Final Results

Investec Limited Incorporated in the Republic of South Africa Registration number 1925/002833/06 JSE share code: INL NSX share code: IVD BSE share code: INVESTEC ISIN: ZAE000081949 LEI: 213800CU7SM6O4UWOZ70

Investec plc Incorporated in England and Wales Registration number 3633621 LSE share code: INVP JSE share code: INP ISIN: GB00B17BBQ50 LEI: 2138007Z3U5GWDN3MY22

 

Investec (comprising Investec plc and Investec Limited) - Unaudited combined consolidated financial results for the year ended 31 March 2022

 

Group results summary for the year ended 31 March 2022 (FY2022) compared to 31 March 2021 (FY2021)

•   Adjusted earnings per share increased 90.7% to 55.1p (FY2021: 28.9p) at the top end of previous guidance and ahead of comparable pre-COVID levels.

•   Funds under management (FUM) increased 9.2% to £63.8 billion (31 March 2021: £58.4 billion) underpinned by net inflows of £1.9 billion and improved market levels. Market volatility in the last quarter negatively impacted FUM at year end.

•   Net core loans grew 13.2% to £29.9 billion (31 March 2021: £26.4 billion) driven largely by residential mortgage and corporate lending growth in both geographies.

•   Revenue grew 21.3% as our franchises effectively supported our clients and benefitted from post-pandemic economic recovery.

•   The cost to income ratio improved to 63.3% (FY2021: 70.9%) with the increase in fixed operating expenditure well contained at 1.1%. Operating costs increased 6.0% overall, largely driven by higher variable remuneration.

•   Pre-provision adjusted operating profit increased 50.1% to £716.2 million (FY2021: £477.0 million), 15.7% ahead of March 2019 (pre-COVID).

•   The credit loss ratio improved to 8bps (FY2021: 35bps). Expected credit loss impairment charges were 71.0% lower, due to limited default experience in both geographies, and good recoveries in South Africa. The Group has maintained a level of post-model overlays given the uncertain economic outlook.

•   Return on equity (ROE) was 11.4% (FY2021: 6.6%) and return on tangible equity (ROTE) was 12.3% (FY2021: 7.2%).

•   Tangible net asset value (TNAV) per share increased 12.5% to 476.6p (31 March 2021: 423.6p). Net asset value (NAV) per share increased 11.4% to 510.0p (31 March 2021: 458.0p).

•   Maintained strong capital and liquidity positions to support growth. On full adoption of the advanced internal ratings based (AIRB) approach, Investec Limited's CET1 ratio at 31 March 2022 would on a pro forma basis increase by 200bps to c.16%, expanding capital optionality.

•   Shareholders approved the distribution of 15% of Ninety One.

•   The Board has proposed a final dividend of 14.0p per share, resulting in a full year dividend of 25.0p per share (FY2021: 13.0p). The payout ratio of 45.4% is within the Group's 30% to 50% payout range.

Fani Titi, Group Chief Executive commented:

"The Group's performance for the 2022 financial year is testament to the strength of our client franchises, disciplined strategic execution, and the commitment of our people to support our clients. We achieved adjusted earnings per share of 55.1p which is at the top end of previous guidance and ahead of comparable pre-COVID levels. Post-pandemic economic recovery supported these results.

With the pending distribution of 15% of Ninety One to shareholders, Investec would have returned an aggregate value of approximately £1.6 billion or c.R32 billion (per Ninety One closing share price on 16 May 2022) to shareholders through the demerger and distribution on successful completion.

I am also pleased that the Board has proposed a final divided of 14p per share resulting in a full year dividend of 25p per share.

We have strong liquidity and capital to support growth, with significant capital optionality in South Africa. We remain committed to our medium-term targets.

The Group is well positioned to serve its carefully chosen client base and continues to navigate the uncertain outlook emanating from ongoing inflationary pressures and the economic effects of the invasion of Ukraine."

 

Key financial data

This announcement covers the results of Investec plc and Investec Limited (together "the Investec Group" or "Investec" or "the Group") for the year ended 31 March 2022 (FY2022). Unless stated otherwise, comparatives relate to the Group's operations for the year ended 31 March 2021 (FY2021). The average Rand/Pound Sterling exchange rate appreciated by c.5% relative to FY2021.

Performance	FY2022	FY2021	Variance	% change	Neutral currency % change
Total operating income before expected credit losses (£'m)	1 990.4	1 641.1	349.3	21.3%	18.6%
Operating costs (£'m)	(1 233.9)	(1 164.5)	(69.4)	6.0%	4.0%
Adjusted operating profit (£'m)	687.4	377.6	309.8	82.1%	77.0%
Adjusted earnings attributable to shareholders (£'m)	505.2	268.3	236.9	88.3%	84.0%
Adjusted basic earnings per share (pence)	55.1	28.9	26.2	90.7%	85.8%
Basic earnings per share (pence)	52.0	25.2	26.8	106.3%	101.2%
Headline earnings per share (pence)	53.3	26.6	26.7	100.4%	95.1%
Dividend per share (pence)	25.0	13.0
Dividend payout ratio	45.4%	45.0%
CLR (credit loss ratio)	0.08%	0.35%
Cost to income ratio	63.3%	70.9%
ROE (return on equity)	11.4%	6.6%
ROTE (return on tangible equity)	12.3%	7.2%

 

Balance sheet	FY2022	FY2021	Variance	% change	Neutral currency % change
Funds under management (£'bn)	63.8	58.4	5.4	9.2%	7.4%
Customer accounts (deposits) (£'bn)	40.1	34.4	5.7	16.5%	12.9%
Net core loans and advances (£'bn)	29.9	26.4	3.5	13.2%	10.0%
Cash and near cash (£'bn)	17.2	13.2	4.0	29.7%
NAV per share (pence)	510.0	458.0	52.0	11.4%
TNAV per share (pence)	476.6	423.6	53.0	12.5%

 

Salient features by geography	FY2022	FY2021	Variance	% change	Neutral currency % change
Investec Limited (Southern Africa)
Adjusted operating profit (£'m)	387.5	251.6	135.9	54.0%	46.7%
Cost to income ratio	53.9%	58.7%
ROE	11.7%	9.4%
ROTE	11.7%	9.5%
CET1	14.0%	12.2%
Leverage	7.4%	7.6%
Investec plc (UK & Other)
Adjusted operating profit (£'m)	299.9	126.0	173.9	138.0%	n/a
Cost to income ratio	70.5%	79.5%
ROE	11.2%	4.0%
ROTE	12.9%	4.8%
CET1	11.7%	11.2%
Leverage	9.2%	7.9%

 

 

Distribution of 15% holding in Ninety One

On 28 April 2022, shareholders approved the proposed distribution of 15% of Ninety One (34p per share, per Ninety One closing share price on 16 May 2022). The distribution is expected to be effective on 30 May 2022, subject to final scheme approval by the court.

Outlook

The Group continues to successfully navigate the uncertain macro backdrop that has persisted since the onset of the pandemic and has made significant progress against the strategic goals outlined at the 2019 Capital Markets Day. We have a strong balance sheet and robust liquidity levels, firmly committed to our medium-term targets, and are well positioned to pursue growth opportunities in our chosen markets.

The expected slowdown in global growth given high levels of global inflation and increased geopolitical tensions present a downside risk to current economic forecasts.

FY2023 guidance:

Based on financial performance for FY2022, current business momentum and a macro-economic outlook with elevated forecast risk in the short term, the Group currently expects:

•   The revenue outlook to be underpinned by higher average interest rates supporting margins, higher average lending books and increased activity levels given expected GDP growth.

•   The cost to income ratio to be within the Group target of <63%, notwithstanding inflationary pressures and continued investment in technology.

•   Normalisation of expected credit loss impairment charges and consequent credit loss ratio increase towards the Group's revised through-the-cycle (TTC) range of 25-35bps, with South Africa's TTC range calibrated between 20bps and 30bps, and the UK between 30bps and 40bps.

•   The distribution of Ninety One to result in a 65bps reduction in Investec Limited's CET1 ratio and to have an immaterial impact on Investec plc. The attributable contribution to adjusted earnings per share was c.3.4p for FY2022.

•   South Africa to continue to operate with a surplus capital position given excess capital generation and the anticipated CET1 uplift on full implementation of AIRB.

•   Improvement in ROE towards the 12-16% Group target range, which we expect to achieve by FY2024. This will be aided by capital management initiatives.

 

Enquiries

Investec Investor Relations

Results: Qaqambile Dwayi
Tel: +27 (0) 11 291 0129

Carly Newton
Tel: +44 (0) 20 7597 4493

General enquiries:
Tel: +27 (0) 11 286 7070 or [email protected]

Brunswick (SA PR advisers)

Graeme Coetzee
Tel: +27 (0) 63 685 6053

Lansons (UK PR advisers)

Tom Baldock
Tel: +44 (0) 78 6010 1715

Presentation/conference call details

Investec management will host its year-end results presentation live from London on Thursday 19 May at 10h00 (SA) / 9h00 (UK) time.

Please register for the presentation at: www.investec.com/investorrelations 

A live video webcast of the presentation will be available on www.investec.com

 

About Investec

Investec partners with private, institutional, and corporate clients, offering international banking, investments, and wealth management services in two principal markets, South Africa, and the UK, as well as certain other countries. The Group was established in 1974 and currently has 8,300+ employees.

Investec has a dual listed company structure with primary listings on the London and Johannesburg Stock Exchanges.

Johannesburg and London
Sponsor: Investec Bank Limited

 

Group financial performance

Overview

Pre-provision adjusted operating profit for FY2022 increased, supported by continued client acquisition, increased client activity, growth in FUM and higher average advances.

