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| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.50 | 0.49% | 510.50 | 510.00 | 511.00 | 516.50 | 505.00 | 516.50 | 174,533 | 13:41:42 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Commercial Banks, Nec | 1.3B | 292.79M | 0.3267 | 15.58 | 4.56B |
From Apr 2019 to Apr 2024
TIDMINVP
RNS Number : 1851Z
Investec PLC
16 May 2019
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year ended 31 March 2019
Hot Features
Premium
This announcement covers the statutory results of Investec plc and Investec
Limited (together "the Investec group" or "the group") for the year
ended 31 March 2019.
Group operational performance supported by our client franchises
* The group has delivered a sound operational
performance supported by substantial net inflows,
good loan book growth in home currency, and a
significantly improved performance from the UK
Specialist Banking business.
* This is against a challenging operating environment
with weak economic growth in both South Africa and
the UK, the group's two core banking markets, as well
as mixed equity market performance over the year.
* The Asset Management business generated substantial
net inflows supporting higher average funds under
management and annuity fees.
* The Bank and Wealth business benefitted from client
acquisition and growth in key earnings drivers.
* The Specialist Banking business performance was
supported by loan book growth. A reduction in
impairments was partly offset by a weak performance
from the investment portfolio.
* The Wealth & Investment business generated positive
discretionary net inflows. Reported results were
affected by certain non-recurring items.
* Operating costs grew faster than revenue. Revenue
growth and cost containment remain priorities as
outlined over the past year.
* ROE improved from 12.1% to 12.9%.
Overview of results
Group adjusted operating profit increased 9.4% year-on-year to GBP664.5
million. The combined South African businesses reported adjusted operating
profit 1.8% ahead of the prior period in Rands, whilst the combined
UK and Other businesses posted a 36.1% increase in adjusted operating
profit in Pounds Sterling. Overall group results have been negatively
impacted by the depreciation of the average Rand: Pound Sterling exchange
rate of 4.8% over the year. Key earnings drivers have been negatively
impacted by the depreciation of the closing Rand: Pound Sterling exchange
rate of 13.1% over the year. Salient features(1) 31 March 2019 31 % change Neutral
March Currency
2018 % change
Adjusted operating profit (GBP'm) 664.5 607.5 9.4% 12.6%
Adjusted earnings attributable to
shareholders (GBP'm) 519.3 491.1 5.8% 9.2%
Adjusted basic earnings per share (pence) 55.1 53.2 3.6% 7.0%
Basic earnings per share (pence) 52.0 51.2 1.6% 4.9%
Dividend per share (pence) 24.5 24.0 2.1%
Dividend cover (times) 2.2 2.2
Dividend payout ratio 44.5% 45.1%
Annuity income as a % of total operating
income 76.9% 76.2%
Credit loss ratio 0.31% 0.61%
Cost to income ratio (net of
non-controlling interests)(2) 69.9% 68.3%
Return on adjusted average shareholders'
equity 12.9% 12.1%
Third party assets under management
(GBP'bn) 167.2 160.6 4.1% 8.3%
Customer accounts (deposits) (GBP'bn) 31.3 31.0 1.0% 8.7%
Core loans and advances (GBP'bn) 24.9 25.1 (0.8%) 6.8%
Cash and near cash (GBP'bn) 13.3 12.8 3.6% 10.0%
(1) Refer to definitions in the Notes.
(2) The group has changed its cost to income ratio definition to exclude
operating profits or losses attributable to other non-controlling interests.
Refer to definitions in the Notes for further detail.
* The group maintained a sound capital position with
common equity tier one (CET1) ratios of 10.8% for
Investec plc and 10.5% for Investec Limited. Investec
Limited has received regulatory permission to adopt
the Foundation Internal Ratings Based (FIRB) approach,
effective 1 April 2019, resulting in a pro-forma CET1
ratio of 11.6% had the FIRB approach been applied as
of 31 March 2019. Leverage ratios are robust and
remain comfortably ahead of the group's target of 6%.
* The proposed demerger and separate listing of
Investec Asset Management (still subject to
regulatory and shareholder approvals) is progressing
well.
Fani Titi and Hendrik du Toit, Joint Chief Executive Officers of Investec
said:
"We are implementing our strategy to simplify, focus and grow with discipline.
We are committed to the demerger and listing of the Asset Management
business and the positioning of the Bank and Wealth business for long-term
growth. In spite of a challenging operating environment, these results
speak to strong support from our clients."
Enquiries
Investec Investor Relations
Results: Carly Newton: +44 (0) 20 7597 4493 / +44 (0) 77 3046 4908 (mobile)
General enquiries: +27 (0) 11 286 7070 or +44 (0) 20 7597 5546
Brunswick (SA PR advisers)
Marina Bidoli
Tel: +27 (0) 11 502 7405 / +27 (0) 83 253 0478 (mobile)
Lansons (UK PR advisers)
Tom Baldock
Tel: +44 (0) 20 7566 9716 / +44 (0) 78 6010 1715 (mobile)
Presentation/conference call details
A presentation on the results will commence at 9:00 UK time/10:00 SA
time on 16 May 2019. Viewing and telephone conference 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: 0808 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 10 500 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.
* IAM: A leading global asset manager with GBP111
billion in assets under management (as at 31 March
2019), well diversified by asset class and region.
* Wealth & Investment Business: One of the leading UK
and South African private client investment managers
with over GBP55 billion in assets under management as
at 31 March 2019.
* Specialist Banking Business: Market-leading
specialist corporate and institutional banking,
investment and private banking activities in South
Africa and the UK with GBP25 billion in core loans
and advances and GBP31 billion in customer deposits
as at 31 March 2019.
In July 2002 the Investec group implemented a dual listed company structure
with listings on the London and Johannesburg Stock Exchanges. On 14
September 2018, the board of directors of the Investec group announced
the proposed demerger and separate listing of the Investec Asset Management
business subject to regulatory and shareholder approvals. The combined
group's current market capitalisation is approximately GBP4.9 billion.
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results for the year ended 31 March 2019
Business unit review
Asset Management
Assets under management have increased by 7.3% to GBP111.4 billion as at 31 March 2019. Substantial net inflows of GBP6.1 billion supported higher average assets under management, together with favourable market and currency movements. Asset Management adjusted operating profit increased by 0.7% to GBP179.4 million (2018: GBP178.0 million). Earnings were impacted by lower performance fees in South Africa and higher costs in the UK, including ongoing investment in the business, Markets in Financial Instruments Directive II (MiFID II) and new premises costs.
Bank and Wealth
Adjusted operating profit from the combined Bank and Wealth business increased by 13.0% to GBP485.2 million (2018: GBP429.5 million).
Specialist Banking - adjusted operating profit increased by 18.0% to GBP448.9 million (2018: GBP380.5 million).
The South African business reported an increase in adjusted operating profit in Rands of 2.3%. Earnings were supported by growth in private client interest and fee income and an increase in associate earnings from a realisation in the IEP Group. This was partially offset by subdued corporate activity levels and a weaker performance from the equity and investment property portfolios; impacted by a weak domestic economy. Overall net core loans grew 5.6% to R271.2 billion at 31 March 2019. Costs increased ahead of revenue, impacted by the prior-year rental provision release. The credit loss ratio 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 significant increase in adjusted operating profit. A strong increase in net interest income was supported by loan book growth of 8.5% (to GBP10.5 billion) driven by both corporate client lending and Private Bank mortgage origination. This was largely offset by a decrease in non-interest revenue with a weaker performance from the investment portfolio and subdued levels of client trading. Impairments decreased with no repeat of substantial legacy portfolio losses. The credit loss ratio amounted to 0.38% (2018: 1.14% under the IAS 39 incurred impairment loss model). Costs increased 2.0%, broadly in line with inflation, as the investment phase in the Private Bank is now largely complete. Taken together, the bank's cost to income ratio was 77.4% (2018: 76.7%).
Wealth & Investment - adjusted operating profit decreased by 16.2% to GBP82.6 million (2018: GBP98.6 million).
The core global Wealth & Investment business performed in line with the prior year. However, overall reported earnings were impacted by a non-recurring investment gain realised in the prior year and the current year write-off of capitalised software in the Click & Invest business as detailed below. The underlying business generated annuity revenue growth, but lower transaction based fees. Positive discretionary net inflows were partly offset by non-discretionary outflows resulting in net inflows of GBP0.4 billion. Assets under management decreased by 1.7% to GBP55.1 billion as at 31 March 2019, primarily impacted by currency and market movements.
