Final Results

RNS Number : 2271M

Investec PLC

20 May 2010

 



Investec Limited Incorporated in the Republic of South Africa Registration number 1925/002833/06       JSE share code: INL              ISIN: ZAE000081949

Investec plc Incorporated in England and Wales Registration number 3633621 JSE share code: INP ISIN: GB00B17BBQ50

20 May 2010

Investec records strong increases in assets under management

Capital strength and liquidity further reinforced

Investec, the international specialist bank and asset manager, announces today its results for the year ended 31 March 2010.

Highlights

·      Investec recorded a good operating performance with all divisions and geographies profitable

·      Operational and geographic diversity continues to support a large recurring revenue base, totaling 60.4% of operating income

·      The group has further improved the quality of its balance sheet, with an increase in both capital and liquidity

o  Tier 1 ratios rose for Investec plc and Investec Limited to 11.3% and 12.1%, respectively

o  Cash and near cash balances rose 87.4% to GBP9.1bn

o  Customer deposits increased by 50.5% to GBP21.9bn

o  The ratio of loans to deposits improved from 103.6% to 76.2%

·      Strong growth recorded in assets under management

o  Total third party assets under management increased by 50.7% to GBP73.6bn

o  Investec Asset Management recorded significant inflows of GBP4.7bn

·      The credit loss ratio was in line with expectations at 1.16%; management believes that the credit loss cycle is peaking

·      Business units have moved onto the front foot and are taking advantage of new opportunities

·      Proposed acquisition of Rensburg Sheppards plc represents an important strategic step towards building a substantial global wealth management platform

·      Investment in the Investec brand continues to deliver shareholder value

Financial features

	Year to 31 March 2010	Year to 31 March 2009	% Change
Operating profit before tax* (GBP'mn)	432.3	396.8	8.9%
Earnings attributable to shareholders* (GBP'mn)	309.7	269.2	15.0%
Adjusted EPS* (pence)	45.1	42.4	6.4%
Dividends per share (pence)	16.0	13.0	23.1%
Net tangible asset value per share (pence)	324.1	266.3	21.7%
ROE	13.5%	14.8%
Cost to income ratio	57.8%	55.9%

Business highlights - operating profit before tax*

·      Asset Management: increase of 26.0% to GBP83.4mn (2009: GBP66.2mn)

·      Private Wealth: increase of 7.4% to GBP25.9mn (2009: GBP24.1mn)

·      Property Activities: increase of 35.6% to GBP33.5mn (2009: GBP24.7mn)

·      Private Banking: decrease of 54.0% to GBP37.0mn (2009: GBP80.5mn)

·      Investment Banking: increase of 47.6% to GBP41.6mn (2009: GBP28.2mn)

·      Capital Markets: increase of 26.7% to GBP179.1mn (2009: GBP141.4mn)

·      Group Services and Other Activities: GBP31.7mn (2009: GBP31.8mn)

*Before non-operating items and goodwill and after minorities

Stephen Koseff, Chief Executive Officer of Investec said:

"By managing risk, building capital and liquidity and investing in our brand we have secured increased recognition as a strong, independent financial institution. This is reflected in the improved earnings and substantial increase in assets under management we are reporting today. The business is on the front foot and looking ahead we see good opportunities and growth potential right across the business." 

Bernard Kantor, Managing Director of Investec said:

"Investec's diversified business model enables us to navigate through varying cycles and support our long-term growth objectives. It is a model that has served us well and looking ahead it is our strategic intention to strengthen it further by establishing a global private wealth platform to complement our existing divisions. Investec is a business in good shape and we look forward to the future with confidence."

For further information please contact:

Investec [phone]

Stephen Koseff, Chief Executive Officer

Bernard Kantor, Managing Director

Ursula Nobrega, Investor Relations (mobile:[phone])

Citigate Dewe Rogerson

[phone]

Jonathan Clare

Tom Baldock

Ged Brumby

About Investec

Investec is an international specialist bank and asset manager that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa and Australia as well as certain other countries. The group was established in 1974 and currently has approximately 6 100 employees.

