Investec (comprising Investec plc and Investec Limited) - Unaudited combined consolidated financial results for the year ended 31 March 2025

Fani Titi, Group Chief Executive commented:

"We are pleased to report a strong performance in a volatile operating environment, with the Group generating a Return on Equity of 13.9%, in line with guidance provided in May 2024. Pre-provision adjusted operating profit grew 7.8% surpassing £1 billion for the first time in our history, demonstrating the underlying strength of our differentiated client franchises. We have maintained robust capital and liquidity levels, positioning us well to support our clients and drive sustainable growth.

The Group has successfully executed the strategy to simplify and focus the business as communicated at our capital markets day (CMD) in 2019. This resulted in a 200bps structural improvement in Group returns and created a strong foundation to power future growth.

We are scaling and leveraging our client franchises, allocating capital with discipline and investing in clearly defined growth initiatives to enhance our existing platforms. We expect to generate incremental returns of c.200bps over the next five years, resulting in a ROE around the upper end of the upgraded medium-term target range.

I would like to thank our colleagues for their dedication, our clients for partnering with us, and our shareholders for their continued support."

Key financial metrics

Totals and variances are presented in £'millions which may result in rounding differences. The Key financial metrics are defined on page 14.

*        The Basic EPS decrease reflects the impact of significant net gains from strategic actions executed in the prior year.

All prior year numbers in the financial commentary of this document are presented on a pro-forma basis to provide information that is more comparable to the current year, as a result of previously disclosed strategic actions which completed in the first half of the prior financial year. The prior-year statutory results are presented on a continuing and discontinuing basis in line with the relevant accounting standards. Refer to pages 22 and 23 for the reconciliation between the statutory and pro-forma prior year income statement.

Group financial summary:

Pre-provision adjusted operating profit increased 7.8% to £1 039.2 million (FY2024: £963.6 million), as revenue grew 5.0% against operating cost growth of 2.8%, resulting in a positive jaws ratio.

Revenue was supported by client acquisition and ongoing entrenchment strategies, strong net inflows in discretionary and annuity funds under management (FUM) in the current and prior periods, as well as growth in average interest earning assets. Net interest income (NII) benefitted from higher average lending books and lower cost of funds in Southern Africa as a result of our strategy to optimise the funding pool, partly offset by the effects of deposit repricing in the UK. Non-interest revenue (NIR) growth reflects strong growth in fees from our SA Wealth & Investment business, as well as improved fee income generation from our Banking businesses. Investment income also contributed positively to NIR growth driven by net fair value gains and dividends received. Higher trading income from client flow resulting from increased market liquidity was offset by the non-repeat of prior-year risk management gains from hedging the remaining financial products run down book in the UK.

The cost to income ratio improved to 52.6% (FY2024: 53.8%) as revenue grew ahead of costs. Total operating costs increased by 2.8%. Fixed operating expenditure growth reflects strategic investment in people and technology for growth, and inflationary pressures. The prior year includes a £30 million provision related to the FCA motor finance commission review. Variable remuneration in each geography was in line with respective performance.

Credit loss ratio (CLR) on core loans was 38bps (FY2024: 28bps), within the Group's through-the-cycle (TTC) range of 25bps to 45bps. Expected credit loss (ECL) impairment charges increased to £119.2 million (FY2024: £79.1 million). The prior year benefitted from net recoveries from previously impaired exposures in South Africa. The overall credit quality remained strong, with no evidence of trend deterioration.

Return on equity (ROE) was 13.9% (FY2024: 14.6%) within the Group's medium-term 13% to 17% target range, notwithstanding the increase in the average equity base resulting from the net gain recognised on completion of the combination of IW&I UK with Rathbones in the prior year. Return on Tangible equity (ROTE) of 16.2% (FY2024: 16.5%) is within the Group's medium-term 14% to 18% target range.

Distribution to shareholders The Board has proposed a final dividend of 20.0p per share (FY2024: 19.0p) bringing the total dividend for the year to 36.5p (FY2024: 34.5p), translating to a 46.1% payout ratio, within the Group's current 35% to 50% payout policy. As part of the ongoing capital management process, the Group intends to execute a share buy-back programme of c.R2.5 billion / c.£100 million to be implemented over the next twelve months.