We have reviewed the Click & Invest online investment platform and decided to discontinue the service in line with the group's commitment to manage costs and allocate capital effectively. The underlying operating loss of Click & Invest was circa GBP12.8 million (2018: GBP13.5 million). In addition a circa GBP6 million write-off of capitalised software was taken in the current year. The group remains committed to developing its digital initiatives and will look to incorporate the technology into its offering.
Further information on key developments within each of the business units is provided in the group results analyst booklet published on the group's website: http://www.investec.com
Group costs
These largely relate to a portion of executive and support functions costs associated with group level activities, group brand, marketing, and corporate social responsibility initiatives. These costs are not incurred by the operating divisions and are necessary to support the operational functioning of the group. These costs decreased to GBP46.3 million (2018: GBP49.6 million). Management is committed to bringing these costs down further over time.
Financial statement analysis
Total operating income
Total operating income before expected credit loss impairment charges increased by 1.8% to GBP2,486.3 million (2018: GBP2,443.5 million).
Net interest income increased by 7.2% to GBP815.4 million (2018: GBP760.4 million) driven by lending activity and endowment impact from rate rises in the UK.
Net fee and commission income increased by 0.9% to GBP1,373.6 million (2018: GBP1,361.2 million). Strong annuity fees from the asset and wealth management businesses, as well as a good performance from the UK investment banking business was offset by lower performance, brokerage and deal fees in the South African businesses.
Investment income decreased to GBP50.0 million (2018: GBP130.0 million) reflecting a weak performance from the group's listed and unlisted investment portfolio, as well as from the investment property portfolio in South Africa.
Share of post taxation profit of associates of GBP68.3 million (2018: GBP46.8 million) reflects earnings in relation to the group's investment in the IEP Group. The increase is largely driven by a realisation within the IEP Group.
Trading income arising from customer flow decreased by 12.7% to GBP120.7 million (2018: GBP138.2 million) reflecting subdued client flow trading levels given the uncertainty in both geographies.
Trading income from balance sheet management and other trading activities increased to GBP42.0 million (2018: GBP4.3 million loss). The increase is largely reflective of translation gains on foreign currency equity investments in South Africa (partially offsetting the related weaker investment income performance) as well as the unwind of the UK subordinated debt fair value adjustment (recognised on the adoption of IFRS 9) as the instrument pulls to par over its remaining term.
Expected credit loss (ECL) impairment charges
The total ECL impairment charges amounted to GBP66.5 million, a substantial reduction from GBP148.6 million (under the IAS 39 incurred loss model) in the prior year, primarily reflecting a reduction in legacy impairments. The group's credit loss ratio is within its long term average range at 0.31% (2018: 0.61%). Since 1 April 2018 gross core loan Stage 3 exposures have reduced by 29% to GBP521 million driven by a reduction of legacy exposures. Net Stage 3 exposures as a percentage of net core loans subject to ECL was 1.3% (1 April 2018: 2.0%).
Total operating costs
Operating costs increased 3.8% to GBP1,695.0 million (2018: GBP1,632.7 million) primarily driven by higher premises costs given the prior-year rental provision release in South Africa and headcount growth to support business activity, regulatory requirements and information technology development. The cost to income ratio (net of non-controlling interests) amounted to 69.9% (2018: 68.3%).
Taxation
The effective tax rate amounted to 12.0% (2018: 9.6%) which remains below the group's historical effective tax rate impacted by the utilisation of tax losses and the release of provisions no longer required.
Non-operational costs
Non-operational costs amounted to GBP19.5 million (2018: GBP6.0 million) and relate primarily to the restructure of the Irish branch as a consequence of Brexit and costs incurred as part of the proposed demerger and separate listing of the Investec Asset Management business.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests mainly comprises:
-- GBP25.7 million (2018: GBP23.8 million) profit attributable to non-controlling interests in the Asset Management business.
-- GBP58.0 million (2018: GBP52.6 million) profit attributable to non-controlling interests in the Investec Property Fund.
Balance sheet analysis
Since 31 March 2018:
-- Shareholders' equity decreased by 2.8% to GBP4.3 billion primarily as a result of the adoption of IFRS 9 on 1 April 2018 as well as from the depreciation of the closing Rand: Pounds Sterling exchange rate.
-- Net asset value per share decreased 4.1% to 434.1 pence and net tangible asset value per share (which excludes goodwill and intangible assets) decreased 3.9% to 386.0 pence, primarily as a result of the adoption of IFRS 9 as well as from the depreciation of the closing Rand: Pound Sterling exchange rate.
-- The return on adjusted average shareholders' equity increased from 12.1% to 12.9%.
Liquidity and funding
As at 31 March 2019 the group held GBP13.3 billion in cash and near cash balances (GBP7.0 billion in Investec plc and R118.4 billion in Investec Limited) which amounted to 42.4% of customer deposits. Cash balances increased in the UK largely driven by prefunding ahead of the restructure of the Irish branch. As a result of Brexit, deposit raising in our Irish business will no longer be undertaken and existing deposits are being unwound. The group continues to focus on maintaining an optimal overall liquidity and funding profile. Loans and advances to customers as a percentage of customer deposits amounted to 78.4% (31 March 2018: 79.6%). The group comfortably exceeds regulatory 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 2019 with the three-month average of its LCR at 135.6% and an NSFR of 115.6%. 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 2019 was 313% for Investec plc and 291% 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 128% for Investec plc and 126% 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 maintained a sound capital position with a CET1 ratio of 10.8% for Investec plc and 10.5% for Investec Limited. Investec Limited has received regulatory permission to adopt the FIRB approach, effective 1 April 2019, resulting in a pro-forma CET1 ratio of 11.6% had the FIRB approach been applied as of 31 March 2019. Leverage ratios are robust and remain comfortably ahead of the group's target of 6%.
31 March 1 April 2018 31 March
2019 2018
Investec plc(1)
--------- ------------- ---------
Capital adequacy ratio 15.7% 15.0% 15.4%
--------- ------------- ---------
Tier 1 ratio 12.6% 12.4% 12.9%
--------- ------------- ---------
Common equity tier 1 ratio 10.8% 10.5% 11.0%
--------- ------------- ---------
Common equity tier 1 ratio ('fully
loaded'(3) ) 10.4% 10.3% 11.0%
--------- ------------- ---------
Leverage ratio (current) 7.9% 8.3% 8.5%
--------- ------------- ---------
Leverage ratio ('fully loaded'(3)
) 7.5% 8.0% 8.4%
--------- ------------- ---------
Investec Limited(2)
--------- ------------- ---------
Capital adequacy ratio 14.9% 14.5% 14.6%
--------- ------------- ---------
Tier 1 ratio 11.2% 10.8% 11.0%
--------- ------------- ---------
Common equity tier 1 ratio 10.5% 10.0% 10.2%
--------- ------------- ---------
Common equity tier 1 ratio ('fully
loaded'(3) ) 10.5% 9.8% 10.2%
--------- ------------- ---------
Leverage ratio (current) 7.6% 7.4% 7.5%
--------- ------------- ---------
Leverage ratio ('fully loaded'(3)
) 7.3% 6.9% 7.1%
--------- ------------- ---------
(1) 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 CET1 capital as required under the Capital Requirements Regulation and European Banking Authority technical standards. The impact of this deduction totalling GBP 63 million for Investec plc would lower the CET1 ratio by 41bps (31 March 2018: 45bps).
(2) Investec Limited's capital information includes unappropriated profits. If unappropriated profits are excluded from the capital information, Investec Limited's CET1 ratio would be 27bps (31 March 2018: 25bps) lower.
(3) The CET 1 fully loaded ratio and the fully loaded leverage ratio assume full adoption of IFRS 9 and full adoption of all CRD IV rules or South African Prudential Authority regulations, as applicable in the relevant jurisdictions. As a result of the adoption of IFRS 9 Investec plc elected to designate its subordinated fixed rate medium-term notes due in 2022 at fair value. By the time of full adoption of IFRS 9 in 2023, these subordinated liabilities will have reached final maturity and will be redeemed at par value. The remaining interest rate portion of the fair value adjustment at 31 March 2019 of GBP18 million (post-taxation), has therefore been excluded from the fully loaded ratios as it will be released into profit and loss over the remaining life of the instrument.
Additional information - proposed demerger and listing of Investec Asset Management business
On 14 September 2018, the board of directors of Investec plc and Investec Limited announced that the Investec Asset Management business would become a separately listed entity. The demerger and the listing of Investec Asset Management is subject to regulatory and shareholder approvals, and is expected to be completed during the second half of 2019.
