We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Investec Plc | LSE:INVP | London | Ordinary Share | GB00B17BBQ50 | ORD GBP0.0002 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 8.50 | 1.69% | 510.00 | 507.50 | 509.00 | 510.00 | 502.00 | 509.00 | 839,312 | 16:35:23 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Commercial Banks, Nec | 1.3B | 292.79M | 0.3267 | 15.56 | 4.56B |
From Apr 2019 to Apr 2024
TIDMINVP
RNS Number : 3488O
Investec PLC
17 May 2018
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year ended 31 March 2018
Hot Features
Premium
This announcement covers the results of the Investec group for the year
ended 31 March 2018.
Basis of presentation
Statutory basis
Statutory information is set out in a separate section in this announcement.
In order to present a more meaningful view of the group's performance
the results continue to be presented on an ongoing basis as explained
further below.
Ongoing basis
The results presented on an ongoing basis exclude items that in management's
view could distort the comparison of performance between periods. Based
on this principle, the remaining legacy business in the UK continues
to be excluded from underlying profit.
This basis of presentation is consistent with the approach adopted for
the prior year ended 31 March 2017. A reconciliation between the statutory
and ongoing income statement is provided.
Unless the context indicates otherwise, all comparatives included in
the commentary relate to the year ended 31 March 2017. Group results
have benefited from a 6.6% appreciation of the average Rand: Pound Sterling
exchange rate over the year. Amounts represented on a currency neutral
basis for income statement items assume that the relevant average exchange
rates for the year to 31 March 2018 remain the same as those in the
prior year. Amounts represented on a currency neutral basis for balance
sheet items assume that the relevant closing exchange rates at 31 March
2018 remain the same as those at 31 March 2017.
Overview of results
Solid client activity levels supporting underlying performance
* The group's asset and wealth management businesses
have generated substantial net inflows of GBP7.3
billion, which together with favourable market levels
has supported higher average funds under management
* The banking businesses have benefited from sound
levels of corporate and private client activity
driving strong loan book growth over the year
* The group has continued to invest into the business,
positioning itself for further growth across its
client franchise businesses and ensuring that it
remains competitive and relevant in the markets in
which it operates
* Impairments on the legacy portfolio have increased in
anticipation of accelerated exits of certain assets
in line with the group's strategy of managing down
this portfolio
* Taking into account the above mentioned factors, the
group has achieved satisfactory operating performance
against a challenging backdrop in its two core
geographies, underpinned by sound growth in key
earnings drivers and a solid recurring income base.
Statutory operating profit salient features
* Statutory operating profit before goodwill, acquired
intangibles, non-operating items and taxation and
after other non-controlling interests ("operating
profit") increased 1.4% to GBP607.5 million (2017:
GBP599.1 million) - a decrease of 3.5% on a currency
neutral basis.
* The effective tax rate amounted to 9.6% (2017: 18.5%)
mainly impacted by the lower rate in South Africa
following the release of provisions no longer
required.
* Statutory adjusted earnings per share (EPS) before
goodwill, acquired intangibles and non-operating
items increased 10.1% from 48.3 pence to 53.2 pence -
an increase of 4.1% on a currency neutral basis.
Satisfactory performance from the ongoing business
* Ongoing operating profit increased 5.6% to GBP701.0
million (2017: GBP663.7 million) - an increase of
1.2% on a currency neutral basis.
* Ongoing adjusted EPS before goodwill, acquired
intangibles and non-operating items increased 13.3%
from 54.1 pence to 61.3 pence - an increase of 8.1%
on a currency neutral basis.
* Annuity income as a percentage of total operating
income amounted to 76.3% (2017: 72.0%).
* The credit loss charge as a percentage of average
gross core loans and advances amounted to 0.26%
(2017: 0.29%), remaining at the lower end of the
group's long term range despite an increase in
impairments.
* Third party assets under management increased 6.5% to
GBP160.6 billion (31 March 2017: GBP150.7 billion) -
an increase of 6.2% on a currency neutral basis.
* Customer accounts (deposits) increased 6.5% to
GBP31.0 billion (31 March 2017: GBP29.1 billion) - an
increase of 5.9% on a currency neutral basis.
* Core loans and advances increased 11.6% to GBP24.8
billion (31 March 2017: GBP22.2 billion) - an
increase of 11.0% on a currency neutral basis.
The UK legacy portfolio continues to be actively managed down
* The legacy portfolio reduced from GBP476 million at
31 March 2017 to GBP313 million through asset sales,
redemptions and write-offs.
* The legacy business reported a loss before taxation
of GBP93.5 million (2017: GBP64.6 million) reflecting
an increase in impairments for accelerated exits
anticipated to occur on certain legacy assets.
Maintained a sound balance sheet
* Capital remained in excess of current regulatory
requirements. The group is comfortable with its
common equity tier 1 ratio target at a 10% level, as
its current leverage ratios for both Investec Limited
and Investec plc are above 7%. Both Investec Limited
and Investec plc reported a common equity tier 1
ratio ahead of this target.
* Liquidity remained strong with cash and near cash
balances amounting to GBP12.8 billion.
Dividend increase of 4.3%
* The board proposes a final dividend of 13.5 pence per
ordinary share equating to a full year dividend of
24.0 pence (2017: 23.0 pence) resulting in a dividend
cover based on the group's adjusted EPS before
goodwill and non-operating items of 2.2 times (2017:
2.1 times), consistent with the group's dividend
policy. The dividend increase of 4.3% is in line with
the currency neutral increase in adjusted earnings
per share of 4.1%.
Stephen Koseff, Chief Executive Officer of Investec said:
"Operating performance during the year was underpinned by sound growth
in loans and funds under management and a solid recurring income base,
despite a challenging backdrop in South Africa and the UK. The Wealth
& Investment and Asset Management businesses generated substantial net
inflows, with Asset Management exceeding GBP100 billion of funds under
management for the first time. The Specialist Bank continued to see
good client acquisition in its core franchise businesses which we have
built and developed over a number of years. We have implemented an orderly
succession plan and feel confident that we are handing over a business
that is well placed to continue to grow both its market position and
profitability over the foreseeable future."
Bernard Kantor, Managing Director of Investec said:
"Over the last 40 years we have been building a platform that is capable
of being leveraged for further growth. Investec is now a meaningful
player across many business areas, both in the UK and South Africa,
and we believe the platform is robust, relevant and well positioned
for future value creation. We are confident that Hendrik du Toit and
Fani Titi, as joint chief executives from October, will lead Investec
to new successes for the benefit of shareholders and all our stakeholders."
For further information please contact:
Investec +27 (0) 11 286 7070 or +44 (0) 20 7597 5546
Stephen Koseff, Chief Executive Officer
Bernard Kantor, Managing Director
Ursula Nobrega, Investor Relations (mobile:+27 (0) 82 552 8808)
Carly Newton, Investor Relations (+44 (0) 20 7597 4493)
Brunswick (SA PR advisers)
Marina Bidoli
Tel: +2711 502 7405 / +2783 253 0478
Newgate (UK PR advisers)
Jonathan Clare/Alistair Kellie/ Charlotte Coulson/Zoe Pocock
Tel: +44 (0)20 7680 6550
Presentation/conference call details
A presentation on the results will commence at 9:00 UK time/10:00 SA
time on 17 May 2018. Viewing options as below:
* Live on South African TV (Business Day TV channel 412
DSTV)
* A live and delayed video webcast at www.investec.com
* Toll free numbers for the telephone conference
facilities
* SA participants: 011 535 3500
* UK participants: 0 808 143 3720
* Rest of Europe and other participants: + 27 11 535
3500
* Australian participants: 0 280 152 168
* USA participants: 1 855 242 3083
About Investec
Investec is an international specialist bank and asset manager that
provides a diverse range of financial products and services to a select
client base in three principal markets - the UK and Europe, South Africa
and Asia/Australia as well as certain other countries. The group was
established in 1974 and currently has approximately 10 150 employees.
Investec focuses on delivering distinctive profitable solutions for
its clients in three core areas of activity namely, Asset Management,
Wealth & Investment and Specialist Banking.
In July 2002 the Investec group implemented a dual listed company structure
with listings on the London and Johannesburg Stock Exchanges. The combined
group's current market capitalisation is approximately GBP5.5 billion.
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year ended 31 March 2018
The commentary below largely focuses on the results of the ongoing business.
Overall group performance - ongoing basis
Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ("operating profit") increased 5.6% to GBP701.0 million (2017: GBP663.7 million) - an increase of 1.2% on a currency neutral basis.
The combined South African businesses reported operating profit 3.3% ahead of the prior period (in Rands), whilst the combined UK and Other businesses posted a 1.2% increase in operating profit in Pounds Sterling.
Business unit review - ongoing basis
Asset Management
Asset Management operating profit increased by 8.0% to GBP178.0 million (2017: GBP164.8 million) supported by higher average funds under management arising from strong net inflows of GBP5.4 billion and favourable market and currency movements. Earnings were negatively impacted by lower performance fees in South Africa. Total funds under management amounted to GBP103.9 billion (31 March 2017: GBP95.3 billion).
Wealth & Investment
Wealth & Investment operating profit increased by 5.7% to GBP98.6 million (2017: GBP93.2 million). The business benefited from higher average funds under management supported by higher equity market levels over the year and solid net inflows of GBP2.0 billion. Total funds under management amounted to GBP56.0 billion (31 March 2017: GBP54.8 billion).