Sustainable and transition finance targets: We continue to make progress on our sustainability journey and have announced our target to facilitate £18 billion of sustainable and transition finance by 2030.

Net asset value (NAV) per share increased to 587.7p (31 March 2024: 563.9p), driven by strong capital generation in the current period and foreign exchange translation gains, partly offset by distribution to shareholders. Tangible net asset value (TNAV) per share increased to 506.3p (31 March 2024: 477.5p).

Earnings attributable to other equity holders increased to £70.6 million (FY2024: £49.1 million). The current financial year reflects the full year impact of the £350 million Additional Tier 1 (AT1) issued in February 2024, with a 10.5% coupon. The remaining £108 million AT1 from the 2017 issuance (with 6.75% coupon) was settled in December 2024.

Key drivers:

Net core loans increased 4.7% to £32.4 billion (31 March 2024: £30.9 billion) and grew by 4.3% on a neutral currency basis; driven by strong corporate lending in South Africa in the second half of the financial year and growth from private clients lending in both geographies. Growth in corporate lending turnover in the UK was offset by higher repayment rates given the high interest rate environment.

Customer deposits increased by 4.1% to £41.2 billion (31 March 2024: £39.5 billion) and grew by 3.7% in neutral currency driven by strong growth in non-wholesale and retail deposits in both geographies.

Funds under management (FUM) in the Southern African business increased by 11.8% to £23.4 billion (31 March 2024: £20.9 billion). Net inflows in our discretionary and annuity funds of R16.9 billion (£727 million), were partly offset by FX translation losses and non-discretionary outflows of R9.8 billion (£420 million).

Our associate investment in Rathbones reported Funds Under Management and Administration (FUMA) totalled £104.1 billion at 31 March 2025. Investec owns 41.25% of Rathbones.

Balance sheet strength:

The Group remained well capitalised in both our anchor geographies, with Investec Limited reporting a CET1 ratio of 14.8% measured on the Advanced Internal Ratings-Based approach and the Investec plc CET1 at 12.6% measured on a standardised approach. The UK business continues to make progress in its journey towards migrating its capital measurement from the standardised approach to the internal ratings-based approach.

Sustainable and transition finance targets:

Following the publication of our enhanced Sustainable and Transition Finance Classification Framework in May 2024, we are pleased to announce an accompanying target to facilitate £18 billion of sustainable and transition finance by 2030. This target is a vital component of our broader sustainability agenda, underscoring our dedication to integrating sustainability into our commercial strategies, and is one of several critical levers towards achieving our net zero by 2050 ambition. Please refer to our Investec Group year-end analyst book for further detail.

Financial Outlook:

The global macro-economic environment is facing heightened uncertainty, creating volatility in economic forecasts and financial markets. We are continuously monitoring the evolving environment. The guidance below is based on our economic forecasts and expected business activity levels to date. The group's medium-term targets remain unchanged.

FY2026 Outlook

Revenue momentum is expected to be underpinned by book growth, stronger client activity levels and success in our client acquisition and entrenchment strategies.

The Group currently expects:

•   Group ROE to be c.14.0% within the 13.0% to 17.0% target range:

◦    Southern Africa is expected to report ROE of c.18.5%, within the target range of 16.0% to 20.0%

◦    UK & Other is expected to report ROTE of c.14.0%, within the target range of 13.0% to 17.0%

•   Overall costs to be well managed in the context of inflationary pressures and continued investment in the business, with the cost to income ratio expected to be between 52.0% and 54.0%

•   The credit loss ratio to be within the through-the-cycle range of 25bps to 45bps. Southern Africa is expected to be around the lower end of the TTC range of 15bps to 35bps. UK & Other credit loss ratio is expected to remain around the FY2025 reported levels.

The Group has maintained strong capital and liquidity levels well above Board-approved minimums. The Group is well-positioned to manage the impacts of external challenges and continue supporting our clients to navigate the current economic uncertainty.

Medium term outlook

The Group is committed to its medium-term financial targets. We have a clear and executable strategy to advance our ROE towards the upper end of the target range by FY2030.

