the period to 31 March 2017 with the three-month
average of its LCR at 130.0%, which is well ahead of the minimum levels
required. Further detail with respect to the bank's LCR ratio in the UK and
South Africa is provided on the website.

Capital adequacy and leverage ratios
The group is targeting a minimum common equity tier 1 capital ratio
above 10% 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.
                                                                  31 March    31 March
                                                                      2017        2016
Investec plc^
Capital adequacy ratio                                               15.1%       15.1%
Tier 1 ratio                                                         11.5%       10.7%
Common equity tier 1 ratio                                           11.3%        9.7%
Common equity tier 1 ratio (anticipated
Basel III "fully loaded"*)                                           11.3%        9.7%
Leverage ratio (current)                                              7.8%        7.0%
Leverage ratio (anticipated Basel III "fully
loaded"*)                                                             7.7%        6.3%
Investec Limited**
Capital adequacy ratio                                               14.1%       14.0%
Tier 1 ratio                                                         10.7%       10.7%
Common equity tier 1 ratio                                            9.9%        9.6%
Common equity tier 1 ratio (anticipated
Basel III "fully loaded"*)                                            9.9%        9.6%
Leverage ratio (current*)                                             7.3%        6.9%
Leverage ratio (anticipated Basel III "fully
loaded"*)                                                             6.8%        6.3%

*  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 capital as now required under the CRR and EBA
   technical standards. The impact of the final proposed ordinary and preference
   dividends totalling GBP60 million for Investec plc would be 45bps 
   (31 March 2016: 40bps) lower on this basis.

** Investec Limited's capital information includes unappropriated profits. If
   unappropriated profits are excluded from the capital information, Investec Limited's
   common equity tier 1 ratio would be 24bps (31 March 2016: 16bps) lower.

LEGACY BUSINESS - OVERVIEW OF RESULTS
Since 31 March 2016 the group's legacy portfolio in the UK has continued
to be actively managed down from GBP583 million to GBP476 million
through asset sales, redemptions and write-offs. The total legacy business
over the period reported a loss before taxation of GBP64.6 million
(2016: GBP78.3 million). The remaining legacy portfolio will continue
to be managed down. Given the uncertainty in the UK following the
EU referendum, the legacy book could take longer to wind down than
management's original expectation of two to four years. Total net
defaults in the legacy book amount to GBP125 million 
(31 March 2016: GBP143 million).

ADDITIONAL INFORMATION - INVESTEC EQUITY
PARTNERS
In South Africa an investment vehicle, Investec Equity Partners, was
created on 11 January 2016 in which Investec holds a 45% stake alongside
other strategic investors who hold the remaining 55%. Investec Principal
Investments transferred certain portfolio investments to the value of
R7.6 billion to Investec Equity Partners. In exchange Investec received
R2.5 billion in cash and 45% of the shares in Investec Equity Partners
(R5.1 billion), reflected as an associate on the balance sheet. Since the date
of the transaction Investec has applied the equity accounting method to
account for its investment in the new vehicle as opposed to the fair value
accounting method previously applied to the underlying investments held.

OUTLOOK
Sound levels of activity supported performance as the group continued to
strengthen its client franchise businesses.

Whilst macro uncertainty persists, which could impact activity levels going
forward, the group believes that its balanced business model together with
its strategic initiatives place it in a favourable position to continue the growth
in its core markets.

On behalf of the boards of Investec plc and Investec Limited

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

17 May 2017

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 year-end results for Investec plc and Investec Limited
present the results and financial position of the combined DLC group under
International Financial Reporting Standards (IFRS), denominated in Pounds
Sterling. In the commentary above, all references to Investec or the group
relate to the combined DLC group comprising Investec plc and Investec
Limited.

FOREIGN CURRENCY IMPACT
The group's reporting currency is Pounds Sterling. Certain of the group's
operations are conducted by entities outside the UK. The results of
operations and the financial position of the individual companies are
reported in the local currencies in which they are domiciled, including Rands,
Australian Dollars, Euros and US Dollars. These results are then translated
into Pounds Sterling at the applicable foreign currency exchange rates for
inclusion in the group's combined consolidated financial statements. In the
case of the income statement, the weighted average rate for the relevant
period is applied and, in the case of the balance sheet, the relevant closing
rate is used.

The following table sets out the movements in certain relevant exchange
rates against Pounds Sterling over the period:

                           Year to            Year to
                        31 March 2017      31 March 2016

Currency per         Period              Period
GBP1.00                 end    Average      end    Average
South African Rand    16.77      18.42    21.13      20.72
Australian Dollar      1.64       1.75     1.87       2.04
Euro                   1.17       1.19     1.26       1.37
US Dollar              1.25       1.31     1.44       1.50

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
appreciated by 11.1% and the closing rate has appreciated by 20.6% since
31 March 2016.

ACCOUNTING POLICIES AND DISCLOSURES
These unaudited summarised combined consolidated financial results
have been prepared in terms of the recognition and measurement criteria
of International Financial Reporting Standards, and the presentation and
disclosure requirements of IAS 34, (Interim Financial Reporting).

The accounting policies applied in the preparation of the results for the year
ended 31 March 2017 are consistent with those adopted in the financial
statements for the year ended 31 March 2016.

The financial results have been prepared under the supervision of Glynn
Burger, the Group Risk and Finance Director. The financial statements for the
year ended 31 March 2017 will be posted to stakeholders on 30 June 2017.
These accounts will be available on the group's website on 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 17 May 2017.

-  The information in the announcement for the year ended 31 March 2017,
   which was approved by the board of directors on 17 May 2017, does
   not constitute statutory accounts as defined in Section 435 of the UK
   Companies Act 2006. The 31 March 2016 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:
   https://protect-za.mimecast.com/s/NlbXBvUkwWAnin

AUDIT COMMITTEE CHAIRMAN
In compliance with section 3.59(c) of the Listings Requirements of the
JSE Limited, shareholders are advised that Zarina Bassa, an independent
non-executive director of Investec Limited and Investec plc since
1 November 2014, has been appointed as the chairman of the DLC Audit
Committee with effect from 1 April 2017.

FINANCIAL ASSISTANCE
Shareholders are referred to the Special Resolution number 3, which was
approved at the annual general meeting held on 4 August 2016, relating to
the provision of direct or indirect financial assistance in terms of Section 45
of the South African Companies Act, No 71 of 2008 to related or inter-related
companies. Shareholders are hereby notified that in terms of S45(5)(a) of
the South African Companies Act, the board of directors of Investec Limited
provided such financial assistance during the period 1 October 2016 to
31 March 2017.