Specialist Banking
Specialist Banking operating profit increased by 4.3% to GBP474.0 million (2017: GBP454.4 million).
The South African business reported an increase in operating profit in Rands of 6.9% supported by sound corporate and private client activity levels as well as an increase in associate earnings from the IEP Group. This was partially offset by lower investment income. Core loans and advances increased 8.7% to R256.7 billion (31 March 2017: R236.2 billion). The credit loss ratio on average core loans and advances amounted to 0.28%, remaining flat at the lower end of its long term average, despite the business reporting an increase in impairments.
The UK and Other businesses reported a 9.3% decrease in operating profit. Strong growth in net interest income was supported by loan book growth of 15.1% to GBP9.4 billion (31 March 2017: GBP8.1 billion) and a reduction in the cost of funding. This was offset by a decrease in non-interest revenue following particularly strong investment banking and client flow trading activity levels in the prior year. In line with the division's current investment strategy to support franchise growth, IT infrastructure costs and headcount increased, notably for the continued build out of the private client banking offering. Impairments increased marginally with the credit loss ratio amounting to 0.24% (2017: 0.27%).
Further information on key developments within each of the business units is provided in a detailed report published on the group's website: http://www.investec.com
Group costs
These largely relate to group brand and marketing costs and a portion of executive and support functions which are associated with group level activities. These costs are not incurred by the operating divisions and are necessary to support the operational functioning of the group. These costs amounted to GBP49.6 million (2017: GBP48.8 million).
Financial statement analysis - ongoing basis
Total operating income
Total operating income before impairment losses on loans and advances increased by 6.9% to GBP2,442.8 million (2017: GBP2,285.9 million).
Net interest income increased by 11.7% to GBP760.1 million (2017: GBP680.5 million) driven by robust levels of lending activity across the banking businesses and further supported by a reduction in the UK's cost of funding. This was slightly offset by the roll off of higher yielding debt securities and increased subordinated debt in South Africa.
Net fee and commission income increased by 7.0% to GBP1,361.2 million (2017: GBP1,271.6 million) supported by higher average funds under management and strong net inflows in the Asset Management and Wealth Management businesses, as well as a good performance from the South African banking businesses.
Investment income reduced by 4.4% to GBP129.7 million (2017: GBP135.6 million) as a result of a weaker performance from the unlisted investment portfolio in South Africa as well as certain of the group's listed investments.
Share of post taxation profit of associates of GBP46.8 million (2017: GBP18.9 million) primarily reflects earnings in relation to the group's investment in the IEP Group.
Trading income arising from customer flow decreased by 12.5% to GBP138.2 million (2017: GBP158.0 million) as a consequence of lower volatility, relative to the elevated levels experienced in the prior year following the Brexit vote, as well as losses incurred in South Africa on Steinhoff (refer to additional information). Trading income from other trading activities reflected a loss of GBP4.3 million (2017: GBP8.1 million income) predominantly impacted by currency volatility over the year.
Impairment losses on loans and advances
Impairments on loans and advances increased from GBP57.1 million to GBP63.9 million; however, the group's credit loss ratio reduced to 0.26% (2017: 0.29%), remaining at the lower end of its long term average. Since 31 March 2017 gross defaults have increased to GBP329.3 million (2017: GBP249.8 million) largely due to a few specific defaults in the UK banking business. The percentage of default loans (net of impairments but before taking collateral into account) to core loans and advances amounted to 0.82% (31 March 2017: 0.69%).
Operating costs
The ratio of total operating costs to total operating income amounted to 66.5% (2017: 65.8%). Total operating costs grew by 8.0% to GBP1,623.2 million (2017: GBP1,502.6 million) reflecting continued investment into IT and digital initiatives and higher headcount across divisions to support increased activity and growth strategies; notably the build out of the UK private client offerings. Cost growth in South Africa was somewhat offset by the pending acquisition of the South African head office building and the related rental provision no longer required.
Taxation
The effective tax rate amounted to 9.6% (2017: 18.5%) mainly impacted by the lower rate in South Africa following the release of provisions no longer required.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly comprises:
-- GBP23.8 million profit attributable to non-controlling interests in the Asset Management business.
-- GBP52.6 million profit attributable to non-controlling interests in the Investec Property Fund Limited.
Balance sheet analysis
Since 31 March 2017:
-- Total shareholders' equity (including non-controlling interests) increased by 12.9% to GBP5.4 billion largely due to an increase in retained earnings and the issuance of Additional Tier 1 securities during the year.
-- Net asset value per share increased 5.0% to 452.5 pence and net tangible asset value per share (which excludes goodwill and intangible assets) increased by 6.5% to 401.5 pence.
-- The return on adjusted average shareholders' equity decreased from 12.5% to 12.1%.
-- The return on adjusted average shareholders' equity of the ongoing business decreased from 14.2% to 14.1%.
Liquidity and funding
As at 31 March 2018 the group held GBP12.8 billion in cash and near cash balances (GBP5.8 billion in Investec plc and R116.5 billion in Investec Limited) which amounted to 41.4% of customer deposits. Loans and advances to customers as a percentage of customer deposits amounted to 79.6% (31 March 2017: 76.2%). The cost of funding in the UK has been successfully managed down over the year. The group will continue to focus on maintaining an optimal overall liquidity and funding profile. The group comfortably exceeds Basel liquidity requirements for the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Investec Bank Limited (solo basis) ended the period to 31 March 2018 with the three-month average of its LCR at 133.9% and an NSFR of 108.4%. Further detail with respect to the bank's LCR and NSFR in South Africa is provided on the website. For Investec plc and Investec Bank plc (solo basis) the LCR is calculated using our own interpretations of the EU Delegated Act. The LCR reported to the PRA at 31 March 2018 was 306% for Investec plc and 301% for Investec Bank plc (solo basis). Ahead of the implementation of the final NSFR rules, the group has
applied its own interpretations of regulatory guidance and definitions from the BCBS final guidelines to calculate the NSFR which was 142% for Investec plc and 133% for Investec Bank plc (solo basis). The reported NSFR and LCR may change over time with regulatory developments and guidance.
Capital adequacy and leverage ratios
The group is targeting a minimum common equity tier 1 capital ratio above 10% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc and Investec Limited respectively. The group's anticipated fully loaded Basel III common equity tier 1 capital adequacy ratios in both Investec plc and Investec Limited are reflected in the table below.
31 March 31 March
2018 2017
Investec plc^
-------- --------
Capital adequacy ratio 15.4% 15.1%
-------- --------
Tier 1 ratio 12.9% 11.5%
-------- --------
Common equity tier 1 ratio 11.0% 11.3%
-------- --------
Common equity tier 1 ratio (anticipated Basel III 'fully loaded'*) 11.0% 11.3%
-------- --------
Leverage ratio (current) 8.5% 7.8%
-------- --------
Leverage ratio (anticipated Basel III 'fully loaded'*) 8.4% 7.7%
-------- --------
Investec Limited**
-------- --------
Capital adequacy ratio 14.6% 14.1%
-------- --------
Tier 1 ratio 11.0% 10.7%
-------- --------
Common equity tier 1 ratio 10.2% 9.9%
-------- --------
Common equity tier 1 ratio (anticipated Basel III 'fully loaded'*) 10.2% 9.9%
-------- --------
Leverage ratio (current) 7.5% 7.3%
-------- --------
Leverage ratio (anticipated Basel III 'fully loaded'*) 7.1% 6.8%
-------- --------
^The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent basis of calculation across the jurisdictions in which the group operates. For Investec plc this does not include the deduction of foreseeable charges and dividends when calculating common equity tier 1 (CET1) capital as required under the Capital Requirements Regulation and European Banking Authority technical standards. The impact of this deduction totalling GBP65 million for Investec plc would lower the CET1 ratio by 45bps (31 March 2017: 45bps).
*The key difference between the 'reported' basis at 31 March 2018 and the 'fully loaded' basis is primarily relating to capital instruments that previously qualified as regulatory capital, but do not fully qualify under the CRD IV rules/ SARB regulations. These instruments continue to be recognised on a reducing basis in the 'reported' figures until 2022.
**Investec Limited's capital information includes unappropriated profits. If unappropriated profits are excluded from the capital information, Investec Limited's common equity tier 1 ratio would be 25bps (31 March 2017: 24bps) lower.
Legacy business - overview of results
Since 31 March 2017 the group's legacy portfolio in the UK has continued to be actively managed down from GBP476 million to GBP313 million through asset sales, redemptions and write-offs. The legacy business reported a loss before taxation of GBP93.5 million (2017: GBP64.6 million) reflecting an increase in impairments for accelerated exits anticipated to occur on certain legacy assets. Total net defaults in the legacy book amounted to GBP90 million (31 March 2017: GBP125 million).
Additional information - Investec exposures to the Steinhoff Group of companies
On 11 December 2017 the group released an announcement on the Johannesburg Stock Exchange in relation to its exposures to Steinhoff International Holdings NV (Steinhoff), its subsidiaries and related entities. Trading and investment losses incurred in respect of these exposures amounted to R220 million (approximately GBP13 million) in the current financial year, less than the estimate referred to in the December announcement. As noted in that announcement Investec has credit exposures largely to Steinhoff Africa Holdings (Pty) Ltd subsidiaries and Steinhoff Africa Retail Ltd, which represent a small portion of the group's balance sheet. Based on the information currently available to the group, Investec is not expecting to suffer any losses on these exposures.