Outlook
The past year has seen a smooth leadership transition combined with a strategic review of the group. We are on track with the proposed demerger and separate listing of Investec Asset Management which should enhance the long-term prospects of both businesses. We are confident that we have positioned the businesses to ensure they meet their growth objectives and deliver long-term shareholder returns.
On behalf of the boards of Investec plc and Investec Limited
Perry Crosthwaite Fani Titi Hendrik du Toit
Chairman Joint Chief Joint Chief
Executive Officer Executive Officer
------------------- -------------------
15 May 2019
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.
Unless the context indicates otherwise, all comparatives included in the commentary above relate to the year ended 31 March 2018.
Amounts represented on a neutral currency basis for income statement items assume that the relevant average exchange rates for the year to 31 March 2019 remain the same as those in the prior year. Amounts represented on a neutral currency basis for balance sheet items assume that the relevant closing exchange rates at 31 March 2019 remain the same as those at 31 March 2018.
-- 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 2019 31 March 2018
Currency per Period Average Period Average
GBP1.00 end end
------- -------- ------- --------
South African
Rand 18.80 18.04 16.62 17.21
------- -------- ------- --------
Australian Dollar 1.83 1.80 1.83 1.72
------- -------- ------- --------
Euro 1.16 1.13 1.14 1.14
------- -------- ------- --------
US Dollar 1.30 1.31 1.40 1.33
------- -------- ------- --------
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 depreciated by 4.8% and the closing rate has depreciated by 13.1% since 31 March 2018.
-- Accounting policies and disclosures
These unaudited condensed 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 2019 are consistent with those adopted in the financial statements for the year ended 31 March 2018 except as noted below.
On 1 April 2018 the group adopted IFRS 9 'Financial Instruments' which replaced IAS 39 'Financial Instruments: Recognition and Measurement' 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 ECL model as opposed to an incurred loss methodology under IAS 39. Disclosure related to the initial application and the impact of the transition from IAS 39 to IFRS 9 were included in the group's transition disclosures published on 15 June 2018 which can be accessed via the Investec website at www.investec.com.
Additionally, on 1 April 2018 the group adopted IFRS 15 'Revenue from contracts with customers' which replaced IAS 18 'Revenue'. IFRS 15 provides a principles-based approach for revenue recognition and introduces the concept of recognising revenue for obligations as they are satisfied. It applies to all contracts with customers except leases, financial instruments and insurance contracts. The group's measurement and recognition principles were aligned to the new standard and hence there has been no material impact on measurement and recognition principles or on disclosure requirements from the adoption of IFRS 15.
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 2019 will be posted to stakeholders on 28 June 2019. 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:
- changes in the political and/or economic environment that would materially affect the Investec group
- changes in legislation or regulation impacting on the Investec group's operations or its accounting policies
- changes in business conditions that will have a significant impact on the Investec group's operations
- changes in exchange rates and/or tax rates from the prevailing rates outlined in this announcement
- changes in the structure of the markets, client demand or the competitive environment.
-- A number of these factors are beyond the group's control.
-- These factors may cause the group's actual future results, performance or achievements in the markets in which it operates to differ from those expressed or implied.
-- Any forward looking statements made are based on the knowledge of the group at 15 May 2019.
-- The information in the announcement for the year ended 31 March 2019, which was approved by the board of directors on 15 May 2019, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2018 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
-- Definitions
-- Adjusted operating profit refers to net profit before tax, goodwill, acquired intangibles and non-operating items but after adjusting for earnings attributable to other non-controlling interests and before non-controlling interests relating to Asset Management. Trends within the divisional sections relate to adjusted operating profit before group costs. Adjusted operating profit is considered an important measure by Investec of the profit realised by the group in the ordinary course of operations. In addition, it forms the basis of the dividend pay-out policy. 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.
-- Adjusted earnings attributable to shareholders is defined as earnings attributable to shareholders before goodwill, acquired intangibles and non-operating items but after non-controlling interests and the deduction of preference dividends.
-- 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
-- Dividend cover is calculated as adjusted earnings per share divided by the dividend per share
-- Annuity income is defined as net interest income plus net annuity fees and commissions expressed as a percentage of total operating income.
-- The credit loss ratio is calculated as expected credit loss (ECL) impairment charges on gross core loans and advances as a percentage of average gross core loans and advances subject to ECL.
-- The group has changed its cost to income ratio definition to exclude operating profits or losses attributable to other non-controlling interests. As such, the cost to income ratio is calculated as: operating costs divided by operating income (net of depreciation on operating leased assets and net of operating profits or losses attributable to other non-controlling interests).
-- Return on adjusted average shareholders' equity is calculated as adjusted earnings attributable to shareholders divided by average adjusted shareholders' equity; where average adjusted shareholders' equity is ordinary shareholders' equity less goodwill and intangible assets (excluding software).
-- Core loans and advances is defined as net loans and advances to customers plus net own originated securitised assets.
Financial assistance
Shareholders are referred to Special Resolution number 3, which was approved at the annual general meeting held on 8 August 2018, 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 October 2018 to 31 March 2019 to various group subsidiaries.
Johannesburg and London
Sponsor: Investec Bank Limited
Statutory financial information
Salient financial features
Results in Pounds Sterling
Actual as Actual as Neutral
------------ ------------- ------------ --------------- ------------
reported reported Actual currency^ Neutral
as
------------ ------------- ------------ --------------- ------------
Year to Year to reported Year to currency
------------ ------------- ------------ --------------- ------------
31 March 31 March % 31 March %
------------ ------------- ------------ --------------- ------------
2019 2018 change 2019 change
------------ ------------- ------------ --------------- ------------
Operating profit before taxation*
(million) 665 608 9.4% 684 12.6%
------------ ------------- ------------ --------------- ------------
Earnings attributable to shareholders
(million) 531 506 5.1% 549 8.6%
------------ ------------- ------------ --------------- ------------
Adjusted earnings attributable to
shareholders** (million) 519 491 5.8% 536 9.2%
------------ ------------- ------------ --------------- ------------
Adjusted earnings per share** 55.1p 53.2p 3.6% 56.9p 7.0%
------------ ------------- ------------ --------------- ------------
Basic earnings per share 52.0p 51.2p 1.6% 53.7p 4.9%
------------ ------------- ------------ --------------- ------------
Dividends per share 24.5p 24.0p 2.1% n/a n/a
------------ ------------- ------------ --------------- ------------
* Before goodwill, acquired intangibles, non-operating items and after
other non-controlling interests.
** Before goodwill, acquired intangibles, non-operating items and after
non-controlling interests.
------------------------------------------------------------------------
^ For income statement items we have used the average Rand: Pounds
Sterling exchange rate that was applied in the prior year, i.e. 17.21.
------------------------------------------------------------------------
Results in Pounds Sterling
Actual Actual as Neutral
as
-------------- ------------ ------------- -------------- ---------
reported reported Actual currency^^ Neutral
as
-------------- ------------ ------------- -------------- ---------
Year to At reported At currency
-------------- ------------ ------------- -------------- ---------
31 March 31 March % 31 March %
-------------- ------------ ------------- -------------- ---------
2019 2018 change 2019 change
-------------- ------------ ------------- -------------- ---------
Net asset value per share 434.1p 452.5p (4.1%) 456.5p 1.0%
-------------- ------------ ------------- -------------- ---------
Net tangible asset value per share 386.0p 401.5p (3.9%) 408.1p 1.6%
-------------- ------------ ------------- -------------- ---------
Total equity (million) 5 251 5 428 (3.3%) 5 554 2.3%
-------------- ------------ ------------- -------------- ---------
Total assets (million) 57 724 57 617 0.2% 62 331 8.2%
-------------- ------------ ------------- -------------- ---------
Core loans and advances (million) 24 941 25 132 (0.8%) 26 833 6.8%
-------------- ------------ ------------- -------------- ---------
Cash and near cash balances (million) 13 288 12 825 3.6% 14 113 10.0%
-------------- ------------ ------------- -------------- ---------
Customer deposits (million) 31 307 30 987 1.0% 33 688 8.7%
-------------- ------------ ------------- -------------- ---------
Third party assets under management
(million) 167 172 160 576 4.1% 173 950 8.3%
-------------- ------------ ------------- -------------- ---------
Return on average adjusted shareholders'
equity 12.9% 12.1%
-------------- ------------ ------------- -------------- ---------
Return on average risk-weighted assets 1.52% 1.45%
-------------- ------------ ------------- -------------- ---------
Stage 3/defaults net of ECL as a percentage
of net core loans and
-------------- ------------ ------------- -------------- ---------
advances to customers subject to ECL 1.3% 1.17%
-------------- ------------ ------------- -------------- ---------
Loans and advances to customers as a
percentage of customer deposits 78.4% 79.6%
-------------- ------------ ------------- -------------- ---------
Credit loss ratio (income statement
impairment charge as a % of average
-------------- ------------ ------------- -------------- ---------
gross core loans and advances) 0.31% 0.61%
-------------- ------------ ------------- -------------- ---------
^^ For balance sheet items we have assumed that the Rand: Pounds Sterling closing exchange
rate has remained neutral since 31 March 2018.
