TIDMINVP
RNS Number : 3488O
Investec PLC
17 May 2018
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year
ended 31 March 2018
This announcement covers the results of the Investec group for the year
ended 31 March 2018.
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 2017. 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 2017. Group results
have benefited from a 6.6% appreciation of the average Rand: Pound Sterling
exchange rate over the year. Amounts represented on a currency neutral
basis for income statement items assume that the relevant average exchange
rates for the year to 31 March 2018 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
2018 remain the same as those at 31 March 2017.
Overview of results
Solid client activity levels supporting underlying performance
* The group's asset and wealth management businesses
have generated substantial net inflows of GBP7.3
billion, which together with favourable market levels
has supported higher average funds under management
* The banking businesses have benefited from sound
levels of corporate and private client activity
driving strong loan book growth over the year
* The group has continued to invest into the business,
positioning itself for further growth across its
client franchise businesses and ensuring that it
remains competitive and relevant in the markets in
which it operates
* Impairments on the legacy portfolio have increased in
anticipation of accelerated exits of certain assets
in line with the group's strategy of managing down
this portfolio
* Taking into account the above mentioned factors, the
group has achieved satisfactory operating performance
against a challenging backdrop in its two core
geographies, underpinned by sound growth in key
earnings drivers and a solid recurring income base.
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 1.4% to GBP607.5 million (2017:
GBP599.1 million) - a decrease of 3.5% on a currency
neutral basis.
* The effective tax rate amounted to 9.6% (2017: 18.5%)
mainly impacted by the lower rate in South Africa
following the release of provisions no longer
required.
* Statutory adjusted earnings per share (EPS) before
goodwill, acquired intangibles and non-operating
items increased 10.1% from 48.3 pence to 53.2 pence -
an increase of 4.1% on a currency neutral basis.
Satisfactory performance from the ongoing business
* Ongoing operating profit increased 5.6% to GBP701.0
million (2017: GBP663.7 million) - an increase of
1.2% on a currency neutral basis.
* Ongoing adjusted EPS before goodwill, acquired
intangibles and non-operating items increased 13.3%
from 54.1 pence to 61.3 pence - an increase of 8.1%
on a currency neutral basis.
* Annuity income as a percentage of total operating
income amounted to 76.3% (2017: 72.0%).
* The credit loss charge as a percentage of average
gross core loans and advances amounted to 0.26%
(2017: 0.29%), remaining at the lower end of the
group's long term range despite an increase in
impairments.
* Third party assets under management increased 6.5% to
GBP160.6 billion (31 March 2017: GBP150.7 billion) -
an increase of 6.2% on a currency neutral basis.
* Customer accounts (deposits) increased 6.5% to
GBP31.0 billion (31 March 2017: GBP29.1 billion) - an
increase of 5.9% on a currency neutral basis.
* Core loans and advances increased 11.6% to GBP24.8
billion (31 March 2017: GBP22.2 billion) - an
increase of 11.0% on a currency neutral basis.
The UK legacy portfolio continues to be actively managed down
* The legacy portfolio reduced from GBP476 million at
31 March 2017 to GBP313 million through asset sales,
redemptions and write-offs.
* The legacy business reported a loss before taxation
of GBP93.5 million (2017: GBP64.6 million) reflecting
an increase in impairments for accelerated exits
anticipated to occur on certain legacy assets.
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%. Both Investec Limited
and Investec plc reported a common equity tier 1
ratio ahead of this target.
* Liquidity remained strong with cash and near cash
balances amounting to GBP12.8 billion.
Dividend increase of 4.3%
* The board proposes a final dividend of 13.5 pence per
ordinary share equating to a full year dividend of
24.0 pence (2017: 23.0 pence) resulting in a dividend
cover based on the group's adjusted EPS before
goodwill and non-operating items of 2.2 times (2017:
2.1 times), consistent with the group's dividend
policy. The dividend increase of 4.3% is in line with
the currency neutral increase in adjusted earnings
per share of 4.1%.
Stephen Koseff, Chief Executive Officer of Investec said:
"Operating performance during the year was underpinned by sound growth
in loans and funds under management and a solid recurring income base,
despite a challenging backdrop in South Africa and the UK. The Wealth
& Investment and Asset Management businesses generated substantial net
inflows, with Asset Management exceeding GBP100 billion of funds under
management for the first time. The Specialist Bank continued to see
good client acquisition in its core franchise businesses which we have
built and developed over a number of years. We have implemented an orderly
succession plan and feel confident that we are handing over a business
that is well placed to continue to grow both its market position and
profitability over the foreseeable future."
Bernard Kantor, Managing Director of Investec said:
"Over the last 40 years we have been building a platform that is capable
of being leveraged for further growth. Investec is now a meaningful
player across many business areas, both in the UK and South Africa,
and we believe the platform is robust, relevant and well positioned
for future value creation. We are confident that Hendrik du Toit and
Fani Titi, as joint chief executives from October, will lead Investec
to new successes for the benefit of shareholders and all our stakeholders."
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/Alistair Kellie/ Charlotte Coulson/Zoe Pocock
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 17 May 2018. Viewing options as below:
* Live on South African TV (Business Day TV channel 412
DSTV)
* A live and delayed video webcast at www.investec.com
* Toll free numbers for the telephone conference
facilities
* SA participants: 011 535 3500
* UK participants: 0 808 143 3720
* Rest of Europe and other participants: + 27 11 535
3500
* Australian participants: 0 280 152 168
* USA participants: 1 855 242 3083
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 10 150 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 GBP5.5 billion.
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year
ended 31 March 2018
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 5.6% to GBP701.0 million
(2017: GBP663.7 million) - an increase of 1.2% on a currency
neutral basis.
The combined South African businesses reported operating profit
3.3% ahead of the prior period (in Rands), whilst the combined UK
and Other businesses posted a 1.2% increase in operating profit in
Pounds Sterling.
Business unit review - ongoing basis
Asset Management
Asset Management operating profit increased by 8.0% to GBP178.0
million (2017: GBP164.8 million) supported by higher average funds
under management arising from strong net inflows of GBP5.4 billion
and favourable market and currency movements. Earnings were
negatively impacted by lower performance fees in South Africa.
Total funds under management amounted to GBP103.9 billion (31 March
2017: GBP95.3 billion).
Wealth & Investment
Wealth & Investment operating profit increased by 5.7% to
GBP98.6 million (2017: GBP93.2 million). The business benefited
from higher average funds under management supported by higher
equity market levels over the year and solid net inflows of GBP2.0
billion. Total funds under management amounted to GBP56.0 billion
(31 March 2017: GBP54.8 billion).
Specialist Banking
Specialist Banking operating profit increased by 4.3% to
GBP474.0 million (2017: GBP454.4 million).
The South African business reported an increase in operating
profit in Rands of 6.9% supported by sound corporate and private
client activity levels as well as an increase in associate earnings
from the IEP Group. This was partially offset by lower investment
income. Core loans and advances increased 8.7% to R256.7 billion
(31 March 2017: R236.2 billion). The credit loss ratio on average
core loans and advances amounted to 0.28%, remaining flat at the
lower end of its long term average, despite the business reporting
an increase in impairments.
The UK and Other businesses reported a 9.3% decrease in
operating profit. Strong growth in net interest income was
supported by loan book growth of 15.1% to GBP9.4 billion (31 March
2017: GBP8.1 billion) and a reduction in the cost of funding. This
was offset by a decrease in non-interest revenue following
particularly strong investment banking and client flow trading
activity levels in the prior year. In line with the division's
current investment strategy to support franchise growth, IT
infrastructure costs and headcount increased, notably for the
continued build out of the private client banking offering.