Outlook
The group has achieved a satisfactory operating performance, supported by sound growth in key earnings drivers, solid levels of client activity and a robust recurring income base.
Whilst the complexities of Brexit continue to cause uncertainty in the UK economy, the final quarter of the 2018 financial year has started to see an uplift in the South African economic outlook.
The group's continued investment in infrastructure, digital platforms and people means it is well positioned for future growth.
Investec remains committed to delivering shareholder value and has the right people and skills to take advantage of opportunities in its core markets, whilst providing exceptional service to our clients.
On behalf of the boards of Investec plc and Investec Limited
Perry Crosthwaite Stephen Koseff Bernard Kantor
Chairman Chief Executive Managing Director
Officer
---------------- ------------------
16 May 2018
Notes to the commentary section above
-- Presentation of financial information
Investec operates under a Dual Listed Companies (DLC) structure with primary listings of Investec plc on the London Stock Exchange and Investec Limited on the JSE Limited.
In terms of the contracts constituting the DLC structure, Investec plc and Investec Limited effectively form a single economic enterprise in which the economic and voting rights of ordinary shareholders of the companies are maintained in equilibrium relative to each other. The directors of the two companies consider that for financial reporting purposes, the fairest presentation is achieved by combining the results and financial position of both companies.
Accordingly, the year-end results for Investec plc and Investec Limited present the results and financial position of the combined DLC group under International Financial Reporting Standards (IFRS), denominated in Pounds Sterling. In the commentary above, all references to Investec or the group relate to the combined DLC group comprising Investec plc and Investec Limited.
-- Foreign currency impact
The group's reporting currency is Pounds Sterling. Certain of the group's operations are conducted by entities outside the UK. The results of operations and the financial position of the individual companies are reported in the local currencies in which they are domiciled, including Rands, Australian Dollars, Euros and US Dollars. These results are then translated into Pounds Sterling at the applicable foreign currency exchange rates for inclusion in the group's combined consolidated financial statements. In the case of the income statement, the weighted average rate for the relevant period is applied and, in the case of the balance sheet, the relevant closing rate is used.
The following table sets out the movements in certain relevant exchange rates against Pounds Sterling over the period:
Year to Year to
31 March 2018 31 March 2017
Period Period
Currency per GBP1.00 end Average end Average
------- ------- ------- -------
South African Rand 16.62 17.21 16.77 18.42
------- ------- ------- -------
Australian Dollar 1.83 1.72 1.64 1.75
------- ------- ------- -------
Euro 1.14 1.14 1.17 1.19
------- ------- ------- -------
US Dollar 1.40 1.33 1.25 1.31
------- ------- ------- -------
Exchange rates between local currencies and Pounds Sterling have fluctuated over the year. The most significant impact arises from the volatility of the Rand. The average exchange rate over the period has appreciated by 6.6% and the closing rate has appreciated by 0.9% since 31 March 2017.
-- Accounting policies and disclosures
These unaudited summarised combined consolidated financial results have been prepared in terms of the recognition and measurement criteria of International Financial Reporting Standards, and the presentation and disclosure requirements of IAS 34, (Interim Financial Reporting).
The accounting policies applied in the preparation of the results for the year ended 31 March 2018 are consistent with those adopted in the financial statements for the year ended 31 March 2017.
Standards and interpretations issued but not yet effective
The following significant standards and interpretations, which have been issued but are not yet effective for the current financial year, are applicable to the group.
IFRS 9 Financial Instruments
IFRS 9 is effective and will be implemented by the group from 1 April 2018. The group will provide its detailed transitional disclosures when it publishes its annual report for the year ended 31 March 2018 on 29 June 2018.
IFRS 9 replaces IAS 39 and sets out the new requirements for the recognition and measurement of financial instruments. These requirements focus primarily on the classification and measurement of financial instruments and measurement of impairment losses based on an expected credit loss (ECL) model.
Investec plc and Investec Limited apply the Standardised approach when calculating capital requirements. The impact of IFRS 9 on Investec plc's and Investec Limited's common equity tier 1 (CET 1) ratios is potentially more significant when compared to Internal Ratings Based approach banks, who already deduct from CET 1 capital any excess expected losses over impairment allowances.
Subject to finalisation, the adoption of IFRS 9 is expected to result in the following estimated impact for Investec plc and Investec Limited, respectively.
Investec plc
Balance sheet impairment allowance and provisions
Total balance sheet impairment allowance and provisions are expected to increase by approximately GBP106 million from GBP158 million as at 31 March 2018 to approximately GBP264 million as at 1 April 2018. This is driven by an increase in legacy impairments of approximately GBP57 million and an increase in ongoing impairments of approximately GBP70 million, partially offset by a reduction of approximately GBP21 million as a result of changes in classification and measurement of certain of the group's financial assets to fair value. The increase in impairment allowance and provisions is expected to reduce the CET 1 ratio by approximately 66bps on a fully loaded basis, or approximately 3bps on a day one impact transitional basis.
Changes in classification and measurement of certain financial assets
In addition, changes in classification and measurement to fair value of certain of the group's other financial assets is expected to result in a decrease to equity of approximately GBP11 million (post taxation), with an approximate 7bps impact on the CET 1 ratio.
Reclassification of subordinated liabilities to fair value
As a result of the adoption of IFRS 9 Investec plc has elected to designate its subordinated liabilities to fair value. The interest rate portion of the subordinated debt is expected to reduce equity by approximately GBP48 million (post taxation) with an approximate 37bps impact on the day one transitional CET 1 ratio which will come back into retained earnings over the duration of the remaining term of the instrument (maturing February 2022). In addition, an amount of approximately GBP55 million (post taxation) has been transferred to an own credit reserve which does not have an impact on capital ratios.
Taken together, the adoption of IFRS 9 is expected to result in a decrease in Investec plc's transitional CET 1 ratio of approximately 47bps from 11.0% to approximately 10.5%, ahead of the group's target and in excess of minimum regulatory requirements. Investec plc confirmed to the PRA that it will use the transitional arrangements to absorb the full impact permissible of IFRS 9 in regulatory capital calculations.
Investec Limited
Balance sheet impairment allowance and provisions
Total balance sheet impairment allowance and provisions are expected to increase by approximately R657 million from R1.5 billion as at 31 March 2018 to approximately R2.2 billion as at 1 April 2018. This is driven by an increase in stage 1, stage 2, and stage 3 impairments of approximately R811 million, partially offset by a reduction of approximately R154 million as a result of the changes in classification and measurement of certain of the group's financial assets to fair value. The increase in impairment allowance and provisions is expected to reduce the CET 1 ratio by approximately 15bps on a fully loaded basis, or approximately 4bps on a day one impact transitional basis.
Changes in classification and measurement of certain financial assets
In addition, changes in classification and measurement of certain of the group's other financial assets is expected to result in a decrease to equity of approximately R419 million (post taxation), with an approximate 16bps impact on the CET 1 ratio.
Taken together, the adoption of IFRS 9 is expected to result in a decrease in Investec Limited's transitional CET 1 ratio of approximately 20bps from 10.2% to approximately 10.0%, in line with the group's target and in excess of minimum regulatory requirements. Investec Limited confirmed to the SARB that it will use the transitional arrangements to absorb the full impact permissible of IFRS 9 in regulatory capital calculations.
IFRS 15 Revenue from contracts with customers
IFRS 15 is effective for annual periods beginning on or after 1 January 2018 and will be implemented by the group from 1 April 2018. IFRS 15 provides a principles-based approach for revenue recognition and introduces the concept of recognising revenue for obligations as they are satisfied. The group's current measurement and recognition principles are aligned to the standard and the group does not expect an impact to measurement principles currently applied. The impact of the disclosure requirements of the standard is currently being assessed.
The financial results have been prepared under the supervision of Glynn Burger, the Group Risk and Finance Director. The financial statements for the year ended 31 March 2018 will be posted to stakeholders on 29 June 2018. These accounts will be available on the group's website on the same date.
-- Proviso
-- Please note that matters discussed in this announcement may contain forward looking statements which are subject to various risks and uncertainties and other factors, including, but not limited to:
- the further development of standards and interpretations under IFRS applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS.
- domestic and global economic and business conditions. - market related risks.
-- A number of these factors are beyond the group's control.
-- These factors may cause the group's actual future results, performance or achievements in the markets in which it operates to differ from those expressed or implied.
-- Any forward looking statements made are based on the knowledge of the group at 16 May 2018.
-- The information in the announcement for the year ended 31 March 2018, which was approved by the board of directors on 16 May 2018, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2017 financial statements were filed with the registrar and were unqualified with the audit report containing no statements in respect of sections 498(2) or 498(3) of the UK Companies Act.
-- This announcement is available on the group's website: www.investec.com
Financial assistance
Shareholders are referred to the Special Resolution number 3, which was approved at the annual general meeting held on 10 August 2017, relating to the provision of direct or indirect financial assistance in terms of Section 45 of the South African Companies Act, No 71 of 2008 to related or inter-related companies. Shareholders are hereby notified that in terms of S45(5)(a) of the South African Companies Act, the board of directors of Investec Limited provided such financial assistance during the period 1 October 2017 to 31 March 2018.