Condensed combined consolidated income statement
Year to Year to
------------ ---------------
31 March 31 March
------------ ---------------
GBP'000 2019 2018
------------ ---------------
Interest income 2 641 920 2 491 009
------------ ---------------
Interest expense (1 826 493) (1 730 611)
------------ ---------------
Net interest income 815 427 760 398
------------ ---------------
Fee and commission income 1 590 004 1 543 447
------------ ---------------
Fee and commission expense (216 452) (182 240)
------------ ---------------
Investment income 49 985 130 048
------------ ---------------
Share of post taxation profit of associates 68 317 46 823
------------ ---------------
Trading income/(loss) arising from
------------ ---------------
- customer flow 120 662 138 226
------------ ---------------
- balance sheet management and other trading activities 41 966 (4 307)
------------ ---------------
Other operating income 16 431 11 115
------------ ---------------
Total operating income before expected credit losses/impairment
losses 2 486 340 2 443 510
------------ ---------------
Expected credit loss impairment charges* (66 452) -
------------ ---------------
Impairment losses on loans and advances* - (148 556)
------------ ---------------
Operating income 2 419 888 2 294 954
------------ ---------------
Operating costs (1 695 012) (1 632 740)
------------ ---------------
Depreciation on operating leased assets (2 157) (2 421)
------------ ---------------
Operating profit before goodwill and acquired intangibles 722 719 659 793
------------ ---------------
Impairment of goodwill (155) -
------------ ---------------
Amortisation of acquired intangibles (15 816) (16 255)
------------ ---------------
Operating profit after goodwill and acquired intangibles 706 748 643 538
------------ ---------------
Financial impact of group restructures and acquisition
of subsidiaries (19 543) (6 039)
------------ ---------------
Profit before taxation 687 205 637 499
------------ ---------------
Taxation on operating profit before goodwill and
acquired intangibles (78 210) (59 099)
------------ ---------------
Taxation on acquired intangibles and acquisition/disposal/integration
of subsidiaries/restructurings 5 979 3 253
------------ ---------------
Profit after taxation 614 974 581 653
------------ ---------------
Profit attributable to other non-controlling interests (58 192) (52 288)
------------ ---------------
Profit attributable to Asset Management non-controlling
interests (25 658) (23 817)
------------ ---------------
Earnings attributable to shareholders 531 124 505 548
------------ ---------------
Impairment of goodwill 155 -
------------ ---------------
Amortisation of acquired intangibles 15 816 16 255
------------ ---------------
Financial impact of group restructures and acquisition
of subsidiaries 19 543 6 039
------------ ---------------
Taxation on acquired intangibles and acquisition/disposal/integration
of subsidiaries/restructurings (5 979) (3 253)
------------ ---------------
Preference dividends paid (41 560) (32 980)
------------ ---------------
Accrual adjustment on earnings attributable to
other equity holders 243 (547)
------------ ---------------
Adjusted earnings 519 342 491 062
------------ ---------------
Earnings per share (pence)
------------ ---------------
- Basic 52.0 51.2
------------ ---------------
- Diluted 50.9 49.8
------------ ---------------
Adjusted earnings per share (pence)
------------ ---------------
- Basic 55.1 53.2
------------ ---------------
- Diluted 54.0 51.7
------------ ---------------
Dividends per share (pence)
------------ ---------------
- Interim 11.0 10.5
------------ ---------------
- Final 13.5 13.5
------------ ---------------
Number of weighted average shares (million) 942.2 923.5
------------ ---------------
* On adoption of IFRS 9, there is a move from an incurred loss model
to an expected credit loss methodology.
Combined consolidated statement of total comprehensive
income
Year to Year to
--------------- ---------------
31 March 31 March
--------------- ---------------
GBP'000 2019 2018
--------------- ---------------
Profit after taxation 614 974 581 653
--------------- ---------------
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* 1 797 (5 746)
--------------- ---------------
Fair value movements on debt instruments at FVOCI (12 918) -
taken directly to other comprehensive income^*
--------------- ---------------
Gains on realisation of debt instruments at FVOCI (7 116) -
recycled to the income statement^*
--------------- ---------------
Gains on realisation of available-for-sale assets
recycled to the income statement^* - (6 676)
--------------- ---------------
Fair value movements on available-for-sale assets
taken directly to other comprehensive income^* - 20 051
--------------- ---------------
Foreign currency adjustments on translating foreign
operations (302 598) (25 300)
--------------- ---------------
Items that will never be reclassified to the income
statement
--------------- ---------------
Effect of rate change on deferred taxation relating (1 572) -
to adjustment for IFRS 9*
--------------- ---------------
Remeasurement of net defined pension asset (1 924) 3 938
--------------- ---------------
Gains and losses attributable to own credit risk* 8 887 -
--------------- ---------------
Total comprehensive income 299 530 567 920
--------------- ---------------
Total comprehensive income attributable to ordinary
shareholders 252 677 451 913
--------------- ---------------
Total comprehensive income attributable to non-controlling
interests 5 293 83 027
--------------- ---------------
Total comprehensive income attributable to perpetual
preferred securities 41 560 32 980
--------------- ---------------
Total comprehensive income 299 530 567 920
--------------- ---------------
* Net of taxation of GBP17.5 million (year to 31 March 2018: GBP11.7 million), except
for the impact of rate changes on deferred tax as shown separately above.
^ On adoption of IFRS 9 on 1 April 2018, the fair value reserve was introduced, replacing
the available-for-sale reserve.