ROE expansion is expected to be underpinned by:

•   continuing to build scale and leverage our existing client franchises to generate higher returns,

•   executing specific growth initiatives to enhance our current specialisations and drive incremental returns,

•   and managing capital optimally

Building scale and leveraging existing client franchises

Our established client franchises built over the past five decades offer an extensive breadth of products and services to corporates and institutions, complemented by a compelling private client offering and an international wealth management proposition. Our distinct offering is built on enduring relationships, deep specialisations and cross collaboration between divisions and geographies. The Group operates in large and growing markets, presenting a significant opportunity to grow our current lower market share through client acquisition and unlocking the full potential of "One Investec".

Specific growth initiatives are expected to contribute significant incremental returns by FY2030:

 Building a Corporate mid-market transactional banking franchise

The Group is investing in platforms to enhance our corporate mid-market proposition in both our anchor geographies. This capability will further entrench and attract clients into our ecosystem, increase non-interest banking revenues and enhance our transactional deposit franchises. We will facilitate day to day banking needs for our clients, complementing our event-driven specialisations.

Our well-established UK Corporate and Investment Banking franchise stands as the only integrated and diversified specialist bank, providing the capabilities of global investment banks to the corporate mid-market. We are transitioning to end-to-end corporate banking, by adding transactional banking capabilities. There is an opportunity to create significant value by leveraging our high-touch approach and sector expertise to gain market share. The Group plans to invest in this UK capability over the next three years. We expect around 1 000 clients to have at least two products and to achieve a market share of c.2% by FY2030.

In South Africa, our objective is to create a single platform for mid-sized South African corporates to holistically manage their banking needs. We aspire to be the primary banking partner that seamlessly combines high-touch lending with an innovative, user-friendly transactional banking experience. Given our current low market share in this large and growing segment, the potential to create value for the Group is significant. We are well-positioned to become the strategic partner that offers the Investec private client experience to businesses. Our plan is to fast-track the delivery of this proposition, enabling accelerated transactional banking client acquisition to around three times the current base of 2 700, translating to a market share of c.8% by FY2030.

Enhancing our Private Client offering

The Group is a leading provider of bespoke private client solutions, encompassing a holistic private banking and international wealth offering. This is complemented by our strategic partnership with Rathbones in the UK. Our proposition is underpinned by a deep understanding of our clients' personal and business objectives, offering tailored banking and investment services both locally and internationally.

We are entering the next phase of growth for our UK Private Client business to accelerate the execution of a comprehensive banking proposition. This will deepen client engagement, increase client acquisition, support higher HNW mortgage growth, and contribute to a reduced cost of funding. Our investment in the private client transactional banking platform will facilitate the delivery of a full-suite product offering, including multi-currency accounts and credit cards, while improving our lending capabilities. We aim to increase the current client base of 7 500 to approximately 18 500, resulting in a market share of c.18% by FY2030.

In South Africa, we are accelerating our client acquisition strategy, particularly in the high income segment. We will continue to invest in our wealth-led international Private Client offering to provide an integrated holistic global proposition to our clients.

The above growth initiatives are a natural evolution in our business model and will facilitate increased market share, enhance the breadth of our client offering and enable us to compete more effectively in the market. Our cost to income ratio already incorporates investment spend on new growth initiatives and thus we do not anticipate a significant increase in this ratio going forward. Cost discipline remains a priority for the Group. Cost to income ratio is expected to remain below 55% in the medium term.

Capital allocation

The Group is committed to optimising shareholder returns. We will be allocating capital to activities that generate returns above our cost of capital. The Group manages its capital dynamically, maintaining an appropriate balance between total returns to shareholders, investment in the business and holding strong capital levels. One of the Group's priorities is to increase the earnings contribution from capital light activities, and as such the Group continues to evaluate organic and inorganic opportunities to achieve this objective.

The strategies outlined above represent our clear path to achieving returns around the upper end of our medium-term target range by FY2030, expected to collectively add an incremental return of c.200bps.