Johannesburg and London
Sponsor: Investec Bank Limited
Ongoing financial information
Consolidated summarised ongoing income statement
For the year to 31 March 31 March
GBP'000 2018 2017
Net interest income 760 101 680 539
------------ ------------
Net fee and commission income 1 361 214 1 271 591
------------ ------------
Investment income 129 722 135 631
------------ ------------
Share of post taxation profit of associates 46 823 18 890
------------ ------------
Trading income/(loss) arising from
------------ ------------
- customer flow 138 244 158 006
------------ ------------
- balance sheet management and other trading activities (4 326) 8 078
------------ ------------
Other operating income 11 038 13 158
------------ ------------
Total operating income before impairment losses on loans and advances 2 442 816 2 285 893
------------ ------------
Impairment losses on loans and advances (63 890) (57 149)
------------ ------------
Operating income 2 378 926 2 228 744
------------ ------------
Operating costs (1 623 210) (1 502 623)
------------ ------------
Depreciation on operating leased assets (2 421) (2 169)
------------ ------------
Operating profit 753 295 723 952
------------ ------------
Profit attributable to other non-controlling interests (52 288) (60 239)
------------ ------------
Profit attributable to Asset Management non-controlling interests (23 817) (20 291)
------------ ------------
Operating profit before taxation 677 190 643 422
------------ ------------
Taxation (77 448) (130 438)
------------ ------------
Preference dividends accrued (33 527) (25 838)
------------ ------------
Adjusted earnings 566 215 487 146
------------ ------------
Adjusted earnings per share (pence) 61.3 54.1
------------ ------------
Number of weighted average shares (million) 923.5 900.4
------------ ------------
Cost to income ratio 66.5% 65.8%
------------ ------------
Combined consolidated ongoing segmental analysis
Segmental geographical and business analysis of operating profit before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests - ongoing business
For the year to 31 March 2018 UK and Southern Total
GBP'000 Other Africa group
Asset Management 103 918 74 127 178 045
-------- --------- ---------
Wealth & Investment 69 269 29 296 98 565
-------- --------- ---------
Specialist Banking 153 460 320 535 473 995
-------- --------- ---------
326 647 423 958 750 605
-------- --------- ---------
Group costs (33 789) (15 809) (49 598)
-------- --------- ---------
Total group 292 858 408 149 701 007
-------- --------- ---------
Other non-controlling interest - equity 52 288
-------- --------- ---------
Operating profit 753 295
-------- --------- ---------
For the year to 31 March 2017 UK and Southern Total
GBP'000 Other Africa group
Asset Management 91 262 73 562 164 824
--------- --------- ---------
Wealth & Investment 65 190 28 053 93 243
--------- --------- ---------
Specialist Banking 169 196 285 226 454 422
--------- --------- ---------
325 648 386 841 712 489
--------- --------- ---------
Group costs (36 163) (12 613) (48 776)
--------- --------- ---------
Total group 289 485 374 228 663 713
--------- --------- ---------
Other non-controlling interest - equity 60 239
--------- --------- ---------
Operating profit 723 952
--------- --------- ---------
Reconciliation from statutory summarised income statement to ongoing summarised income statement
Statutory
For the year to 31 March 2018 as UK legacy Ongoing
GBP'000 disclosed business business
Net interest income 760 398 297 760 101
------------ --------- ------------
Net fee and commission income/(expense) 1 361 207 (7) 1 361 214
------------ --------- ------------
Investment income 130 048 326 129 722
------------ --------- ------------
Share of post taxation profit of associates 46 823 - 46 823
------------ --------- ------------
Trading income/(loss) arising from
------------ --------- ------------
- customer flow 138 226 (18) 138 244
------------ --------- ------------
- balance sheet management and other trading activities (4 307) 19 (4 326)
------------ --------- ------------
Other operating income 11 115 77 11 038
------------ --------- ------------
Total operating income before impairment losses on loans and advances 2 443 510 694 2 442 816
------------ --------- ------------
Impairment losses on loans and advances (148 556) (84 666) (63 890)
------------ --------- ------------
Operating income/(loss) 2 294 954 (83 972) 2 378 926
------------ --------- ------------
Operating costs (1 632 740) (9 530) (1 623 210)
------------ --------- ------------
Depreciation on operating leased assets (2 421) - (2 421)
------------ --------- ------------
Operating profit/(loss) 659 793 (93 502) 753 295
------------ --------- ------------
Profit attributable to other non-controlling interests (52 288) - (52 288)
------------ --------- ------------
Profit attributable to Asset Management non-controlling interests (23 817) - (23 817)
------------ --------- ------------
Operating profit/(loss) before taxation 583 688 (93 502) 677 190
------------ --------- ------------
Taxation (59 099) 18 349* (77 448)
------------ --------- ------------
Preference dividends accrued (33 527) - (33 527)
------------ --------- ------------
Adjusted earnings 491 062 (75 153) 566 215
------------ --------- ------------
Adjusted earnings per share (pence) 53.2 61.3
------------ --------- ------------
Number of weighted average shares (million) 923.5 923.5
------------ --------- ------------
Cost to income ratio 66.9% 66.5%
------------ --------- ------------
* Applying the UK's effective taxation rate of 19.6%.
Statutory
For the year to 31 March 2017 as UK legacy Ongoing
GBP'000 disclosed business business
Net interest income/(expense) 679 895 (644) 680 539
------------ --------- ------------
Net fee and commission income/(expense) 1 271 524 (67) 1 271 591
------------ --------- ------------
Investment income 136 203 572 135 631
------------ --------- ------------
Share of post taxation profit of associates 18 890 - 18 890
------------ --------- ------------
Trading income/(loss) arising from
------------ --------- ------------
- customer flow 158 001 (5) 158 006
------------ --------- ------------
- balance sheet management and other trading activities 8 218 140 8 078
------------ --------- ------------
Other operating income 13 483 325 13 158
------------ --------- ------------
Total operating income before impairment losses on loans and advances 2 286 214 321 2 285 893
------------ --------- ------------
Impairment losses on loans and advances (111 454) (54 305) (57 149)
------------ --------- ------------
Operating income/(loss) 2 174 760 (53 984) 2 228 744
------------ --------- ------------
Operating costs (1 513 231) (10 608) (1 502 623)
------------ --------- ------------
Depreciation on operating leased assets (2 169) - (2 169)
------------ --------- ------------
Operating profit/(loss) 659 360 (64 592) 723 952
------------ --------- ------------
Profit attributable to other non-controlling interests (60 239) - (60 239)
------------ --------- ------------
Profit attributable to Asset Management non-controlling interests (20 291) - (20 291)
------------ --------- ------------
Operating profit/(loss) before taxation 578 830 (64 592) 643 422
------------ --------- ------------
Taxation (118 488) 11 950* (130 438)
------------ --------- ------------
Preference dividends accrued (25 838) - (25 838)
------------ --------- ------------
Adjusted earnings 434 504 (52 642) 487 146
------------ --------- ------------
Adjusted earnings per share (pence) 48.3 54.1
------------ --------- ------------
Number of weighted average shares (million) 900.4 900.4
------------ --------- ------------
Cost to income ratio 66.3% 65.8%
------------ --------- ------------
* Applying the group's effective taxation rate of 18.5%.
Statutory financial information
Salient financial features
Results in Pounds Sterling
Actual as Actual as Neutral
reported reported Actual as currency^ Neutral
Year to Year to reported Year to currency
31 March 31 March % 31 March %
2018 2017 change 2018 change
--------- --------- --------- ---------- ---------
Operating profit before taxation* (million) 608 599 1.4% 578 (3.5%)
--------- --------- --------- ---------- ---------
Earnings attributable to shareholders (million) 506 442 14.3% 478 8.1%
--------- --------- --------- ---------- ---------
Adjusted earnings attributable to shareholders** (million) 491 435 13.0% 465 6.9%
--------- --------- --------- ---------- ---------
Adjusted earnings per share** 53.2p 48.3p 10.1% 50.3p 4.1%
--------- --------- --------- ---------- ---------
Basic earnings per share 51.2p 50.8p 0.8% 48.4p (4.7%)
--------- --------- --------- ---------- ---------
Dividends per share 24.0p 23.0p 4.3% n/a n/a
--------- --------- --------- ---------- ---------
* Before goodwill, acquired intangibles, non-operating items and after
other non-controlling interests.
** Before goodwill, acquired intangibles, non-operating items and after
non-controlling interests.
------------------------------------------------------------------------
^ For income statement items we have used the average Rand: Pounds
Sterling exchange rate that was applied in the prior year, i.e. 18.42.