Impairments increased marginally with the credit loss ratio
amounting to 0.24% (2017: 0.27%).
Further information on key developments within each of the
business units is provided in a detailed report published on the
group's website: http://www.investec.com
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 GBP49.6 million
(2017: GBP48.8 million).
Financial statement analysis - ongoing basis
Total operating income
Total operating income before impairment losses on loans and
advances increased by 6.9% to GBP2,442.8 million (2017: GBP2,285.9
million).
Net interest income increased by 11.7% to GBP760.1 million
(2017: GBP680.5 million) driven by robust levels of lending
activity across the banking businesses and further supported by a
reduction in the UK's cost of funding. This was slightly offset by
the roll off of higher yielding debt securities and increased
subordinated debt in South Africa.
Net fee and commission income increased by 7.0% to GBP1,361.2
million (2017: GBP1,271.6 million) supported by higher average
funds under management and strong net inflows in the Asset
Management and Wealth Management businesses, as well as a good
performance from the South African banking businesses.
Investment income reduced by 4.4% to GBP129.7 million (2017:
GBP135.6 million) as a result of a weaker performance from the
unlisted investment portfolio in South Africa as well as certain of
the group's listed investments.
Share of post taxation profit of associates of GBP46.8 million
(2017: GBP18.9 million) primarily reflects earnings in relation to
the group's investment in the IEP Group.
Trading income arising from customer flow decreased by 12.5% to
GBP138.2 million (2017: GBP158.0 million) as a consequence of lower
volatility, relative to the elevated levels experienced in the
prior year following the Brexit vote, as well as losses incurred in
South Africa on Steinhoff (refer to additional information).
Trading income from other trading activities reflected a loss of
GBP4.3 million (2017: GBP8.1 million income) predominantly impacted
by currency volatility over the year.
Impairment losses on loans and advances
Impairments on loans and advances increased from GBP57.1 million
to GBP63.9 million; however, the group's credit loss ratio reduced
to 0.26% (2017: 0.29%), remaining at the lower end of its long term
average. Since 31 March 2017 gross defaults have increased to
GBP329.3 million (2017: GBP249.8 million) largely due to a few
specific defaults in the UK banking business. The percentage of
default loans (net of impairments but before taking collateral into
account) to core loans and advances amounted to 0.82% (31 March
2017: 0.69%).
Operating costs
The ratio of total operating costs to total operating income
amounted to 66.5% (2017: 65.8%). Total operating costs grew by 8.0%
to GBP1,623.2 million (2017: GBP1,502.6 million) reflecting
continued investment into IT and digital initiatives and higher
headcount across divisions to support increased activity and growth
strategies; notably the build out of the UK private client
offerings. Cost growth in South Africa was somewhat offset by the
pending acquisition of the South African head office building and
the related rental provision no longer required.
Taxation
The effective tax rate amounted to 9.6% (2017: 18.5%) mainly
impacted by the lower rate in South Africa following the release of
provisions no longer required.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly
comprises:
-- GBP23.8 million profit attributable to non-controlling
interests in the Asset Management business.
-- GBP52.6 million profit attributable to non-controlling
interests in the Investec Property Fund Limited.
Balance sheet analysis
Since 31 March 2017:
-- Total shareholders' equity (including non-controlling
interests) increased by 12.9% to GBP5.4 billion largely due to an
increase in retained earnings and the issuance of Additional Tier 1
securities during the year.
-- Net asset value per share increased 5.0% to 452.5 pence and
net tangible asset value per share (which excludes goodwill and
intangible assets) increased by 6.5% to 401.5 pence.
-- The return on adjusted average shareholders' equity decreased from 12.5% to 12.1%.
-- The return on adjusted average shareholders' equity of the
ongoing business decreased from 14.2% to 14.1%.
Liquidity and funding
As at 31 March 2018 the group held GBP12.8 billion in cash and
near cash balances (GBP5.8 billion in Investec plc and R116.5
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 79.6% (31 March 2017: 76.2%). The
cost of funding in the UK has been successfully managed down over
the year. The group will continue to focus on maintaining an
optimal overall liquidity and funding profile. The group
comfortably exceeds Basel liquidity requirements for the Liquidity
Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Investec
Bank Limited (solo basis) ended the period to 31 March 2018 with
the three-month average of its LCR at 133.9% and an NSFR of 108.4%.
Further detail with respect to the bank's LCR and NSFR in South
Africa is provided on the website. For Investec plc and Investec
Bank plc (solo basis) the LCR is calculated using our own
interpretations of the EU Delegated Act. The LCR reported to the
PRA at 31 March 2018 was 306% for Investec plc and 301% for
Investec Bank plc (solo basis). Ahead of the implementation of the
final NSFR rules, the group has
applied its own interpretations of regulatory guidance and
definitions from the BCBS final guidelines to calculate the NSFR
which was 142% for Investec plc and 133% for Investec Bank plc
(solo basis). The reported NSFR and LCR may change over time with
regulatory developments and guidance.
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
2018 2017
Investec plc^
-------- --------
Capital adequacy ratio 15.4% 15.1%
-------- --------
Tier 1 ratio 12.9% 11.5%
-------- --------
Common equity tier 1 ratio 11.0% 11.3%
-------- --------
Common equity tier 1 ratio (anticipated Basel III 'fully loaded'*) 11.0% 11.3%
-------- --------
Leverage ratio (current) 8.5% 7.8%
-------- --------
Leverage ratio (anticipated Basel III 'fully loaded'*) 8.4% 7.7%
-------- --------
Investec Limited**
-------- --------
Capital adequacy ratio 14.6% 14.1%
-------- --------
Tier 1 ratio 11.0% 10.7%
-------- --------
Common equity tier 1 ratio 10.2% 9.9%
-------- --------
Common equity tier 1 ratio (anticipated Basel III 'fully loaded'*) 10.2% 9.9%
-------- --------
Leverage ratio (current) 7.5% 7.3%
-------- --------
Leverage ratio (anticipated Basel III 'fully loaded'*) 7.1% 6.8%
-------- --------
^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 charges and
dividends when calculating common equity tier 1 (CET1) capital as
required under the Capital Requirements Regulation and European
Banking Authority technical standards. The impact of this deduction
totalling GBP65 million for Investec plc would lower the CET1 ratio
by 45bps (31 March 2017: 45bps).
*The key difference between the 'reported' basis at 31 March
2018 and the 'fully loaded' basis is primarily relating to capital
instruments that previously qualified as regulatory capital, but do
not fully qualify under the CRD IV rules/ SARB regulations. These
instruments continue to be recognised on a reducing basis in the
'reported' figures until 2022.
**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
25bps (31 March 2017: 24bps) lower.
Legacy business - overview of results
Since 31 March 2017 the group's legacy portfolio in the UK has
continued to be actively managed down from GBP476 million to GBP313
million through asset sales, redemptions and write-offs. The legacy
business reported a loss before taxation of GBP93.5 million (2017:
GBP64.6 million) reflecting an increase in impairments for
accelerated exits anticipated to occur on certain legacy assets.
Total net defaults in the legacy book amounted to GBP90 million (31
March 2017: GBP125 million).
Additional information - Investec exposures to the Steinhoff
Group of companies
On 11 December 2017 the group released an announcement on the
Johannesburg Stock Exchange in relation to its exposures to
Steinhoff International Holdings NV (Steinhoff), its subsidiaries
and related entities. Trading and investment losses incurred in
respect of these exposures amounted to R220 million (approximately
GBP13 million) in the current financial year, less than the
estimate referred to in the December announcement. As noted in that
announcement Investec has credit exposures largely to Steinhoff
Africa Holdings (Pty) Ltd subsidiaries and Steinhoff Africa Retail
Ltd, which represent a small portion of the group's balance sheet.