Upcoming business updates:

We intend to provide detailed updates on our specific growth initiatives at the following results presentations:

20 November 2025: Corporate mid-market

21 May 2026: Private Client

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 2025 (FY2025). Unless stated otherwise, comparatives relate to the Group's operations for the year ended 31 March 2024 (FY2024).

Basic earnings per share in the prior year includes a gain of £358.5 million on the combination of Investec Wealth & Investment UK with Rathbones plc, partly offset by the net loss on deconsolidation of IPF totalling £101.5 million.

*        Operating income has been prepared on a pro-forma basis for the prior year. Refer to page 23 for the reconciliation between the statutory and pro-forma prior year income statement.

^        Restated.

Totals and variances are presented in £'billions which may result in rounding differences.

**      Following the all-share combination of IW&I UK and Rathbones, IW&I UK now forms part of the Rathbones Group. As at 31 March 2025, Rathbones Group, of which Investec holds a 41.25% economic interest, had funds under management of £104.1 billion (2024: £107.6 billion).

Totals and variance are presented in £'billions, unless otherwise stated, which may result in rounding differences.

Enquiries

Investec Investor Relations

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

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

Brunswick (SA PR advisers)

Tim Schultz
Tel: +27 (0) 82 309 2496

Lansons (UK PR advisers)

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

Presentation/conference call details

Investec will host its year end results presentation live from Johannesburg and broadcast live in London today at 10h00 (SA)/ 09h00 (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 7,900+ employees.

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

Johannesburg and London
JSE Debt and Equity Sponsor: Investec Bank Limited

Group financial performance

Overview

Pre-provision adjusted operating profit increased 7.8% to           £1 039.2 million (FY2024: £963.6 million).

Revenue increased 5.0% to £2 190.5 million (FY2024: £1 986.3 million)

Net interest income increased 1.5% to £1 358.1 million (FY2024: £1 338.7 million) benefitting from higher average interest earning assets and lower cost of funding in Southern Africa as we continued to implement our strategies to optimise the funding mix, while negatively impacted by the effects of deposit repricing in the UK and the negative endowment impact arising from a rate cutting cycle in both core geographies.

Non-interest revenue increased 11.5% to £832.4 million (FY2024: £746.6 million).

•   Net fee and commission income increased 11.5% to £463.8 million (FY2024: £416.2 million), driven by higher average discretionary FUM in the SA wealth business, increased activity levels from various UK corporate client franchises, and a higher contribution from Capitalmind (now Investec), our European advisory franchise. The SA Bank reported muted net fee growth; higher fees from our Private Banking and global markets franchises as a result of increased client activity, were partly offset by lower M&A and trade finance fees.

•   Investment income of £130.7 million (FY2024: £63.4 million) primarily reflects net fair value gains and dividends received on investment portfolios.

•   Share of post tax operating profit of associates and joint venture holdings amounted to £75.8 million (FY2024: £91.8 million) primarily consisting of Investec's share of Rathbones reported post-tax underlying profit attributable to shareholders for their year ended 31 December 2024 of £69.1 million (FY2024: £66.9 million). In the prior year, an associate of the UK Bank had a significant realisation gain which did not repeat in the current year.

•   Trading income arising from customer flow decreased by 0.9% to £130.6 million (FY2024: £131.7 million). Higher equity trading income arising from client flow in both anchor geographies as a result of increased market liquidity was offset by lower risk management gains in hedging the remaining and significantly reduced financial products run down book in the UK.

•   Trading income from balance sheet management and other trading activities decreased to £25.6 million (FY2024: £41.5 million). This reflects lower gains from the unwind of interest rate swap hedges as part of the implementation of the UK structural interest rate hedging programme and net foreign currency translation losses on non-Rand denominated monetary assets and liabilities on the SA balance sheet compared to a gain in the prior year.

Expected credit loss (ECL) impairment charges amounted to £119.2 million (FY2024: £79.1 million)

Asset quality remains within Group appetite limits, with exposures to a carefully defined target market well covered by collateral. The increase in the ECL impairment charges was primarily driven by higher specific impairments on certain exposures, resulting in a credit loss ratio on core loans of 38bps (FY2024: 28bps). The prior year benefitted from net recoveries from previously impaired exposures in South Africa.