The revenue momentum experienced in the first half of the financial year continued into the second half. Net interest income benefitted from higher average interest earning assets and lower funding costs. Increased client activity, higher lending turnover and supportive market conditions underpinned the growth in non-interest revenue over the year. Fixed operating expenditure was well contained in line with the Group's focus on cost efficiencies, while variable remuneration increased given improved business performance. Impairments were significantly lower given limited default experience and the minimal impact from updated forward looking macroeconomic scenarios since 1H2022.

The prior year results reflected the effects of severe economic contraction and rate cuts associated with COVID-19 which negatively affected client activity, net interest margins, valuations, and impairments. Additionally, risk management and risk reduction costs associated with the UK structured products book were elevated in FY2021.

Pre-provision adjusted operating profit increased 50.1% to £716.2 million (FY2021: £477.0 million).

 

Revenue increased 21.3% to £1 990.4 million (FY2021: £1 641.1 million).

Net interest income increased 21.5% to £945.3 million (FY2021: £778.1 million) driven by higher average interest earning assets and lower funding costs. 

Non-interest revenue (NIR) increased 21.1% to £1 045.1 million (FY2021: £863.0 million).

•   Net fee and commission income increased 9.3% to £818.2 million (FY2021: £748.9 million) driven by improved client activity across the board and higher average FUM in Wealth & Investment. The increase was partially offset by the prior year wind down of Australia and lower equity capital markets activity in the UK off a higher base.

•   Investment income decreased to £28.0 million (FY2021: £32.0 million). The positive impact of the recovery of dividends and positive fair value (FV) adjustments on certain investments (given improved markets) was offset by the non-repeat of larger realisations and FV gains in the prior year.

•   Share of post-taxation profit of associates and joint venture holdings increased to £79.6 million (FY2021: £42.5 million) driven by improved performance from underlying investee companies post hard lockdowns in the prior year and earnings growth from Ninety One.

•   Trading income arising from customer flow increased to £128.3 million from £35.6 million in the prior year, primarily driven by £87.3 million lower risk management and risk reduction costs associated with the UK structured products book (underpinned by risk mitigation strategies implemented on the book and improving markets) and strong growth in SA trading from increased client activity.

•   Net trading losses arising from balance sheet management and other trading activities were £21.1 million compared to £18.9 million in the prior year due to currency and interest rate hedges on the balance sheet.

•   Other operating income of £12.2 million (FY2021: £23.0 million) reflects the fair value movements of the Ninety One shares held in the Group's staff share scheme. These shares are reflected on the Group's balance sheet in other assets. The corresponding liability is reflected in other liabilities with changes in the value of the liability expensed through staff costs in operating costs.

 

Expected credit loss (ECL) impairment charges decreased by 71.0% to £28.8 million (FY2021: £99.4 million) resulting in a credit loss ratio of 8bps (31 March 2021: 35bps; 1H2022: 7bps)

Asset quality remains strong, with exposures to a carefully defined target market and well covered by collateral. Limited default experience, good recoveries, and reversals of certain Stage 3 ECLs raised in prior year as exposures cured, drove the decrease in ECL. Given the uncertain economic outlook, the Group has maintained a level of post-model management overlays to account for risks assessed as inadequately reflected in the models. There was a net release of management overlays during the year of £2.9 million.

 

 

Operating costs increased 6.0% to £1 233.9 million (FY2021: £1 164.5 million)

Fixed operating expenditure was well contained, increasing by 1.1%. The increase was primarily driven by higher variable remuneration given improved business performance, partly offset by the non-repeat of one-off costs associated with restructures (including related redundancies) and the closure of operations in Australia in the prior year. The cost to income ratio improved to 63.3% from 70.9% in the prior year.

Taxation

The taxation charge on adjusted operating profit was £143.3 million (FY2021: £74.5 million), resulting in an effective tax rate of 22.1% (FY2021: 22.3%).

In the UK, the lower effective tax rate of 14.9% (FY2021: 27.2%) was driven by higher deferred tax assets on the back of higher enacted tax rates. In SA, the higher rate of 26.7% (FY2021: 20.5%) was largely driven by the impairment of certain deferred tax assets.

Profit or loss attributable to non-controlling interests

The profit attributable to other non-controlling interests was £40.2 million compared to a loss of £0.5 million in the prior year and is attributable to the non-controlling interests in the Investec Property Fund (IPF).

Funding and liquidity

Customer deposits grew 16.5% to £40.1 billion (31 March 2021: £34.4 billion) at 31 March 2022.

Over the same period, cash and near cash increased 30.3% to £17.2 billion (£8.9 billion in Investec plc and R159.5 billion in Investec Limited).

The Group comfortably exceeds Basel liquidity requirements for the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).

Investec Bank Limited (consolidated Group) ended the year to 31 March 2022 with the three-month average of its LCR at 138.9% and an NSFR of 112.6%. Investec plc reported a LCR of 457% and a NSFR of 145% at 31 March 2022.

Capital adequacy and leverage ratios

Capital and leverage ratios remain sound, ahead of Board-approved minimum targets and regulatory requirements. The CET1 and leverage ratio were 14.0% and 7.4% for Investec Limited (increased AIRB scope) and 11.7% and 9.2% for Investec plc (Standardised approach) respectively.

Investec Limited made progress in the application to adopt AIRB for the measurement of capital on certain portfolios currently on the Foundation Internal Ratings Based (FIRB) approach. On full adoption of AIRB, the pro-forma CET1 ratio would increase by 200bps at 31 March 2022. Investec plc is in the early stages of a process to migrate from the Standardised approach to the Internal Ratings Based (IRB) approach.

Segmental performance

Wealth & Investment

Adjusted operating profit from the Wealth & Investment business increased 22.6% to £123.1 million (FY2021: £100.5 million).

Wealth & Investment	Southern Africa					UK & Other				Total
	FY2022	FY2021	Variance			FY2022	FY2021	Variance		FY2022	FY2021
	£'m	£'m	£'m	%	% in Rands	£'m	£'m	£'m	%	£'m	£'m
Operating income	106.6	83.6	23.0	27.5%	21.7%	347.2	319.5	27.7	8.7%	453.8	403.2
Operating costs	(71.2)	(57.5)	(13.6)	23.7%	17.9%	(259.5)	(245.2)	(14.3)	5.8%	(330.7)	(302.7)
Adjusted operating profit	35.5	26.1	9.3	35.7%	30.0%	87.7	74.3	13.3	17.9%	123.1	100.5

Totals and variance determined in £'000 which may result in rounding differences.

Southern Africa Wealth & Investment (in Rands)

Adjusted operating profit for SA Wealth & Investment increased by 30.0% to R720 million (FY2021: R554 million).

The business reported 9.5% growth in FUM to R364.6 billion (31 March 2021: R333.0 billion) supported by positive investment performance, R12.1 billion of discretionary and annuity net inflows (non-discretionary net inflows of R1.2 billion) and improved markets. The market volatility in the final quarter of the financial year (driven by global inflationary concerns exacerbated by the invasion of Ukraine), negatively impacted closing FUM at 31 March 2022.

Revenue grew by 21.7% supported by sustained inflows into the offshore investment range and higher average discretionary and annuity FUM. Non-discretionary brokerage also increased year-on-year, particularly in March 2022 given increased market volatility.

Operating costs increased 17.9%, driven by higher variable remuneration given strong business performance, and an increased headcount of investment specialists, wealth managers and information technology (IT) personnel. Operating margins improved to 33.2% from 31.2% in FY2021.

UK & Other Wealth & Investment

Adjusted operating profit for UK & Other Wealth & Investment increased 17.9% to £87.7 million (FY2021: £74.3 million).

For the first three quarters of the financial year to 31 December 2021, market recovery and continued net inflows resulted in record FUM of £46.1 billion. However, the final quarter of the financial year was impacted by global market volatility, resulting in closing FUM of £44.4 billion (FY2021: £41.7 billion). Net inflows for the year were £1.2 billion.

Revenue grew by 8.7% given supportive market conditions and net organic growth in FUM of 2.9%. Commission income returned to normalised levels following the exceptional transaction volumes seen in the prior year, resulting in a lower average income yield year-on-year.

Operating costs were up 5.8% due to investment in technology, increased discretionary expenditure as COVID-19 related restrictions eased, as well as higher variable remuneration in line with business performance.

The UK domestic business (which accounts for 96.6% of FUM) reported an operating margin of 27.0% (FY2021: 25.2%), while a combined operating margin for UK & Other of 25.3% (FY2021: 23.3%) was achieved.

Specialist Banking

Adjusted operating profit from Specialist Banking increased 96.6% to £543.0 million (FY2021: £276.3 million).

Specialist Banking	Southern Africa					UK & Other				Total
	FY2022	FY2021	Variance			FY2022	FY2021	Variance		FY2022	FY2021
	£'m	£'m	£'m	%	% in Rands	£'m	£'m	£'m	%	£'m	£'m
Operating income (before ECL)	721.7	580.3	141.4	24.4%	18.7%	720.4	618.0	102.3	16.6%	1 442.0	1 198.3
ECL impairment charges	(3.1)	(25.9)	22.8	(88.1%)	(91.2%)	(25.2)	(71.2)	46.0	(64.6%)	(28.2)	(97.1)
Operating costs	(369.0)	(323.3)	(45.7)	14.1%	8.9%	(501.6)	(502.9)	1.4	0.3%	(870.5)	(826.2)
(Profit) /loss attributable to NCI	(0.3)	0.3	(0.6)	(>100%)	(>100%)	-	0.9	(0.9)	(100.0%)	(0.3)	0.6
Adjusted operating profit	349.4	231.5	117.9	50.9%	45.0%	193.7	44.8	148.9	332.4%	543.0	276.3

Totals and variance determined in £'000 which may result in rounding differences.