Investec focuses on delivering distinctive profitable solutions for its clients in six core areas of activity namely, Asset Management, Private Wealth, Property Activities, Private Banking, Investment Banking and Capital Markets.

In July 2002 the Investec group implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. The combined group's current market capitalisation is approximately GBP3.6bn.

Investec plc and Investec Limited (combined results)

Unaudited combined consolidated financial results in Pounds Sterling for the year ended 31 March 2010

Overall performance

Over the past year the group has concentrated on improving the quality of its balance sheet whilst at the same time moving the organisation onto the front foot. This has resulted in a satisfactory year end performance, with a strengthening of both liquidity and capital and an increase of 6.4% in adjusted earnings per share (EPS) before goodwill and non-operating items from 42.4 pence to 45.1 pence.

The main features of the year under review are:

·      Operating profit before goodwill, non-operating items and taxation and after minorities ("operating profit") increased 8.9% to GBP432.3 million (2009: GBP396.8 million).

·      Adjusted earnings attributable to shareholders before goodwill and non-operating items increased 15.0% to GBP309.7 million (2009: GBP269.2 million).

·      Net asset value per share increased by 17.9% to 364.0 pence (2009: 308.8 pence) and net tangible asset value per share (which excludes goodwill and intangible assets) increased by 21.7% to 324.1 pence (2009: 266.3 pence).

·      Third party assets under management increased by 50.7% to GBP73.6 billion (2009: GBP48.8  billion).

·      Customer accounts (deposits) increased 50.5% to GBP21.9 billion (2009: GBP14.6 billion).

·      Core loans and advances (excluding own originated securitised assets) as a percentage of customer deposits improved from 103.6% at 31 March 2009 to 76.2%.

·      Tier 1 capital adequacy ratios have strengthened in both Investec plc and Investec Limited (refer to "Operational review" section below).

·      Low gearing ratios represented by core loans and advances to equity at 5.4 times (2009: 6.2 times) and total assets (excluding assurance assets) to equity at 12.5 times (2009: 12.9 times).

·      The board proposes a final dividend of 8.0 pence per ordinary share equating to a full year dividend of 16.0 pence (2009: 13.0 pence) resulting in a dividend cover based on the group's adjusted EPS before goodwill and non-operating items of 2.8 times (2009: 3.3 times), consistent with the group's dividend policy.

Operational review

Liquidity and funding

Diversifying Investec's funding sources has been a key element in improving the quality of the group's balance sheet and reducing its reliance on wholesale funding. The group has been successful in growing customer deposits in all three core geographies and substantially increasing its cash and near cash balances from GBP4.9 billion to GBP9.1 billion. The maintenance of cash reserves and a stock of readily available, high quality liquid assets well in excess of minimum regulatory requirements remains a core strategy of the group, with these balances on average representing 20% to 30% of the group's liability base over the period.

Capital adequacy

The group holds capital in excess of regulatory requirements targeting a minimum tier one capital ratio of 11% and a total capital adequacy ratio range of 14% to 17% on a consolidated basis for each of Investec plc and Investec Limited. Capital ratios are within the group's target range across all core geographies.

Basel II ratios	31 Mar 2010	31 Mar 2009
Investec plc
Capital adequacy ratio	15.9%	16.2%
Tier 1 ratio	11.3%	10.1%
Investec Limited
Capital adequacy ratio	15.6%	14.2%
Tier 1 ratio	12.1%	10.8%

Asset quality

The bulk of Investec's credit and counterparty risk arises through its Private Banking and Capital Markets activities. The Private Bank lends mainly to high net worth and high income individuals, whilst the Capital Markets division primarily transacts with mid to large sized corporates, public sector bodies and institutions. Investec continues to focus on asset quality and credit risk in all geographies. Impairments and defaults on core loans and advances have increased in line with guidance previously provided, as detailed in the "Financial statement analysis" below.

Business unit review

Investec is a focused, specialist bank and asset manager striving to be distinctive in all that it does. The group seeks to maintain an appropriate balance between revenue earned from operational risk businesses and revenue earned from financial risk businesses. This ensures that the group is not over reliant on any one part of its business to sustain its activities and that it has a large recurring revenue base that enables it to navigate through varying cycles and to support its long-term growth objectives.