Ongoing financial information
Consolidated summarised ongoing income statement

For the year to                                                                   31 March      31 March
GBP'000                                                                               2017          2016   Variance     % change

Net interest income                                                                680 539       571 929    108 610        19.0%
Net fee and commission income                                                    1 271 591     1 058 340    213 251        20.1%
Investment income                                                                  135 631       169 915   (34 284)      (20.2%)
Share of post taxation operating profit of associates                               18 890         1 811     17 079      >100.0%
Trading income arising from
- customer flow                                                                    158 006       110 879     47 127        42.5%
- balance sheet management and other trading activities                              8 078        11 617    (3 539)      (30.5%)
Other operating income                                                              13 158        10 279      2 879        28.0%
Total operating income before impairment losses on loans and advances            2 285 893     1 934 770    351 123        18.1%
Impairment losses on loans and advances                                           (57 149)      (41 368)   (15 781)        38.1%
Operating income                                                                 2 228 744     1 893 402    335 342        17.7%
Operating costs                                                                (1 502 623)   (1 272 108)  (230 515)        18.1%
Depreciation on operating leased assets                                            (2 169)       (2 165)        (4)         0.2%
Operating profit before goodwill, acquired intangibles and non-operating items     723 952       619 129   104 823         16.9%
Profit attributable to other non-controlling interests                            (60 239)      (35 201)   (25 038)        71.1%
Profit attributable to Asset Management non-controlling interests                 (20 291)      (16 529)    (3 762)        22.8%
Operating profit before taxation                                                   643 422       567 399     76 023        13.4%
Taxation                                                                         (130 438)     (118 151)   (12 287)        10.4%
Preference dividends accrued                                                      (25 838)      (26 130)        292       (1.1%)
Adjusted attributable earnings to ordinary shareholders                            487 146       423 118     64 028        15.1%
Adjusted earnings per share (pence)                                                   54.1          48.6                   11.3%
Number of weighted average shares (million)                                          900.4         870.5
Cost to income ratio                                                                 65.8%         65.8%

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

For the year to 31 March 2017                                                                 UK and       Southern         Total
GBP'000                                                                                        Other         Africa         group

Asset Management                                                                              91 262         73 562       164 824
Wealth & Investment                                                                           65 190         28 053        93 243
Specialist Banking                                                                           169 196        285 226       454 422
                                                                                             325 648        386 841       712 489
Group costs                                                                                 (36 163)       (12 613)      (48 776)
Total group                                                                                  289 485        374 228       663 713
Other non-controlling interest - equity                                                                                    60 239
Operating profit                                                                                                          723 952

For the year to 31 March 2016                                                                 UK and       Southern         Total
GBP'000                                                                                        Other         Africa         group

Asset Management                                                                              76 853         57 930       134 783
Wealth & Investment                                                                           63 127         22 608        85 735
Specialist Banking                                                                           156 378        252 837       409 215
                                                                                             296 358        333 375       629 733
Group costs                                                                                 (35 160)       (10 645)      (45 805)
Total group                                                                                  261 198        322 730       583 928
Other non-controlling interest - equity                                                                                    35 201
Operating profit                                                                                                          619 129

Reconciliation from statutory summarised income statement to ongoing summarised
income statement
                                                                                           Statutory
For the year to 31 March 2017                                                                     as      UK legacy       Ongoing
GBP'000                                                                                    disclosed       business      business
   
Net interest income                                                                          679 895          (644)       680 539
Net fee and commission income                                                              1 271 524           (67)     1 271 591
Investment income                                                                            136 203            572       135 631
Share of post taxation operating profit of associates                                         18 890              -        18 890
Trading income arising from   
- customer flow                                                                              158 001            (5)       158 006
- balance sheet management and other trading activities                                        8 218            140         8 078
Other operating income                                                                        13 483            325        13 158
Total operating income before impairment losses on loans and advances                      2 286 214            321     2 285 893
Impairment losses on loans and advances                                                    (111 454)       (54 305)      (57 149)
Operating income/(loss)                                                                    2 174 760       (53 984)     2 228 744
Operating costs                                                                          (1 513 231)       (10 608)   (1 502 623)
Depreciation on operating leased assets                                                      (2 169)              -       (2 169)
Operating profit/(loss) before goodwill, acquired intangibles and non-operating items        659 360       (64 592)       723 952
Profit attributable to other non-controlling interests                                      (60 239)              -      (60 239)
Profit attributable to Asset Management non-controlling interests                           (20 291)              -      (20 291)
Operating profit/(loss) before taxation                                                      578 830       (64 592)       643 422
Taxation*                                                                                  (118 488)         11 950     (130 438)
Preference dividends accrued                                                                (25 838)              -      (25 838)
Adjusted attributable earnings to ordinary shareholders                                      434 504       (52 642)       487 146
Adjusted earnings per share (pence)                                                             48.3                         54.1
Number of weighted average shares (million)                                                    900.4                        900.4
Cost to income ratio                                                                           66.3%                        65.8%
   
* Applying the group's effective taxation rate of 18.5%.

For the year to 31 March 2016                                                              Statutory      UK legacy       Ongoing
GBP'000                                                                                 as disclosed       business      business

Net interest income                                                                          573 769          1 840       571 929
Net fee and commission income                                                              1 061 625          3 285     1 058 340
Investment income                                                                            170 408            493       169 915
Share of post taxation operating profit of associates                                          1 811              -         1 811
Trading income arising from
- customer flow                                                                              110 227          (652)       110 879
- balance sheet management and other trading activities                                       11 377          (240)        11 617
Other operating income                                                                        10 279              -        10 279
Total operating income before impairment losses on loans and advances                      1 939 496          4 726     1 934 770
Impairment losses on loans and advances                                                    (109 516)       (68 148)      (41 368)
Operating income/(loss)                                                                    1 829 980       (63 422)     1 893 402
Operating costs                                                                          (1 287 021)       (14 913)   (1 272 108)
Depreciation on operating leased assets                                                      (2 165)              -       (2 165)
Operating profit/(loss) before goodwill, acquired intangibles and non-operating items        540 794       (78 335)      619 129
Profit attributable to other non-controlling interests                                      (35 201)              -      (35 201)
Profit attributable to Asset Management non-controlling interests                           (16 529)              -      (16 529)
Operating profit/(loss) before taxation                                                      489 064       (78 335)       567 399
Taxation on operating profit before goodwill and acquired intangibles*                     (103 202)         14 949     (118 151)
Preference dividends accrued                                                                (26 130)              -      (26 130)
Adjusted attributable earnings to ordinary shareholders                                      359 732       (63 386)       423 118
Adjusted earnings per share (pence)                                                             41.3                         48.6
Number of weighted average shares (million)                                                    870.5                        870.5
Cost to income ratio                                                                           66.4%                        65.8%

* Applying the group's effective statutory taxation rate of 19.1%.