 

Southern Africa Specialist Banking (in Rands)

Adjusted operating profit for the SA bank increased 45.0% to R7 104 million (FY2021: R4 898 million).

Revenue growth of 18.7% was positively impacted by recovery in NIR as the bank saw increased client activity levels across the board, higher average interest earning assets, lower funding costs and good client acquisition. This was partly offset by investment write-downs on certain portfolios in the current year and lower deal fees in Investec Property.

Net interest income increased 13.2% driven by higher average interest earning assets and lower funding costs. 

Non-interest revenue increased 33.0% driven by:

•   Increased fee income on the back of higher lending and forex (FX) turnover, and recovery of point-of-sale activity relative to the prior year.

•   Higher dividend income and certain realisations off a low base.

•   Trading income increased, driven by market share gains in select markets, increased client flows and benefits arising from increased market volatility. Balance sheet management and other trading income saw mark-to-market (MTM) gains on certain interest rate and currency swaps.

-   offset by

•   Lower deal fees from Investec Property and negative FV adjustments on certain investments.

ECL impairment charges decreased 91.2% to R51 million resulting in an approximately zero percent CLR (FY2021: 18bps). The decline was due to limited default experience, good recoveries, specific ECL impairment reversals and the release of R71 million post-model overlays given credit performance and a stable to improved macro-economic outlook relative to FY2021. The management overlay at year end of R219 million (31 March 2021: R290 million) reflects heightened uncertainty given inflationary pressures, and second-order economic impacts from the invasion of Ukraine.

Operating costs increased 8.9% driven by higher personnel expenses due to salary increases and higher variable remuneration given improved business performance. Discretionary expenditure also increased as COVID-19 related restrictions eased. Fixed costs were well managed increasing 4.2%. The cost to income ratio was lower at 51.1% (FY2021: 55.7%).

Net core loans grew by 3.9% to R298.4 billion (31 March 2021: R287.3 billion). Advances to private clients increased 4.2% driven by resi-mortgages, offset by flat year-on-year growth in commercial real estate. Corporate lending increased 3.3%, offset by elevated repayments and subdued credit demand given continued low business confidence.

UK & Other Specialist Banking

Adjusted operating profit for the UK bank increased to £193.7 million (FY2021: £44.8 million). The £148.9 million increase in profits was driven principally by strong net interest income growth, lower risk management and risk reduction costs related to the structured products book, reduced fixed operating expenditure and lower ECL charges given limited stage 3 ECLs. Client acquisition remained strong, with the Private Banking business growing its HNW clients to 6 982, surpassing the three-year target of 6 500 clients by 31 March 2022.

Net interest income increased 20.9% driven by higher average lending books and lower cost of funding, partially offset by the impact of the disposal of the Australian corporate book in March 2021.

Non-interest revenue increased 8.8% due to:

•   Significantly lower risk management and risk reduction costs associated with the structured products book (£5.9 million for FY2022 vs £93.3 million for FY2021).

•   Higher fees from the Private Equity franchise due to strong origination and distribution activities and higher advisory fees relative to prior year.

-   offset by

•   Lower fees and commissions due to the wind down of Australia and a reduction in equity capital markets activity off a high base.

•   Reduced balance sheet management and other trading income due to costs associated with the early redemption of a senior bond, MTM losses on balance sheet management instruments and the non-repeat of MTM gains in the prior year.

ECL impairment charges decreased 64.6% to £25.2 million primarily due to lower specific impairments. The reduction in ECL resulted in a credit loss ratio of 17bps (FY2021: 56bps). The management overlay totals £16.8 million at 31 March 2022 (down £4.2million from £21 million at September 2021; up from £16 million at March 2021). This movement in the overlay reflects:

•   Increased modelled ECL given greater downside weightings,

•   The reducing impact that the COVID-19 pandemic has on management's underlying assumptions, and

•   The increasing impact of greater global uncertainty given rising inflation and geopolitical concerns.

Operating costs were broadly flat, declining by 0.3% year on year. The 5.3% reduction in fixed costs was offset by an increase in variable remuneration in line with improved business performance. The base includes one-off costs associated with the implementation of restructures as part of the Group's strategy to simplify and focus the business, including related redundancies and the closure of operations in Australia. The cost to income ratio improved to 69.6% (FY2021: 81.3%).

Net core loans grew by 17.0% (18.5% excluding Australia) to £14.4 billion (31 March 2021: £12.3 billion) driven by residential mortgages (up 35.5%) and strong demand for corporate credit (up 10.2% (12.0% excluding Australia)) across several portfolios.

Group Investments

Group Investments includes the 25% holding in Ninety One*, 47.4% stake in the IEP Group, 24.31% held in the Investec Property Fund (IPF) and other equity investments.

Group Investments	Southern Africa					UK & Other				Total
	FY2022	FY2021	Variance			FY2022	FY2021	Variance		FY2022	FY2021
	£'m	£'m	£'m	%	% in Rands	£'m	£'m	£'m	%	£'m	£'m
Operating income (net of ECL charges)	60.5	12.0	48.5	>100%	>100%	33.4	25.1	8.2	32.8%	93.9	37.2
Operating costs	(1.9)	(2.1)	0.2	(7.2%)	(8.5%)	-	-	-	-	(1.9)	(2.1)
(Profit) attributable to NCI	(39.9)	(0.7)	(39.2)	(>100%)	(>100%)	-	-	-	-	(39.9)	(0.7)
Adjusted operating profit	18.7	9.2	9.4	>100%	92.7%	33.4	25.1	8.2	32.8%	52.1	34.4

Totals and variance determined in £'000 which may result in rounding differences.

*Post the 30 May 2022 distribution, the Group's holding in Ninety One will be c.10%..

 

Adjusted operating profit from Group Investments increased by 51.4% to £52.1 million (FY2021: £34.4 million) driven by:

•   Better than expected performance in the underlying investee companies within IEP,

•   Growth in earnings from Ninety One, and

•   Lower negative FX adjustments on Euro-denominated investments in IPF, compared to the prior year.

Further information

Additional information on each of the business units is provided in the Group year-end results analyst book published on the Group's website: http://www.investec.com.

 

On behalf of the boards of Investec plc and Investec Limited

Philip Hourquebie		Fani Titi
Chair		Group Chief Executive
18 May 2022

 

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, these year-end results reflect the results and financial position of the combined DLC Group under UK adopted International Financial Reporting Standards (IFRS) which comply with IFRS as issued by the International Accounting Standards Board (IASB), 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.

Following a review of the liquidity, capital position, profitability, the business model and operational risks facing the business, the directors have a reasonable expectation that the Investec Group will be a going concern for a period of at least 12 months. The results for the year ended 31 March 2022 has accordingly been prepared on the going concern basis.

Unless the context indicates otherwise, all comparatives included in the commentary above relate to the year ended 31 March 2021.

Amounts represented on a neutral currency basis for income statement items assume that the relevant average exchange rates for the year ended 31 March 2022 remain the same as those in the prior year. Amounts represented on a neutral currency basis for balance sheet items assume that the relevant closing exchange rates at 31 March 2022 remain the same as those at 31 March 2021.

Neutral currency information is considered as pro-forma financial information as per the JSE Listings Requirements and is therefore the responsibility of the Group's Board of Directors. Pro-forma financial information was prepared for illustrative purposes and because of its nature may not fairly present the issuer's financial position, changes in equity, or results of operations. The external auditors of Investec Limited performed a review of the pro forma financial information and the opinion is available for inspection at the registered office of Investec upon request.

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 condition of these 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 ended		Year ended
	31 March 2022		31 March 2021
Currency	Closing	Average	Closing	Average
per GBP1.00
South African Rand	19.24	20.28	20.36	21.33
Euro	1.18	1.18	1.17	1.12
US Dollar	1.31	1.37	1.38	1.31

Profit Forecast

The following matters highlighted in this announcement contain forward-looking statements:

•   The cost to income ratio to be within the Group target of <63% notwithstanding inflationary pressures.

•   Normalisation of expected credit loss impairment charges and consequent credit loss ratio increase towards the Group's revised through-the-cycle (TTC) range of 25-35bps, with South Africa's TTC range calibrated between 20bps and 30bps, and the UK between 30bps and 40bps.

•   Improvement in ROE towards the 12-16% Group target range, which we expect to achieve by FY2024. This will be aided by capital management initiatives.

The basis of preparation of this statement and the assumptions upon which it was based are set out below. This statement is subject to various risks and uncertainties and other factors - 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 in this Profit Forecast.

Any forward-looking statements made are based on the knowledge of the Group at 18 May 2022.

This forward-looking statement represents a profit forecast under the Listing Rules. The Profit Forecast relates to the year ending 31 March 2023.

The financial information on which the Profit Forecast was based is the responsibility of the Directors of the Group and has not been reviewed and reported on by the Group's auditors.

Basis of preparation

The Profit Forecast has been properly compiled using the assumptions stated below, and on a basis consistent with the accounting policies adopted in the Group's 31 March 2022 unaudited preliminary financial statements, which are in accordance with IFRS.

Assumptions

The Profit Forecast has been prepared on the basis of the following assumptions during the forecast period:

Factors outside the influence or control of the Investec Board:

•   There will be no material change in the political and/or economic environment that would materially affect the Investec Group.