Based on the information currently available to the group, Investec
is not expecting to suffer any losses on these exposures.
Outlook
The group has achieved a satisfactory operating performance,
supported by sound growth in key earnings drivers, solid levels of
client activity and a robust recurring income base.
Whilst the complexities of Brexit continue to cause uncertainty
in the UK economy, the final quarter of the 2018 financial year has
started to see an uplift in the South African economic outlook.
The group's continued investment in infrastructure, digital
platforms and people means it is well positioned for future
growth.
Investec remains committed to delivering shareholder value and
has the right people and skills to take advantage of opportunities
in its core markets, whilst providing exceptional service to our
clients.
On behalf of the boards of Investec plc and Investec Limited
Perry Crosthwaite Stephen Koseff Bernard Kantor
Chairman Chief Executive Managing Director
Officer
---------------- ------------------
16 May 2018
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 2018 31 March 2017
Period Period
Currency per GBP1.00 end Average end Average
------- ------- ------- -------
South African Rand 16.62 17.21 16.77 18.42
------- ------- ------- -------
Australian Dollar 1.83 1.72 1.64 1.75
------- ------- ------- -------
Euro 1.14 1.14 1.17 1.19
------- ------- ------- -------
US Dollar 1.40 1.33 1.25 1.31
------- ------- ------- -------
Exchange rates between local currencies and Pounds Sterling have
fluctuated over the year. The most significant impact arises from
the volatility of the Rand. The average exchange rate over the
period has appreciated by 6.6% and the closing rate has appreciated
by 0.9% since 31 March 2017.
-- 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 2018 are consistent with those
adopted in the financial statements for the year ended 31 March
2017.
Standards and interpretations issued but not yet effective
The following significant standards and interpretations, which
have been issued but are not yet effective for the current
financial year, are applicable to the group.
IFRS 9 Financial Instruments
IFRS 9 is effective and will be implemented by the group from 1
April 2018. The group will provide its detailed transitional
disclosures when it publishes its annual report for the year ended
31 March 2018 on 29 June 2018.
IFRS 9 replaces IAS 39 and sets out the new requirements for the
recognition and measurement of financial instruments. These
requirements focus primarily on the classification and measurement
of financial instruments and measurement of impairment losses based
on an expected credit loss (ECL) model.
Investec plc and Investec Limited apply the Standardised
approach when calculating capital requirements. The impact of IFRS
9 on Investec plc's and Investec Limited's common equity tier 1
(CET 1) ratios is potentially more significant when compared to
Internal Ratings Based approach banks, who already deduct from CET
1 capital any excess expected losses over impairment
allowances.
Subject to finalisation, the adoption of IFRS 9 is expected to
result in the following estimated impact for Investec plc and
Investec Limited, respectively.
Investec plc
Balance sheet impairment allowance and provisions
Total balance sheet impairment allowance and provisions are
expected to increase by approximately GBP106 million from GBP158
million as at 31 March 2018 to approximately GBP264 million as at 1
April 2018. This is driven by an increase in legacy impairments of
approximately GBP57 million and an increase in ongoing impairments
of approximately GBP70 million, partially offset by a reduction of
approximately GBP21 million as a result of changes in
classification and measurement of certain of the group's financial
assets to fair value. The increase in impairment allowance and
provisions is expected to reduce the CET 1 ratio by approximately
66bps on a fully loaded basis, or approximately 3bps on a day one
impact transitional basis.
Changes in classification and measurement of certain financial
assets
In addition, changes in classification and measurement to fair
value of certain of the group's other financial assets is expected
to result in a decrease to equity of approximately GBP11 million
(post taxation), with an approximate 7bps impact on the CET 1
ratio.
Reclassification of subordinated liabilities to fair value
As a result of the adoption of IFRS 9 Investec plc has elected
to designate its subordinated liabilities to fair value. The
interest rate portion of the subordinated debt is expected to
reduce equity by approximately GBP48 million (post taxation) with
an approximate 37bps impact on the day one transitional CET 1 ratio
which will come back into retained earnings over the duration of
the remaining term of the instrument (maturing February 2022). In
addition, an amount of approximately GBP55 million (post taxation)
has been transferred to an own credit reserve which does not have
an impact on capital ratios.
Taken together, the adoption of IFRS 9 is expected to result in
a decrease in Investec plc's transitional CET 1 ratio of
approximately 47bps from 11.0% to approximately 10.5%, ahead of the
group's target and in excess of minimum regulatory requirements.
Investec plc confirmed to the PRA that it will use the transitional
arrangements to absorb the full impact permissible of IFRS 9 in
regulatory capital calculations.
Investec Limited
Balance sheet impairment allowance and provisions
Total balance sheet impairment allowance and provisions are
expected to increase by approximately R657 million from R1.5
billion as at 31 March 2018 to approximately R2.2 billion as at 1
April 2018. This is driven by an increase in stage 1, stage 2, and
stage 3 impairments of approximately R811 million, partially offset
by a reduction of approximately R154 million as a result of the
changes in classification and measurement of certain of the group's
financial assets to fair value. The increase in impairment
allowance and provisions is expected to reduce the CET 1 ratio by
approximately 15bps on a fully loaded basis, or approximately 4bps
on a day one impact transitional basis.
Changes in classification and measurement of certain financial
assets
In addition, changes in classification and measurement of
certain of the group's other financial assets is expected to result
in a decrease to equity of approximately R419 million (post
taxation), with an approximate 16bps impact on the CET 1 ratio.
Taken together, the adoption of IFRS 9 is expected to result in
a decrease in Investec Limited's transitional CET 1 ratio of
approximately 20bps from 10.2% to approximately 10.0%, in line with
the group's target and in excess of minimum regulatory
requirements. Investec Limited confirmed to the SARB that it will
use the transitional arrangements to absorb the full impact
permissible of IFRS 9 in regulatory capital calculations.
IFRS 15 Revenue from contracts with customers
IFRS 15 is effective for annual periods beginning on or after 1
January 2018 and will be implemented by the group from 1 April
2018. IFRS 15 provides a principles-based approach for revenue
recognition and introduces the concept of recognising revenue for
obligations as they are satisfied. The group's current measurement
and recognition principles are aligned to the standard and the
group does not expect an impact to measurement principles currently
applied. The impact of the disclosure requirements of the standard
is currently being assessed.
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 2018 will be posted to
stakeholders on 29 June 2018. 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 16 May 2018.
-- The information in the announcement for the year ended 31
March 2018, which was approved by the board of directors on 16 May
2018, does not constitute statutory accounts as defined in Section
435 of the UK Companies Act 2006. The 31 March 2017 financial
statements were filed with the registrar and were unqualified with
the audit report containing no statements in respect of sections
498(2) or 498(3) of the UK Companies Act.
-- This announcement is available on the group's website:
www.investec.com
Financial assistance
Shareholders are referred to the Special Resolution number 3,
which was approved at the annual general meeting held on 10 August
2017, 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 2017 to 31 March 2018.