----------------------------------------------------------------------------------------
Condensed combined consolidated cash flow statement
Year to Year to
------------ -------------
31 March 31 March
------------ -------------
GBP'000 2019 2018
------------ -------------
Cash inflows from operations 697 877 732 242
------------ -------------
(3 283
Increase in operating assets 153) (3 352 869)
------------ -------------
Increase in operating liabilities 3 990 382 3 075 779
------------ -------------
Net cash inflow from operating activities 1 405 106 455 152
------------ -------------
Net cash outflow from investing activities (65 425) (37 799)
------------ -------------
Net cash inflow from financing activities (218 027) 45 383
------------ -------------
Effects of exchange rate changes on cash and cash
equivalents (136 927) (54 085)
------------ -------------
Net increase in cash and cash equivalents 984 727 408 651
------------ -------------
Cash and cash equivalents at the beginning of the
year 6 130 379 5 721 728
------------ -------------
Cash and cash equivalents at the end of the year 7 115 106 6 130 379
------------ -------------
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 At
------------ ---------------- -------------
31 March 1 April 31 March
------------ ---------------- -------------
GBP'000 2019 2018* 2018
------------ ---------------- -------------
Assets
------------ ---------------- -------------
Cash and balances at central banks 4 992 820 4 040 010 4 040 512
------------ ---------------- -------------
Loans and advances to banks 2 322 821 2 164 598 2 165 533
------------ ---------------- -------------
Non-sovereign and non-bank cash placements 648 547 599 982 601 243
------------ ---------------- -------------
Reverse repurchase agreements and cash collateral on
securities borrowed 1 768 748 2 207 137 2 207 477
------------ ---------------- -------------
Sovereign debt securities 4 538 223 4 907 624 4 910 027
------------ ---------------- -------------
Bank debt securities 717 313 591 428 587 164
------------ ---------------- -------------
Other debt securities 1 220 651 898 122 903 603
------------ ---------------- -------------
Derivative financial instruments 1 034 166 1 345 744 1 352 408
------------ ---------------- -------------
Securities arising from trading activities 1 859 254 1 434 391 1 434 391
------------ ---------------- -------------
Investment portfolio 1 028 976 956 560 885 499
------------ ---------------- -------------
Loans and advances to customers 24 534 753 24 410 334 24 673 009
------------ ---------------- -------------
Own originated loans and advances to customers securitised 407 869 458 814 459 088
------------ ---------------- -------------
Other loans and advances 195 693 345 742 347 809
------------ ---------------- -------------
Other securitised assets 133 804 148 387 148 387
------------ ---------------- -------------
Interests in associated undertakings 387 750 467 852 467 852
------------ ---------------- -------------
Deferred taxation assets 248 893 242 239 157 321
------------ ---------------- -------------
Other assets 1 735 956 1 875 357 1 876 116
------------ ---------------- -------------
Property and equipment 261 650 233 340 233 340
------------ ---------------- -------------
Investment properties 994 645 1 184 097 1 184 097
------------ ---------------- -------------
Goodwill 366 870 368 803 368 803
------------ ---------------- -------------
Intangible assets 107 237 125 389 125 389
------------ ---------------- -------------
49 506 639 49 005 950 49 129 068
------------ ---------------- -------------
Other financial instruments at fair value through profit
or loss in respect of liabilities to customers 8 217 573 8 487 776 8 487 776
------------ ---------------- -------------
57 724 212 57 493 726 57 616 844
------------ ---------------- -------------
Liabilities
------------ ---------------- -------------
Deposits by banks 3 016 306 2 931 267 2 931 267
------------ ---------------- -------------
Derivative financial instruments 1 277 233 1 471 563 1 471 563
------------ ---------------- -------------
Other trading liabilities 672 405 960 166 960 166
------------ ---------------- -------------
Repurchase agreements and cash collateral on securities
lent 1 105 063 655 840 655 840
------------ ---------------- -------------
Customer accounts (deposits) 31 307 107 30 985 251 30 987 173
------------ ---------------- -------------
Debt securities in issue 3 073 320 2 717 187 2 717 187
------------ ---------------- -------------
Liabilities arising on securitisation of own originated
loans and advances 91 522 136 812 136 812
------------ ---------------- -------------
Liabilities arising on securitisation of other assets 113 711 127 853 127 853
------------ ---------------- -------------
Current taxation liabilities 162 448 185 486 185 486
------------ ---------------- -------------
Deferred taxation liabilities 23 590 32 158 32 158
------------ ---------------- -------------
Other liabilities 1 765 649 2 019 906 2 012 268
------------ ---------------- -------------
42 608 354 42 223 489 42 217 773
------------ ---------------- -------------
Liabilities to customers under investment contracts 8 214 634 8 484 296 8 484 296
------------ ---------------- -------------
Insurance liabilities, including unit-linked liabilities 2 939 3 480 3 480
------------ ---------------- -------------
50 825 927 50 711 265 50 705 549
------------ ---------------- -------------
Subordinated liabilities 1 647 271 1 619 878 1 482 987
------------ ---------------- -------------
52 473 198 52 331 143 52 188 536
------------ ---------------- -------------
Equity
------------ ---------------- -------------
Ordinary share capital 245 240 240
------------ ---------------- -------------
Perpetual preference share capital 31 31 31
------------ ---------------- -------------
Share premium 2 471 506 2 416 736 2 416 736
------------ ---------------- -------------
Treasury shares (189 134) (160 132) (160 132)
------------ ---------------- -------------
Other reserves (577 491) (406 718) (345 606)
------------ ---------------- -------------
Retained income 2 611 256 2 326 212 2 530 825
------------ ---------------- -------------
Shareholders' equity excluding non-controlling interests 4 316 413 4 176 369 4 442 094
------------ ---------------- -------------
Other Additional Tier 1 securities in issue 303 728 304 150 304 150
------------ ---------------- -------------
Non-controlling interests 630 873 682 064 682 064
------------ ---------------- -------------
- Perpetual preferred securities issued by subsidiaries 81 616 92 312 92 312
------------ ---------------- -------------
- Non-controlling interests in partially held subsidiaries 549 257 589 752 589 752
------------ ---------------- -------------
Total equity 5 251 014 5 162 583 5 428 308
------------ ---------------- -------------
Total liabilities and equity 57 724 212 57 493 726 57 616 844
------------ ---------------- -------------
* The 1 April 2018 balance sheet has been presented on an IFRS 9 basis and the comparative
as at 31 March 2018 on an IAS 39 basis.
Condensed combined consolidated statement of changes in equity
Year to Year to
-------------- ------------
31 March 31 March
-------------- ------------
GBP'000 2019 2018
-------------- ------------
Balance at the beginning of the year 5 428 308 4 808 629
-------------- ------------
Adoption of IFRS 9 (265 725) -
-------------- ------------
Total comprehensive income for the year 299 530 567 920
-------------- ------------
Share-based payments adjustments 72 714 69 218
-------------- ------------
Dividends paid to ordinary shareholders (238 072) (227 908)
-------------- ------------
Dividends declared to perpetual preference shareholders and Other
Additional Tier 1 security holders (14 742) (15 736)
-------------- ------------
Dividends paid to perpetual preference shareholders included in
non-controlling interests and Other Additional Tier 1 security
-------------- ------------
holders (26 818) (17 244)
-------------- ------------
Dividends paid to non-controlling interests (63 897) (63 688)
-------------- ------------
Issue of ordinary shares 108 414 125 240
-------------- ------------
Issue of Other Additional Tier 1 security instruments 5 852 271 058
-------------- ------------
Issue of equity by subsidiaries 4 319 12 695
-------------- ------------
Net equity impact of non-controlling interest movements 50 643 20 057
-------------- ------------
Movement of treasury shares (103 841) (121 933)
-------------- ------------
Net equity movements of interest in associated undertakings (5 671) -
-------------- ------------
Balance at the end of the year 5 251 014 5 428 308
-------------- ------------
Combined consolidated segmental analysis
Segmental geographical and business analysis of operating profit before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests
For the year to 31 March 2019 UK and Southern Total
GBP'000 Other Africa group
--------- ---------------- -----------
Wealth & Investment 56 363 26 250 82 613
--------- ---------------- -----------
Specialist Banking 138 566 310 329 448 895
--------- ---------------- -----------
Group costs (31 518) (14 825) (46 343)
--------- ---------------- -----------
Specialist Bank and Wealth 163 411 321 754 485 165
--------- ---------------- -----------
Asset Management 107 835 71 527 179 362
--------- ---------------- -----------
Total group 271 246 393 281 664 527
--------- ---------------- -----------
Other non-controlling interest - equity 58 192
--------- ---------------- -----------
Operating profit 722 719
--------- ---------------- -----------
For the year to 31 March 2018 UK and Southern Total
--------- ---------------- -----------
GBP'000 Other Africa group
--------- ---------------- -----------
Wealth & Investment 69 269 29 296 98 565
--------- ---------------- -----------
Specialist Banking 59 958 320 535 380 493
--------- ---------------- -----------
Group costs (33 789) (15 809) (49 598)
--------- ---------------- -----------
Specialist Bank and Wealth 95 438 334 022 429 460
--------- ---------------- -----------
Asset Management 103 918 74 127 178 045
--------- ---------------- -----------
Total group 199 356 408 149 607 505
--------- ---------------- -----------
Other non-controlling interest - equity 52 288
--------- ---------------- -----------
Operating profit 659 793
--------- ---------------- -----------
Fees and commission income
For the year to 31 March
------------- ------------- ------------
GBP'000 UK and Other Southern Total Group
Africa
------------- ------------- ------------
2019
------------- ------------- ------------
Asset management and wealth management 683 621 257 736 941 357
------------- ------------- ------------
Fund management fees/fees for assets under management 807 507 226 705 1 034 212
------------- ------------- ------------
Private client transactional fees 47 771 36 612 84 383
------------- ------------- ------------
Fee and commission expense (171 657) (5 581) (177 238)
------------- ------------- ------------
Specialist Banking 205 610 226 585 432 195
------------- ------------- ------------
Corporate and institutional transactional and advisory
services 206 798 191 786 398 584
------------- ------------- ------------
Private client transactional fees 10 691 62 134 72 825
------------- ------------- ------------
Fee and commission expense (11 879) (27 335) (39 214)
------------- ------------- ------------
Net fee and commission income 889 231 484 321 1 373 552
------------- ------------- ------------
Annuity fees (net of fees payable) 675 619 422 176 1 097 795
------------- ------------- ------------
Deal fees 213 612 62 145 275 757
------------- ------------- ------------
Included in Specialist Banking corporate and institutional and advisory services is net fee income of GBP92 million (2018: GBP105 million) for operating lease income which is out of the scope of IFRS 15 - Revenue from Contracts with Customers.