•   There will be no material change in legislation or regulation impacting on the Investec Group's operations or its accounting policies.

•   There will be no business disruption that will have a significant impact on the Investec Group's operations, whether for the economic effects of increased geopolitical tensions or otherwise.

•   The Rand/Pound Sterling and US Dollar/Pound Sterling exchange rates and the tax rates remain materially unchanged from the prevailing rates detailed above.

•   There will be no material changes in the structure of the markets, client demand or the competitive environment.

•   There will be no material change to the facts and circumstances relating to legal proceedings and uncertain tax matters.

Estimates and judgements

In preparation of the Profit Forecast, the Group makes estimations and applies judgement that could affect the reported amount of assets and liabilities within the reporting period. Key areas in which judgement is applied include:

•   Valuation of unlisted investments primarily in the private equity, direct investments portfolios and embedded derivatives. Key valuation inputs are based on the most relevant observable market inputs, adjusted where necessary for factors that specifically apply to the individual investments and recognising market volatility.

•   The determination of ECL against assets that are carried at amortised cost and ECL relating to debt instruments at fair value through other comprehensive income (FVOCI) involves the assessment of future cash flows which is judgmental in nature.

•   Valuation of investment properties is performed by capitalising the budget net income of the property at the market related yield applicable at the time.

•   The Group's income tax charge and balance sheet provision are judgmental in nature. This arises from certain transactions for which the ultimate tax treatment can only be determined by final resolution with the relevant local tax authorities. The Group recognises in its tax provision certain amounts in respect of taxation that involve a degree of estimation and uncertainty where the tax treatment cannot finally be determined until a resolution has been reached by the relevant tax authority. The carrying amount of this provision is often dependent on the timetable and progress of discussions and negotiations with the relevant tax authorities, arbitration processes and legal proceedings in the relevant tax jurisdictions in which the Group operates. Issues can take many years to resolve and assumptions on the likely outcome would therefore have to be made by the Group.

•   Where appropriate, the Group has utilised expert external advice as well as experience of similar situations elsewhere in making any such provisions. Determination of interest income and interest expense using the effective interest rate method involves judgement in determining the timing and extent of future cash flows.

Accounting policies, significant judgements and disclosures

These unaudited condensed combined consolidated financial results have been prepared in terms of the recognition and measurement criteria of the presentation and disclosure requirements of IAS 34, "Interim Financial Reporting" and IFRS as adopted by the UK which comply with IFRS' as issued by the IASB. At 31 March 2022, UK adopted IFRS are identical in all material respects to current IFRS applicable to the Group, with differences only in the effective dates of certain standards.

The accounting policies applied in the preparation of the results for the year ended 31 March 2022 are consistent with those adopted in the financial statements for year ended 31 March 2021.

The financial results have been prepared under the supervision of Nishlan Samujh, the Group Finance Director. The annual financial statements for the year ended 31 March 2022 are available on the Group's website:

www.investec.com

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:

-   changes in the political and/or economic environment that would materially affect the Investec Group

-   changes in the economic environment caused by the resulting lockdowns and government programmes aimed to stimulate the economy

-   changes in legislation or regulation impacting the Investec Group's operations or its accounting policies

-   changes in business conditions that will have a significant impact on the Investec Group's operations

-   changes in exchange rates and/or tax rates from the prevailing rates outlined in this announcement

-   changes in the structure of the markets, client demand or the competitive environment.

•   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 18 May 2022.

•   The information in the Group's announcement for the year ended 31 March 2022, which was approved by the Board of Directors on 18 May 2022, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2021 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.

•   The financial information on which forward-looking statements are based is the responsibility of the Directors of the Group and has not been reviewed and reported on by the Group's auditors.

This announcement is available on the Group's website:
www.investec.com

Definitions

•   Adjusted operating profit refers to operating profit before goodwill, acquired intangibles and strategic actions and after adjusting for earnings attributable to other non-controlling interests. Non-IFRS measures such as adjusted operating profit are considered as pro forma financial information as per the JSE Listing Requirements. The pro forma financial information is the responsibility of the Group's Board of Directors. Pro-forma financial information was prepared for illustrative purposes and because of its nature may not fairly present the issuer's financial position, changes in equity or results of operations. The external auditors of Investec Limited performed a review of the pro forma financial information and the opinion is available for inspection at the registered office of Investec upon request.

•   Adjusted earnings is calculated by adjusting basic earnings attributable to shareholders for the amortisation of acquired intangible assets, non-operating items including strategic actions, and earnings attributable to perpetual preference shareholders and other additional tier 1 security holders.

•   Adjusted basic earnings per share is calculated as adjusted earnings attributable to shareholders divided by the weighted average number of ordinary shares in issue during the year.

•   Headline earnings is adjusted earnings plus the after tax financial effect of strategic actions and the amortisation of acquired intangible assets. Headline earnings is an earnings measure required to be calculated and disclosed by the JSE and is calculated in accordance with the guidance provided in Circular 1/2021.

•   Headline earnings per share (HEPS) is calculated as headline earnings divided by the weighted average number of ordinary shares in issue during the year.

•   Basic earnings is earnings attributable to ordinary shareholders as defined by IAS33 Earnings Per Share.

•   Dividend payout ratio is calculated as the dividend per share divided by adjusted earnings per share.

•   Pre-provision adjusted operating profit is calculated as: Total operating income before expected credit loss impairment charges, net of operating costs and net of operating profits or losses attributable to other non-controlling interests.

•   The credit loss ratio is calculated as expected credit loss (ECL) impairment charges on gross core loans as a percentage of average gross core loans subject to ECL.

•   The cost to income ratio is calculated as: operating costs divided by operating income before expected credit loss impairment charges (net of operating profits or losses attributable to other non-controlling interests).

•   Return on average ordinary shareholders' equity (ROE) is calculated as adjusted earnings attributable to ordinary shareholders divided by average ordinary shareholders' equity.

•   Return on average tangible ordinary shareholders' equity (ROTE) is calculated as adjusted earnings attributable to ordinary shareholders divided by average tangible ordinary shareholders' equity.

•   Core loans is defined as net loans to customers plus net own originated securitised assets.

•   NCI is non-controlling interests.

Financial assistance

Shareholders are referred to Special Resolution number 30, which was approved at the annual general meeting held on 5 August 2021, 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 Boards of Directors of Investec Limited and Investec Bank Limited provided such financial assistance during the period 1 April 2021 to 31 March 2022 to various Group subsidiaries.

Johannesburg and London

Sponsor: Investec Bank Limited

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 Rand: Pound Sterling exchange rate over the period has appreciated by 4.9% against the comparative 12-month period ended 31 March 2021, and the closing rate has appreciated by 5.5% since 31 March 2021. The following tables provide an analysis of the impact of the Rand on our reported numbers.

	Results in Pounds Sterling					Results in Rands
	Year to 31 March 2022	Year to 31 March 2021	% change	Neutral currency^ Year to 31 March 2022	Neutral currency % change	Year to 31 March 2022	Year to 31 March 2021	% change
Adjusted operating profit before taxation (million)	£687	£378	82.1%	£669	77.0%	R13 947	R8 202	70.0%
Earnings attributable to shareholders (million)	£516	£268	92.5%	£503	87.7%	R10 481	R5 715	83.4%
Adjusted earnings attributable to shareholders (million)	£505	£268	88.3%	£493	84.0%	R10 256	R5 710	79.6%
Adjusted earnings per share	55.1p	28.9p	90.7%	53.7p	85.8%	1118c	614c	82.1%
Basic earnings per share	52.0p	25.2p	106.3%	50.7p	101.2%	1055c	538c	96.1%
Headline earnings per share	53.3p	26.6p	100.4%	51.9p	95.1%	1083c	568c	90.7%

 

	Results in Pounds Sterling					Results in Rands
	At 31 March 2022	At 31 March 2021	% change	Neutral currency^^ At 31 March 2022	Neutral currency % change	At 31 March 2022	At 31 March 2021	% change
Net asset value per share	510.0p	458.0p	11.4%	495.9p	8.3%	9 810c	9 326c	5.2%
Tangible net asset value per share	476.6p	423.6p	12.5%	462.4p	9.2%	9 167c	8 625c	6.3%
Total equity (million)	£5 740	£5 312	8.1%	£5 565	4.8%	R110 410	R108 161	2.1%
Total assets (million)	£58 844	£51 450	14.4%	£57 127	11.0%	R1 131 872	R1 047 605	8.0%
Core loans (million)	£29 934	£26 438	13.2%	£29 081	10.0%	R575 773	R538 320	7.0%
Cash and near cash balances (million)	£17 161	£13 229	29.7%	£16 702	26.3%	R330 089	R269 364	22.5%
Customer accounts (deposits) (million)	£40 118	£34 449	16.5%	£38 911	12.9%	R771 675	R701 446	10.0%
Funds under management (million)	£63 800	£58 436	9.2%	£62 743	7.4%	R1 227 209	R1 189 872	3.1%

^       For income statement items we have used the average Rand: Pound Sterling exchange rate that was applied in the prior period, i.e. 21.33.

^^     For balance sheet items we have assumed that the Rand: Pound Sterling closing exchange rate has remained neutral since 31 March 2021.