Johannesburg and London
Sponsor: Investec Bank Limited
Ongoing financial information
Consolidated summarised ongoing income statement
For the year to 31 March 31 March
GBP'000 2018 2017
Net interest income 760 101 680 539
------------ ------------
Net fee and commission income 1 361 214 1 271 591
------------ ------------
Investment income 129 722 135 631
------------ ------------
Share of post taxation profit of associates 46 823 18 890
------------ ------------
Trading income/(loss) arising from
------------ ------------
- customer flow 138 244 158 006
------------ ------------
- balance sheet management and other trading activities (4 326) 8 078
------------ ------------
Other operating income 11 038 13 158
------------ ------------
Total operating income before impairment losses on loans and advances 2 442 816 2 285 893
------------ ------------
Impairment losses on loans and advances (63 890) (57 149)
------------ ------------
Operating income 2 378 926 2 228 744
------------ ------------
Operating costs (1 623 210) (1 502 623)
------------ ------------
Depreciation on operating leased assets (2 421) (2 169)
------------ ------------
Operating profit 753 295 723 952
------------ ------------
Profit attributable to other non-controlling interests (52 288) (60 239)
------------ ------------
Profit attributable to Asset Management non-controlling interests (23 817) (20 291)
------------ ------------
Operating profit before taxation 677 190 643 422
------------ ------------
Taxation (77 448) (130 438)
------------ ------------
Preference dividends accrued (33 527) (25 838)
------------ ------------
Adjusted earnings 566 215 487 146
------------ ------------
Adjusted earnings per share (pence) 61.3 54.1
------------ ------------
Number of weighted average shares (million) 923.5 900.4
------------ ------------
Cost to income ratio 66.5% 65.8%
------------ ------------
Combined consolidated ongoing segmental analysis
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 2018 UK and Southern Total
GBP'000 Other Africa group
Asset Management 103 918 74 127 178 045
-------- --------- ---------
Wealth & Investment 69 269 29 296 98 565
-------- --------- ---------
Specialist Banking 153 460 320 535 473 995
-------- --------- ---------
326 647 423 958 750 605
-------- --------- ---------
Group costs (33 789) (15 809) (49 598)
-------- --------- ---------
Total group 292 858 408 149 701 007
-------- --------- ---------
Other non-controlling interest - equity 52 288
-------- --------- ---------
Operating profit 753 295
-------- --------- ---------
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
--------- --------- ---------
Reconciliation from statutory summarised income statement to
ongoing summarised income statement
Statutory
For the year to 31 March 2018 as UK legacy Ongoing
GBP'000 disclosed business business
Net interest income 760 398 297 760 101
------------ --------- ------------
Net fee and commission income/(expense) 1 361 207 (7) 1 361 214
------------ --------- ------------
Investment income 130 048 326 129 722
------------ --------- ------------
Share of post taxation profit of associates 46 823 - 46 823
------------ --------- ------------
Trading income/(loss) arising from
------------ --------- ------------
- customer flow 138 226 (18) 138 244
------------ --------- ------------
- balance sheet management and other trading activities (4 307) 19 (4 326)
------------ --------- ------------
Other operating income 11 115 77 11 038
------------ --------- ------------
Total operating income before impairment losses on loans and advances 2 443 510 694 2 442 816
------------ --------- ------------
Impairment losses on loans and advances (148 556) (84 666) (63 890)
------------ --------- ------------
Operating income/(loss) 2 294 954 (83 972) 2 378 926
------------ --------- ------------
Operating costs (1 632 740) (9 530) (1 623 210)
------------ --------- ------------
Depreciation on operating leased assets (2 421) - (2 421)
------------ --------- ------------
Operating profit/(loss) 659 793 (93 502) 753 295
------------ --------- ------------
Profit attributable to other non-controlling interests (52 288) - (52 288)
------------ --------- ------------
Profit attributable to Asset Management non-controlling interests (23 817) - (23 817)
------------ --------- ------------
Operating profit/(loss) before taxation 583 688 (93 502) 677 190
------------ --------- ------------
Taxation (59 099) 18 349* (77 448)
------------ --------- ------------
Preference dividends accrued (33 527) - (33 527)
------------ --------- ------------
Adjusted earnings 491 062 (75 153) 566 215
------------ --------- ------------
Adjusted earnings per share (pence) 53.2 61.3
------------ --------- ------------
Number of weighted average shares (million) 923.5 923.5
------------ --------- ------------
Cost to income ratio 66.9% 66.5%
------------ --------- ------------
* Applying the UK's effective taxation rate of 19.6%.
Statutory
For the year to 31 March 2017 as UK legacy Ongoing
GBP'000 disclosed business business
Net interest income/(expense) 679 895 (644) 680 539
------------ --------- ------------
Net fee and commission income/(expense) 1 271 524 (67) 1 271 591
------------ --------- ------------
Investment income 136 203 572 135 631
------------ --------- ------------
Share of post taxation profit of associates 18 890 - 18 890
------------ --------- ------------
Trading income/(loss) 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) 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 earnings 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%.
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 %
2018 2017 change 2018 change
--------- --------- --------- ---------- ---------
Operating profit before taxation* (million) 608 599 1.4% 578 (3.5%)
--------- --------- --------- ---------- ---------
Earnings attributable to shareholders (million) 506 442 14.3% 478 8.1%
--------- --------- --------- ---------- ---------
Adjusted earnings attributable to shareholders** (million) 491 435 13.0% 465 6.9%
--------- --------- --------- ---------- ---------
Adjusted earnings per share** 53.2p 48.3p 10.1% 50.3p 4.1%
--------- --------- --------- ---------- ---------
Basic earnings per share 51.2p 50.8p 0.8% 48.4p (4.7%)
--------- --------- --------- ---------- ---------
Dividends per share 24.0p 23.0p 4.3% 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. 18.42.
------------------------------------------------------------------------
Results in Pounds Sterling
Actual as Actual as Neutral
reported reported Actual as currency^^ Neutral
Year to At reported At currency
31 March 31 March % 31 March %
2018 2017 change 2018 change
--------- --------- --------- ----------- ---------
Net asset value per share 452.5p 431.0p 5.0% 454.0p 5.3%
--------- --------- --------- ----------- ---------
Net tangible asset value per share 401.5p 377.0p 6.5% 403.0p 6.9%
--------- --------- --------- ----------- ---------
Total equity (million) 5 428 4 809 12.9% 5 403 12.4%
--------- --------- --------- ----------- ---------
Total assets (million) 57 617 53 535 7.6% 57 288 7.0%
--------- --------- --------- ----------- ---------
Core loans and advances (million) 25 132 22 707 10.7% 24 995 10.1%
--------- --------- --------- ----------- ---------
Cash and near cash balances (million) 12 825 12 038 6.5% 12 763 6.0%
--------- --------- --------- ----------- ---------
Customer deposits (million) 30 987 29 109 6.5% 30 815 5.9%
--------- --------- --------- ----------- ---------
Third party assets under management (million) 160 576 150 735 6.5% 160 138 6.2%
--------- --------- --------- ----------- ---------
Return on average adjusted shareholders' equity 12.1% 12.5%
--------- --------- --------- ----------- ---------
Return on average risk-weighted assets 1.45% 1.45%
--------- --------- --------- ----------- ---------
Defaults (net of impairments and before collateral) as a
percentage
of net core loans and advances to customers 1.17% 1.22%
--------- --------- --------- ----------- ---------
Loans and advances to customers as a percentage of customer
deposits 79.6% 76.2%
--------- --------- --------- ----------- ---------
Credit loss ratio (income statement impairment charge as a %
of average gross core loans and
advances) 0.61% 0.54%
--------- --------- --------- ----------- ---------
^^ For balance sheet items we have assumed that the Rand: Pounds Sterling
closing exchange rate has remained neutral since 31 March 2017.