------------------------------------------------------------------------
Results in Pounds Sterling
Actual as Actual as Neutral
reported reported Actual as currency^^ Neutral
Year to At reported At currency
31 March 31 March % 31 March %
2018 2017 change 2018 change
--------- --------- --------- ----------- ---------
Net asset value per share 452.5p 431.0p 5.0% 454.0p 5.3%
--------- --------- --------- ----------- ---------
Net tangible asset value per share 401.5p 377.0p 6.5% 403.0p 6.9%
--------- --------- --------- ----------- ---------
Total equity (million) 5 428 4 809 12.9% 5 403 12.4%
--------- --------- --------- ----------- ---------
Total assets (million) 57 617 53 535 7.6% 57 288 7.0%
--------- --------- --------- ----------- ---------
Core loans and advances (million) 25 132 22 707 10.7% 24 995 10.1%
--------- --------- --------- ----------- ---------
Cash and near cash balances (million) 12 825 12 038 6.5% 12 763 6.0%
--------- --------- --------- ----------- ---------
Customer deposits (million) 30 987 29 109 6.5% 30 815 5.9%
--------- --------- --------- ----------- ---------
Third party assets under management (million) 160 576 150 735 6.5% 160 138 6.2%
--------- --------- --------- ----------- ---------
Return on average adjusted shareholders' equity 12.1% 12.5%
--------- --------- --------- ----------- ---------
Return on average risk-weighted assets 1.45% 1.45%
--------- --------- --------- ----------- ---------
Defaults (net of impairments and before collateral) as a
percentage
of net core loans and advances to customers 1.17% 1.22%
--------- --------- --------- ----------- ---------
Loans and advances to customers as a percentage of customer
deposits 79.6% 76.2%
--------- --------- --------- ----------- ---------
Credit loss ratio (income statement impairment charge as a %
of average gross core loans and
advances) 0.61% 0.54%
--------- --------- --------- ----------- ---------
^^ For balance sheet items we have assumed that the Rand: Pounds Sterling
closing exchange rate has remained neutral since 31 March 2017.
Combined consolidated income statement
Year to Year to
31 March 31 March
GBP'000 2018 2017
Interest income 2 491 009 2 230 765
----------- -----------
Interest expense (1 730 611) (1 550 870)
----------- -----------
Net interest income 760 398 679 895
----------- -----------
Fee and commission income 1 543 447 1 429 588
----------- -----------
Fee and commission expense (182 240) (158 064)
----------- -----------
Investment income 130 048 136 203
----------- -----------
Share of post taxation profit of associates 46 823 18 890
----------- -----------
Trading income/(loss) arising from
----------- -----------
- customer flow 138 226 158 001
----------- -----------
- balance sheet management and other trading activities (4 307) 8 218
----------- -----------
Other operating income 11 115 13 483
----------- -----------
Total operating income before impairment losses on loans and advances 2 443 510 2 286 214
----------- -----------
Impairment losses on loans and advances (148 556) (111 454)
----------- -----------
Operating income 2 294 954 2 174 760
----------- -----------
Operating costs (1 632 740) (1 513 231)
----------- -----------
Depreciation on operating leased assets (2 421) (2 169)
----------- -----------
Operating profit before goodwill and acquired intangibles 659 793 659 360
----------- -----------
Impairment of goodwill - (4 749)
----------- -----------
Amortisation of acquired intangibles (16 255) (17 197)
----------- -----------
Operating profit 643 538 637 414
----------- -----------
Additional costs on acquisition of subsidiary (6 039) -
----------- -----------
Profit before taxation 637 499 637 414
----------- -----------
Taxation on operating profit before goodwill and acquired intangibles (59 099) (118 488)
----------- -----------
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries 3 253 4 070
----------- -----------
Profit after taxation 581 653 522 996
----------- -----------
Profit attributable to other non-controlling interests (52 288) (60 239)
----------- -----------
Profit attributable to Asset Management non-controlling interests (23 817) (20 291)
----------- -----------
Earnings attributable to shareholders 505 548 442 466
----------- -----------
Impairment of goodwill - 4 749
----------- -----------
Amortisation of acquired intangibles 16 255 17 197
----------- -----------
Additional costs on acquisition of subsidiary 6 039 -
----------- -----------
Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries (3 253) (4 070)
----------- -----------
Preference dividends paid (32 980) (25 658)
----------- -----------
Accrual adjustment on earnings attributable to other equity holders (547) (180)
----------- -----------
Adjusted earnings 491 062 434 504
----------- -----------
Earnings per share (pence)
----------- -----------
- Basic 51.2 50.8
----------- -----------
- Diluted 49.8 48.8
----------- -----------
Adjusted earnings per share (pence)
----------- -----------
- Basic 53.2 48.3
----------- -----------
- Diluted 51.7 46.4
----------- -----------
Dividends per share (pence)
----------- -----------
- Interim 10.5 10.0
----------- -----------
- Final 13.5 13.0
----------- -----------
Number of weighted average shares - (million) 923.5 900.4
----------- -----------
Summarised combined consolidated statement of comprehensive income
Year to Year to
31 March 31 March
GBP'000 2018 2017
Profit after taxation 581 653 522 996
--------- ----------
Other comprehensive income:
--------- ----------
Items that may be reclassified to the income statement
--------- ----------
Fair value movements on cash flow hedges taken directly to other comprehensive income* (5 746) 53 324
--------- ----------
Gains on realisation of available-for-sale assets recycled to the income statement* (6 676) (7 781)
--------- ----------
Fair value movements on available-for-sale assets taken directly to other comprehensive income* 20 051 54 863
--------- ----------
Foreign currency adjustments on translating foreign operations (25 300) 540 534
--------- ----------
Items that will never be reclassified to the income statement
--------- ----------
Re-measurement of net defined benefit pension asset 3 938 (43 580)
--------- ----------
Total comprehensive income 567 920 1 120 356
--------- ----------
Total comprehensive income attributable to ordinary shareholders 451 913 892 201
--------- ----------
Total comprehensive income attributable to non-controlling interests 83 027 202 497
--------- ----------
Total comprehensive income attributable to perpetual preferred securities 32 980 25 658
--------- ----------
Total comprehensive income 567 920 1 120 356
--------- ----------
* Net of taxation of GBP11.7 million (year to 31 March 2017: GBP16.8
million).
Summarised combined consolidated cash flow statement
Year to Year to
31 March 31 March
GBP'000 2018 2017
Cash inflows from operations 732 242 708 719
----------- ---------
Increase in operating assets (3 352 869) (445 528)
----------- ---------
Increase in operating liabilities 3 075 779 498 146
----------- ---------
Net cash inflow from operating activities 455 152 761 428
----------- ---------
Net cash outflow from investing activities (37 799) (59 615)
----------- ---------
Net cash inflow from financing activities 45 383 37 523
----------- ---------
Effects of exchange rate changes on cash and cash equivalents (54 085) 332 092
----------- ---------
Net increase in cash and cash equivalents 408 651 1 071 428
----------- ---------
Cash and cash equivalents at the beginning of the year 5 721 728 4 650 300
----------- ---------
Cash and cash equivalents at the end of the year 6 130 379 5 721 728
----------- ---------
Cash and cash equivalents is defined as including cash and balances at central banks, on demand loans and advances to banks and non-sovereign and non-bank cash placements (all of which have a maturity profile of less than three months).
Combined consolidated balance sheet
At At
31 March 31 March
GBP'000 2018 2017
Assets
---------- ----------
Cash and balances at central banks 4 040 512 3 351 702
---------- ----------
Loans and advances to banks 2 165 533 3 191 041
---------- ----------
Non-sovereign and non-bank cash placements 601 243 536 259
---------- ----------
Reverse repurchase agreements and cash collateral on securities borrowed 2 207 477 2 358 970
---------- ----------
Sovereign debt securities 4 910 027 3 804 627
---------- ----------
Bank debt securities 587 164 639 189
---------- ----------
Other debt securities 903 603 1 115 558
---------- ----------
Derivative financial instruments 1 352 408 1 185 848
---------- ----------
Securities arising from trading activities 1 434 391 1 376 668
---------- ----------
Investment portfolio 885 499 835 899
---------- ----------
Loans and advances to customers 24 673 009 22 189 975
---------- ----------
Own originated loans and advances to customers securitised 459 088 517 162
---------- ----------
Other loans and advances 347 809 355 248
---------- ----------
Other securitised assets 148 387 148 964
---------- ----------
Interests in associated undertakings 467 852 392 213
---------- ----------
Deferred taxation assets 157 321 133 972
---------- ----------
Other assets 1 876 116 1 900 480
---------- ----------
Property and equipment 233 340 105 939
---------- ----------
Investment properties 1 184 097 1 128 930
---------- ----------
Goodwill 368 803 367 579
---------- ----------
Intangible assets 125 389 143 261
---------- ----------
Non-current assets held for sale - 27 218
---------- ----------
49 129 068 45 806 702
---------- ----------
Other financial instruments at fair value through profit or loss in respect of liabilities
to customers 8 487 776 7 728 130
---------- ----------
57 616 844 53 534 832
---------- ----------
Liabilities
---------- ----------
Deposits by banks 2 931 267 2 736 066
---------- ----------
Derivative financial instruments 1 471 563 1 296 206
---------- ----------
Other trading liabilities 960 166 978 911
---------- ----------
Repurchase agreements and cash collateral on securities lent 655 840 690 615
---------- ----------
Customer accounts (deposits) 30 987 173 29 109 428
---------- ----------
Debt securities in issue 2 717 187 2 386 180
---------- ----------
Liabilities arising on securitisation of own originated loans and advances 136 812 90 125
---------- ----------
Liabilities arising on securitisation of other assets 127 853 128 838