Statutory financial information

Salient financial features
                                                                                     Results in Pounds Sterling

                                                                   Actual as    Actual as                      Neutral
                                                                    reported     reported     Actual as      currency^    Neutral
                                                                     Year to      Year to      reported        Year to   currency
                                                                    31 March     31 March             %       31 March          %
                                                                        2017         2016        change           2017     change

Operating profit before taxation* (million)                              599          506         18.5%            546       8.0%
Earnings attributable to shareholders (million)                          442          368         20.1%            401       8.8%
Adjusted earnings attributable to shareholders** (million)               435          360         20.8%            395       9.9%
Adjusted earnings per share**                                          48.3p        41.3p         16.9%          43.9p       6.3%
Basic earnings per share                                               50.8p        38.5p         31.9%          46.4p      20.5%
Dividends per share                                                    23.0p        21.0p          9.5%            n/a        n/a

*  Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests.
** Before goodwill, acquired intangibles, non-operating items and after non-controlling interests.
^  For income statement items we have used the average Rand: Pounds Sterling exchange rate that was applied in the prior year, i.e. 17.82.

                                                                                             Results in Pounds Sterling

                                                                             Actual as   Actual as                  Neutral
                                                                             reported    reported    Actual as   currency^^    Neutral
                                                                                   At          At     reported           At   currency
                                                                             31 March    31 March            %     31 March          %
                                                                                 2017        2016       change         2017     change

Net asset value per share                                                      431.0p      352.3p        22.3%       395.0p      12.1%
Net tangible asset value per share                                             377.0p      294.3p        28.1%       341.6p      16.1%
Total equity (million)                                                          4 809       3 859        24.6%        4 252      10.2%
Total assets (million)                                                         53 535      45 352        18.0%       46 338       2.2%
Core loans and advances (million)                                              22 707      18 119        25.3%       19 501       7.6%
Cash and near cash balances (million)                                          12 038      10 962         9.8%       10 591     (3.4%)
Customer deposits (million)                                                    29 109      24 044        21.1%       25 376       5.5%
Third party assets under management (million)                                 150 735     121 683        23.9%      139 664      14.8%
Return on average adjusted shareholders' equity                                 12.5%       11.5%
Return on average risk-weighted assets                                          1.45%       1.34%
Defaults (net of impairments and before collateral) as a percentage of net
core loans                                                                      1.22%       1.54%
Loans and advances to customers as a percentage of customer deposits            76.2%       73.6%
Credit loss ratio (income statement impairment charge as a % of average
gross core loans and advances)                                                  0.54%       0.62%

^^ For balance sheet items we have assumed that the Rand: Pounds Sterling closing exchange rate has remained neutral since 31 March 2016.

Combined consolidated income statement
                                                                                                      Year to       Year to
                                                                                                     31 March      31 March
GBP'000                                                                                                  2017          2016

Interest income                                                                                     2 230 765     1 705 640
Interest expense                                                                                  (1 550 870)   (1 131 871)
Net interest income                                                                                   679 895       573 769
Fee and commission income                                                                           1 429 588     1 188 012
Fee and commission expense                                                                          (158 064)     (126 387)
Investment income                                                                                     136 203       170 408
Share of post taxation operating profit of associates                                                  18 890        1 811*
Trading income arising from
- customer flow                                                                                       158 001       110 227
- balance sheet management and other trading activities                                                 8 218        11 377
Other operating income                                                                                 13 483       10 279*
Total operating income before impairment losses on loans and advances                               2 286 214     1 939 496
Impairment losses on loans and advances                                                             (111 454)     (109 516)
Operating income                                                                                    2 174 760     1 829 980
Operating costs                                                                                   (1 513 231)   (1 287 021)
Depreciation on operating leased assets                                                               (2 169)       (2 165)
Operating profit before goodwill and acquired intangibles                                             659 360       540 794
Impairment of goodwill                                                                                (4 749)       (1 577)
Amortisation of acquired intangibles                                                                 (17 197)      (16 248)
Operating profit                                                                                      637 414       522 969
Net loss on disposal of subsidiaries                                                                        -       (4 778)
Profit before taxation                                                                                637 414       518 191
Taxation on operating profit before goodwill and acquired intangibles                               (118 488)     (103 202)
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries                   4 070         5 197
Profit after taxation                                                                                 522 996       420 186
Profit attributable to other non-controlling interests                                               (60 239)      (35 201)
Profit attributable to Asset Management non-controlling interests                                    (20 291)      (16 529)
Earnings attributable to shareholders                                                                 442 466       368 456
Impairment of goodwill                                                                                  4 749         1 577
Amortisation of acquired intangibles, net of taxation                                                  17 197        16 248
Net loss on disposal of subsidiaries                                                                        -         4 778
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries                 (4 070)       (5 197)
Preference dividends paid                                                                            (25 658)      (33 192)
Accrual adjustment on earnings attributable to other equity holders                                     (180)         7 062
Adjusted earnings                                                                                     434 504       359 732
Headline adjustments**                                                                                   (79)      (25 012)
Headline earnings                                                                                     434 425       334 720
Earnings per share (pence)
- Basic                                                                                                  50.8          38.5
- Diluted                                                                                                48.8          36.7
Adjusted earnings per share (pence)
- Basic                                                                                                  48.3          41.3
- Diluted                                                                                                46.4          39.4
Dividends per share (pence)
- Interim                                                                                                10.0           9.5
- Final                                                                                                  13.0          11.5
Headline earnings per share (pence)
- Basic                                                                                                  48.2          38.5
- Diluted                                                                                                46.3          36.7
Number of weighted average shares - (million)                                                           900.4         870.5

*  Share of post taxation operating profit of associates is disclosed separately from other operating income.
** The headline earnings adjustments are made up of property revaluations, loss on disposal of subsidiaries, the impairment of goodwill and non-current assets held for sale and gains
   on available for sale instruments recycled through the income statement. This line represents the reconciling items from adjusted earnings to headline earnings.