Investec's current strategic objectives include increasing the proportion of its non-lending revenue base which the group largely intends to achieve through the continued strengthening and development of its wealth and asset management businesses.

Against this background, the group has modified its segmental reporting disclosure for the period, effectively separating out its asset and wealth management activities from its specialist banking activities. This has not resulted in a restatement of any segmental reporting numbers but has merely altered the format of the disclosure.

Asset Management

Asset Management reported an increase in operating profit of 26.0% to GBP83.4 million (2009: GBP66.2 million), benefitting from substantial net inflows of GBP4.7 billion. Since 31 March 2009, assets under management increased by 60.9% from GBP28.8 billion to GBP46.4 billion.

Private Wealth (previously Private Client Portfolio Management and Stockbroking)

Private Wealth reported an increase in operating profit of 7.4% to GBP25.9 million (2009: GBP24.1 million). The business in South Africa was impacted by lower activity levels. The results of the UK operations include Investec's 47.1% share of the directors' estimate of the post-tax profit of Rensburg Sheppards plc for the year ended 31 March 2010.

On 30 March 2010, it was announced that Investec and Rensburg Sheppards plc had reached agreement on the terms of a recommended all share offer under which Investec will acquire the entire issued and to be issued ordinary share capital of Rensburg Sheppards plc not already owned by it. Full details of the offer, which is still subject to shareholder and regulatory approvals, can be found on Investec's website: http://www.investec.com

Property Activities

Property Activities generated an increase in operating profit of 35.6% to GBP33.5 million (2009: GBP24.7 million). The results of the division were largely supported by a satisfactory performance from the investment property portfolio in South Africa.

Private Banking

Operating profit from the Private Banking division decreased by 54.0% to GBP37.0 million. (2009: GBP80.5 million). The division focused resources during the period on building its deposit book which increased by 52.3% to GBP11.8 billion (2009: GBP7.7 billion). Funds under advice also increased 25.0% to GBP4.1 billion (2009: GBP3.3 billion). The private client core lending book grew by 16.8% to GBP12.9 billion (2009: GBP11.1 billion), mainly due to movements in exchange rates. Activity levels remained muted and impairment losses on loans and advances increased.

Investment Banking

The Investment Banking division reported an increase of 47.6% in operating profit to GBP41.6 million (2009: GBP28.2 million). The Principal Investments division recorded a solid result, primarily driven by an improved performance from some of the investments held in the UK and Australian portfolio. The Agency divisions closed fewer transactions in comparison to the prior year and commissions were impacted by lower volumes.

Capital Markets

Capital Markets reported an increase in operating profit of 26.7% to GBP179.1 million (2009: GBP141.4 million). The division has experienced reasonable levels of activity across the advisory businesses and took advantage of select debt and credit opportunities. Trading and balance sheet management activities have, however, been impacted by the lower rate environment and declining volatility. Core loans and advances declined 6.1% to GBP4.5 billion (2009:GBP4.8 billion). Kensington Group plc ("Kensington") produced a stable performance and reported an operating profit of GBP37.3 million (2009: GBP37.1 million).                                                                                                                                                                                         

Group Services and Other Activities

Group Services and Other Activities contributed GBP31.7 million to operating profit (2009: GBP31.8 million). The Central Funding division performed well benefiting from the repurchase of group debt, partially offset by a lower return on surplus cash.

Further information on key developments within each of the business units is provided in a detailed report published on the group's website: http://www.investec.com

Financial statement analysis

Total operating income

Total operating income net of insurance claims has increased by 11.3% to GBP1,657 million (2009: GBP1,490 million). Material movements in total operating income are analysed below.

Net interest income decreased by 11.7% to GBP613.1 million (2009: GBP694.0 million) largely as a result of a lower return generated on excess capital held given the declining rate environment.

Net fee and commission income increased by 2.6% to GBP545.1 million (2009: GBP531.5 million). Average funds under management have been supported by improved market indices and significant net inflows. Transactional activity, however, remains mixed and below historic trends.