Operating costs increased by 2.8% to £1 151.4 million (FY2024: £1 120.2 million)

The cost-to-income ratio improved to 52.6% from 53.8% in FY2024. Fixed operating expenditure (including Group costs) increased due to ongoing strategic investment in technology and people to support growth ambitions, as well as inflationary pressures. Higher personnel expenses relate to both annual salary increases and growth in headcount. The prior year includes a £30 million provision related to the FCA motor finance commission review. Variable remuneration in each geography is in line with respective performance.

Taxation

The taxation charge on adjusted operating profit was £169.6 million (FY2024: £172.1 million), resulting in an effective tax rate of 20.1% (FY2024: 21.8%).

Investec plc effective tax rate is 19.3% (FY2024: 23.7%), reflecting the weighted effective tax rate from multiple jurisdictions where Investec plc has operations. Investec Limited effective tax rate is 20.7% (FY2024: 20.1%).

Funding and liquidity

Customer deposits increased 4.1% to £41.2 billion (FY2024: £39.5 billion) on a reported basis and 3.7% in neutral currency. Customer deposits increased by 3.2% to £21.4 billion for Investec plc and increased by 4.2% to R468.1 billion for Investec Limited since 31 March 2024.

Cash and near cash of £16.9 billion (£9.1 billion in Investec plc and R184.3 billion in Investec Limited) at 31 March 2025 represents approximately 40.9% of customer deposits (42.4% for Investec plc and 39.4% for Investec Limited). Loans and advances to customers as a percentage of customer deposits was 78.4% (FY2024: 79.7%) for Investec plc and 77.2% (FY2024: 75.1%) for Investec Limited.

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

•   Investec plc reported a LCR of 409% and a NSFR of 145% at 31 March 2025

•   Investec Bank Limited (consolidated Group) reported a LCR of 194.7% and an NSFR of 122.0% at 31 March 2025.

Capital adequacy and leverage ratios

Capital and leverage ratios remain sound, ahead of regulatory requirements. The CET1 and leverage ratio were 14.8% and 6.2% for Investec Limited (Advanced Internal Ratings Based scope) and 12.6% and 9.9% for Investec plc (Standardised approach) respectively.

Segmental performance

Specialist Banking

Adjusted operating profit from Specialist Banking increased 3.5% to £839.0 million (FY2024: £810.5 million). Pre-provision adjusted operating profit increased 7.7% to £958.3 million (FY2024: £889.6 million).

Totals and variances are presented in £'million which may result in rounding differences.

Southern Africa Specialist Banking (in Rands)

Pre-provision adjusted operating profit increased by 12.2% to R 10 492 million. Adjusted operating profit increased 4.8% to R9 976 million (FY2024: R9 517 million), delivered against a backdrop of weak economic activity ahead of the national election outcome in June 2024 and global macro-economic uncertainty that prevailed over the year. Our core client franchises have shown a positive momentum in the second half as we continue to execute our client acquisition strategies. We remain focused on our strategy to deepen client relationships, grow market share and drive cross divisional and cross border collaboration.

Net core loans grew by 7.6% to R369.8 billion (FY2024: R343.7 billion); subdued activity leading up to the national election outcome in 1H2025 was followed by increased growth in the private client loan book and certain corporate credit portfolios particularly in Energy and Infrastructure finance, Aviation finance and Leveraged finance in the second half of the financial year.

Revenue increased 11.4%, benefitting from higher average net interest margins, increased activity levels and continued client acquisition in line with our growth strategies. This was augmented by positive investment income.

•   Net interest income (NII) growth of 8.8%; mainly driven by lower cost of funds which benefitted from the execution of our strategies to optimise the funding pool, as well as higher average advances. Our non-wholesale deposit base continued to grow in line with our strategy to increase the proportion of non-wholesale deposits in our funding pool.

•   Non-interest revenue increased 17.3% driven by:

-   Net fee and commission income increased by 1.5%; higher FX and equity capital market fees in the corporate and investment banking business as well as higher private banking fees from increased client activity, were offset by lower investment banking fees and muted utilisation of trade finance facilities.