Summarised combined consolidated statement of comprehensive
income
                                                                                                      Year to       Year to
                                                                                                     31 March      31 March
GBP'000                                                                                                  2017          2016

Profit after taxation                                                                                 522 996       420 186
Other comprehensive income:
Items that may be reclassified to the income statement
  Fair value movements on cash flow hedges taken directly to other comprehensive income*               53 324      (31 934)
  Gains on realisation of available-for-sale assets recycled to the income statement*                 (7 781)       (1 961)
  Fair value movements on available-for-sale assets taken directly to other comprehensive income*      54 863      (37 153)
  Foreign currency adjustments on translating foreign operations                                      540 534     (240 875)
Items that will never be reclassified to the income statement
  Re-measurement of net defined benefit pension asset                                                (43 580)         4 738
Total comprehensive income                                                                          1 120 356       113 001
Total comprehensive income attributable to ordinary shareholders                                      892 201        84 932
Total comprehensive income/(loss) attributable to non-controlling interests                           202 497       (5 123)
Total comprehensive income attributable to perpetual preferred securities                              25 658        33 192
Total comprehensive income                                                                          1 120 356       113 001

* Net of taxation of GBP16.8 million (year to 31 March 2016: GBP26.2 million).

Summarised combined consolidated cash flow statement
                                                                                                      Year to       Year to
                                                                                                     31 March      31 March
GBP'000                                                                                                  2017          2016

Cash inflows from operations                                                                          708 719       598 786
Increase in operating assets                                                                        (415 028)   (4 580 570)
Increase in operating liabilities                                                                     498 146     4 602 620
Net cash inflow from operating activities                                                             791 837       620 836
Net cash outflow from investing activities                                                           (90 115)      (13 925)
Net cash inflow/(outflow) from financing activities                                                    37 523     (347 741)
Effects of exchange rate changes on cash and cash equivalents                                         332 183     (171 718)
Net increase in cash and cash equivalents                                                           1 071 428        87 452
Cash and cash equivalents at the beginning of the year                                              4 650 300     4 562 848
Cash and cash equivalents at the end of the year                                                    5 721 728     4 650 300

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
                                                                                                     31 March      31 March
GBP'000                                                                                                  2017          2016

Assets
Cash and balances at central banks                                                                  3 351 702     3 007 269
Loans and advances to banks                                                                         3 191 041     2 498 585
Non-sovereign and non-bank cash placements                                                            536 259       466 573
Reverse repurchase agreements and cash collateral on securities borrowed                            2 358 970     2 497 125
Sovereign debt securities                                                                           3 804 627     3 208 862
Bank debt securities                                                                                  639 189       896 855
Other debt securities                                                                               1 115 558       949 950
Derivative financial instruments                                                                    1 185 848     1 580 949
Securities arising from trading activities                                                          1 376 668     1 119 074
Investment portfolio                                                                                  835 899       660 795
Loans and advances to customers                                                                    22 189 975    17 681 572
Own originated loans and advances to customers securitised                                            517 162       437 243
Other loans and advances                                                                              355 248       321 617
Other securitised assets                                                                              148 964       160 295
Interests in associated undertakings                                                                  392 213       267 099
Deferred taxation assets                                                                              133 972       112 135
Other assets                                                                                        1 900 480     2 092 661
Property and equipment                                                                                105 939        90 888
Investment properties                                                                               1 128 930       938 879
Goodwill                                                                                              367 579       368 039
Intangible assets                                                                                     143 261       148 280
Non-current assets held for sale                                                                       27 218             -
                                                                                                   45 806 702    39 504 745
Other financial instruments at fair value through profit or loss in 
respect of liabilities to customers                                                                 7 728 130     5 847 036
                                                                                                   53 534 832    45 351 781
Liabilities
Deposits by banks                                                                                   2 736 066     2 397 403
Derivative financial instruments                                                                    1 296 206     1 582 847
Other trading liabilities                                                                             978 911       957 418
Repurchase agreements and cash collateral on securities lent                                          690 615       971 646
Customer accounts (deposits)                                                                       29 109 428    24 044 281
Debt securities in issue                                                                            2 386 180     2 299 751
Liabilities arising on securitisation of own originated loans and advances                             90 125        85 650
Liabilities arising on securitisation of other assets                                                 128 838       120 851
Current taxation liabilities                                                                          227 828       192 255
Deferred taxation liabilities                                                                          40 408        55 486
Other liabilities                                                                                   1 910 830     1 802 967
                                                                                                   39 595 435    34 510 555
Liabilities to customers under investment contracts                                                 7 725 604     5 845 503
Insurance liabilities, including unit-linked liabilities                                                2 526         1 533
                                                                                                   47 323 565    40 357 591
Subordinated liabilities                                                                            1 402 638     1 134 883
                                                                                                   48 726 203    41 492 474
Equity
Ordinary share capital                                                                                    237           228
Perpetual preference share capital                                                                         31           153
Share premium                                                                                       2 341 228     2 239 364
Treasury shares                                                                                     (126 879)     (125 717)
Other reserves                                                                                      (310 275)     (784 051)
Retained income                                                                                     2 226 751     2 030 310
Shareholders' equity excluding non-controlling interests                                            4 131 093     3 360 287
Other Additional Tier 1 securities in issue                                                            32 798        26 031
Non-controlling interests                                                                             644 738       472 989
- Perpetual preferred securities issued by subsidiaries                                                91 492        72 615
- Non-controlling interests in partially held subsidiaries                                            553 246       400 374
Total equity                                                                                        4 808 629     3 859 307
Total liabilities and equity                                                                       53 534 832    45 351 781

Summarised combined consolidated statement of changes in equity
                                                                                                      Year to       Year to
                                                                                                     31 March      31 March
GBP'000                                                                                                  2017          2016

Balance at the beginning of the year                                                                3 859 307     4 040 495
Total comprehensive income for the year                                                             1 120 356       113 001
Share-based payments adjustments                                                                       55 961        56 216
Dividends paid to ordinary shareholders                                                             (216 602)     (180 009)
Dividends declared to perpetual preference shareholders                                              (15 279)      (14 519)
Dividends paid to perpetual preference shareholders included in non-controlling interests            (10 379)      (18 673)
Dividends paid to non-controlling interests                                                          (48 195)      (39 835)
Issue of ordinary shares                                                                              228 086        54 720
Redemption of perpetual preference shares                                                            (81 743)             -
Issue of equity by subsidiaries                                                                        17 042       153 299
Acquisition/(reduction) of non-controlling interests                                                   12 500     (142 111)
Other equity movements                                                                                   (80)             -
Movement of treasury shares                                                                         (112 345)     (163 277)
Balance at the end of the year                                                                     4 808 629      3 859 307

Combined consolidated segmental analysis

Year to 31 March                                                                                           UK and    Southern       Total
GBP'000                                                                                                     Other      Africa       group