Analysis of financial assets
and liabilities by category
of financial instrument
Non-financial
-------------- ---------------- ---------------- -------------
Total instruments
-------------- ---------------- ---------------- -------------
Total instruments or scoped
-------------- ---------------- ---------------- -------------
At 31 March 2019 instruments at amortised out of
-------------- ---------------- ---------------- -------------
GBP'000 at fair value cost IFRS 9 Total
-------------- ---------------- ---------------- -------------
Assets
-------------- ---------------- ---------------- -------------
Cash and balances at central banks 1 4 992 819 - 4 992 820
-------------- ---------------- ---------------- -------------
Loans and advances to banks - 2 322 821 - 2 322 821
-------------- ---------------- ---------------- -------------
Non-sovereign and non-bank cash placements 32 471 616 076 - 648 547
-------------- ---------------- ---------------- -------------
Reverse repurchase agreements and cash collateral
on securities borrowed 549 914 1 218 834 - 1 768 748
-------------- ---------------- ---------------- -------------
Sovereign debt securities 4 256 811 281 412 - 4 538 223
-------------- ---------------- ---------------- -------------
Bank debt securities 350 134 367 179 - 717 313
-------------- ---------------- ---------------- -------------
Other debt securities 741 834 478 817 - 1 220 651
-------------- ---------------- ---------------- -------------
Derivative financial instruments 1 034 166 - - 1 034 166
-------------- ---------------- ---------------- -------------
Securities arising from trading activities 1 859 254 - - 1 859 254
-------------- ---------------- ---------------- -------------
Investment portfolio 1 028 976 - - 1 026 976
-------------- ---------------- ---------------- -------------
Loans and advances to customers 2 025 679 22 509 074 - 24 534 753
-------------- ---------------- ---------------- -------------
Own originated loans and advances to customers
securitised - 407 869 - 407 869
-------------- ---------------- ---------------- -------------
Other loans and advances - 195 693 - 195 693
-------------- ---------------- ---------------- -------------
Other securitised assets 118 169 15 635 - 133 804
-------------- ---------------- ---------------- -------------
Interests in associated undertakings - - 387 750 387 750
-------------- ---------------- ---------------- -------------
Deferred taxation assets - - 248 893 248 893
-------------- ---------------- ---------------- -------------
Other assets 131 853 1 041 116 562 987 1 735 956
-------------- ---------------- ---------------- -------------
Property and equipment - - 261 650 261 650
-------------- ---------------- ---------------- -------------
Investment properties - - 994 645 994 645
-------------- ---------------- ---------------- -------------
Goodwill - - 366 870 366 870
-------------- ---------------- ---------------- -------------
Intangible assets - - 107 237 107 237
-------------- ---------------- ---------------- -------------
12 129 262 34 447 345 2 930 032 49 506 639
-------------- ---------------- ---------------- -------------
Other financial instruments at fair value
through profit or loss in respect of liabilities
to customers 8 217 573 - - 8 217 573
-------------- ---------------- ---------------- -------------
20 346 835 34 447 345 2 930 032 57 724 212
-------------- ---------------- ---------------- -------------
Liabilities
-------------- ---------------- ---------------- -------------
Deposits by banks - 3 016 306 - 3 016 306
-------------- ---------------- ---------------- -------------
Derivative financial instruments 1 277 233 - - 1 277 233
-------------- ---------------- ---------------- -------------
Other trading liabilities 672 405 - - 672 405
-------------- ---------------- ---------------- -------------
Repurchase agreements and cash
collateral on securities lent 433 790 671 273 - 1 105 063
-------------- ---------------- ---------------- -------------
Customer accounts (deposits) 2 372 841 28 934 266 - 31 307 107
-------------- ---------------- ---------------- -------------
Debt securities in issue 520 806 2 552 514 - 3 073 320
-------------- ---------------- ---------------- -------------
Liabilities arising on securitisation
of own originated loans and
advances - 91 522 - 91 522
-------------- ---------------- ---------------- -------------
Liabilities arising on securitisation
of other assets 113 711 - - 113 711
-------------- ---------------- ---------------- -------------
Current taxation liabilities - - 162 448 162 448
-------------- ---------------- ---------------- -------------
Deferred taxation liabilities - - 23 590 23 590
-------------- ---------------- ---------------- -------------
Other liabilities 47 676 1 029 239 688 734 1 765 649
-------------- ---------------- ---------------- -------------
5 438 462 36 295 120 874 772 42 608 354
-------------- ---------------- ---------------- -------------
Liabilities to customers under
investment contracts 8 214 634 - - 8 214 634
-------------- ---------------- ---------------- -------------
Insurance liabilities, including
unit-linked liabilities 2 939 - - 2 939
-------------- ---------------- ---------------- -------------
50 825
13 656 035 36 295 120 874 772 927
-------------- ---------------- ---------------- -------------
Subordinated liabilities 367 707 1 279 564 - 1 647 271
-------------- ---------------- ---------------- -------------
52 473
14 023 742 37 574 684 874 772 198
-------------- ---------------- ---------------- -------------
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)
Fair value category
Total
------------ ---------- ------------ -----------
At 31 March 2019 instruments
------------ ---------- ------------ -----------
GBP'000 at fair Level 1 Level 2 Level 3
value
------------ ---------- ------------ -----------
Assets
------------ ---------- ------------ -----------
Cash and balances at central banks 1 1 - -
------------ ---------- ------------ -----------
Non-sovereign and non-bank cash
placements 32 471 - 32 471 -
------------ ---------- ------------ -----------
Reverse repurchase agreements
and cash collateral on securities
borrowed 549 914 - 549 914 -
------------ ---------- ------------ -----------
Sovereign debt securities 4 256 811 4 256 811 - -
------------ ---------- ------------ -----------
Bank debt securities 350 134 148 918 201 216 -
------------ ---------- ------------ -----------
Other debt securities 741 834 222 689 429 850 89 295
------------ ---------- ------------ -----------
Derivative financial instruments 1 034 166 - 995 531 38 635
------------ ---------- ------------ -----------
Securities arising from trading
activities 1 859 254 1 827 306 24 830 7 118
------------ ---------- ------------ -----------
Investment portfolio 1 028 976 173 587 25 418 829 971
------------ ---------- ------------ -----------
Loans and advances to customers 2 025 679 - 816 099 1 209 580
------------ ---------- ------------ -----------
Other securitised assets 118 169 - - 118 169
------------ ---------- ------------ -----------
Other assets 131 853 131 853 - -
------------ ---------- ------------ -----------
Other financial instruments at
fair value through profit or loss
in respect of liabilities to
customers 8 217 573 8 217 573 - -
------------ ---------- ------------ -----------
14 978
20 346 835 738 3 075 329 2 292 768
------------ ---------- ------------ -----------
Liabilities
------------ ---------- ------------ -----------
Derivative financial instruments 1 277 233 5 857 1 254 750 16 626
------------ ---------- ------------ -----------
Other trading liabilities 672 405 556 125 116 280 -
------------ ---------- ------------ -----------
Repurchase agreements and cash
collateral on securities lent 433 790 - 433 790 -
------------ ---------- ------------ -----------
Customer accounts (deposits) 2 372 841 - 2 372 841 -
------------ ---------- ------------ -----------
Debt securities in issue 520 806 - 520 806 -
------------ ---------- ------------ -----------
Liabilities arising on securitisation
of other assets 113 711 - - 113 711
------------ ---------- ------------ -----------
Other liabilities 47 676 - 44 071 3 605
------------ ---------- ------------ -----------
Liabilities to customers under
investment contracts 8 214 634 - 8 214 634 -
------------ ---------- ------------ -----------
Insurance liabilities, including
unit-linked liabilities 2 939 - 2 939 -
------------ ---------- ------------ -----------
Subordinated liabilities 367 707 367 707 - -
------------ ---------- ------------ -----------
12 960
14 023 742 929 689 111 133 942
------------ ---------- ------------ -----------
14 049 (9 884
Net financial assets at fair value 6 323 093 049 782) 2 158 826
------------ ---------- ------------ -----------
Transfers between level 1 and level 2
During the current year, there were no transfers between level 1 and level 2.