-   Higher trading income from customer flow reflects stronger client flows from interest rate and equity derivatives desks given increased market liquidity, partly offset by the net impact of hedge accounting implementation in the credit investments portfolio.

-   Positive contribution from Investment income, driven by higher net fair value gains from investment portfolios in our client franchises as South African assets repriced following the successful formation of the Government of National Unity (GNU)

Partly offset by:

-   Income from Balance sheet management activities decreased; reflecting net foreign currency translation losses on non-Rand denominated monetary assets and liabilities. This was partly offset by MTM gains associated with managing fixed deposit interest rate risk.

ECL impairment charges amounted to R517 million (FY2024: net release of R163 million), resulting in a credit loss ratio of 15bps (FY2024: net recovery of 4bps), driven by higher Stage 3 ECL charges and lower recoveries from previously impaired exposures relative to the prior year.

The cost to income ratio improved to 48.1% (FY2024: 48.4%). Operating costs increased by 10.7% driven by higher personnel expenses due to annual salary increases and higher headcount, higher business expenses in line with increased activity, as well as increased technology spend to support business growth initiatives. Variable remuneration increased in line with performance.

UK & Other Specialist Banking

Pre-provision adjusted operating profit increased by 3.1% to £507.4 million. Adjusted operating profit increased to £410.4 million (FY2024: £406.2 million); our established client franchises in the UK mid-market and selected geographies performed well in a volatile macro-economic environment. We have continued to execute our client acquisition and entrenchment strategies as we focus on building scale and growing market share. Our breadth of capabilities positions us well to become a distinctive corporate mid-market banking group in Europe, anchored by the UK franchise which is both domestically relevant and internationally connected.

To date, we have established a robust business foundation and demonstrated strong performance. We are strategically investing in our transactional banking capabilities in both private and corporate banking to complement our existing core specialisations.

Net core loans grew 1.4% to £16.8 billion; driven by growth in the UK residential mortgage lending portfolio, while the corporate lending segment remained flat in a constrained market environment. Moderate growth across various corporate lending portfolios was offset by higher levels of repayments.

Revenue decreased by 1.7%; strong growth in net fee and commission income generated from both our corporate and investment banking lending franchises and our M&A advisory business in line with our strategy to grow capital light earnings, was offset by lower net interest income and lower trading income from customer flow. Investment income contributed positively to revenue.

•   Net interest income decreased by 4.4%, the benefit of a larger average loan book was offset by higher cost of funding as deposits repriced higher and lower average interest rates over the period.

•   Non-interest revenue increased by 5.3% driven by:

-   Higher arrangement fees generated by our corporate & investment banking lending business driven by increased client activity. We have also seen higher M&A advisory fees primarily from Capitalmind; reflecting both improved performance and the impact of a full year of consolidated earnings as it become a subsidiary in June 2023.

-   Higher investment income largely driven by net fair value gains from equity investments.

Partly offset by:

-   Lower trading income from customer flow, primarily as a result of lower risk management gains from hedging the significantly reduced financial products run down book and lower volumes from interest rate and FX hedging trading desks. This was partially offset by higher equity trading income from customer flow.

-   Lower trading income from balance sheet management and other trading activities reflecting lower gains from the unwind of certain interest rate swap hedges as part of the implementation of the structural interest rate hedging programme relative to the prior year.

ECL impairment charges amounted to £97.0 million, resulting in a credit loss ratio of 60bps (FY2024: 58bps) in line with guidance. The increase in ECL charges was largely driven by Stage 3 ECL charges on certain exposures. Overall asset quality of the book remained stable; Stage 3 exposures remained at 3.3% of gross core loans subject to ECL (31 March 2024: 3.3%) and Stage 2 exposures decreasing to 8.1% (31 March 2024: 8.6%) of gross core loans subject to ECL. We have seen a reduction in exposures migrating into Stage 3.

The cost to income ratio improved to 53.5% (FY2024: 55.6%). Total operating costs decreased by 5.4%. Fixed operating costs increased by 4.0% excluding the impact of the £30 million motor finance provision raised in the prior year, reflecting investment in technology platforms and strategic projects to enable future growth as well as inflationary pressure. Variable remuneration decreased in line with business performance.