Segmental geographical and business analysis of operating profit before goodwill, acquired intangibles,
non-operating items, taxation and after other non-controlling interests
2017
Asset Management                                                                                           91 262      73 562     164 824
Wealth & Investment                                                                                        65 190      28 053      93 243
Specialist Banking                                                                                        104 604     285 226     389 830
                                                                                                          261 056     386 841     647 897
Group costs                                                                                              (36 163)    (12 613)    (48 776)
Total group                                                                                               224 893     374 228     599 121
Other non-controlling interest - equity                                                                                            60 239
Operating profit                                                                                                                  659 360
2016
Asset Management                                                                                           76 853      57 930     134 783
Wealth & Investment                                                                                        63 127      22 608      85 735
Specialist Banking                                                                                         78 043     252 837     330 880
                                                                                                          218 023     333 375     551 398
Group costs                                                                                              (35 160)    (10 645)    (45 805)
Total group                                                                                               182 863     322 730     505 593
Other non-controlling interest - equity                                                                                            35 201
Operating profit                                                                                                                  540 794

Analysis of financial assets and liabilities by category of financial instrument
                                                                                                                                Non-financial
                                                                                                        Total      Insurance      instruments
                                                                                       Total      instruments related linked        or scoped
At 31 March 2017                                                                 instruments     at amortised    instruments           out of
GBP'000                                                                        at fair value             cost  at fair value           IAS 39         Total

2017
Assets
Cash and balances at central banks                                                     2 497        3 349 205              -                -     3 351 702
Loans and advances to banks                                                          200 364        2 990 677              -                -     3 191 041
Non-sovereign and non-bank cash placements                                                10          536 249              -                -       536 259
Reverse repurchase agreements and cash collateral on securities borrowed           1 167 255        1 191 715              -                -     2 358 970
Sovereign debt securities                                                          3 605 985          198 642              -                -     3 804 627
Bank debt securities                                                                 327 888          311 301              -                -       639 189
Other debt securities                                                                737 058          378 500              -                -     1 115 558
Derivative financial instruments                                                   1 185 848                -              -                -     1 185 848
Securities arising from trading activities                                         1 376 668                -              -                -     1 376 668
Investment portfolio                                                                 835 899                -              -                -       835 899
Loans and advances to customers                                                      921 991       21 267 984              -                -    22 189 975
Own originated loans and advances to customers securitised                                 -          517 162              -                -       517 162
Other loans and advances                                                                   -          355 248              -                -       355 248
Other securitised assets                                                             138 628           10 336              -                -       148 964
Interests in associated undertakings                                                       -                -              -          392 213       392 213
Deferred taxation assets                                                                   -                -              -          133 972       133 972
Other assets                                                                         283 212        1 165 779              -          451 489     1 900 480
Property and equipment                                                                     -                -              -          105 939       105 939
Investment properties                                                                      -                -              -        1 128 930     1 128 930
Goodwill                                                                                   -                -              -          367 579       367 579
Intangible assets                                                                          -                -              -          143 261       143 261
Non-current assets held for sale                                                      27 218                -              -                -        27 218
                                                                                  10 810 521       32 272 798              -        2 723 383    45 806 702
Other financial instruments at fair value through profit or loss in respect of
liabilities to customers                                                                   -                -      7 728 130                -     7 728 130
                                                                                  10 810 521       32 272 798      7 728 130        2 723 383    53 534 832
Liabilities
Deposits by banks                                                                          -        2 736 066              -                -     2 736 066
Derivative financial instruments                                                   1 296 206                -              -                -     1 296 206
Other trading liabilities                                                            978 911                -              -                -       978 911
Repurchase agreements and cash collateral on securities lent                         137 861          552 754              -                -       690 615
Customer accounts (deposits)                                                       2 046 340       27 063 088              -                -    29 109 428
Debt securities in issue                                                             640 557        1 745 623              -                -     2 386 180
Liabilities arising on securitisation of own originated loans and advances                 -           90 125              -                -        90 125
Liabilities arising on securitisation of other assets                                128 838                -              -                -       128 838
Current taxation liabilities                                                               -                -              -          227 828       227 828
Deferred taxation liabilities                                                              -                -              -           40 408        40 408
Other liabilities                                                                     43 813        1 135 721                         731 296     1 910 830
                                                                                   5 272 526       33 323 377              -          999 532    39 595 435
Liabilities to customers under investment contracts                                        -                -      7 725 604                -     7 725 604
Insurance liabilities, including unit-linked liabilities                                   -                -          2 526                -         2 526
                                                                                   5 272 526       33 323 377      7 728 130          999 532    47 323 565
Subordinated liabilities                                                                   -        1 402 638              -                -     1 402 638
                                                                                   5 272 526       34 726 015      7 728 130          999 532    48 726 203
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 (i.e. as prices) or indirectly (i.e. derived
          from prices)

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Assets and liabilities related to the long-term assurance business attributable to policyholders have been excluded from the analysis as the change in fair value
of related assets is attributable to policyholders. These are all classified as level 1.
                                                                                                   Fair value category
                                                                                 Total
At 30 March 2017                                                           instruments
GBP'000                                                                  at fair value       Level 1       Level 2       Level 3

Assets
Cash and balances at central banks                                               2 497         2 497             -             -
Loans and advances to banks                                                    200 364       200 364             -             -
Non-sovereign and non-bank cash placements                                          10             -            10             -
Reverse repurchase agreements and cash collateral on securities borrowed     1 167 255       176 189       991 066             -
Sovereign debt securities                                                    3 605 985     3 605 985             -             -
Bank debt securities                                                           327 888       245 015        82 873             -
Other debt securities                                                          737 058       385 999       344 628         6 431
Derivative financial instruments                                             1 185 848             -     1 126 751        59 097
Securities arising from trading activities                                   1 376 668     1 341 112        26 485         9 071
Investment portfolio                                                           835 899       209 584        39 988       586 327
Loans and advances to customers                                                921 991             -       835 509        86 482
Other securitised assets                                                       138 628             -             -       138 628
Other assets                                                                   283 212       283 212             -             -
Non-current assets held for sale                                                27 218             -             -        27 218
                                                                            10 810 521     6 449 957     3 447 310       913 254
Liabilities
Derivative financial instruments                                             1 296 206         1 676     1 293 482         1 048
Other trading liabilities                                                      978 911       900 355        78 556             -
Repurchase agreements and cash collateral on securities lent                   137 861             -       137 861             -
Customer accounts (deposits)                                                 2 046 340             -     2 046 340             -
Debt securities in issue                                                       640 557             -       627 875        12 682
Liabilities arising on securitisation of other assets                          128 838             -             -       128 838
Other liabilities                                                               43 813             -        43 813             -
                                                                             5 272 526       902 031     4 227 927       142 568
Net financial assets/(liabilities) at fair value                             5 537 995     5 547 926      (780 617)      770 686

Transfers between level 1 and level 2
There were no transfers between level 1 and level 2 in the current year.