 

Condensed combined consolidated income statement

£'000	Year to  31 March 2022	Year to  31 March 2021
Interest income	1 951 209	1 922 299
Interest expense	(1 005 939)	(1 144 193)
Net interest income	945 270	778 106
Fee and commission income	864 639	791 153
Fee and commission expense	(46 423)	(42 275)
Investment income	27 974	32 002
Share of post-taxation profit of associates and joint venture holdings	79 556	42 459
Trading income/(loss) arising from
- customer flow	128 277	35 566
- balance sheet management and other trading activities	(21 128)	(18 903)
Other operating income	12 190	22 953
Total operating income before expected credit loss impairment charges	1 990 355	1 641 061
Expected credit loss impairment charges	(28 828)	(99 438)
Operating income	1 961 527	1 541 623
Operating costs	(1 233 948)	(1 164 513)
Operating profit before goodwill, acquired intangibles and strategic actions	727 579	377 110
Impairment of goodwill	(1 962)	(11 599)
Impairment of associates and joint venture holdings	-	(16 773)
Amortisation of acquired intangibles	(15 477)	(15 287)
Amortisation of acquired intangibles of associates	(9 249)	(9 268)
Closure and rundown of the Hong Kong direct investments business	(1 203)	7 386
Operating profit	699 688	331 569
Implementation costs on distribution of associate to shareholders	(2 427)	-
Profit before taxation	697 261	331 569
Taxation on operating profit before goodwill, acquired intangibles and strategic actions	(143 309)	(74 539)
Taxation on acquired intangibles and strategic actions	2 422	1 712
Profit after taxation	556 374	258 742
(Profit)/loss attributable to non-controlling interests	(40 170)	472
Loss attributable to non-controlling interests relating to impairments of associates	-	9 126
Earnings attributable to shareholders	516 204	268 340
Earnings attributable to ordinary shareholders	475 469	231 153
Earnings attributable to perpetual preferred securities and other Additional Tier 1 security holders	40 735	37 187

Earnings per share

	Year to  31 March 2022	Year to  31 March 2021
Earnings per share - pence	52.0	25.2
Diluted earnings per share - pence	50.2	24.9

 

 

Combined consolidated statement of total comprehensive income

£'000	Year to  31 March 2022	Year to  31 March 2021
Profit after taxation	556 374	258 742
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^	(4 311)	242
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income^	(301)	152 355
Gain on realisation of debt instruments at FVOCI recycled through the income statement^	(2 010)	(717)
Foreign currency adjustments on translating foreign operations	173 160	111 779
Items that will not be reclassified to the income statement
Effect of rate change on deferred taxation relating to adjustment for IFRS 9	617	380
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income^	3 420	1 778
Remeasurement of net defined benefit pension liability	40	(39)
Net gain/(loss) attributable to own credit risk^	11 095	(850)
Total comprehensive income	738 084	523 670
Total comprehensive income attributable to ordinary shareholders	629 300	448 637
Total comprehensive income attributable to non-controlling interests	68 049	37 846
Total comprehensive income attributable to perpetual preferred securities	40 735	37 187
Total comprehensive income	738 084	523 670

^       Net of taxation expense of £3.5 million (2021: £38.5 million).

Combined consolidated balance sheet

At £'000	31 March 2022	31 March 2021^
Assets
Cash and balances at central banks	5 998 270	3 517 100
Loans and advances to banks	2 552 061	2 637 436
Non-sovereign and non-bank cash placements	684 983	439 841
Reverse repurchase agreements and cash collateral on securities borrowed	4 609 778	3 575 713
Sovereign debt securities	4 148 867	3 711 623
Bank debt securities	1 515 210	1 121 730
Other debt securities	1 229 287	1 364 235
Derivative financial instruments	1 617 240	1 714 743
Securities arising from trading activities	683 329	1 024 671
Investment portfolio	912 872	909 050
Loans and advances to customers	29 561 088	26 041 087
Own originated loans and advances to customers securitised	375 763	401 912
Other loans and advances	128 284	102 135
Other securitised assets	123 888	140 087
Interests in associated undertakings and joint venture holdings	734 434	679 157
Current taxation assets	33 653	60 325
Deferred taxation assets	259 370	246 622
Other assets	2 068 615	2 165 438
Property and equipment	335 420	329 972
Investment properties	820 555	832 061
Goodwill	258 404	259 805
Software	9 443	12 574
Other acquired intangible assets	44 152	58 968
Non-current assets classified as held for sale	79 229	51 783
	58 784 195	51 398 068
Other financial instruments at fair value through profit or loss in respect of liabilities to customers	59 549	52 405
	58 843 744	51 450 473
Liabilities
Deposits by banks	3 178 668	2 403 712
Derivative financial instruments	2 537 303	2 190 487
Other trading liabilities	275 589	326 189
Repurchase agreements and cash collateral on securities lent	863 285	1 003 312
Customer accounts (deposits)	40 118 412	34 449 430
Debt securities in issue	2 043 640	1 892 319
Liabilities arising on securitisation of own originated loans and advances	238 370	160 646
Liabilities arising on securitisation of other assets	95 885	108 281
Current taxation liabilities	41 631	78 790
Deferred taxation liabilities	19 624	40 333
Other liabilities	2 315 841	1 951 122
	51 728 248	44 604 621
Liabilities to customers under investment contracts	56 475	49 798
Insurance liabilities, including unit-linked liabilities	3 074	2 607
	51 787 797	44 657 026
Subordinated liabilities	1 316 191	1 480 951
	53 103 988	46 137 977
Equity
Ordinary share capital	247	247
Ordinary share premium	1 516 024	1 517 852
Treasury shares	(318 987)	(267 508)
Other reserves	(650 228)	(788 222)
Retained income	4 069 776	3 772 628
Ordinary shareholders' equity	4 616 832	4 234 997
Perpetual preference share capital and premium	174 869	174 053
Shareholders' equity excluding non-controlling interests	4 791 701	4 409 050
Other Additional Tier 1 securities in issue	411 683	335 111
Non-controlling interests	536 372	568 335
- Perpetual preferred securities issued by subsidiaries	-	72 750
- Non-controlling interests in partially held subsidiaries	536 372	495 585
Total equity	5 739 756	5 312 496
Total liabilities and equity	58 843 744	51 450 473

^       Restated as detailed below.

Condensed consolidated statement of changes in equity

 

£'000	Year to  31 March 2022	Year to  31 March 2021
Balance at the beginning of the year	5 312 496	4 897 632
Total comprehensive income	738 084	523 670
Share-based payments adjustments	23 932	19 121
Dividends paid to ordinary shareholders	(178 418)	(53 346)
Dividends paid to perpetual preference shareholders included in non-controlling interests and Other Additional Tier 1 security holders	(40 735)	(37 187)
Dividends paid to non-controlling interests	(29 287)	(32 385)
Share buyback of ordinary share capital	(36 150)	-
Repurchase of perpetual preference shares	(77 835)	(6 274)
Issue of Other Additional Tier 1 security instruments	67 552	35 508
Net equity impact of non-controlling interest movements	443	(6 128)
Movement of treasury shares	(47 114)	(10 161)
Net equity movements of interests in associated undertakings	6 788	(17 954)
Balance at the end of the year	5 739 756	5 312 496

Condensed consolidated cash flow statement

£'000	Year to  31 March 2022	Year to  31 March 2021^
Net cash inflow/(outflow) from operating activities	3 071 540	(606 625)
Net cash inflow from investing activities	35 565	1 414
Net cash outflow from financing activities	(587 923)	(134 626)
Effects of exchange rates on cash and cash equivalents	90 928	146 030
Net increase/(decrease) in cash and cash equivalents	2 610 110	(593 807)
Cash and cash equivalents at the beginning of the year	6 489 630	7 083 437
Cash and cash equivalents at the end of the year	9 099 740	6 489 630

^       Restated as detailed below.

 

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 segmental analysis

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

	Private Client
		Specialist Banking
For the year to 31 March 2022	Wealth & Investment	Private Banking	Corporate, Investment Banking and Other	Group Investments	Group Costs	Total Group	% change	% of total
£'000
UK and Other	87 681	30 828	162 825	33 387	(14 819)	299 902	138.0%	43.6%
Southern Africa	35 454	198 827	150 549	18 670	(15 993)	387 507	54.0%	56.4%
Adjusted operating profit	123 135	229 655	313 374	52 057	(30 812)	687 409	82.1%	100.0%
Non-controlling interest*						40 170
Adjusted operating profit before non-controlling interests						727 579
% change	22.6%	90.7%	101.1%	51.4%	(8.1%)	82.1%
% of total	17.9%	33.4%	45.6%	7.6%	(4.5)%	100.0%
Total assets £'mn	1 267	16 157	39 518	1 902	-	58 844

 

	Private Client
		Specialist Banking
For the year to 31 March 2021	Wealth & Investment	Private Banking	Corporate, Investment Banking and Other	Group Investments	Group Costs	Total Group		% of total
£'000
UK and Other	74 340	(3 012)	47 799	25 142	(18 286)	125 983		33.4%
Southern Africa	26 119	123 434	108 049	9 243	(15 246)	251 599		66.6%
Adjusted operating profit	100 459	120 422	155 848	34 385	(33 532)	377 582		100.0%
Non-controlling interest*						(472)
Adjusted operating profit before non-controlling interests						377 110
% of total	26.6%	31.9%	41.3%	9.1%	(8.9)%	100.0%
Total assets^ £'mn	1 271	13 673	34 645	1 861	-	51 450

*        Profit/(loss) attributable to non-controlling interests predominantly relates to the Investec Property Fund Limited.

^       Restated as detailed below.