Based on the current available information, the Group has concluded that the provision of £30 million raised in the prior year for the motor commission review still remains appropriate. There remains significant uncertainty across the industry as to the extent of any misconduct and customer loss that may be identified, and/or the nature, extent and timing of any remediation action that may subsequently be required following the Court of Appeal decision and FCA motor commission review. The Group notes that the ultimate financial impact of the Court of Appeal decision and ongoing FCA investigation into motor commission could materially vary, pending further guidance from the FCA or the outcome of the appeal to the UK Supreme Court.

Wealth & Investment

Adjusted operating profit from the Wealth & Investment businesses increased 8.2% to £112.3 million (FY2024: £103.8 million).

Totals and variances are presented in £'million which may result in rounding differences.

Southern Africa Wealth & Investment International Business (in Rands)

Adjusted operating profit increased by 15.3% to R1 004 million (FY2024: R871 million).

Total FUM increased by 10.8% to R555.2 billion (FY2024: R501.3 billion) driven by discretionary and annuity net inflows of R16.9 billion and positive market movements, partly offset by foreign currency translation impact on dollar denominated portfolios as the South African Rand strengthened against the US Dollar, and non-discretionary outflows of R9.8 billion. The business reported strong client retention and acquisitions in a dynamic market, demonstrating the strength and quality of our international wealth management offering.

Revenue grew by 14.5% underpinned by strong inflows in our discretionary and annuity portfolios across local and offshore investment products in the current and prior periods. We also experienced strong growth in fee income generated from structured products. Non-discretionary brokerage increased in the current period due to higher trading volumes. Revenue in Switzerland grew by 3.1% in Pounds driven by higher net fee income as a result of higher average FUM, this was partly offset by lower net interest income.

Operating costs increased 14.2%, driven by investment in people for continued growth, higher technology spend, and higher variable remuneration in line with performance. Fixed operating expenditure increased by 13.0%. Operating margins increased to 30.1% (FY2024: 29.9%).

UK & Other Wealth & Investment

The all-share combination of IW&I UK and Rathbones successfully completed at the end of 1H2024, creating a discretionary wealth manager with £104.1 billion FUMA at 31 March 2025.

In the current financial year the Group has equity accounted £69.1 million (FY2024: £66.9 million) being the Group's 41.25% share of Rathbones post-tax underlying profit attributable to shareholders for their year ended 31 December 2024 of £167.6 million.

Rathbones reported underlying operating margin of 25.4% for the year to 31 December 2024 (31 December 2023: 22.3%), showing progress towards the target of a 30%+ margin.

Rathbones reported cost and revenue synergies well ahead of the first year £15 million target, with run-rate synergy realisation of £30.1 million reported at 31 December 2024.

We remain confident that the combination will deliver scale and efficiency to power future long-term growth.

Group Investments

Group Investments includes the holding in Ninety One held by the UK, as well as Bud Group Holdings, Burstone Group (formerly known as IPF) and other equity investments held in Southern Africa.

Totals and variances are presented in £'million which may result in rounding differences.

Adjusted operating profit from Group Investments increased to £18.6 million (FY2024: £14.4 million) driven by higher investment income on the fair value measurement of our shareholding, and higher dividend income from our investment in Burstone Group.

Further information

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

The maintenance and integrity of the Investec website are the responsibility of the directors. The statutory auditors did not carry out a review of the analyst booklets or any other financial information that is published on the website.

On behalf of the Boards of Investec plc and Investec Limited.

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 from a shareholder perspective, in which the economic and voting rights of ordinary shareholders of the companies are maintained in equilibrium relative to each other. Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross-guarantees between the companies. 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 results reflect the results and financial position of the combined DLC Group under UK adopted IFRS® Accounting Standards which comply with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB) and the (EC) No. 1606/2022 as it applies in the European Union, 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 2025 have 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 2024.

Amounts represented on a neutral currency basis for income statement items assume that the relevant average exchange rates for the year ended 31 March 2025 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 as at 31 March 2025 remain the same as those at 31 March 2024.