Level 2 financial assets and financial liabilities

The following table sets out the group's principal valuation techniques as at 31 March 2017 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 assumptions
Assets
Non-sovereign and non-bank cash
placements                               Discounted cash flow model                              Yield curves
Reverse repurchase agreements and
cash collateral on securities borrowed   Discounted cash flow model, Hermite interpolation,      Yield curves
                                         Black-Scholes                                           Volatilities
Bank debt securities                     Discounted cash flow model                              Yield curves
                                                                                                 NCD curves
Other debt securities                    Discounted cash flow model                              Yield curves and NCD curves, external prices,
                                                                                                 broker quotes
Derivative financial instruments         Discounted cash flow model, Hermite interpolation,      Yield curves, risk free rate, volatilities, forex forward
                                         industry standard derivative pricing models including   points and spot rates, interest rate swap curves and
                                         Black-Scholes                                           credit curves
Securities arising from trading          Standard industry derivative pricing model              Interest rate curves, implied bond spreads,
activities                                                                                       equity volatilities
Investment portfolio                     Discounted cash flow model, relative valuation model    Discount rate and fund unit price,
                                         Comparable quoted inputs                                net assets
Loans and advances to customers          Discounted cash flow model                              Yield curves
Liabilities
Derivative financial instruments         Discounted cash flow model, Hermite interpolation,      Yield curves, risk free rate, volatilities, forex forward
                                         industry standard derivative pricing models including   points and spot rates, interest rate swap curves and
                                         Black-Scholes                                           credit curves
Other trading liabilities                Discounted cash flow model                              Yield curves
Repurchase agreements and cash
collateral on securities lent            Discounted cash flow model, Hermite interpolation       Yield curves
Customer accounts (deposits)             Discounted cash flow model                              Yield curves
Debt securities in issue                 Discounted cash flow model                              Yield curves
Other liabilities                        Discounted cash flow model                              Yield curves

                                                                                                Total level 3
For the year to 31 March                                                                            financial
GBP'000                                                                                           instruments

The following table is a reconciliation of the opening balances to the closing 
balances for fair value measurements in level 3 of the fair value hierarchy:  
Balance as at 1 April 2016                                                                            690 903
Total gains or losses                                                                                  74 898
 In the income statement                                                                               77 099
 In the statement of comprehensive income                                                             (2 201)
Purchases                                                                                             170 894
Sales                                                                                               (167 297)
Issues                                                                                               (16 226)
Settlements                                                                                          (51 847)
Transfers into level 3                                                                                  6 168
Transfers out of level 3                                                                             (16 312)
Foreign exchange adjustments                                                                           79 505
Balance as at 31 March 2017                                                                           770 686

During the year, a level 3 investment of GBP16.3 million has been transferred to level 2 due to the nature of asset changing, resulting in a change in valuation
method. In addition GBP6.2 million has been transferred to level 3 due to valuation inputs becoming unobservable.

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

The following table quantifies the gains or (losses) included in the income statement and other comprehensive income recognised on level 3 financial instruments:
For the year to 31 March 2017

GBP'000                                                                                                                 Total    Realised   Unrealised
Total gains recognised in the income statement for the year
Net interest income                                                                                                     1 831       1 831            -
Fee and commission income                                                                                              11 732      11 443          289
Investment income                                                                                                      36 887      35 527        1 360
Trading income arising from customer flow                                                                              26 649          16       26 633
                                                                                                                       77 099      48 817       28 282
Total gains/(losses) recognised in other comprehensive income for the year
Gains on realisation of available-for-sale assets recycled through the income statement                                16 377      16 377            -
Fair value movements on available-for-sale assets taken directly to other comprehensive income                        (2 201)           -      (2 201)
                                                                                                                       14 176      16 377      (2 201)
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:
                                                            Balance                                             Range of     Favourable   Unfavourable
                                                        sheet value         Significant unobservable        unobservable        changes        changes
31 March 2017                                               GBP'000                            input          input used        GBP'000        GBP'000

Assets
Other debt securities                                         6 431    Reflected in income statement
                                                                             Price earnings multiple           (10)%/10%            965          (129)

Derivative financial instruments                             59 097    Reflected in income statement                              6 692        (5 016)
                                                                                        Volatilities           4% - 9.5%          2 465        (1 537)
                                                                                              EBITDA            5% - 6 %             63              -
                                                                               Cash flow adjustments    CPR 6.25% - 8.4%            648        (1 086)
                                                                                     Property values           (10%)/10%             60           (60)
                                                                                              Other^                   ^          3 456        (2 333)

Securities arising from trading activities                             Reflected in income statement
                                                              9 071            Cash flow adjustments              CPR 9%          1 290        (1 074)

Investment portfolio                                        586 327    Reflected in income statement                             81 819       (76 204)
                                                                             Price Earnings multiple        3 x - 10.3 x          5 430        (5 788)
                                                                             Precious and industrial
                                                                                        metal prices           (10)%/10%         15 403       (17 215)
                                                                                              EBITDA                  **         20 862       (17 532)
                                                                                              Other^                   ^         40 124       (35 669)

                                                                                  Reflected in other
                                                                                comprehensive income                              6 228        (2 655)
                                                                             Price Earnings multiple       4.0 x - 4.5 x            630          (301)
                                                                                              Other^                   ^          5 598        (2 354)

Loans and advances to customers                              86 482    Reflected in income statement                              9 825        (9 716)
                                                                                              EBITDA                 10%          5 681        (5 681)
                                                                                              Other^                   ^          4 144        (4 035)

Other securitised assets*                                   138 628    Reflected in income statement
                                                                               Cash flow adjustments           CPR 6.25%             48           (38)

Non current assets held for sale                             27 218          Price earnings multiple           (10)%/10%          3 876        (3 459)
Liabilities
Derivative financial instruments                              1 048    Reflected in income statement
                                                                               Cash flow adjustments            CPR 8.4%            983          (794)

Debt securities in issue                                               Reflected in income statement

                                                             12 682                     Volatilities                  7%            401          (608)

Liabilities arising on securitisation of other assets*                 Reflected in income statement
                                                            128 838            Cash flow adjustments           CPR 6.25%            931          (847)

Net level 3 assets                                          770 686                                                             113 058      (100 540)

*   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, other equity investments 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.
**  The EBITDA has been stressed on an investment-by-investment basis in order to obtain favourable and unfavourable valuations.