Net fee and commission income

For the year to 31 March 2022 £'000	UK and Other	Southern Africa	Total
Wealth & Investment net fee and commission income	344 029	101 286	445 315
Fund management fees/fees for funds under management	301 950	55 697	357 647
Private client transactional fees	42 735	47 351	90 086
Fee and commission expense	(656)	(1 762)	(2 418)
Specialist Banking net fee and commission income	151 286	171 555	322 841
Specialist Banking fee and commission income*	165 543	197 544	363 087
Specialist Banking fee and commission expense	(14 257)	(25 989)	(40 246)
Group Investments net fee and commission income	-	50 060	50 060
Group Investments fee and commission income	-	53 819	53 819
Group Investments fee and commission expense	-	(3 759)	(3 759)
Net fee and commission income	495 315	322 901	818 216
Annuity fees (net of fees payable)	318 389	253 049	571 438
Deal fees	176 926	69 852	246 778

**      Included in Specialist Banking is fee and commission income of £72.1 million (2021: £63.7 million) for operating lease income which is out of the scope of IFRS 15 - Revenue from contracts with customers.

Balance sheet restatements

Loans and advances to banks and other liabilities

As at 31 March 2021, there was a gross up on balance sheet in loans and advances to banks and other liabilities as a result of client funds being recorded on balance sheet. The prior year balance sheet has been restated to correct the gross up previously reported. This change has no impact on the income statement.

The impact of this change on the 31 March 2021 and 31 March 2020 balance sheet is:

	At 31 March 2021 as previously reported	Restatement	At 31 March 2021 restated
£'000
Assets
Loans and advances to banks	2 699 317	(61 881)	2 637 436
Total assets	51 512 354	(61 881)	51 450 473
Liabilities
Other liabilities	2 013 003	(61 881)	1 951 122
Total liabilities	46 199 858	(61 881)	46 137 977

 

	At 31 March 2020 as previously reported	Restatement	At 31 March 2020 restated
£'000
Assets
Loans and advances to banks	2 666 851	(13 093)	2 653 758
Total assets	50 557 732	(13 093)	50 544 639
Liabilities
Other liabilities	2 211 487	(13 093)	2 198 394
Total liabilities	45 660 100	(13 093)	45 647 007

The impact of this change on the 31 March 2021 cash flow statement is:

	Year to 31 March 2021 as previously reported	Restatement	Year to 31 March 2021 restated
£'000
Net cash outflow from operating activities	(557 837)	(48 788)	(606 625)
Cash and cash equivalents at the beginning of the year	7 096 530	(13 093)	7 083 437
Cash and cash equivalents at the end of the year	6 551 511	(61 881)	6 489 630

Contingent liabilities

Investec Bank plc ("Investec") has been notified by the Office of the Public Prosecutor in Cologne, Germany, that it and certain of its current and former employees may be involved in possible charges relating to historical involvement in German dividend tax arbitrage transactions (known as cum-ex transactions). Investigations are ongoing  and no formal proceeding have been issued against Investec by the Office of the Public Prosecutor. Whilst no formal proceedings have been issued against Investec by the Office of the Public Prosecutor, a provision was previously  raised to reflect the potential financial outflows that could arise as a result of this matter. In addition, subsequent to the year end date, Investec received certain enquiries in respect of client tax reclaims for the periods 2010-2011 relating to the historical German dividend arbitrage transactions from the German Federal Tax Office (FTO) in Bonn. The FTO has provided limited information and Investec has sought further information and clarification. Given the lack of information, it is not possible for Investec to reliably estimate the potential liability, if any, in relation to this matter.

Investec is cooperating with the German authorities and continues to conduct its own internal investigation into the matters in question. There are factual issues to be resolved which may have legal consequences including financial penalties. In relation to potential civil claims; whilst Investec is not a claimant nor a defendant to any civil claims in respect of cum ex transactions, Investec has received third party notices in relation to two civil proceedings in Germany and may elect to join the proceedings as a third party participant. Investec has itself served third party notices on various participants to these historic transactions in order to preserve statute of limitation on any potential future claims that Investec may seek to bring against those parties, should Investec incur any liability in the future. Investec has also entered into standstill agreements with some third parties in order to suspend the limitation period in respect of the potential civil claims. While Investec is not a claimant nor a defendant to any civil claims at this stage, it cannot rule out the possibility of civil claims by or against Investec in future in relation to the relevant transactions. The Group has not provided further disclosure with respect to these historical dividend arbitrage transactions because it has concluded that such disclosure may be expected to seriously prejudice its outcome.

Events after the reporting date

On 18 March 2022, a circular was published noting the proposed distribution of 15% of the issued Ninety One DLC shares to Investec ordinary shareholders reducing the Investec holding from 25% to 10%.

As at 31 March 2022, a Section 46 ruling was still to be obtained from the South African Revenue Service stipulating the tax consequences of the distribution in South Africa, as well as the outcome of the shareholder vote that was scheduled to take place on 28 April 2022.

The Section 46 ruling was obtained on 20 April 2022 and a SENS and RNS announcement was published to shareholders to inform them of the outcome of the ruling as it was considered information that could have an impact on the vote of an ordinary shareholder.

On 28 April 2022, the General meeting was concluded with a vote in favour of the distribution. The distribution is expected to be effective on 30 May 2022. The distribution was classified as a non-adjusting event after the reporting date as defined by IAS 10 Events after the Reporting Period.

 

Analysis of assets and liabilities by measurement category

At 31 March 2022	Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
£'000
Assets
Cash and balances at central banks	-	5 998 270	-	5 998 270
Loans and advances to banks	-	2 552 061	-	2 552 061
Non-sovereign and non-bank cash placements	29 321	655 662	-	684 983
Reverse repurchase agreements and cash collateral on securities borrowed	1 882 847	2 726 931	-	4 609 778
Sovereign debt securities	3 371 704	777 163	-	4 148 867
Bank debt securities	907 809	607 401	-	1 515 210
Other debt securities	720 269	509 018	-	1 229 287
Derivative financial instruments	1 617 240	-	-	1 617 240
Securities arising from trading activities	683 329	-	-	683 329
Investment portfolio	912 872	-	-	912 872
Loans and advances to customers	2 374 500	27 186 588	-	29 561 088
Own originated loans and advances to customers securitised	-	375 763	-	375 763
Other loans and advances	-	128 284	-	128 284
Other securitised assets	93 087	30 801	-	123 888
Interests in associated undertakings and joint venture holdings	-	-	734 434	734 434
Current taxation assets	-	-	33 653	33 653
Deferred taxation assets	-	-	259 370	259 370
Other assets	277 889	1 349 259	441 467	2 068 615
Property and equipment	-	-	335 420	335 420
Investment properties	-	-	820 555	820 555
Goodwill	-	-	258 404	258 404
Software	-	-	9 443	9 443
Other acquired intangible assets	-	-	44 152	44 152
Non-current assets classified as held for sale	25 880	-	53 349	79 229
	12 896 747	42 897 201	2 990 247	58 784 195
Other financial instruments at fair value through profit or loss in respect of liabilities to customers	59 549	-	-	59 549
	12 956 296	42 897 201	2 990 247	58 843 744
Liabilities
Deposits by banks	-	3 178 668	-	3 178 668
Derivative financial instruments	2 537 303	-	-	2 537 303
Other trading liabilities	275 589	-	-	275 589
Repurchase agreements and cash collateral on securities lent	163 877	699 408	-	863 285
Customer accounts (deposits)	2 945 831	37 172 581	-	40 118 412
Debt securities in issue	46 192	1 997 448	-	2 043 640
Liabilities arising on securitisation of own originated loans and advances	-	238 370	-	238 370
Liabilities arising on securitisation of other assets	95 885	-	-	95 885
Current taxation liabilities	-	-	41 631	41 631
Deferred taxation liabilities	-	-	19 624	19 624
Other liabilities	106 987	1 330 695	878 159	2 315 841
	6 171 664	44 617 170	939 414	51 728 248
Liabilities to customers under investment contracts	56 475	-	-	56 475
Insurance liabilities, including unit-linked liabilities	3 074	-	-	3 074
	6 231 213	44 617 170	939 414	51 787 797
Subordinated liabilities	-	1 316 191	-	1 316 191
	6 231 213	45 933 361	939 414	53 103 988

Financial instruments 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).

		Fair value category
At 31 March 2022	Total instruments at fair value	Level 1	Level 2	Level 3
£'000
Assets
Non-sovereign and non-bank cash placements	29 321	-	29 321	-
Reverse repurchase agreements and cash collateral on securities borrowed	1 882 847	-	1 882 847	-
Sovereign debt securities	3 371 704	3 371 704	-	-
Bank debt securities	907 809	330 177	577 632	-
Other debt securities	720 269	46 310	568 928	105 031
Derivative financial instruments	1 617 240	19	1 573 271	43 950
Securities arising from trading activities	683 329	664 422	14 127	4 780
Investment portfolio	912 872	30 901	8 263	873 708
Loans and advances to customers	2 374 500	-	1 122 268	1 252 232
Other securitised assets	93 087	-	-	93 087
Other assets	277 889	277 889	-	-
Non-current assets classified as held for sale	25 880	-	-	25 880
Other financial instruments at fair value through profit or loss in respect of liabilities to customers	59 549	59 549	-	-
	12 956 296	4 780 971	5 776 657	2 398 668
Liabilities
Derivative financial instruments	2 537 303	36 289	2 455 245	45 769
Other trading liabilities	275 589	111 273	164 316	-
Repurchase agreements and cash collateral on securities lent	163 877	-	163 877	-
Customer accounts (deposits)	2 945 831	-	2 945 831	-
Debt securities in issue	46 192	-	46 192	-
Liabilities arising on securitisation of other assets	95 885	-	-	95 885
Other liabilities	106 987	-	57 569	49 418
Liabilities to customers under investment contracts	56 475	-	56 475	-
Insurance liabilities, including unit-linked liabilities	3 074	-	3 074	-
	6 231 213	147 562	5 892 579	191 072
Net financial assets/(liabilities) at fair value	6 725 083	4 633 409	(115 922)	2 207 596