---------- ----------
Current taxation liabilities 185 486 227 828
---------- ----------
Deferred taxation liabilities 32 158 40 408
---------- ----------
Other liabilities 2 012 268 1 910 830
---------- ----------
42 217 773 39 595 435
---------- ----------
Liabilities to customers under investment contracts 8 484 296 7 725 604
---------- ----------
Insurance liabilities, including unit-linked liabilities 3 480 2 526
---------- ----------
50 705 549 47 323 565
---------- ----------
Subordinated liabilities 1 482 987 1 402 638
---------- ----------
52 188 536 48 726 203
---------- ----------
Equity
---------- ----------
Ordinary share capital 240 237
---------- ----------
Perpetual preference share capital 31 31
---------- ----------
Share premium 2 416 736 2 341 228
---------- ----------
Treasury shares (160 132) (126 879)
---------- ----------
Other reserves (345 606) (310 275)
---------- ----------
Retained income 2 530 825 2 226 751
---------- ----------
Shareholders' equity excluding non-controlling interests 4 442 094 4 131 093
---------- ----------
Other Additional Tier 1 securities in issue 304 150 32 798
---------- ----------
Non-controlling interests 682 064 644 738
---------- ----------
- Perpetual preferred securities issued by subsidiaries 92 312 91 492
---------- ----------
- Non-controlling interests in partially held subsidiaries 589 752 553 246
---------- ----------
Total equity 5 428 308 4 808 629
---------- ----------
Total liabilities and equity 57 616 844 53 534 832
---------- ----------
Summarised combined consolidated statement of changes in equity
Year to Year to
31 March 31 March
GBP'000 2018 2017
Balance at the beginning of the year 4 808 629 3 859 307
--------- ---------
Total comprehensive income for the year 567 920 1 120 356
--------- ---------
Share-based payments adjustments 69 218 55 961
--------- ---------
Dividends paid to ordinary shareholders (227 908) (216 602)
--------- ---------
Dividends declared to perpetual preference shareholders and Other Additional Tier 1 security
holders (15 736) (15 279)
--------- ---------
Dividends paid to perpetual preference shareholders included in non-controlling interests
and Other Additional Tier 1 security holders (17 244) (10 379)
--------- ---------
Dividends paid to non-controlling interests (63 688) (48 195)
--------- ---------
Issue of ordinary shares 125 240 228 086
--------- ---------
Issue of Other Additional Tier 1 security instruments 271 058 -
--------- ---------
Redemption of perpetual preference shares - (81 743)
--------- ---------
Net equity impact of non-controlling interest movements 32 752 29 542
--------- ---------
Other equity movements - (80)
--------- ---------
Movement of treasury shares (121 933) (112 345)
--------- ---------
Balance at the end of the year 5 428 308 4 808 629
--------- ---------
Combined consolidated segmental analysis
Year to 31 March UK and Southern Total
GBP'000 Other Africa group
Segmental geographical and business analysis of operating profit before goodwill,
acquired
intangibles, non-operating items, taxation and after other non-controlling interests
-------- -------- --------
2018
-------- -------- --------
Asset Management 103 918 74 127 178 045
-------- -------- --------
Wealth & Investment 69 269 29 296 98 565
-------- -------- --------
Specialist Banking 59 958 320 535 380 493
-------- -------- --------
233 145 423 958 657 103
-------- -------- --------
Group costs (33 789) (15 809) (49 598)
-------- -------- --------
Total group 199 356 408 149 607 505
-------- -------- --------
Other non-controlling interest - equity 52 288
-------- -------- --------
Operating profit 659 793
-------- -------- --------
2017
-------- -------- --------
Asset Management 91 262 73 562 164 824
-------- -------- --------
Wealth & Investment 65 190 28 053 93 243
-------- -------- --------
Specialist Banking 104 604 285 226 389 830
-------- -------- --------
261 056 386 841 647 897
-------- -------- --------
Group costs (36 163) (12 613) (48 776)
-------- -------- --------
Total group 224 893 374 228 599 121
-------- -------- --------
Other non-controlling interest - equity 60 239
-------- -------- --------
Operating profit 659 360
-------- -------- --------
Analysis of financial assets and liabilities by category of financial instrument
Non-financial
Total Insurance instruments
Total instruments related linked or scoped
At 31 March 2018 instruments at amortised instruments out of
GBP'000 at fair value cost at fair value IAS 39 Total
Assets
-------------- ------------- --------------- ------------- ----------
Cash and balances at central banks 7 784 4 032 728 - - 4 040 512
-------------- ------------- --------------- ------------- ----------
Loans and advances to banks 236 077 1 929 456 - - 2 165 533
-------------- ------------- --------------- ------------- ----------
Non-sovereign and non-bank cash placements 34 544 566 699 - - 601 243
-------------- ------------- --------------- ------------- ----------
Reverse repurchase agreements and cash
collateral on securities borrowed 787 905 1 419 572 - - 2 207 477
-------------- ------------- --------------- ------------- ----------
Sovereign debt securities 4 701 643 208 384 - - 4 910 027
-------------- ------------- --------------- ------------- ----------
Bank debt securities 369 172 217 992 - - 587 164
-------------- ------------- --------------- ------------- ----------
Other debt securities 630 280 273 323 - - 903 603
-------------- ------------- --------------- ------------- ----------
Derivative financial instruments 1 352 408 - - - 1 352 408
-------------- ------------- --------------- ------------- ----------
Securities arising from trading activities 1 434 391 - - - 1 434 391
-------------- ------------- --------------- ------------- ----------
Investment portfolio 885 499 - - - 885 499
-------------- ------------- --------------- ------------- ----------
Loans and advances to customers 1 171 628 23 501 381 - - 24 673 009
-------------- ------------- --------------- ------------- ----------
Own originated loans and advances to
customers securitised - 459 088 - - 459 088
-------------- ------------- --------------- ------------- ----------
Other loans and advances - 347 809 - - 347 809
-------------- ------------- --------------- ------------- ----------
Other securitised assets 130 388 17 999 - - 148 387
-------------- ------------- --------------- ------------- ----------
Interests in associated undertakings - 11 371 - 456 481 467 852
-------------- ------------- --------------- ------------- ----------
Deferred taxation assets - - - 157 321 157 321
-------------- ------------- --------------- ------------- ----------
Other assets 190 740 1 239 331 - 446 045 1 876 116
-------------- ------------- --------------- ------------- ----------
Property and equipment - - - 233 340 233 340
-------------- ------------- --------------- ------------- ----------
Investment properties - - - 1 184 097 1 184 097
-------------- ------------- --------------- ------------- ----------
Goodwill - - - 368 803 368 803
-------------- ------------- --------------- ------------- ----------
Intangible assets - - - 125 389 125 389
-------------- ------------- --------------- ------------- ----------
11 932 459 34 225 133 - 2 971 476 49 129 068
-------------- ------------- --------------- ------------- ----------
Other financial instruments at fair value
through profit or loss in respect of
liabilities
to customers - - 8 487 776 - 8 487 776
-------------- ------------- --------------- ------------- ----------
11 932 459 34 225 133 8 487 776 2 971 476 57 616 844
-------------- ------------- --------------- ------------- ----------
Liabilities
-------------- ------------- --------------- ------------- ----------
Deposits by banks - 2 931 267 - - 2 931 267
-------------- ------------- --------------- ------------- ----------
Derivative financial instruments 1 471 563 - - - 1 471 563
-------------- ------------- --------------- ------------- ----------
Other trading liabilities 960 166 - - - 960 166
-------------- ------------- --------------- ------------- ----------
Repurchase agreements and cash collateral
on securities lent 90 049 565 791 - - 655 840
-------------- ------------- --------------- ------------- ----------
Customer accounts (deposits) 2 375 704 28 611 469 - - 30 987 173
-------------- ------------- --------------- ------------- ----------
Debt securities in issue 471 886 2 245 301 - - 2 717 187
-------------- ------------- --------------- ------------- ----------
Liabilities arising on securitisation of
own originated loans and advances - 136 812 - - 136 812
-------------- ------------- --------------- ------------- ----------
Liabilities arising on securitisation of
other assets 127 853 - - - 127 853
-------------- ------------- --------------- ------------- ----------
Current taxation liabilities - - - 185 486 185 486
-------------- ------------- --------------- ------------- ----------
Deferred taxation liabilities - - - 32 158 32 158
-------------- ------------- --------------- ------------- ----------
Other liabilities 17 533 1 245 016 749 719 2 012 268
-------------- ------------- --------------- ------------- ----------
5 514 754 35 735 656 - 967 363 42 217 773
-------------- ------------- --------------- ------------- ----------
Liabilities to customers under investment
contracts - - 8 484 296 - 8 484 296
-------------- ------------- --------------- ------------- ----------
Insurance liabilities, including
unit-linked liabilities - - 3 480 - 3 480
-------------- ------------- --------------- ------------- ----------
5 514 754 35 735 656 8 487 776 967 363 50 705 549
-------------- ------------- --------------- ------------- ----------
Subordinated liabilities - 1 482 987 - - 1 482 987
-------------- ------------- --------------- ------------- ----------
5 514 754 37 218 643 8 487 776 967 363 52 188 536
-------------- ------------- --------------- ------------- ----------
Financial instruments carried at fair value
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation technique used. The different levels are identified as follows:
Level 1 - quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)
Assets and liabilities related to the long-term assurance business attributable to policyholders have been excluded from the analysis as the change in fair value of related assets is attributable to policyholders. These are all classified as level 1.