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.

Price earnings multiple
The price-to-earnings ratio is an equity valuation multiple. It is a key driver in
the valuation of unlisted investments.

Precious and industrial metals
The price of precious and industrial metals is a key driver of future cash flows
on these investments.

Fair value of financial assets and liabilities at amortised cost

At 31 March 2017
                                                                               Carrying
GBP'000                                                                          amount   Fair value

Assets
Cash and balances at central banks                                            3 349 205    3 349 205
Loans and advances to banks                                                   2 990 677    2 990 677
Non-sovereign and non-bank cash placements                                      536 249      536 249
Reverse repurchase agreements and cash collateral on securities borrowed      1 191 715    1 191 744
Sovereign debt securities                                                       198 642      193 693
Bank debt securities                                                            311 301      326 488
Other debt securities                                                           378 500      373 209
Loans and advances to customers                                              21 267 984   21 262 727
Own originated loans and advances to customers securitised                      517 162      517 162
Other loans and advances                                                        355 248      337 419
Other securitised assets                                                         10 336       10 336
Other assets                                                                  1 165 779    1 165 721
                                                                             32 272 798   32 254 630
Liabilities
Deposits by banks                                                             2 736 066    2 771 467
Repurchase agreements and cash collateral on securities lent                    552 754      554 915
Customer accounts (deposits)                                                 27 063 088   27 157 559
Debt securities in issue                                                      1 745 623    1 777 485
Liabilities arising on securitisation of own originated loans and advances       90 125       90 125
Other liabilities                                                             1 135 721    1 135 426
Subordinated liabilities                                                      1 402 638    1 575 574
                                                                             34 726 015   35 062 551
Investec Limited
Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE ordinary share code: INL
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949

Ordinary share dividend announcement

Declaration of dividend number 123

Notice is hereby given that final dividend number 123, being a gross dividend
of 225 cents (2016: 266 cents) per ordinary share has been recommended
by the Board from income reserves in respect of the financial year ended 31
March 2017 payable to shareholders recorded in the shareholders' register
of the company at the close of business on Friday, 28 July 2017.

The relevant dates for the payment of dividend number 123 are as follows:

Last day to trade cum-dividend                       Tuesday, 25 July 2017
Shares commence trading ex-dividend                Wednesday, 26 July 2017
Record date                                           Friday, 28 July 2017
Payment date                                        Monday, 14 August 2017

The final gross dividend of 225 cents per ordinary share has been
determined by converting the Investec plc distribution of 13 pence per
ordinary share into Rands using the Rand/Pounds Sterling average buy/sell
forward rate at 11h00 (SA time) on Wednesday, 17 May 2017.

Share certificates may not be dematerialised or rematerialised between
Wednesday, 26 July  2017 and Friday, 28 July 2017, both dates inclusive.

Additional information to take note of:
- Investec Limited South African tax reference number: 9800/181/71/2
- The issued ordinary share capital of Investec Limited is 301 165 174
  ordinary shares
- The dividend paid by Investec Limited is subject to South African Dividend
  Tax (Dividend Tax) of 20% (subject to any available exemptions as
  legislated)
- Shareholders who are exempt from paying the Dividend Tax will receive a
  net dividend of 225 cents per ordinary share
- Shareholders who are not exempt from paying the Dividend Tax will
  receive a net dividend of 180 cents per ordinary share (gross dividend of
  225 cents per ordinary share less Dividend Tax of 45 cents per ordinary
  share).

By order of the board

N van Wyk
Company Secretary

17 May 2017

Investec Limited
Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE share code: INPR
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000063814

Preference share dividend announcement

Non-redeemable, non-cumulative, non-participating preference
shares (preference shares)

Declaration of dividend number 25

Notice is hereby given that preference dividend number 25 has been
declared from income reserves for the period 01 October 2016 to
31 March 2017 amounting to a gross preference dividend of 407.17389
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, 09 June 2017.

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

Last day to trade cum-dividend                      Tuesday, 06 June 2017
Shares commence trading ex-dividend               Wednesday, 07 June 2017
Record date                                          Friday, 09 June 2017
Payment date                                         Monday, 19 June 2017

Share certificates may not be dematerialised or rematerialised between
Wednesday, 07 June 2017 and Friday, 09 June 2017, both dates inclusive.

Additional information to take note of:
- Investec Limited South African tax reference number: 9800/181/71/2
- The issued preference share capital of Investec Limited is 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 20% (subject to any available exemptions as
  legislated)
- The net dividend amounts to 325.73911 cents per preference share for
   shareholders liable to pay the Dividend Tax and 407.17389 cents per
   preference share for preference shareholders exempt from paying the
   Dividend Tax.

By order of the board

N van Wyk
Company Secretary

17 May 2017

Investec plc
Incorporated in England and Wales
Registration number: 3633621
LSE ordinary share code: INVP
JSE ordinary share code: INP
ISIN: GB00B17BBQ50

Ordinary share dividend announcement

In terms of the DLC structure, Investec plc shareholders registered on the
United Kingdom share register may receive all or part of their dividend
entitlements through dividends declared and paid by Investec plc on their
ordinary shares and/or through dividends declared and paid on the SA DAN
share issued by Investec Limited.

Investec plc shareholders registered on the South African branch register may
receive all or part of their dividend entitlements through dividends declared and
paid by Investec plc on their ordinary shares and/or through dividends declared
and paid on the SA DAS share issued by Investec Limited.

Declaration of dividend number 30

Notice is hereby given that final dividend number 30, being a gross dividend
of 13 pence (2016: 11.5 pence) per ordinary share has been recommended
by the Board from income reserves in respect of the financial year ended
31 March 2017 payable to shareholders recorded in the shareholder's
register of the company at the close of business on Friday, 28 July 2017:

-  for Investec plc shareholders, registered on the United Kingdom share
   register, through a dividend payment by Investec plc from income
   reserves of 13 pence per ordinary share
-  for Investec plc shareholders, registered on the South African branch
   register, through a dividend payment by Investec plc from income
   reserves of 6 pence per ordinary share and through a dividend paid by
   Investec Limited, on the SA DAS share, payable from income reserves,
   equivalent to 7 pence per ordinary share.