Level 2 financial assets and financial liabilities
The following table sets out the group's principal valuation techniques as at 31 March 2019 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 Discounted cash flow model Yield curves
non-bank cash placements
------------------------------- ----------------------------------------------
Reverse repurchase Discounted cash flow model, Yield curves, discount rates,volatilities
agreements and cash Hermite interpolation,
------------------------------- ----------------------------------------------
collateral on securities Black-Scholes
borrowed
------------------------------- ----------------------------------------------
Bank debt securities Discounted cash flow model Yield curves
------------------------------- ----------------------------------------------
Other debt securities Discounted cash flow model Yield curves, NCD curves and swap curves,
------------------------------- ----------------------------------------------
discount rates, external prices, broker
quotes
------------------------------- ----------------------------------------------
Derivative financial Discounted cash flow model, Yield curves, risk free rate, volatilities,
instruments Hermite interpolation, forex forward
------------------------------- ----------------------------------------------
industry standard derivative points and spot rates, interest rate swap
pricing models including curves and
------------------------------- ----------------------------------------------
Black-Scholes credit curves, discount rates
------------------------------- ----------------------------------------------
Securities arising Standard industry derivative Interest rate curves, implied bond spreads,
from trading activities pricing model
------------------------------- ----------------------------------------------
Discounted cash flow model equity volatilities, yield curves
------------------------------- ----------------------------------------------
Investment portfolio Discounted cash flow model, Discount rate and fund unit price, net
relative valuation model assets
------------------------------- ----------------------------------------------
Comparable quoted inputs
------------------------------- ----------------------------------------------
Loans and advances Discounted cash flow model Yield curves
to customers
------------------------------- ----------------------------------------------
Liabilities
------------------------------- ----------------------------------------------
Derivative financial Discounted cash flow model, Yield curves, discount rates, risk free
instruments Hermite interpolation, rate, volatilities,
------------------------------- ----------------------------------------------
industry standard derivative forex forward points and spot rates, interest
pricing models including rate
------------------------------- ----------------------------------------------
Black-Scholes 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, Yield curves, discount rates
Hermite interpolation
------------------------------- ----------------------------------------------
Customer accounts Discounted cash flow model Yield curves, discount rates
(deposits)
------------------------------- ----------------------------------------------
Debt securities in Discounted cash flow model Yield curves
issue
------------------------------- ----------------------------------------------
Other liabilities Discounted cash flow model Yield curves
------------------------------- ----------------------------------------------
The following is a reconciliation of the opening balances to the closing balances for fair value measurement in level 3 of the fair value hierarchy.
Loans and Other Other
Investment advances securitised balance
to
------------ ------------- ------------ ------------ ----------
GBP'000 portfolio customers assets sheet Total
assets
------------ ------------- ------------ ------------ ----------
Assets
------------ ------------- ------------ ------------ ----------
Balance as at 31 March
2018 587 819 133 740 130 388 67 723 919 670
------------ ------------- ------------ ------------ ----------
1 353
Adoption of IFRS 9 74 768 1 203 939 - 74 381 088
------------ ------------- ------------ ------------ ----------
Balance as at 1 April 2 272
2018 662 587 1 337 679 130 388 142 104 758
------------ ------------- ------------ ------------ ----------
Total gains or losses (175) 69 261 (2 834) 16 865 83 117
------------ ------------- ------------ ------------ ----------
In the income statement (175) 69 056 (2 834) 16 865 82 912
------------ ------------- ------------ ------------ ----------
In the statement of
comprehensive income - 205 - - 205
------------ ------------- ------------ ------------ ----------
1 614
Purchases 338 782* 1 268 572 - 6 909 263
------------ ------------- ------------ ------------ ----------
Sales (95 646) (889 145) - (8 404) (993 195)
------------ ------------- ------------ ------------ ----------
Settlements (60 095) (624 061) (9 385) (29 456) (722 997)
------------ ------------- ------------ ------------ ----------
Transfers into level
3 12 211 3 499 - - 15 710
------------ ------------- ------------ ------------ ----------
Foreign exchange adjustments (27 693) 43 775 - 7 026 23 108
------------ ------------- ------------ ------------ ----------
Balance as at 31 March 2 292
2019 829 971 1 209 580 118 169 135 044 764
------------ ------------- ------------ ------------ ----------
* Includes investments acquired by the Investec Property Fund, a subsidiary of Investec
Limited.
Liabilities
arising on
-------------------- ------------------------- ------------
securitisation Other
-------------------- ------------------------- ------------
For the year to 31 March 2019 of other balance
-------------------- ------------------------- ------------
GBP'000 assets sheet liabilities Total
-------------------- ------------------------- ------------
Liabilities
-------------------- ------------------------- ------------
Balance as at 1 April 2018 127 853 15 641 143 494
-------------------- ------------------------- ------------
Total gains or losses (5 084) (12 653) (17 737)
-------------------- ------------------------- ------------
In the income statement (5 084) (12 653) (17 737)
-------------------- ------------------------- ------------
In the statement of comprehensive income - - -
-------------------- ------------------------- ------------
Purchases - 27 561 27 561
-------------------- ------------------------- ------------
Sales - (11 800) (11 800)
-------------------- ------------------------- ------------
Settlements (9 058) - (9 058)
-------------------- ------------------------- ------------
Transfers into level 3 - 2 854 2 854
-------------------- ------------------------- ------------
Foreign exchange adjustments - (1 372) (1 372)
-------------------- ------------------------- ------------
Balance as at 31 March 2019 113 711 20 231 133 942
-------------------- ------------------------- ------------
During the year, GBP 15.7 million of level 2 instruments have been transferred into level 3 as a result of inputs to valuation models becoming unobservable in the market.
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 2019
GBP'000 Total Realised Unrealised
------------ ----------- -----------
Total gains or (losses) included in the income statement
for the year
------------ ----------- -----------
Net interest income 100 041 86 118 13 923
------------ ----------- -----------
Investment income (11 000) 9 675 (20 675)
------------ ----------- -----------
Trading loss arising from customer flow (3 272) 1 348 (4 620)
------------ ----------- -----------
Trading income arising from balance sheet management and
other trading activities 14 880 - 14 880
------------ ----------- -----------
100 649 97 141 3 508
------------ ----------- -----------
Total gains or losses recognised in other comprehensive income
for the year
------------ ----------- -----------
Fair value movements on debt instruments at FVOCI taken directly
to other comprehensive income 205 - 205
------------ ----------- -----------
205 - 205
------------ ----------- -----------
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 unobservable Favourable Unfavourable
31 March 2019 sheet value Significant unobservable input used changes Changes
GBP'000 input GBP'000 GBP'000
Assets
------------- -------------------------- ---------------------- ----------- -------------
Other debt securities 89 295 8 047 (7 849)
------------- ---------------------- ----------- -------------
5.8% 117 (114)
------------- ---------------------- ----------- -------------
(5%)/5% 306 (306)
------------- ---------------------- ----------- -------------
Potential impact
on income statement
Credit spreads
EBITDA
Other^ ^ 7 624 (7 429)
------------- -------------------------- ---------------------- ----------- -------------
Potential impact
on income statement
Volatilities
Credit spreads
Cash flow adjustments
Underlying asset
Derivative financial value
instruments 38 635 Other^ 22 720 (5 882)
------------- -------------------------- ---------------------- ----------- -------------
4.0% - 9.0% 129 (129)
------------- -------------------------- ---------------------- ----------- -------------
7.1% 6 (9)
------------- ---------------------- ----------- -------------
CPR 6.2% -
10.2% 134 (124)
------------- ---------------------- ----------- -------------
^^ 7 731 (3 731)
------------- ---------------------- ----------- -------------
^ 14 720 (1 889)
------------- -------------------------- ---------------------- ----------- -------------
Securities arising 7 118 Potential impact
from trading on income statement
activities
------------- -------------------------- ---------------------- ----------- -------------
Cash flow adjustments CPR 9.2% 1 119 (1 480)
------------- -------------------------- ---------------------- ----------- -------------
Potential impact
on income statement
Price earnings multiple
Underlying asset
value^
Other^
EBITDA
Precious and industrial
metals prices
Cash flows
Property values
Investment portfolio 829 971 Various 158 957 (134 600)
------------- -------------------------- ---------------------- ----------- -------------
3.2 x - 9.0
x 8 852 (8 563)
------------- -------------------------- ---------------------- ----------- -------------
^^ 17 229 (11 739)
------------- ---------------------- ----------- -------------
^ 83 729 (60 072)
------------- ---------------------- ----------- -------------
* 21 470 (21 043)
------------- ---------------------- ----------- -------------
(10%)/6% 2 186 (2 186)
------------- ---------------------- ----------- -------------
(50%)/50% 10 568 (9 552)
------------- ---------------------- ----------- -------------
(5%)/5% 10 151 (10 151)
------------- ---------------------- ----------- -------------
** 4 772 (11 294)
------------- -------------------------- ---------------------- ----------- -------------