Fair value category
Total
At 31 March 2018 instruments
GBP'000 at fair value Level 1 Level 2 Level 3
-------------- --------- --------- -------
Assets
-------------- --------- --------- -------
Cash and balances at central banks 7 784 7 784 - -
-------------- --------- --------- -------
Loans and advances to banks 236 077 236 077 - -
-------------- --------- --------- -------
Non-sovereign and non-bank cash placements 34 544 - 34 544 -
-------------- --------- --------- -------
Reverse repurchase agreements and cash collateral on securities
borrowed 787 905 196 170 591 735 -
-------------- --------- --------- -------
Sovereign debt securities 4 701 643 4 701 643 - -
-------------- --------- --------- -------
Bank debt securities 369 172 293 830 75 342 -
-------------- --------- --------- -------
Other debt securities 630 280 256 255 357 256 16 769
-------------- --------- --------- -------
Derivative financial instruments 1 352 408 - 1 308 208 44 200
-------------- --------- --------- -------
Securities arising from trading activities 1 434 391 1 405 197 22 440 6 754
-------------- --------- --------- -------
Investment portfolio 885 499 190 395 107 285 587 819
-------------- --------- --------- -------
Loans and advances to customers 1 171 628 - 1 037 888 133 740
-------------- --------- --------- -------
Other securitised assets 130 388 - - 130 388
-------------- --------- --------- -------
Other assets 190 740 190 740 - -
-------------- --------- --------- -------
11 932 459 7 478 091 3 534 698 919 670
-------------- --------- --------- -------
Liabilities
-------------- --------- --------- -------
Derivative financial instruments 1 471 563 - 1 470 121 1 442
-------------- --------- --------- -------
Other trading liabilities 960 166 863 123 97 043 -
-------------- --------- --------- -------
Repurchase agreements and cash collateral on securities lent 90 049 - 90 049 -
-------------- --------- --------- -------
Customer accounts (deposits) 2 375 704 - 2 375 704 -
-------------- --------- --------- -------
Debt securities in issue 471 886 - 457 687 14 199
-------------- --------- --------- -------
Liabilities arising on securitisation of other assets 127 853 - - 127 853
-------------- --------- --------- -------
Other liabilities 17 533 - 17 533 -
-------------- --------- --------- -------
5 514 754 863 123 4 508 137 143 494
-------------- --------- --------- -------
Net financial assets/(liabilities) at fair value 6 417 705 6 614 968 (973 439) 776 176
-------------- --------- --------- -------
Transfers between level 1 and level 2
There were no transfers between level 1 and level 2 in the current year.
Level 2 financial assets and financial liabilities
The following table sets out the group's principal valuation techniques as at 31 March 2018 used in determining the fair value of its financial assets and financial liabilities that are classified within level 2 of the fair value hierarchy.
Valuation basis/techniques Main assumptions
Assets
-------------------------------------- --------------------------------------
Non-sovereign and non-bank cash Discounted cash flow model Yield curves
placements
-------------------------------------- --------------------------------------
Reverse repurchase agreements and cash Discounted cash flow model, Hermite Yield curves
collateral on securities borrowed interpolation, Black-Scholes Volatilities
-------------------------------------- --------------------------------------
Bank debt securities Discounted cash flow model Yield curves
NCD curves
-------------------------------------- --------------------------------------
Other debt securities Discounted cash flow model Yield curves and NCD curves, external
prices, broker quotes
-------------------------------------- --------------------------------------
Derivative financial instruments Discounted cash flow model, Hermite Yield curves, risk free rate,
interpolation, industry standard volatilities, forex forward points and
derivative pricing models spot rates, interest
including Black-Scholes rate swap curves and credit curves
-------------------------------------- --------------------------------------
Securities arising from trading Standard industry derivative pricing Interest rate curves, implied bond
activities model spreads, equity volatilities
-------------------------------------- --------------------------------------
Investment portfolio Discounted cash flow model, relative Discount rate and fund unit price, net
valuation model assets
Comparable quoted inputs
-------------------------------------- --------------------------------------
Loans and advances to customers Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Liabilities
Derivative financial instruments Discounted cash flow model, Hermite Yield curves, risk free rate,
interpolation, industry standard volatilities, forex forward points and
derivative pricing models spot rates, interest
including Black-Scholes rate swap curves and credit curves
-------------------------------------- --------------------------------------
Other trading liabilities Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Repurchase agreements and cash
collateral on securities lent Discounted cash flow model, Hermite Yield curves
interpolation
-------------------------------------- --------------------------------------
Customer accounts (deposits) Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Debt securities in issue Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
Other liabilities Discounted cash flow model Yield curves
-------------------------------------- --------------------------------------
The following is a reconciliaiton of the opening balances to the closing balances for fair value measurement in level 3 of the fair value hierarchy.
Total level 3
For the year to 31 March 2018 financial
GBP'000 instruments
Balance at 1 April 2017 770 686
-------------
Total gains or losses 52 226
-------------
In the income statement 49 490
-------------
In the statement of comprehensive income 2 736
-------------
Purchases 208 531
-------------
Sales (144 027)
-------------
Settlements (13 790)
-------------
Transfers into level 3 7 165
-------------
Transfers out of level 3 (73 192)
-------------
Foreign exchange adjustments (31 423)
-------------
Balance as at 31 March 2018 776 176
-------------
During the year, GBP55.3 million has been transferred to level 2 due to an observable input becoming available to the valuation model.
In addition GBP17.9 million has been transferred to level 2 due to valuation methodologies being reviewed and observable inputs being used to determine the fair value.
GBP7.1 million has been transferred into level 3 due to inputs to valuation methods becoming unobservable.
The group transfers between levels within the fair value hierarchy when the significance of the unobservable inputs change or if the valuation methods changes.
The following table quantifies the gains or (losses) included in the income statement and other comprehensive income recognised on level 3 financial instruments:
For the year to 31 March 2018
GBP'000 Total Realised Unrealised
Total gains or (losses) included in the income statement for the year
------- -------- ----------
Net interest income 1 613 1 613 -
------- -------- ----------
Fee and commission income 93 - 93
------- -------- ----------
Investment income 49 759 54 119 (4 360)
------- -------- ----------
Trading loss arising from customer flow (3 598) (488) (3 110)
------- -------- ----------
Trading income arising from balance sheet management and other trading activities 1 623 40 1 583
------- -------- ----------
49 490 55 284 (5 794)
------- -------- ----------
Total gains or losses recognised in other comprehensive income for the year
------- -------- ----------
Gains on realisation of available-for-sale assets recycled through the income statement 8 092 8 092 -
------- -------- ----------
Fair value movements on available-for-sale assets taken directly to other comprehensive
income 2 736 - 2 736
------- -------- ----------
10 828 8 092 2 736
------- -------- ----------
Sensitivity of fair values to reasonably possible alternative assumptions by level 3 instrument type
The fair value of financial instruments in level 3 are measured using valuation techniques that incorporate assumptions that are not evidenced by prices from observable market data. The following table shows the sensitivity of these fair values to reasonably possible alternative assumptions, determined at a transactional level:
Balance Range of Favourable Unfavourable
sheet value Significant unobservable unobservable changes changes
31 March 2018 GBP'000 input input used GBP'000 GBP'000
Assets
------------ ----------------------------- -------------- ---------- ------------
Other debt securities 16 769 Reflected in income statement 729 (840)
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8.3% - 10% 254 (363)
------------ ----------------------------- -------------- ---------- ------------
EBITDA (5%)/5% 327 (327)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 148 (150)
------------ ----------------------------- -------------- ---------- ------------
Derivative financial
instruments 44 200 Reflected in income statement 6 507 (8 729)
------------ ----------------------------- -------------- ---------- ------------
Volatilities 4% - 9% 356 (356)
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% - 10% 154 (140)
------------ ----------------------------- -------------- ---------- ------------
EBITDA (10%)/10% 131 (131)
------------ ----------------------------- -------------- ---------- ------------
WACC 19.5% - 48.5% 4 049 (5 750)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 1 817 (2 352)
------------ ----------------------------- -------------- ---------- ------------
Securities arising from trading
activities 6 754 Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% 1 180 (1 080)
------------ ----------------------------- -------------- ---------- ------------
Investment portfolio 587 819 Reflected in income statement 125 231 (138 497)
------------ ----------------------------- -------------- ---------- ------------
Price earnings multiple 5.0 x - 10 x 6 159 (6 120)
------------ ----------------------------- -------------- ---------- ------------
EBITDA * 50 197 (43 893)
------------ ----------------------------- -------------- ---------- ------------
Precious and industrial
metals prices (10%)/6% 2 420 (4 081)
------------ ----------------------------- -------------- ---------- ------------
Property prices (10%)/10% 2 046 (2 046)
------------ ----------------------------- -------------- ---------- ------------
WACC 19.5% - 48.5% 12 799 (23 769)
------------ ----------------------------- -------------- ---------- ------------
Cash flows * 2 301 (2 483)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 49 309 (56 105)
------------ ----------------------------- -------------- ---------- ------------
Reflected in other
comprehensive income 2 138 (2 113)
------------ ----------------------------- -------------- ---------- ------------
Price earnings multiple 4.0 x - 5.5 x 175 (246)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 1 963 (1 867)
------------ ----------------------------- -------------- ---------- ------------
Loans and advances to customers 133 740 Reflected in income statement 15 490 (16 771)
------------ ----------------------------- -------------- ---------- ------------
EBITDA 10% 10 349 (10 349)
------------ ----------------------------- -------------- ---------- ------------
Other^ ^ 5 141 (6 422)
------------ ----------------------------- -------------- ---------- ------------
Other securitised assets* 130 388 Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% 875 (733)
------------ ----------------------------- -------------- ---------- ------------
Total level 3 assets 919 670 152 150 (168 763)
------------ ----------------------------- -------------- ---------- ------------
Liabilities
------------ ----------------------------- -------------- ---------- ------------
Derivative financial
instruments (1 442) Reflected in income statement (110) 122
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 10% (107) 119
------------ ----------------------------- -------------- ---------- ------------
Volatilities 8% (3) 3
------------ ----------------------------- -------------- ---------- ------------
Debt securities in issue (14 199) Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Volatilities 6% (157) 157
------------ ----------------------------- -------------- ---------- ------------
Liabilities arising on
securitisation of other assets* (127 853) Reflected in income statement
------------ ----------------------------- -------------- ---------- ------------
Cash flow adjustments CPR 8% (236) 231
------------ ----------------------------- -------------- ---------- ------------
Total level 3 liabilities (143 494) (503) 510
------------ ----------------------------- -------------- ---------- ------------
Net level 3 assets 776 176
------------ ----------------------------- -------------- ---------- ------------
* The sensitivity of the fair value of liabilities arising on securitisation
of other assets has been considered together with other securitised
assets.