The relevant dates for the payment of dividend number 30 are as follows:

Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE)           Tuesday, 25 July 2017
On the London Stock Exchange (LSE)               Wednesday, 26 July 2017
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE)         Wednesday, 26 July 2017
On the London Stock Exchange (LSE)                Thursday, 27 July 2017
Record date (on the JSE and LSE)                    Friday, 28 July 2017
Payment date (on the JSE and LSE)                 Monday, 14 August 2017

Share certificates on the South African branch register may not be
dematerialised or rematerialised between Wednesday, 26 July 2017 and
Friday, 28 July 2017, both dates inclusive, nor may transfers between the
United Kingdom share register and the South African branch register take
place between Wednesday, 26 July 2017 and Friday, 28 July 2017, both
dates inclusive.

Additional information for South African resident shareholders of
Investec plc

-  Shareholders registered on the South African branch register are advised
   that the distribution of 13 pence, equivalent to a gross dividend of
   225 cents per share, has been arrived at using the Rand/Pound Sterling
   average buy/sell forward rate, as determined at 11h00 (SA time) on
   Wednesday, 17 May 2017
-  Investec plc United Kingdom tax reference number: 2683967322360
-  The issued ordinary share capital of Investec plc is 657 105 625 ordinary
   shares
-  The dividend paid by Investec plc to South African resident shareholders
   registered on the South African branch register and the dividend paid by
   Investec Limited to Investec plc shareholders on the SA DAS share are
   subject to South African Dividend Tax (Dividend Tax) of 20% (subject to
   any available exemptions as legislated)
-  Shareholders registered on the South African branch register who are
   exempt from paying the Dividend Tax will receive a net dividend of
   225 cents per share
-  Shareholders registered on the South African branch register who are
   not exempt from paying the Dividend Tax will receive a net dividend of
   180 cents per share (gross dividend of 225 cents per share less Dividend
   Tax of 45 cents per share).

By order of the board

D Miller
Company Secretary

17 May 2017

Investec plc
Incorporated in England and Wales
Registration number: 3633621
Share code: INPP
ISIN: GB00B19RX541

Preference share dividend announcement

Non-redeemable, non-cumulative, non-participating preference
shares (preference shares)

Declaration of dividend number 22

Notice is hereby given that preference dividend number 22 has been
declared from income reserves for the period 01 October 2016 to
31 March 2017 amounting to a gross preference dividend of 6.23288 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, 09 June 2017.

For shares trading on the Johannesburg Stock Exchange (JSE), the dividend
of 6.23288 pence per preference share is equivalent to a gross dividend of
106.63149 cents per share, which has been determined using the Rand/
Pound Sterling average buy/sell forward rate as at 11h00 (SA time) on
Wednesday, 17 May 2017.

The relevant dates relating to the payment of dividend number 22 are as
follows:

Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE)             Tuesday, 06 June 2017
On The International Stock Exchange (TISE)         Wednesday, 07 June 2017
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE)           Wednesday, 07 June 2017
On The International Stock Exchange (TISE)          Thursday, 08 June 2017
Record date (on the JSE and TISE)                     Friday, 09 June 2017
Payment date (on the JSE and TISE)                    Monday, 19 June 2017

Share certificates may not be dematerialised or rematerialised between
Wednesday, 07 June 2017 and Friday, 09 June 2017, both dates inclusive,
nor may transfers between the United Kingdom share register and the South
African branch register take place between Wednesday, 07 June 2017 and
Friday, 09 June 2017, both dates inclusive.

Additional information for South African resident shareholders of
Investec plc

- Investec plc United Kingdom tax reference number: 2683967322360
- The issued preference share capital of Investec plc is 2 754 587
  preference shares
- The dividend paid by Investec plc to shareholders recorded on the South
  African branch register is subject to South African Dividend Tax (Dividend
  Tax) of 20% (subject to any available exemptions as legislated)
- The net dividend amounts to 85.30519 cents per preference share
  for preference shareholders liable to pay the Dividend Tax and
  106.63149 cents per preference share for preference shareholders
  exempt from paying the Dividend Tax.

By order of the board

D Miller
Company Secretary

17 May 2017

Investec plc
Incorporated in England and Wales
Registration number: 3633621
JSE share code: INPPR
ISIN: GB00B4B0Q974

Rand-denominated preference share dividend announcement

Rand-denominated non-redeemable, non-cumulative,
non-participating perpetual preference shares (preference shares)

Declaration of dividend number 12

Notice is hereby given that preference dividend number 12 has been
declared from income reserves for the period 01 October 2016
to 31 March 2017 amounting to a gross preference dividend of
497.38356 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, 09 June 2017.

The relevant dates relating to the payment of dividend number 12 are as
follows:

Last day to trade cum-dividend                      Tuesday, 06 June 2017
Shares commence trading ex-dividend               Wednesday, 07 June 2017
Record date                                          Friday, 09 June 2017
Payment date                                         Monday, 19 June 2017

Share certificates may not be dematerialised or rematerialised between
Wednesday, 07 June 2017 and Friday, 09 June 2017, both dates inclusive.

Additional information for South African resident shareholders of
Investec plc

- Investec plc United Kingdom tax reference number: 2683967322360
- The issued rand denominated preference share capital of Investec plc is
  131 447 preference shares
- The dividend paid by Investec plc to shareholders recorded on the South
  African register is subject to South African Dividend Tax (Dividend Tax) of
  20% (subject to any available exemptions as legislated)
- The net dividend amounts to 397.90685 cents per preference share for
  preference shareholders liable to pay the Dividend Tax and 497.38356
  cents per preference share for preference shareholders exempt from
  paying the Dividend Tax.

By order of the board

D Miller
Company Secretary

17 May 2017

Investec plc
Incorporated in England and Wales
(Registration number 3633621)
JSE ordinary share code: INP
LSE ordinary share code: INVP
ISIN: GB00B17BBQ50

Registered office:
2 Gresham Street, London
EC2V 7QP, United Kingdom

Transfer secretaries:
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196

Company Secretary:
D Miller�

Investec Limited
Incorporated in the Republic of South Africa
(Registration number 1925/002833/06)
JSE ordinary share code: INL
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949

Registered office:
100 Grayston Drive
Sandown, Sandton, 2196

Transfer secretaries:
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196

Company Secretary:
N van Wyk

Directors:
F Titi (Chairman),
S Koseff## (Chief Executive),
B Kantor## (Managing Director),
ZBM Bassa, LC Bowden*
GR Burger##, CA Carolus,
PKO Crosthwaite*, HJ du Toit##,
D Friedland, CR Jacobs^
IR Kantor#*, PRS Thomas,
Lord Malloch - Brown KCMG*,
KL Shuenyane
##Executive *British #*Dutch ^Irish

Sponsor:
Investec Bank Limited

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