Combined consolidated income statement
Year to Year to
31 March 31 March
GBP'000 2018 2017
Interest income 2 491 009 2 230 765
----------- -----------
Interest expense (1 730 611) (1 550 870)
----------- -----------
Net interest income 760 398 679 895
----------- -----------
Fee and commission income 1 543 447 1 429 588
----------- -----------
Fee and commission expense (182 240) (158 064)
----------- -----------
Investment income 130 048 136 203
----------- -----------
Share of post taxation profit of associates 46 823 18 890
----------- -----------
Trading income/(loss) arising from
----------- -----------
- customer flow 138 226 158 001
----------- -----------
- balance sheet management and other trading activities (4 307) 8 218
----------- -----------
Other operating income 11 115 13 483
----------- -----------
Total operating income before impairment losses on loans and advances 2 443 510 2 286 214
----------- -----------
Impairment losses on loans and advances (148 556) (111 454)
----------- -----------
Operating income 2 294 954 2 174 760
----------- -----------
Operating costs (1 632 740) (1 513 231)
----------- -----------
Depreciation on operating leased assets (2 421) (2 169)
----------- -----------
Operating profit before goodwill and acquired intangibles 659 793 659 360
----------- -----------
Impairment of goodwill - (4 749)
----------- -----------
Amortisation of acquired intangibles (16 255) (17 197)
----------- -----------
Operating profit 643 538 637 414
----------- -----------
Additional costs on acquisition of subsidiary (6 039) -
----------- -----------
Profit before taxation 637 499 637 414
----------- -----------
Taxation on operating profit before goodwill and acquired intangibles (59 099) (118 488)
----------- -----------
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries 3 253 4 070
----------- -----------
Profit after taxation 581 653 522 996
----------- -----------
Profit attributable to other non-controlling interests (52 288) (60 239)
----------- -----------
Profit attributable to Asset Management non-controlling interests (23 817) (20 291)
----------- -----------
Earnings attributable to shareholders 505 548 442 466
----------- -----------
Impairment of goodwill - 4 749
----------- -----------
Amortisation of acquired intangibles 16 255 17 197
----------- -----------
Additional costs on acquisition of subsidiary 6 039 -
----------- -----------
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries (3 253) (4 070)
----------- -----------
Preference dividends paid (32 980) (25 658)
----------- -----------
Accrual adjustment on earnings attributable to other equity holders (547) (180)
----------- -----------
Adjusted earnings 491 062 434 504
----------- -----------
Earnings per share (pence)
----------- -----------
- Basic 51.2 50.8
----------- -----------
- Diluted 49.8 48.8
----------- -----------
Adjusted earnings per share (pence)
----------- -----------
- Basic 53.2 48.3
----------- -----------
- Diluted 51.7 46.4
----------- -----------
Dividends per share (pence)
----------- -----------
- Interim 10.5 10.0
----------- -----------
- Final 13.5 13.0
----------- -----------
Number of weighted average shares - (million) 923.5 900.4
----------- -----------
Summarised combined consolidated statement of comprehensive
income
Year to Year to
31 March 31 March
GBP'000 2018 2017
Profit after taxation 581 653 522 996
--------- ----------
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* (5 746) 53 324
--------- ----------
Gains on realisation of available-for-sale assets recycled to the income statement* (6 676) (7 781)
--------- ----------
Fair value movements on available-for-sale assets taken directly to other comprehensive income* 20 051 54 863
--------- ----------
Foreign currency adjustments on translating foreign operations (25 300) 540 534
--------- ----------
Items that will never be reclassified to the income statement
--------- ----------
Re-measurement of net defined benefit pension asset 3 938 (43 580)
--------- ----------
Total comprehensive income 567 920 1 120 356
--------- ----------
Total comprehensive income attributable to ordinary shareholders 451 913 892 201
--------- ----------
Total comprehensive income attributable to non-controlling interests 83 027 202 497
--------- ----------
Total comprehensive income attributable to perpetual preferred securities 32 980 25 658
--------- ----------
Total comprehensive income 567 920 1 120 356
--------- ----------
* Net of taxation of GBP11.7 million (year to 31 March 2017: GBP16.8
million).
Summarised combined consolidated cash flow statement
Year to Year to
31 March 31 March
GBP'000 2018 2017
Cash inflows from operations 732 242 708 719
----------- ---------
Increase in operating assets (3 352 869) (445 528)
----------- ---------
Increase in operating liabilities 3 075 779 498 146
----------- ---------
Net cash inflow from operating activities 455 152 761 428
----------- ---------
Net cash outflow from investing activities (37 799) (59 615)
----------- ---------
Net cash inflow from financing activities 45 383 37 523
----------- ---------
Effects of exchange rate changes on cash and cash equivalents (54 085) 332 092
----------- ---------
Net increase in cash and cash equivalents 408 651 1 071 428
----------- ---------
Cash and cash equivalents at the beginning of the year 5 721 728 4 650 300
----------- ---------
Cash and cash equivalents at the end of the year 6 130 379 5 721 728
----------- ---------
Cash and cash equivalents is defined as including cash and
balances at central banks, on demand loans and advances to banks
and non-sovereign and non-bank cash placements (all of which have a
maturity profile of less than three months).
Combined consolidated balance sheet
At At
31 March 31 March
GBP'000 2018 2017
Assets
---------- ----------
Cash and balances at central banks 4 040 512 3 351 702
---------- ----------
Loans and advances to banks 2 165 533 3 191 041
---------- ----------
Non-sovereign and non-bank cash placements 601 243 536 259
---------- ----------
Reverse repurchase agreements and cash collateral on securities borrowed 2 207 477 2 358 970
---------- ----------
Sovereign debt securities 4 910 027 3 804 627
---------- ----------
Bank debt securities 587 164 639 189
---------- ----------
Other debt securities 903 603 1 115 558
---------- ----------
Derivative financial instruments 1 352 408 1 185 848
---------- ----------
Securities arising from trading activities 1 434 391 1 376 668
---------- ----------
Investment portfolio 885 499 835 899
---------- ----------
Loans and advances to customers 24 673 009 22 189 975
---------- ----------
Own originated loans and advances to customers securitised 459 088 517 162
---------- ----------
Other loans and advances 347 809 355 248
---------- ----------
Other securitised assets 148 387 148 964
---------- ----------
Interests in associated undertakings 467 852 392 213
---------- ----------
Deferred taxation assets 157 321 133 972
---------- ----------
Other assets 1 876 116 1 900 480
---------- ----------
Property and equipment 233 340 105 939
---------- ----------
Investment properties 1 184 097 1 128 930
---------- ----------
Goodwill 368 803 367 579
---------- ----------
Intangible assets 125 389 143 261
---------- ----------
Non-current assets held for sale - 27 218
---------- ----------
49 129 068 45 806 702
---------- ----------
Other financial instruments at fair value through profit or loss in respect of liabilities
to customers 8 487 776 7 728 130
---------- ----------
57 616 844 53 534 832
---------- ----------
Liabilities
---------- ----------
Deposits by banks 2 931 267 2 736 066