^ Other - The valuation sensitivity for the private equity, other equity
investments and embedded derivatives (profit share) portfolios has
been assessed by adjusting various inputs such as expected cash flows,
discount rates, earnings multiples rather than a single input. It
is deemed appropriate to reflect the outcome on a portfolio basis
for the purposes of this analysis as the sensitivity of the investments
cannot be determined through the adjustment of a single input.
----------------------------------------------------------------------------
** The EBITDA and cash flows have been stressed on an investment-by-investment
basis in order to obtain favourable and unfavourable valuations.
----------------------------------------------------------------------------
Fair value of financial assets and liabilities at amortised cost
At 31 March 2018 Carrying
GBP'000 amount Fair value
Assets
---------- ----------
Loans and advances to banks 1 929 456 1 929 497
---------- ----------
Reverse repurchase agreements and cash collateral on securities borrowed 1 419 572 1 419 659
---------- ----------
Sovereign debt securities 208 384 208 034
---------- ----------
Bank debt securities 217 992 229 095
---------- ----------
Other debt securities 273 323 270 801
---------- ----------
Loans and advances to customers 23 501 381 23 496 971
---------- ----------
Other loans and advances 347 809 344 894
---------- ----------
Other assets 1 239 331 1 235 273
---------- ----------
Liabilities
---------- ----------
Deposits by banks 2 931 267 2 937 012
---------- ----------
Repurchase agreements and cash collateral on securities lent 565 791 565 629
---------- ----------
Customer accounts (deposits) 28 611 469 28 646 834
---------- ----------
Debt securities in issue 2 245 301 2 334 238
---------- ----------
Other liabilities 1 245 016 1 108 294
---------- ----------
Subordinated liabilities 1 482 987 1 695 153
---------- ----------
Investec plc
Incorporated in England and Wales
Registration number 3633621
LSE ordinary share code: INVP
JSE ordinary share code: INP
ISIN: GB00B17BBQ50
Ordinary share dividend announcement
In terms of the DLC structure, Investec plc shareholders registered on the United Kingdom share register may receive all or part of their dividend entitlements through dividends declared and paid by Investec plc on their ordinary shares and/or through dividends declared and paid on the SA DAN share issued by Investec Limited.
Investec plc shareholders registered on the South African branch register may receive all or part of their dividend entitlements through dividends declared and paid by Investec plc on their ordinary shares and/or through dividends declared and paid on the SA DAS share issued by Investec Limited.
Declaration of dividend number 32
Notice is hereby given that the final dividend number 32, being a gross dividend of 13.5 pence (2017: 13 pence) per ordinary share has been recommended by the Board from income reserves in respect of the financial year ended 31 March 2018 payable to shareholders recorded in the shareholders' register of the company at the close of business on Friday, 27 July 2018.
-- for Investec plc shareholders, registered on the United Kingdom share register, through a dividend payment by Investec plc from income reserves of 13.5 pence per ordinary share
-- for Investec plc shareholders, registered on the South African branch register, through a dividend payment by Investec plc from income reserves of 6.5 pence per ordinary share and through a dividend paid by Investec Limited, on the SA DAS share, payable from income reserves, equivalent to 7 pence per ordinary share
The relevant dates for the payment of dividend number 32 are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 24 July 2018
On the London Stock Exchange (LSE) Wednesday, 25 July 2018
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 25 July 2018
On the London Stock Exchange (LSE) Thursday, 26 July 2018
Record date (on the JSE and LSE) Friday, 27 July 2018
Payment date (on the JSE and LSE) Monday, 13 August 2018
Share certificates on the South African branch register may not be dematerialised or rematerialised between Wednesday, 25 July 2018 and Friday, 27 July 2018, both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday, 25 July 2018 and Friday, 27 July 2018, both dates inclusive.
Additional information for South African resident shareholders of Investec plc
-- Shareholders registered on the South African branch register are advised that the distribution of 13.5 pence, equivalent to a gross dividend of 232 cents per share, has been arrived at using the Rand/Pound Sterling average buy/sell forward rate, as determined at 11h00 (SA time) on Wednesday, 16 May 2018
-- Investec plc United Kingdom tax reference number: 2683967322360 -- The issued ordinary share capital of Investec plc is 669 838 695 ordinary shares
-- The dividend paid by Investec plc to South African resident shareholders registered on the South African branch register and the dividend paid by Investec Limited to Investec plc shareholders on the SA DAS share are subject to South African Dividend Tax (Dividend Tax) of 20% (subject to any available exemptions as legislated)
-- Shareholders registered on the South African branch register who are exempt from paying the Dividend Tax will receive a net dividend of 232 cents per share, comprising 120.29630 cents per share paid by Investec Limited on the SA DAS share and 111.70370 cents per ordinary share paid by Investec plc
-- Shareholders registered on the South African branch register who are not exempt from paying the Dividend Tax will receive a net dividend of 185.60000 cents per share (gross dividend of 232 cents per share less Dividend Tax of 46.40000 cents per share) comprising 96.23704 cents per share paid by Investec Limited on the SA DAS share and 89.36296 cents per ordinary share paid by Investec plc.
By order of the board
D Miller
Company Secretary
16 May 2018
Investec plc
Incorporated in England and Wales
Registration number: 3633621 Share code: INPP ISIN: GB00B19RX541
Preference share dividend announcement
Non-redeemable non-cumulative non-participating preference shares ("preference shares")
Declaration of dividend number 24
Notice is hereby given that preference dividend number 24 has been declared from income reserves for the period 01 October 2017 to 31 March 2018 amounting to a gross preference dividend of 7.26027 pence per preference share payable to holders of the non-redeemable non-cumulative non-participating preference shares as recorded in the books of the company at the close of business on Friday, 08 June 2018.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 7.26027 pence per preference share is equivalent to a gross dividend of 123.53712 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA Time) on Wednesday, 16 May 2018.
The relevant dates relating to the payment of dividend number 24 are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 05 June 2018
On The International Stock Exchange (TISE) Wednesday, 06 June 2018
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 06 June 2018
On The International Stock Exchange (TISE) Thursday, 07 June 2018
Record date (on the JSE and TISE) Friday, 08 June 2018
Payment date (on the JSE and TISE) Monday, 18 June 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 06 June 2018 and Friday, 08 June 2018, both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday,06 June 2018 and Friday, 08 June 2018, both dates inclusive.
Additional information for South African resident shareholders of Investec plc
-- Investec plc United Kingdom tax reference number: 2683967322360 -- The issued preference share capital of Investec plc is 2 754 587 preference shares
-- The dividend paid by Investec plc to shareholders recorded on the South African branch register is subject to South African Dividend Tax (Dividend Tax) of 20% (subject to any available exemptions as legislated)
-- The net dividend amounts to 98.82970 cents per preference share for preference shareholders liable to pay the Dividend Tax and 123.53712 cents per preference share for preference shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
16 May 2018
Investec plc
Incorporated in England and Wales
Registration number: 3633621
JSE share code: INPPR
ISIN: GB00B4B0Q974
Rand denominated preference share dividend announcement
Rand-denominated non-redeemable non-cumulative non-participating perpetual preference shares ("preference shares")
Declaration of dividend number 14
Notice is hereby given that preference dividend number 14 has been declared from income reserves for the period 01 October 2017 to 31 March 2018 amounting to a gross preference dividend of 485.34589 cents per preference share payable to holders of the Rand-denominated non-redeemable non-cumulative non-participating perpetual preference shares as recorded in the books of the company at the close of business on Friday, 08 June 2018.
The relevant dates relating to the payment of dividend number 14 are as follows:
Last day to trade cum-dividend Tuesday, 05 June 2018 Shares commence trading ex-dividend Wednesday, 06 June 2018 Record date Friday, 08 June 2018 Payment date Monday, 18 June 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 06 June 2018 and Friday, 08 June 2018, both dates inclusive.
Additional information for South African resident shareholders of Investec plc
-- Investec plc United Kingdom tax reference number: 2683967322360
-- The issued Rand-denominated preference share capital of Investec plc is 131 447 preference shares
-- The dividend paid by Investec plc to shareholders recorded on the South African register is subject to South African Dividend Tax (Dividend Tax) of 20% (subject to any available exemptions as legislated)
-- The net dividend amounts to 388.27671 cents per preference share for preference shareholders liable to pay the Dividend Tax and 485.34589 cents per preference share for preference shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
16 May 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUUWAUPRGBQ
(END) Dow Jones Newswires
May 17, 2018 02:00 ET (06:00 GMT)
1 Year Investec Chart |
1 Month Investec Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