Income from principal transactions increased 65.5% from GBP276.5 million to GBP457.8 million. The group has benefited from the repurchase of its debt, opportunities taken in the dislocated credit markets and good trading conditions across all geographies.

Operating income from associates decreased by 6.8% to GBP11.6 million (2009: GBP12.4 million). The figure includes Investec's 47.1% share of the directors' estimate of the post-tax profit of Rensburg Sheppards plc for the year ended 31 March 2010.

The consolidation of the operating results of certain investments held within the group's Private Equity portfolio is partly reflected in other operating income/loss, which improved from a loss of GBP30.2 million to a gain of GBP22.7 million.

As a result of the foregoing factors, recurring income as a percentage of total operating income decreased to 60.4% (2009: 70.0%).

Impairment losses on loans and advances

The weaker credit cycle has caused a decline in the performance of the group's loan portfolio. In line with previous guidance provided, impairment losses on loans and advances have increased from GBP163.0 million to GBP205.4 million (excluding Kensington). The credit loss charge as a percentage of average gross loans and advances is 1.16%, marginally higher than the 1.08% reported at 31 March 2009.The percentage of default loans (net of impairments but before taking collateral into account) to core loans and advances has increased from 3.3% to 4.0% since 31 March 2009. The ratio of collateral to default loans (net of impairments) remains satisfactory at 1.33 times (2009: 1.22 times). 

Impairment losses on loans and advances relating to the Kensington business amount to GBP81.2 million (2009: GBP93.2 million). The total Kensington book has reduced to GBP4.7 billion from GBP5.2 billion at 31 March 2009. The percentage of accounts in arrears has increased as the book continues to run off.

Administrative expenses and depreciation

The ratio of total operating expenses to total operating income amounts to 57.8% (2009:55.9%).

Total expenses grew by 14.9% to GBP957.2 million (2009: GBP833.3 million) largely as a result of the appreciation of the Rand and an increase in variable remuneration in certain divisions given improved profitability. Total staff compensation costs increased by 15.0% to GBP598.1 million (2009:GBP520.2 million), resulting in a compensation ratio of 36.1% (2009:34.9%). Other operating expenses increased by 14.7% to GBP359.1 million.

 

Impairment of goodwill

The current period goodwill impairment relates to Asset Management businesses acquired in prior years.

 

Taxation

The operational effective tax rate of the group decreased from 21.1% to 20.6% as a result of an increase in income earned that is subject to lower tax rates or is non-taxable.

Losses attributable to minority interests

Losses attributable to minority interests of GBP18.8 million largely comprise:

·      GBP12.3 million relating to investments consolidated in the Private Equity division;

·      GBP6.9 million relating to Euro denominated preferred securities issued by a subsidiary of Investec plc which are reflected on the balance sheet as part of minority interests. (The transaction is hedged and a forex transaction profit arising on the hedge is reflected in operating profit before goodwill with the equal and opposite impact reflected in earnings attributable to minorities).

 

Balance sheet analysis

Since 31 March 2009:

·      Total shareholders' equity (including minority interests) increased by 25.6% to GBP3.3 billion largely as a result of retained earnings and the issue of shares.

·      Total assets increased from GBP37.4 billion to GBP46.6 billion largely as a result of increased cash holdings and movement in exchange rates.

·      The return on adjusted average shareholders' equity declined from 14.8% to 13.5%.

Outlook

Investec has built its capital, liquidity and third party assets under management over the period under review. The foundation is now in place for further growth both in the group's non capital intensive asset management businesses as well as in its core specialist banking businesses. Although the economic situation remains uncertain the business is oriented towards capturing available opportunities in all its core geographies.

On behalf of the boards of Investec plc and Investec Limited

Hugh Herman                Stephen Koseff                          Bernard Kantor

Chairman                      Chief Executive Officer                Managing Director

Notes to the commentary section above

·      Presentation of financial information

Investec operates under a Dual Listed Companies (DLC) structure with premium/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 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 2009.