---------- ----------
Derivative financial instruments 1 471 563 1 296 206
---------- ----------
Other trading liabilities 960 166 978 911
---------- ----------
Repurchase agreements and cash collateral on securities lent 655 840 690 615
---------- ----------
Customer accounts (deposits) 30 987 173 29 109 428
---------- ----------
Debt securities in issue 2 717 187 2 386 180
---------- ----------
Liabilities arising on securitisation of own originated loans and advances 136 812 90 125
---------- ----------
Liabilities arising on securitisation of other assets 127 853 128 838
---------- ----------
Current taxation liabilities 185 486 227 828
---------- ----------
Deferred taxation liabilities 32 158 40 408
---------- ----------
Other liabilities 2 012 268 1 910 830
---------- ----------
42 217 773 39 595 435
---------- ----------
Liabilities to customers under investment contracts 8 484 296 7 725 604
---------- ----------
Insurance liabilities, including unit-linked liabilities 3 480 2 526
---------- ----------
50 705 549 47 323 565
---------- ----------
Subordinated liabilities 1 482 987 1 402 638
---------- ----------
52 188 536 48 726 203
---------- ----------
Equity
---------- ----------
Ordinary share capital 240 237
---------- ----------
Perpetual preference share capital 31 31
---------- ----------
Share premium 2 416 736 2 341 228
---------- ----------
Treasury shares (160 132) (126 879)
---------- ----------
Other reserves (345 606) (310 275)
---------- ----------
Retained income 2 530 825 2 226 751
---------- ----------
Shareholders' equity excluding non-controlling interests 4 442 094 4 131 093
---------- ----------
Other Additional Tier 1 securities in issue 304 150 32 798
---------- ----------
Non-controlling interests 682 064 644 738
---------- ----------
- Perpetual preferred securities issued by subsidiaries 92 312 91 492
---------- ----------
- Non-controlling interests in partially held subsidiaries 589 752 553 246
---------- ----------
Total equity 5 428 308 4 808 629
---------- ----------
Total liabilities and equity 57 616 844 53 534 832
---------- ----------
Summarised combined consolidated statement of changes in
equity
Year to Year to
31 March 31 March
GBP'000 2018 2017
Balance at the beginning of the year 4 808 629 3 859 307
--------- ---------
Total comprehensive income for the year 567 920 1 120 356
--------- ---------
Share-based payments adjustments 69 218 55 961
--------- ---------
Dividends paid to ordinary shareholders (227 908) (216 602)
--------- ---------
Dividends declared to perpetual preference shareholders and Other Additional Tier 1 security
holders (15 736) (15 279)
--------- ---------
Dividends paid to perpetual preference shareholders included in non-controlling interests
and Other Additional Tier 1 security holders (17 244) (10 379)
--------- ---------
Dividends paid to non-controlling interests (63 688) (48 195)
--------- ---------
Issue of ordinary shares 125 240 228 086
--------- ---------
Issue of Other Additional Tier 1 security instruments 271 058 -
--------- ---------
Redemption of perpetual preference shares - (81 743)
--------- ---------
Net equity impact of non-controlling interest movements 32 752 29 542
--------- ---------
Other equity movements - (80)
--------- ---------
Movement of treasury shares (121 933) (112 345)
--------- ---------
Balance at the end of the year 5 428 308 4 808 629
--------- ---------
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
-------- -------- --------
2018
-------- -------- --------
Asset Management 103 918 74 127 178 045
-------- -------- --------
Wealth & Investment 69 269 29 296 98 565
-------- -------- --------
Specialist Banking 59 958 320 535 380 493
-------- -------- --------
233 145 423 958 657 103
-------- -------- --------
Group costs (33 789) (15 809) (49 598)
-------- -------- --------
Total group 199 356 408 149 607 505
-------- -------- --------
Other non-controlling interest - equity 52 288
-------- -------- --------
Operating profit 659 793
-------- -------- --------
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
-------- -------- --------
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 2018 instruments at amortised instruments out of
GBP'000 at fair value cost at fair value IAS 39 Total
Assets
-------------- ------------- --------------- ------------- ----------
Cash and balances at central banks 7 784 4 032 728 - - 4 040 512
-------------- ------------- --------------- ------------- ----------
Loans and advances to banks 236 077 1 929 456 - - 2 165 533
-------------- ------------- --------------- ------------- ----------
Non-sovereign and non-bank cash placements 34 544 566 699 - - 601 243
-------------- ------------- --------------- ------------- ----------
Reverse repurchase agreements and cash
collateral on securities borrowed 787 905 1 419 572 - - 2 207 477
-------------- ------------- --------------- ------------- ----------
Sovereign debt securities 4 701 643 208 384 - - 4 910 027
-------------- ------------- --------------- ------------- ----------
Bank debt securities 369 172 217 992 - - 587 164
-------------- ------------- --------------- ------------- ----------
Other debt securities 630 280 273 323 - - 903 603
-------------- ------------- --------------- ------------- ----------
Derivative financial instruments 1 352 408 - - - 1 352 408
-------------- ------------- --------------- ------------- ----------
Securities arising from trading activities 1 434 391 - - - 1 434 391
-------------- ------------- --------------- ------------- ----------
Investment portfolio 885 499 - - - 885 499
-------------- ------------- --------------- ------------- ----------
Loans and advances to customers 1 171 628 23 501 381 - - 24 673 009
-------------- ------------- --------------- ------------- ----------
Own originated loans and advances to
customers securitised - 459 088 - - 459 088
-------------- ------------- --------------- ------------- ----------
Other loans and advances - 347 809 - - 347 809
-------------- ------------- --------------- ------------- ----------
Other securitised assets 130 388 17 999 - - 148 387
-------------- ------------- --------------- ------------- ----------
Interests in associated undertakings - 11 371 - 456 481 467 852
-------------- ------------- --------------- ------------- ----------
Deferred taxation assets - - - 157 321 157 321
-------------- ------------- --------------- ------------- ----------
Other assets 190 740 1 239 331 - 446 045 1 876 116
-------------- ------------- --------------- ------------- ----------
Property and equipment - - - 233 340 233 340
-------------- ------------- --------------- ------------- ----------
Investment properties - - - 1 184 097 1 184 097
-------------- ------------- --------------- ------------- ----------
Goodwill - - - 368 803 368 803
-------------- ------------- --------------- ------------- ----------
Intangible assets - - - 125 389 125 389
-------------- ------------- --------------- ------------- ----------
11 932 459 34 225 133 - 2 971 476 49 129 068
-------------- ------------- --------------- ------------- ----------
Other financial instruments at fair value
through profit or loss in respect of
liabilities
to customers - - 8 487 776 - 8 487 776
-------------- ------------- --------------- ------------- ----------
11 932 459 34 225 133 8 487 776 2 971 476 57 616 844
-------------- ------------- --------------- ------------- ----------
Liabilities
-------------- ------------- --------------- ------------- ----------
Deposits by banks - 2 931 267 - - 2 931 267
-------------- ------------- --------------- ------------- ----------