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.

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, US Dollars and Indian Rupee. 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:

Profit Forecast

Revenue momentum is expected to be underpinned by book growth, stronger client activity levels and continued success in our client acquisition and entrenchment strategies.

The Group currently expects:

•   Group ROE to be c.14.0%. Investec Limited is expected to report ROE of c.18.5%, and Investec plc is expected to report ROTE of c.14.0%

•   Overall costs to be well managed in the context of inflationary pressures and continued investment in the business, with cost to income ratio expected to be between 52.0% and 54.0%

•   The credit loss ratio to be within the through-the-cycle (TTC) range of 25bps to 45bps. Investec Limited is expected to be close to the lower end of the TTC range of 15bps to 35bps. Investec plc credit loss ratio is expected to be in line with FY2025 between 50bps and 60bps range.

The Group has maintained strong capital and liquidity levels and is well positioned to continue supporting our clients and build to scale our identified growth opportunities, in an improving economic environment.

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 21 May 2025.

This forward-looking statement represents a profit forecast under the Listing Rules of the UK's Financial Conduct Authority. The Profit Forecast relates to the year ending 31 March 2026.

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 2024 audited annual financial statements, which are in accordance with UK adopted international accounting standards and IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB).

At 31 March 2025, UK adopted IFRS Accounting Standards are identical in all material respects to current IFRS applicable to the Group, with differences only in the effective dates of certain standards.

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, Euro/Pound, INR/Pound 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.

•   There have been no material changes to the Group's principal risks as disclosed on pages 8 to 26 of the Investec Group Risk and Governance report for the year ended 31 March 2024.

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 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, the underlying model assumptions and economic scenarios all which are judgmental in nature

•   Valuation of investment properties is performed by capitalising the budgeted 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

•   The estimates relating to dividends tax arbitrage and motor finance provisions remain materially unchanged.

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 IFRS® Accounting Standards and 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 2025, 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 2025 are consistent with those in the audited financial statements for year ended 31 March 2024.

The financial results have been prepared under the supervision of Nishlan Samujh, the Group Finance Director. The financial statements for the year ended 31 March 2025 will be 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 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 future results, performance or achievements in the markets in which it operates to differ from those expressed or implied

•   Any forward-looking statements made are based on the knowledge of the Group at 21 May 2025

•   The information in the Group's announcement for the year ended 31 March 2025, which was approved by the Board of Directors on 21 May 2025, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2024 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 pro-forma profit before tax, adjusted to remove goodwill, acquired intangibles and strategic actions including such items within equity accounted earnings, and 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

•   Adjusted earnings attributable to shareholders refers to earnings attributable to shareholders adjusted to remove goodwill, acquired intangible assets, strategic actions, including such items within equity accounted earnings 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 an earnings measure required to be calculated and disclosed by the JSE and is calculated in accordance with the guidance provided in Circular 1/2023

•   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

•   Revenue refers to operating income as found on the face of the condensed combined consolidated income statement

•   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

•   Cash and near cash includes cash, near cash (other 'monetisable assets' which largely include short-dated trading assets) and central bank cash placements and guaranteed liquidity

•   NCI is non-controlling interests.

Financial assistance

Shareholders are referred to Special Resolution number 3, which was approved at the annual general meeting held on 8 August 2024, 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 2024 to 31 March 2025 to various Group subsidiaries.

Exchange rate impact on statutory results

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 1.2% against the comparative 31 March 2024, and the closing rate has appreciated by 0.9% since 31 March 2024. The following tables provide an analysis of the impact of the Rand on our reported numbers.

^        For income statement items we have used the average Rand: Pound Sterling exchange rate that was applied in the prior year, i.e. 23.54.

^^      For balance sheet items we have assumed that the Rand: Pound Sterling closing exchange rate has remained neutral since 31 March 2024.

*        Restated refer to page 28.

Condensed combined consolidated income statement

^          Restated refer to page 28.

*          Included in trading income arising from customer flow is income of £283.3 million (2024: £241.4 million) and interest expense of £152.8 million (2024: £109.7 million).

**        Refer to discontinued operations disclosure on page 25.

Earnings per share