·      Foreign currency impact

The group's reporting currency is Pounds Sterling. Certain of the group's operations are conducted by entities outside the UK. The results of operations and the financial condition of 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 date	31 Mar 2010		31 Mar 2009
Currency per GBP1.00	Close	Ave	Close	Ave
South African Rand	11.11	12.38	13.58	14.83
Australian Dollar	1.66	1.88	2.07	2.19
Euro	1.12	1.13	1.08	1.21
Dollar	1.52	1.59	1.43	1.73

Exchange rates between local currencies and Pounds Sterling have fluctuated over the period. The most significant impact arises from the appreciation of the Rand. The average exchange rate over the period has appreciated by 16.5% and the closing rate has appreciated by 18.2% since 31 March 2009.

·      Accounting policies and disclosures

The accounting policies applied in the preparation of the results for the year ended 31 March 2010 are consistent with those adopted in the financial statements for the year ended 31 March 2009, except for the adoption of the following standards and interpretations:

o  IAS 1 Presentation of Financial Statements (revised)

o  IFRIC 13 Customer Loyalty Programmes

The adoption of these standards and interpretations had no material effect on the results and no resulting prior year restatements.

These unaudited condensed combined consolidated financial statements 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.

Investec operates in a legal and regulatory environment that exposes it to litigation risks.  As a result, Investec is involved in disputes and legal proceedings which arise in the ordinary course of business.  Investec does not expect the ultimate resolution of any of the proceedings to which Investec is party to have a significant adverse effect on the financial position of the group. These claims, if any cannot be reasonably estimated at this time.

Restatements

The group applies a policy of offsetting financial assets and financial liabilities when there is both an intention to settle on a net basis (or simultaneously) and a legal right to offset exists. With regard to derivative instruments, the group identified that in certain isolated instances offsetting was applied in prior financial periods to derivative assets and liabilities where it is not market practice to settle net, whilst the legal right to settle net exists. The impact of this restatement on the balance sheet of the two prior years is noted below:

GBP'000	31 Mar 2009	31 Mar 2008
Restated
Derivative financial instrument assets	1,843,143	1,425,587
Derivative financial instrument liabilities	1,456,561	1,001,900
As previously reported
Derivative financial instrument assets	1,582,908	1,305,264
Derivative financial instrument liabilities	1,196,326	881,577
Change to previously reported
Derivative financial instrument assets	260,235	120,323
Derivative financial instrument liabilities	260,235	120,323

The above restatements have no impact on equity and the net cash position.

·      Proviso

·      Please note that matters discussed in this announcement may contain forward looking statements which are subject to various risks and uncertainties and other factors, including, but not limited to:

§ the further development of standards and interpretations under International Financial Reporting Standards (IFRS) applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS.

§ domestic and global economic and business conditions.

§ market related risks.

·      A number of these factors are beyond the group's control.

·      These factors may cause the group's actual future results, performance or achievements in the markets in which it operates to differ from those expressed or implied.

·      Any forward looking statements made are based on the knowledge of the group at 20 May 2010.

·      The information in the announcement for the year ended 31 March 2010, which was approved by the board of directors on 19 May 2010, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006.

Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results in Pounds Sterling for the year ended 31 March 2010

Salient Features

	31 March	31 March	%
	2010	2009	Change
Operating profit before, goodwill, non-operating items, taxation and after minorities (GBP'000)	432,258	396,766	8.9
Earnings attributable to shareholders (GBP'000)	346,133	292,022	18.5
Adjusted earnings before goodwill and non-operating items (GBP'000)	309,710	269,215	15.0
Adjusted earnings per share (before goodwill and non-operating items) (pence)	45.1	42.4	6.4
Dividends per share (pence)	16.0	13.0	23.1
Tangible net asset value per share (pence)	324.1	266.3	21.7
Customer accounts (deposits) (GBP million)	21,934	14,573	50.5
Third party assets under management (GBP million)	73,600	48,828	50.7