Derivative financial instruments 1 471 563 - - - 1 471 563
-------------- ------------- --------------- ------------- ----------
Other trading liabilities 960 166 - - - 960 166
-------------- ------------- --------------- ------------- ----------
Repurchase agreements and cash collateral
on securities lent 90 049 565 791 - - 655 840
-------------- ------------- --------------- ------------- ----------
Customer accounts (deposits) 2 375 704 28 611 469 - - 30 987 173
-------------- ------------- --------------- ------------- ----------
Debt securities in issue 471 886 2 245 301 - - 2 717 187
-------------- ------------- --------------- ------------- ----------
Liabilities arising on securitisation of
own originated loans and advances - 136 812 - - 136 812
-------------- ------------- --------------- ------------- ----------
Liabilities arising on securitisation of
other assets 127 853 - - - 127 853
-------------- ------------- --------------- ------------- ----------
Current taxation liabilities - - - 185 486 185 486
-------------- ------------- --------------- ------------- ----------
Deferred taxation liabilities - - - 32 158 32 158
-------------- ------------- --------------- ------------- ----------
Other liabilities 17 533 1 245 016 749 719 2 012 268
-------------- ------------- --------------- ------------- ----------
5 514 754 35 735 656 - 967 363 42 217 773
-------------- ------------- --------------- ------------- ----------
Liabilities to customers under investment
contracts - - 8 484 296 - 8 484 296
-------------- ------------- --------------- ------------- ----------
Insurance liabilities, including
unit-linked liabilities - - 3 480 - 3 480
-------------- ------------- --------------- ------------- ----------
5 514 754 35 735 656 8 487 776 967 363 50 705 549
-------------- ------------- --------------- ------------- ----------
Subordinated liabilities - 1 482 987 - - 1 482 987
-------------- ------------- --------------- ------------- ----------
5 514 754 37 218 643 8 487 776 967 363 52 188 536
-------------- ------------- --------------- ------------- ----------
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 31 March 2018 instruments
GBP'000 at fair value Level 1 Level 2 Level 3
-------------- --------- --------- -------
Assets
-------------- --------- --------- -------
Cash and balances at central banks 7 784 7 784 - -
-------------- --------- --------- -------
Loans and advances to banks 236 077 236 077 - -
-------------- --------- --------- -------
Non-sovereign and non-bank cash placements 34 544 - 34 544 -
-------------- --------- --------- -------
Reverse repurchase agreements and cash collateral on securities
borrowed 787 905 196 170 591 735 -
-------------- --------- --------- -------
Sovereign debt securities 4 701 643 4 701 643 - -
-------------- --------- --------- -------
Bank debt securities 369 172 293 830 75 342 -
-------------- --------- --------- -------
Other debt securities 630 280 256 255 357 256 16 769
-------------- --------- --------- -------
Derivative financial instruments 1 352 408 - 1 308 208 44 200
-------------- --------- --------- -------
Securities arising from trading activities 1 434 391 1 405 197 22 440 6 754
-------------- --------- --------- -------
Investment portfolio 885 499 190 395 107 285 587 819
-------------- --------- --------- -------
Loans and advances to customers 1 171 628 - 1 037 888 133 740
-------------- --------- --------- -------
Other securitised assets 130 388 - - 130 388
-------------- --------- --------- -------
Other assets 190 740 190 740 - -
-------------- --------- --------- -------
11 932 459 7 478 091 3 534 698 919 670
-------------- --------- --------- -------
Liabilities
-------------- --------- --------- -------
Derivative financial instruments 1 471 563 - 1 470 121 1 442
-------------- --------- --------- -------
Other trading liabilities 960 166 863 123 97 043 -
-------------- --------- --------- -------
Repurchase agreements and cash collateral on securities lent 90 049 - 90 049 -
-------------- --------- --------- -------
Customer accounts (deposits) 2 375 704 - 2 375 704 -
-------------- --------- --------- -------
Debt securities in issue 471 886 - 457 687 14 199
-------------- --------- --------- -------
Liabilities arising on securitisation of other assets 127 853 - - 127 853
-------------- --------- --------- -------
Other liabilities 17 533 - 17 533 -
-------------- --------- --------- -------
5 514 754 863 123 4 508 137 143 494
-------------- --------- --------- -------
Net financial assets/(liabilities) at fair value 6 417 705 6 614 968 (973 439) 776 176
-------------- --------- --------- -------
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 2018 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 Discounted cash flow model Yield curves
placements
-------------------------------------- --------------------------------------
Reverse repurchase agreements and cash Discounted cash flow model, Hermite Yield curves
collateral on securities borrowed interpolation, 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 Yield curves, risk free rate,
interpolation, industry standard volatilities, forex forward points and
derivative pricing models spot rates, interest
including Black-Scholes rate swap curves and credit curves
-------------------------------------- --------------------------------------
Securities arising from trading Standard industry derivative pricing Interest rate curves, implied bond
activities model spreads, equity volatilities
-------------------------------------- --------------------------------------
Investment portfolio Discounted cash flow model, relative Discount rate and fund unit price, net
valuation model assets
Comparable quoted inputs
-------------------------------------- --------------------------------------
Loans and advances to customers Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Liabilities
Derivative financial instruments Discounted cash flow model, Hermite Yield curves, risk free rate,
interpolation, industry standard volatilities, forex forward points and
derivative pricing models spot rates, interest
including Black-Scholes rate swap curves and credit curves
-------------------------------------- --------------------------------------
Other trading liabilities Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Repurchase agreements and cash
collateral on securities lent Discounted cash flow model, Hermite Yield curves
interpolation
-------------------------------------- --------------------------------------
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
-------------------------------------- --------------------------------------
The following is a reconciliaiton of the opening balances to the
closing balances for fair value measurement in level 3 of the fair
value hierarchy.
Total level 3
For the year to 31 March 2018 financial
GBP'000 instruments
Balance at 1 April 2017 770 686
-------------
Total gains or losses 52 226
-------------
In the income statement 49 490
-------------
In the statement of comprehensive income 2 736
-------------
Purchases 208 531
-------------
Sales (144 027)
-------------
Settlements (13 790)
-------------
Transfers into level 3 7 165
-------------
Transfers out of level 3 (73 192)
-------------
Foreign exchange adjustments (31 423)
-------------
Balance as at 31 March 2018 776 176
-------------
During the year, GBP55.3 million has been transferred to level 2
due to an observable input becoming available to the valuation
model.
In addition GBP17.9 million has been transferred to level 2 due
to valuation methodologies being reviewed and observable inputs
being used to determine the fair value.