Transfers between level 1 and level 2

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

Measurement of financial assets and liabilities at level 2

The table below sets out information about the valuation techniques used at the end of the reporting period in measuring financial instruments categorised as level 2 in the fair value hierarchy:

	Valuation basis/techniques	Main inputs
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, Black-Scholes	Yield curves, discount rates, volatilities
Bank debt securities	Discounted cash flow model	Yield curves
Other debt securities	Discounted cash flow model	Yield curves, NCD curves and swap curves, discount rates, external prices, broker quotes
Derivative financial instruments	Discounted cash flow model, Hermite interpolation, industry standard derivative pricing models including Black-Scholes and Local Volatility	Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Securities arising from trading activities	Standard industry derivative pricing model Discounted cash flow model	Interest rate curves, implied bond spreads, equity volatilities, yield curves
Investment portfolio	Discounted cash flow model, relative valuation model comparable quoted inputs	Discount rate and fund unit price, net assets
Loans and advances to customers	Discounted cash flow model	Yield curves
Liabilities
Derivative financial instruments	Discounted cash flow model, Hermite interpolation, industry standard derivative pricing models including Black-Scholes and Local Volatility	Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Other trading liabilities	Discounted cash flow model, Hermite interpolation, industry standard derivative pricing models including Local Volatility	Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Repurchase agreements and cash collateral on securities lent	Discounted cash flow model, Hermite interpolation	Yield curves, discount rates
Customer accounts (deposits)	Discounted cash flow model	Yield curves, discount rates
Debt securities in issue	Discounted cash flow model, Hermite interpolation, industry standard derivative pricing models including Local Volatility	Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Other liabilities	Discounted cash flow model	Yield curves
Liabilities to customers under investment contracts	Current price of underlying unitised assets	Listed prices
Insurance liabilities, including unit-linked liabilities	Current price of underlying unitised assets	Listed prices

Level 3 financial instruments

The following tables show a reconciliation of the opening balances to the closing balances for level 3 financial instruments. All instruments are at fair value through profit or loss.

£'000	Investment portfolio	Loans and  advances to  customers	Other securitised assets	Other balance  sheet assets	Total
Assets
Balance at 1 April 2021	862 528	1 047 390	107 259	176 250	2 193 427
Total gains/(losses)	(1 434)	63 202	(657)	22 116	83 227
In the income statement	(1 434)	63 768	(657)	22 116	83 793
In the statement of comprehensive income	-	(566)	-	-	(566)
Purchases	65 547	1 845 044	-	59 165	1 969 756
Sales	(69 620)	(1 079 005)	-	(38 836)	(1 187 461)
Issues	197	-	-	-	197
Settlements	(20 544)	(696 114)	(13 515)	(49 391)	(779 564)
Transfers into level 3	621	37 262	-	-	37 883
Foreign exchange adjustments	36 413	34 453	-	10 337	81 203
Balance at 31 March 2022	873 708	1 252 232	93 087	179 641	2 398 668

For the year to 31 March 2022, investment portfolio of £0.6 million was transferred from level 2 to level 3. The valuation methodologies were reviewed and unobservable inputs were used to determine the fair value. For the year ended 31 March 2022, £37.3 million of loans and advances to customers has been transferred from level 2 to level 3, due to inputs related to the measurement of credit risk to the valuation model becoming unobservable.

£'000	Liabilities arising on securitisation  of other assets	Other balance  sheet liabilities	Total
Liabilities
Balance at 1 April 2021	108 281	73 592	181 873
Total (gains)/losses in the income statement	(2 094)	18 461	16 367
Settlements	(10 303)	(1 451)	(11 754)
Foreign exchange adjustments	1	4 585	4 586
Balance at 31 March 2022	95 885	95 187	191 072

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

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

For the year to 31 March 2022	Total	Realised	Unrealised
£'000
Total gains or (losses) included in the income statement for the year
Net interest income	66 069	58 038	8 031
Investment income*	4 901	47 671	(42 770)
Trading income arising from customer flow	(2 194)	(491)	(1 703)
Trading income arising from balance sheet management and other trading activities	(1 350)	-	(1 350)
	67 426	105 218	(37 792)
Total gains or (losses) included in other comprehensive income for the year
Gains on realisation on debt instruments at FVOCI recycled through the income statement	440	440	-
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income	(566)	-	(566)
	(126)	440	(566)

*        Included within the investment income statement balance are unrealised gains of £0.7 million presented within operational items in the income statement.

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 below valuations have been considered taking the ongoing global COVID-19 pandemic into consideration. The following table shows the sensitivity of these fair values to reasonably possible alternative assumptions, determined at a transactional level:

At 31 March 2022	Balance sheet value	Significant unobservable input changed	Range which unobservable input has been changed	Favourable changes	Unfavourable changes
	£'000			£'000	£'000
Assets
Other debt securities	105 031	Potential impact on income statement		3 199	(5 851)
		Credit spreads	0.74%-2.75%	141	(286)
		Cash flow adjustments	CPR 8.4%	6	(8)
		Other^	^	3 052	(5 557)
Derivative financial instruments	43 950	Potential impact on income statement		4 643	(5 266)
		Volatilities	5%-18.9%	15	(29)
		Underlying asset value^^	^^	4 026	(4 028)
		Cash flow adjustment	CPR 8.4%	-	(6)
		Other^	^	602	(1 203)
Securities arising from trading activities	4 780	Potential impact on income statement
		Cash flow adjustments	CPR 11%	481	(635)
Investment portfolio	873 708	Potential impact on income statement		104 279	(137 434)
		Price earnings multiple	5.5x-15x	9 505	(18 206)
		Underlying asset value^^	^^	9 636	(20 897)
		EBITDA	**	12 530	(9 459)
		Discount rate	17.5      %	620	(623)
		Cash flows	**	1 703	(1 370)
		Underlying asset value^^	^^	1 614	(3 214)
		Precious and industrial metal prices	(5%)-5%	1 424	(1 424)
		Property prices	#	51 361	(51 361)
		Other^	^	15 886	(30 880)
Loans and advances to customers	1 252 232	Potential impact on income statement		32 727	(52 588)
		Credit spreads	0.15%-34.3%	10 656	(27 586)
		Property value	**	7 776	(12 428)
		Price earnings multiple	3.5x-4.2x	7 824	(1 136)
		Underlying asset value^^	^^	3 641	(5 778)
		Other^	^	2 830	(5 660)
		Potential impact on other comprehensive income
		Credit spreads	0.14%-6.17%	8 440	(15 725)
Other securitised assets*	93 087	Potential impact on income statement
		Cash flow adjustments	CPR 8.4%	988	(1 057)
Non-current assets classified as held for sale	25 880	Potential impact on income statement
		Discount rate	13%-16%	567	(1 973)
Total level 3 assets	2 398 668			155 324	(220 529)
Liabilities
Derivative financial instruments	45 769	Potential impact on income statement		(4 046)	4 060
		Volatilities	5%-18.9%	(21)	35
		Underlying asset value^^	^^	(4 025)	4 025
Liabilities arising on securitisation of other assets*	95 885	Potential impact on income statement
		Cash flow adjustments	CPR 4.4%	(292)	299
Other liabilities	49 418	Potential impact on income statement
		Property prices	#	(7 103)	7 103
Total level 3 liabilities	191 072			(11 441)	11 462
Net level 3 assets	2 207 596			143 883	(209 067)

*        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 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 assets cannot be determined through the adjustment of a single input.

^^     Underlying asset values are calculated by reference to a tangible asset, for example property, aircraft or shares.

∗∗      The EBITDA, cash flows and property values have been stressed on an investment-by-investment and loan-by-loan basis in order to obtain favourable and unfavourable valuations.

#       Property values are the underlying input for the valuations where the capitalisation rate when valuing these properties has been stressed by 0.25bps.

 

In determining the value of level 3 financial instruments, the following are the principal input 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 (including WACC) are used to adjust for the time value of money when using a discounted cash flow valuation method. Where relevant, the discount rate also accounts for illiquidity, market conditions and uncertainty of future 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

The company's earnings before interest, taxes, depreciation and amortisation. This is the main input into a price earnings multiple valuation method.

Price-earnings multiple

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

Property value and precious and industrial metals

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

Underlying asset value

In instances where cash flows have links to referenced assets, the underlying asset value is used to determine the fair value. The underlying asset valuation is derived using observable market prices sourced from broker quotes, specialist valuers or other reliable pricing sources.