Combined consolidated income statement

Year to 31 March	Unaudited	Audited
GBP'000	2010	2009
Interest income	2,726,011	2,596,913
Interest expense	(2,112,925)	(1,902,882)
Net interest income	613,086	694,031
Fee and commission income	612,574	592,814
Fee and commission expense	(67,497)	(61,292)
Principal transactions	457,759	276,521
Operating income from associates	11,595	12,438
Investment income on assurance activities	94,914	74,584
Premiums and reinsurance recoveries on insurance contracts	31,938	18,773
Other operating income/(loss)	22,737	(30,240)
Other income	1,164,020	883,598
Claims and reinsurance premiums on insurance business	(119,918)	(88,108)
Total operating income net of insurance claims	1,657,188	1,489,521
Impairment losses on loans and advances	(286,581)	(256,173)
Operating income	1,370,607	1,233,348
Administrative expenses	(920,694)	(803,158)
Depreciation, amortisation and impairment of property, equipment and intangibles	(36,457)	(30,102)
Operating profit before goodwill	413,456	400,088
Impairment of goodwill	(3,526)	(32,467)
Operating profit	409,930	367,621
Profit on disposal of group operations	-	721
Profit before taxation	409,930	368,342
Taxation	(82,599)	(81,675)
Profit after taxation	327,331	286,667
Losses attributable to minority interests	18,802	5,355
Earnings attributable to shareholders	346,133	292,022
Earnings attributable to shareholders	346,133	292,022
Impairment of goodwill	3,526	32,467
Impairment of goodwill attributable to minorities	-	(8,677)
Profit on disposal of group operations, net of taxation	-	(721)
Preference dividends	(43,860)	(47,503)
Additional earnings attributable to other equity holders	3,911	1,627
Adjusted earnings before goodwill and non-operating items	309,710	269,215
Earnings per share (pence)
- basic	44.0	38.5
- diluted	41.5	36.1
Adjusted earnings per share (pence)
- basic	45.1	42.4
- diluted	42.5	39.7
Number of weighted average shares
- basic (millions)	686.3	634.6

Combined summarised consolidated statement of comprehensive income               

Year to 31 March	Unaudited	Audited
GBP'000	2010	2009
Profit after taxation	327,331	286,667
Fair value movements on cash flow hedges†	14,202	(16,293)
Fair value movements on available for sale assets†	20,370	(4,638)
(Gains)/losses on realisation of available for sale assets recycled through the income statement†	(8,887)	415
Foreign currency movements	239,789	215,653
Pension fund actuarial losses	(8,180)	(9,722)
Total comprehensive income	584,625	472,082
Total comprehensive income attributable to minority shareholders	9,918	21,285
Total comprehensive income attributable to ordinary shareholders	493,073	376,020
Total comprehensive income attributable to perpetual preferred securities	81,634	74,777
Total comprehensive income	584,625	472,082

†Net of taxation of GBP9,989 million (2009: (GBP7,978 million)).

Combined summarised consolidated cash flow statement

Year to 31 March	Unaudited	Audited
GBP'000	2010	2009*
Cash inflows from operations	731,000	631,378
Increase in operating assets	(3,336,695)	(93,188)
Increase/(decrease) in operating liabilities	4,115,640	(183,343)
Net cash inflow from operating activities	1,509,945	354,847
Net cash outflow from investing activities	(28,468)	(63,670)
Net cash outflow from financing activities	(118,694)	(184,981)
Effects of exchange rate changes on cash and cash equivalents	274,915	226,277
Net increase in cash and cash equivalents	1,637,698	332,473
Cash and cash equivalents at the beginning of the year	2,284,349	1,951,876
Cash and cash equivalents at the end of the year	3,922,047	2,284,349

Cash and cash equivalents are defined as including: cash and balances at central banks, on demand loans and advances to banks and cash equivalent advances to customers (all of which have a maturity profile of less than three months).

*As restated for reclassifications detailed in the commentary section of this report.