GBP7.1 million has been transferred into level 3 due to inputs
to valuation methods 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 2018
GBP'000 Total Realised Unrealised
Total gains or (losses) included in the income statement for the year
------- -------- ----------
Net interest income 1 613 1 613 -
------- -------- ----------
Fee and commission income 93 - 93
------- -------- ----------
Investment income 49 759 54 119 (4 360)
------- -------- ----------
Trading loss arising from customer flow (3 598) (488) (3 110)
------- -------- ----------
Trading income arising from balance sheet management and other trading activities 1 623 40 1 583
------- -------- ----------
49 490 55 284 (5 794)
------- -------- ----------
Total gains or losses recognised in other comprehensive income for the year
------- -------- ----------
Gains on realisation of available-for-sale assets recycled through the income statement 8 092 8 092 -
------- -------- ----------
Fair value movements on available-for-sale assets taken directly to other comprehensive
income 2 736 - 2 736
------- -------- ----------
10 828 8 092 2 736
------- -------- ----------
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 2018 GBP'000 input input used GBP'000 GBP'000
Assets
------------ ----------------------------- -------------- ---------- ------------
Other debt securities 16 769 Reflected in income statement 729 (840)
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8.3% - 10% 254 (363)
------------ ----------------------------- -------------- ---------- ------------
EBITDA (5%)/5% 327 (327)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 148 (150)
------------ ----------------------------- -------------- ---------- ------------
Derivative financial
instruments 44 200 Reflected in income statement 6 507 (8 729)
------------ ----------------------------- -------------- ---------- ------------
Volatilities 4% - 9% 356 (356)
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% - 10% 154 (140)
------------ ----------------------------- -------------- ---------- ------------
EBITDA (10%)/10% 131 (131)
------------ ----------------------------- -------------- ---------- ------------
WACC 19.5% - 48.5% 4 049 (5 750)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 1 817 (2 352)
------------ ----------------------------- -------------- ---------- ------------
Securities arising from trading
activities 6 754 Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% 1 180 (1 080)
------------ ----------------------------- -------------- ---------- ------------
Investment portfolio 587 819 Reflected in income statement 125 231 (138 497)
------------ ----------------------------- -------------- ---------- ------------
Price earnings multiple 5.0 x - 10 x 6 159 (6 120)
------------ ----------------------------- -------------- ---------- ------------
EBITDA * 50 197 (43 893)
------------ ----------------------------- -------------- ---------- ------------
Precious and industrial
metals prices (10%)/6% 2 420 (4 081)
------------ ----------------------------- -------------- ---------- ------------
Property prices (10%)/10% 2 046 (2 046)
------------ ----------------------------- -------------- ---------- ------------
WACC 19.5% - 48.5% 12 799 (23 769)
------------ ----------------------------- -------------- ---------- ------------
Cash flows * 2 301 (2 483)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 49 309 (56 105)
------------ ----------------------------- -------------- ---------- ------------
Reflected in other
comprehensive income 2 138 (2 113)
------------ ----------------------------- -------------- ---------- ------------
Price earnings multiple 4.0 x - 5.5 x 175 (246)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 1 963 (1 867)
------------ ----------------------------- -------------- ---------- ------------
Loans and advances to customers 133 740 Reflected in income statement 15 490 (16 771)
------------ ----------------------------- -------------- ---------- ------------
EBITDA 10% 10 349 (10 349)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 5 141 (6 422)
------------ ----------------------------- -------------- ---------- ------------
Other securitised assets* 130 388 Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% 875 (733)
------------ ----------------------------- -------------- ---------- ------------
Total level 3 assets 919 670 152 150 (168 763)
------------ ----------------------------- -------------- ---------- ------------
Liabilities
------------ ----------------------------- -------------- ---------- ------------
Derivative financial
instruments (1 442) Reflected in income statement (110) 122
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 10% (107) 119
------------ ----------------------------- -------------- ---------- ------------
Volatilities 8% (3) 3
------------ ----------------------------- -------------- ---------- ------------
Debt securities in issue (14 199) Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Volatilities 6% (157) 157
------------ ----------------------------- -------------- ---------- ------------
Liabilities arising on
securitisation of other assets* (127 853) Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% (236) 231
------------ ----------------------------- -------------- ---------- ------------
Total level 3 liabilities (143 494) (503) 510
------------ ----------------------------- -------------- ---------- ------------
Net level 3 assets 776 176
------------ ----------------------------- -------------- ---------- ------------
* 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 and cash flows have been stressed on an investment-by-investment
basis in order to obtain favourable and unfavourable valuations.
----------------------------------------------------------------------------
Fair value of financial assets and liabilities at amortised
cost
At 31 March 2018 Carrying
GBP'000 amount Fair value
Assets
---------- ----------
Loans and advances to banks 1 929 456 1 929 497
---------- ----------
Reverse repurchase agreements and cash collateral on securities borrowed 1 419 572 1 419 659
---------- ----------
Sovereign debt securities 208 384 208 034
---------- ----------
Bank debt securities 217 992 229 095
---------- ----------
Other debt securities 273 323 270 801
---------- ----------
Loans and advances to customers 23 501 381 23 496 971
---------- ----------
Other loans and advances 347 809 344 894
---------- ----------
Other assets 1 239 331 1 235 273
---------- ----------
Liabilities
---------- ----------
Deposits by banks 2 931 267 2 937 012
---------- ----------
Repurchase agreements and cash collateral on securities lent 565 791 565 629
---------- ----------
Customer accounts (deposits) 28 611 469 28 646 834
---------- ----------
Debt securities in issue 2 245 301 2 334 238
---------- ----------
Other liabilities 1 245 016 1 108 294
---------- ----------
Subordinated liabilities 1 482 987 1 695 153
---------- ----------
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 32
Notice is hereby given that the final dividend number 32, being
a gross dividend of 13.5 pence (2017: 13 pence) per ordinary share
has been recommended by the Board from income reserves in respect
of the financial year ended 31 March 2018 payable to shareholders
recorded in the shareholders' register of the company at the close
of business on Friday, 27 July 2018.
-- for Investec plc shareholders, registered on the United
Kingdom share register, through a dividend payment by Investec plc
from income reserves of 13.5 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 6.5 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 32 are as
follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 24 July
2018
On the London Stock Exchange (LSE) Wednesday, 25 July 2018
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 25 July
2018
On the London Stock Exchange (LSE) Thursday, 26 July 2018
Record date (on the JSE and LSE) Friday, 27 July 2018
Payment date (on the JSE and LSE) Monday, 13 August 2018
Share certificates on the South African branch register may not
be dematerialised or rematerialised between Wednesday, 25 July 2018
and Friday, 27 July 2018, both dates inclusive, nor may transfers
between the United Kingdom share register and the South African
branch register take place between Wednesday, 25 July 2018 and
Friday, 27 July 2018, 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 13.5 pence, equivalent to a
gross dividend of 232 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, 16 May 2018
-- Investec plc United Kingdom tax reference number: 2683967322360
-- The issued ordinary share capital of Investec plc is 669 838 695 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 232 cents per share, comprising 120.29630 cents per
share paid by Investec Limited on the SA DAS share and 111.70370
cents per ordinary share paid by Investec plc
-- Shareholders registered on the South African branch register
who are not exempt from paying the Dividend Tax will receive a net
dividend of 185.60000 cents per share (gross dividend of 232 cents
per share less Dividend Tax of 46.40000 cents per share) comprising
96.23704 cents per share paid by Investec Limited on the SA DAS
share and 89.36296 cents per ordinary share paid by Investec
plc.
By order of the board
D Miller
Company Secretary
16 May 2018
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 24
Notice is hereby given that preference dividend number 24 has
been declared from income reserves for the period 01 October 2017
to 31 March 2018 amounting to a gross preference dividend of
7.26027 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, 08 June 2018.
For shares trading on the Johannesburg Stock Exchange (JSE), the
dividend of 7.26027 pence per preference share is equivalent to a
gross dividend of 123.53712 cents per share, which has been
determined using the Rand/Pound Sterling average buy/sell forward
rate as at 11h00 (SA Time) on Wednesday, 16 May 2018.
The relevant dates relating to the payment of dividend number 24
are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 05 June
2018
On The International Stock Exchange (TISE) Wednesday, 06 June
2018
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 06 June
2018
On The International Stock Exchange (TISE) Thursday, 07 June
2018
Record date (on the JSE and TISE) Friday, 08 June 2018
Payment date (on the JSE and TISE) Monday, 18 June 2018
Share certificates may not be dematerialised or rematerialised
between Wednesday, 06 June 2018 and Friday, 08 June 2018, both
dates inclusive, nor may transfers between the United Kingdom share
register and the South African branch register take place between
Wednesday,06 June 2018 and Friday, 08 June 2018, 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 98.82970 cents per preference
share for preference shareholders liable to pay the Dividend Tax
and 123.53712 cents per preference share for preference
shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
16 May 2018
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 14
Notice is hereby given that preference dividend number 14 has
been declared from income reserves for the period 01 October 2017
to 31 March 2018 amounting to a gross preference dividend of
485.34589 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, 08 June 2018.
The relevant dates relating to the payment of dividend number 14
are as follows:
Last day to trade cum-dividend Tuesday, 05 June 2018
Shares commence trading ex-dividend Wednesday, 06 June 2018
Record date Friday, 08 June 2018
Payment date Monday, 18 June 2018
Share certificates may not be dematerialised or rematerialised
between Wednesday, 06 June 2018 and Friday, 08 June 2018, 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 388.27671 cents per preference
share for preference shareholders liable to pay the Dividend Tax
and 485.34589 cents per preference share for preference
shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
16 May 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUUWAUPRGBQ
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May 17, 2018 02:00 ET (06:00 GMT)
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