Fair value of financial assets and liabilities at amortised cost

At 31 March 2022	Carrying amount	Fair value approximates carrying amount	Balances where fair values do not approximate carrying amounts	Fair value of balances that do not approximate carrying amounts
£'000
Assets
Cash and balances at central banks	5 998 270	5 998 270	-	-
Loans and advances to banks	2 552 061	2 180 047	372 014	371 682
Non-sovereign and non-bank cash placements	655 662	655 662	-	-
Reverse repurchase agreements and cash collateral on securities borrowed	2 726 931	1 240 798	1 486 133	1 485 172
Sovereign debt securities	777 163	-	777 163	789 650
Bank debt securities	607 401	31 105	576 296	575 241
Other debt securities	509 018	193 284	315 734	316 570
Loans and advances to customers	27 186 588	13 773 367	13 413 221	13 400 546
Own originated loans and advances to customers securitised	375 763	375 763	-	-
Other loans and advances	128 284	67 032	61 252	61 253
Other securitised assets	30 801	30 801	-	-
Other assets	1 349 259	1 349 259	-	-
	42 897 201	25 895 388	17 001 813	17 000 114
Liabilities
Deposits by banks	3 178 668	487 580	2 691 088	2 622 320
Repurchase agreements and cash collateral on securities lent	699 408	460 130	239 278	241 930
Customer accounts (deposits)	37 172 581	22 996 023	14 176 558	16 393 583
Debt securities in issue	1 997 448	342 119	1 655 329	1 654 527
Liabilities arising on securitisation of own originated loans and advances	238 370	238 370	-	-
Other liabilities	1 330 695	1 327 371	3 324	2 419
Subordinated liabilities	1 316 191	245 670	1 070 521	1 132 335
	45 933 361	26 097 263	19 836 098	22 047 114

Investec plc

Incorporated in England and Wales
Registration number: 3633621
LSE ordinary share code: INVP
JSE ordinary share code: INP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22

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 39

Notice is hereby given that a final dividend number 39, being a gross dividend of 14.00000 pence (2021: 7.50000 pence) per ordinary share has been declared by the Board from income reserves in respect of the year ended 31 March 2022, payable to shareholders recorded in the shareholders' register of the Company at the close of business on Friday 22 July 2022.

•   For Investec plc shareholders, registered on the United Kingdom share register, through a dividend payment by Investec plc from income reserves of 14.00000 pence per ordinary share

•   For Investec plc shareholders, registered on the South African branch register, through a dividend payment by
Investec Limited, on the SA DAS share, payable from income reserves, equivalent to 14.00000 pence per ordinary share.

The relevant dates relating to the payment of dividend number 39 are as follows:
Last day to trade cum-dividend On the Johannesburg Stock Exchange (JSE) On the London Stock Exchange (LSE) Shares commence trading ex-dividend On the Johannesburg Stock Exchange (JSE) On the London Stock Exchange (LSE) Record date (on the JSE and LSE) Payment date (on the JSE and LSE)	Tuesday 19 July 2022 Wednesday 20 July 2022   Wednesday 20 July 2022 Thursday 21 July 2022 Friday 22 July 2022 Monday 8 August 2022
Share certificates on the South African branch register may not be dematerialised or rematerialised between Wednesday 20 July 2022 and Friday 22 July 2022, both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday 20 July 2022 and Friday 22 July 2022, 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 14.00000 pence, equivalent to a gross dividend of 279.00000 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 18 May 2022

•   Investec plc United Kingdom tax reference number: 2683967322360

•   The issued ordinary share capital of Investec plc is 696 082 618 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 279.00000 cents per share  paid by Investec Limited on the SA DAS share

•   Shareholders registered on the South African branch register who are not exempt from paying the Dividend Tax will receive a net dividend of 223.20000 cents per share (gross dividend of 279.00000 cents per share less Dividend Tax of 55.80000 cents per share) per share paid by Investec Limited on the SA DAS share.

By order of the Board

David Miller

Company Secretary

18 May 2022

Investec Limited

Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE share code: INL
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70

Ordinary share dividend announcement

Declaration of dividend number 132

Notice is hereby given that final dividend number 132, being a gross dividend of 279.00000 cents (2021: 150.00000 cents) per ordinary share has been declared by the Board from income reserves in respect of the financial year ended 31 March 2022 payable to shareholders recorded in the shareholders' register of the Company at the close of business on Friday 22 July 2022.

The relevant dates relating to the payment of dividend number 132 are as follows:
Last day to trade cum-dividend Shares commence trading ex-dividend Record date Payment date	Tuesday 19 July 2022 Wednesday 20 July 2022 Friday 22 July 2022 Monday 8 August 2022
The final gross dividend of 279.00000 cents per ordinary share has been determined by converting the Investec plc distribution of 14.00000 pence per ordinary share into Rands using the Rand/Pound Sterling average buy/sell forward rate at 11h00 (SA time) on Wednesday 18 May 2022.
Share certificates may not be dematerialised or rematerialised between Wednesday 20 July 2022 and Friday 22 July 2022 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 310 407 870 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 279.00000 cents per ordinary share

•   Shareholders who are not exempt from paying the Dividend Tax will receive a net dividend of 223.20000 cents per ordinary share (gross dividend of 279.00000 cents per ordinary share less Dividend Tax of 55.80000 cents per ordinary share).

By order of the Board

Niki van Wyk

Company Secretary

18 May 2022

 

Investec plc

Incorporated in England and Wales
Registration number: 3633621
Share code: INPP
ISIN: GB00B19RX541
LEI: 2138007Z3U5GWDN3MY22

Preference share dividend announcement

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

Declaration of dividend number 32

Notice is hereby given that preference dividend number 32 has been declared by the Board from income reserves for the period  1 October 2021 to 31 March 2022 amounting to a gross preference dividend of 6.41369 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 10 June 2022 .

For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 6.41369 pence per preference share is equivalent to a gross dividend of 127.01800 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA time) on Wednesday 18 May 2022.

The relevant dates relating to the payment of dividend number 32 are as follows:
Last day to trade cum-dividend On the Johannesburg Stock Exchange (JSE) On the International Stock Exchange (TISE)	Tuesday 7 June 2022 Wednesday 8 June 2022
Shares commence trading ex-dividend On the Johannesburg Stock Exchange (JSE) On the International Stock Exchange (TISE)	Wednesday 8 June 2022 Thursday 9 June 2022
Record date (on the JSE and TISE) Payment date (on the JSE and TISE)	Friday 10 June 2022 Monday 20 June 2022
Share certificates may not be dematerialised or rematerialised between Wednesday 8 June 2022 and Friday 10 June 2022 , both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday 8 June 2022 and Friday 10 June 2022 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 101.61440 cents per preference share for preference shareholders liable to pay the Dividend Tax and 127.01800 cents per preference share for preference shareholders exempt from paying the Dividend Tax.

By order of the Board

David Miller

Company Secretary

18 May 2022

 

Investec plc

Incorporated in England and Wales
Registration number: 3633621
JSE share code: INPPR
ISIN: GB00B4B0Q974
LEI: 2138007Z3U5GWDN3MY22

Rand-denominated preference share dividend announcement

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

Declaration of dividend number 22

Notice is hereby given that preference dividend number 22 has been declared by the Board from income reserves for the period 1 October 2021 to 31 March 2022 amounting to a gross preference dividend of 344.99315 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 10 June 2022.

The relevant dates relating to the payment of dividend number 22 are as follows:
Last day to trade cum-dividend Shares commence trading ex-dividend Record date Payment date	Tuesday 7 June 2022 Wednesday 8 June 2022 Friday 10 June 2022 Monday 13 June 2022
Share certificates may not be dematerialised or rematerialised between Wednesday 8 June 2022 and Friday 10 June 2022, 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 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 275.99452 cents per preference share for preference shareholders liable to pay the Dividend Tax and 344.99315 cents per preference share for preference shareholders exempt from paying the Dividend Tax.

By order of the Board

David Miller

Company Secretary

18 May 2022

 

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
LEI: 213800CU7SM6O4UWOZ70

Preference share dividend announcement

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

Declaration of dividend number 35

Notice is hereby given that preference dividend number 35 has been declared by the Board from income reserves for the period 1 October 2021 to 31 March 2022 amounting to a gross preference dividend of 282.26249 cents 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 10 June 2022.

The relevant dates for the payment of dividend number 35 are as follows:
Last day to trade cum-dividend Shares commence trading ex-dividend Record date Payment date	Tuesday 7 June 2022 Wednesday 8 June 2022 Friday 10 June 2022 Monday 13 June 2022
Share certificates may not be dematerialised or rematerialised between Wednesday 8 June 2022 and Friday 10 June 2022 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 28 968 863 preference 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)

•   The net dividend amounts to 225.80999 cents per preference share for shareholders liable to pay the Dividend Tax and 282.26249 cents per preference share for preference shareholders exempt from paying the Dividend Tax.

By order of the Board

Niki van Wyk

Company Secretary

18 May 2022

 

Investec plc

Incorporated in England and Wales
Registration number 3633621
JSE ordinary share code: INP
LSE ordinary share code: INVP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22

Registered office:

30 Gresham Street, London
EC2V 7QP, United Kingdom

Registrars in the United Kingdom:

Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol
BS99 6ZZ, United Kingdom

Company Secretary:

David 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
LEI: 213800CU7SM6O4UWOZ70

Registered office:

100 Grayston Drive
Sandown, Sandton
2196 South Africa

Transfer secretaries in South Africa:

Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank
2196 South Africa

Company Secretary:

Niki van Wyk

Directors:

Philip Hourquebie¹ (Chair)
Fani Titi² (Chief Executive)
Nishlan Samujh² (Finance Director)
Richard Wainwright^2* (Executive Director)
Ciaran Whelan³ (Executive Director)
Henrietta Baldock¹
Zarina Bassa² (Senior Independent Director)
David Friedland²
Stephen Koseff²
Nicky Newton-King^2*
Jasandra Nyker^2*
Vanessa Olver^2#
Khumo Shuenyane²
Philisiwe Sibiya²
Brian Stevenson^{1^}

1       British

2       South African

3       Irish

*        Appointed 21 May 2021

^       Appointed 22 June 2021

^#        Appointed 18 May 2022

 

Charles Jacobs resigned 30 June 2021
Perry Crosthwaite and Lord Malloch-Brown resigned 5 August 2021

Sponsor:

Investec Bank Limited