Potential impact
on income statement
Credit spreads
Price earnings multiple
Underlying asset
value^^
Cash flows
EBITDA
Property values
Other^
Potential impact
on other comprehensive
Loans and advances income
to customers 1 209 580 Credit spreads 75 262 (91 448)
------------- -------------------------- ---------------------- ----------- -------------
0.1% - 6.2% 6 327 (9 089)
------------- -------------------------- ---------------------- ----------- -------------
4.9 x 703 (493)
------------- ---------------------- ----------- -------------
^^ 2 778 (2 347)
------------- ---------------------- ----------- -------------
(50%)/50% 16 053 (16 053)
------------- ---------------------- ----------- -------------
* 335 (335)
------------- ---------------------- ----------- -------------
(5%)/5% 100 (100)
------------- ---------------------- ----------- -------------
^ 48 966 (63 031)
------------- ---------------------- ----------- -------------
0.03% - 2.1% 1 673 (2 933)
------------- -------------------------- ---------------------- ----------- -------------
Other securitised 118 169 Potential impact
assets on income statement
Cash flow adjustments
------------- -------------------------- ---------------------- ----------- -------------
CPR 6.2% 496 (473)
------------- -------------------------- ---------------------- ----------- -------------
Total level 3
assets 2 292 768 268 274 (244 665)
------------- -------------------------- ---------------------- ----------- -------------
Liabilities Potential impact
on income statement
Cash flow adjustments
Volatilities
Underlying asset
value^^
------------- -------------------------- ---------------------- ----------- -------------
Derivative financial
instruments 16 626 (8 035) 8 045
------------- -------------------------- ---------------------- ----------- -------------
CPR 6.2% -
10.2% (107) 116
------------- ---------------------- ----------- -------------
5.0% - 9.0% (174) 174
------------- ---------------------- ----------- -------------
^^ (7 754) 7 755
------------- -------------------------- ---------------------- ----------- -------------
Liabilities arising 113 711 Potential impact
on securitisation on income statement
of other assets
Cash flow adjustments
------------- -------------------------- ---------------------- ----------- -------------
CPR 6.2% (365) 344
------------- -------------------------- ---------------------- ----------- -------------
Other liabilities 3 605 Potential impact
on income statement
------------- -------------------------- ---------------------- ----------- -------------
Property values (5%)/5% (505) 505
------------- -------------------------- ---------------------- ----------- -------------
Total level 3
liabilities 133 942 (8 905) 8 894
------------- -------------------------- ----------------------------------- -------------
Net level 3 assets 2 158 826
------------- -------------------------- ----------------------------------- -------------
* The EBITDA and cash flows has been stressed on an investment-by-investment basis in order to obtain favourable and unfavourable valuations
** The valuation sensitivity for certain equity investments and fair value loans have 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 purpose of this analysis as the sensitivity of the investments cannot be determined through the adjustment of a single input.
* The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other securitised assets.
^ Other - The valuation sensitivity has been assessed by adjusting various inputs such as expected cash flows, discount rates, earnings multiples rather than a single input. It is deemed appropriate to reflect the outcome on a portfolio basis for the purposes of this analysis as the sensitivity of the assets cannot be determined through the adjustment of a single input.
^^ Underlying asset values are calculated by reference to a tangible asset, for example property, aircraft or shares.
Within the Hong Kong portfolio there is a connected exposure across the investment portfolio, loans and advances to customers and derivatives financial instruments lines with a balance sheet value of GBP69 million. The consideration of reasonably possible alternative assumptions with respect to the fair value of this exposure results in a favourable change of GBP95 million and an unfavourable change of GBP69 million, included within the above table.
Fair value of financial assets and liabilities at amortised cost
Carrying
GBP'000 amount Fair value
----------- -----------
2019
----------- -----------
Assets
----------- -----------
Reverse repurchase agreements and cash collateral
on securities borrowed 1 218 834 1 218 958
----------- -----------
Sovereign debt securities 281 412 271 125
----------- -----------
Bank debt securities 367 179 366 845
----------- -----------
Other debt securities 478 817 467 820
----------- -----------
Loans and advances to customers 22 509 074 22 561 179
----------- -----------
Other loans and advances 195 693 197 587
----------- -----------
Other assets 1 041 116 1 041 759
----------- -----------
Liabilities
----------- -----------
Deposits by banks 3 016 306 3 049 306
----------- -----------
Repurchase agreements and cash collateral on
securities lent 671 273 668 870
----------- -----------
Customer accounts (deposits) 28 934 266 28 934 451
----------- -----------
Debt securities in issue 2 552 514 2 588 218
----------- -----------
Other liabilities 1 029 239 1 027 905
----------- -----------
Subordinated liabilities 1 279 564 1 361 823
----------- -----------
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 34
Notice is hereby given that the final dividend number 34, being a gross dividend of 13.5 pence (2018: 13.5 pence) per ordinary share has been recommended by the Board from income reserves in respect of the financial year ended 31 March 2019 payable to shareholders recorded in the shareholders' register of the company at the close of business on Friday, 26 July 2019.
-- 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 5.5 pence per ordinary share and through a dividend paid by Investec Limited, on the SA DAS share, payable from income reserves, equivalent to 8 pence per ordinary share.
The relevant dates for the payment of dividend number 34 are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 23 July 2019
On the London Stock Exchange (LSE) Wednesday, 24 July 2019
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 24 July 2019
On the London Stock Exchange (LSE) Thursday, 25 July 2019
Record date (on the JSE and LSE) Friday, 26 July 2019
Payment date (on the JSE and LSE) Monday, 12 August 2019
Share certificates on the South African branch register may not be dematerialised or rematerialised between Wednesday, 24 July 2019 and Friday, 26 July 2019, both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday, 24 July 2019 and Friday, 26 July 2019, 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 251 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, 15 May 2019
-- Investec plc United Kingdom tax reference number: 2683967322360 -- The issued ordinary share capital of Investec plc is 682 121 211 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 251 cents per share, comprising 148.74074 cents per share paid by Investec Limited on the SA DAS share and 102.25926 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 200.8 cents per share (gross dividend of 251 cents per share less Dividend Tax of 50.2 cents per share) comprising 118.99259 cents per share paid by Investec Limited on the SA DAS share and 81.80741 cents per ordinary share paid by Investec plc.
By order of the board
D Miller
Company Secretary
15 May 2019
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 26
Notice is hereby given that preference dividend number 26 has been declared by the Board from income reserves for the period 01 October 2018 to 31 March 2019 amounting to a gross preference dividend of 8.72603 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, 07 June 2019.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 8.72603 pence per preference share is equivalent to a gross dividend of 160.82597 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA time) on Wednesday, 15 May 2019.
The relevant dates relating to the payment of dividend number 26 are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday, 04 June 2019
On The International Stock Exchange (TISE) Wednesday, 05 June 2019
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday, 05 June 2019
On The International Stock Exchange (TISE) Thursday, 06 June 2019
Record date (on the JSE and TISE) Friday, 07 June 2019
Payment date (on the JSE and TISE) Tuesday, 18 June 2019
Share certificates may not be dematerialised or rematerialised between Wednesday, 05 June 2019 and Friday, 07 June 2019, both dates inclusive, nor may transfers between the United Kingdom share register and the South African branch register take place between Wednesday, 05 June 2019 and Friday, 07 June 2019, 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 128.66078 cents per preference share for preference shareholders liable to pay the Dividend Tax and 160.82597 cents per preference share for preference shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
15 May 2019
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 16
Notice is hereby given that preference dividend number 16 has been declared by the Board from income reserves for the period 01 October 2018 to 31 March 2019 amounting to a gross preference dividend of 482.09247 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, 07 June 2019.
The relevant dates relating to the payment of dividend number 16 are as follows:
Last day to trade cum-dividend Tuesday, 04 June 2019 Shares commence trading ex-dividend Wednesday, 05 June 2019 Record date Friday, 07 June 2019 Payment date Tuesday, 18 June 2019
Share certificates may not be dematerialised or rematerialised between Wednesday, 05 June 2019 and Friday, 07 June 2019, both dates inclusive.
Additional information for South African resident shareholders of Investec plc
-- Investec plc United Kingdom tax reference number: 2683967322360
-- The issued Rand-denominated preference share capital of Investec plc is 131 447 preference shares
-- The dividend paid by Investec plc to shareholders recorded on the South African branch register is subject to South African Dividend Tax (Dividend Tax) of 20% (subject to any available exemptions as legislated)
-- The net dividend amounts to 385.67398 cents per preference share for preference shareholders liable to pay the Dividend Tax and 482.09247 cents per preference share for preference shareholders exempt from paying the Dividend Tax.
By order of the board
D Miller
Company Secretary
15 May 2019
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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May 16, 2019 02:01 ET (06:01 GMT)
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