Combined consolidated balance sheet

At 31 March	Unaudited	Audited
GBP'000	2010	2009*
Assets
Cash and balances at central banks	2,338,234	1,105,089
Loans and advances to banks	2,781,630	2,018,089
Cash equivalent advances to customers	581,117	396,173
Reverse repurchase agreements and cash collateral on securities borrowed	911,432	569,770
Trading securities	4,221,645	2,313,845
Derivative financial instruments	1,591,841	1,843,143
Investment securities	1,996,073	1,063,569
Loans and advances to customers	17,414,691	15,390,519
Loans and advances to customers - Kensington warehouse assets	1,776,525	1,897,878
Securitised assets	5,334,453	5,628,347
Interest in associated undertakings	104,059	93,494
Deferred taxation assets	134,355	136,757
Other assets	1,240,624	894,062
Property and equipment	161,255	174,532
Investment properties	273,038	189,156
Goodwill	274,417	255,972
Intangible assets	36,620	34,402
	41,172,009	34,004,797
Other financial instruments at fair value through income in respect of
- liabilities to customers	5,397,014	3,358,338
- assets related to reinsurance contracts	2,842	1,768
	46,571,865	37,364,903
Liabilities
Deposits by banks	2,439,670	3,781,153
Deposits by banks - Kensington warehouse funding	1,213,042	1,412,961
Derivative financial instruments	1,193,421	1,456,561
Other trading liabilities	504,618	344,561
Repurchase agreements and cash collateral  on securities lent	1,110,508	915,850
Customer accounts (deposits)	21,934,044	14,572,568
Debt securities in issue	1,791,869	1,014,871
Liabilities arising on securitisation	4,714,556	5,203,473
Current taxation liabilities	196,965	155,395
Deferred taxation liabilities	136,974	120,135
Other liabilities	1,572,760	1,264,144
Pension fund liabilities	1,285	1,212
	36,809,712	30,242,884
Liabilities to customers under investment contracts	5,392,662	3,352,863
Insurance liabilities, including unit-linked liabilities	4,352	5,475
Reinsured liabilities	2,842	1,768
	42,209,568	33,602,990
Subordinated liabilities	1,070,436	1,141,376
	43,280,004	34,744,366
Equity
Called up share capital	195	190
Perpetual preference share capital	152	151
Share premium	1,928,296	1,769,040
Treasury shares	(66,439)	(173,068)
Other reserves	246,718	42,509
Retained income	846,060	658,129
Shareholders' equity excluding minority interests	2,954,982	2,296,951
Minority interests	336,879	323,586
- Perpetual preferred securities issued by subsidiaries	314,944	295,084
- Minority interests in partially held subsidiaries	21,935	28,502
Total equity	3,291,861	2,620,537
Total liabilities and equity	46,571,865	37,364,903

*As restated for reclassifications detailed in the commentary section of this report.

Segmental geographic and business analysis of operating profit before goodwill,
non-operating items and taxation for the year ended 31 March 2010

Unaudited	United
	Kingdom
	and	Southern		Total
GBP'000	Europe	Africa	Australia	group
Asset Management	25,335	58,077	-	83,412
Private Wealth	11,637	14,250	-	25,887
Property Activities	825	31,582	1,072	33,479
Private Banking	6,545	29,330	1,177	37,052
Investment Banking	(4,399)	45,694	273	41,568
Capital Markets	93,163	70,572	15,404	179,139
Group Services and Other Activities	(9,407)	40,862	266	31,721
Operating profit after minorities	123,699	290,367	18,192	432,258
Minority interest-equity				(18,802)
Operating profit before goodwill				413,456

Segmental geographic and business analysis of operating profit before goodwill,
non-operating items and taxation for the year ended 31 March 2009

Audited	United
	Kingdom
	and	Southern		Total
GBP'000	Europe	Africa	Australia	group
Asset Management	17,149	49,037	-	66,186
Private Wealth	12,044	12,058	-	24,102
Property Activities	774	21,769	2,138	24,681
Private Banking	42,034	35,954	2,475	80,463
Investment Banking	(30,810)	66,065	(7,089)	28,166
Capital Markets	78,015	61,150	2,209	141,374
Group Services and Other Activities	(18,316)	47,395	2,715	31,794
Operating profit after minorities	100,890	293,428	2,448	396,766
Minority interest-equity				3,322
Operating profit before goodwill				400,088

Combined summarised consolidated statement of changes in equity

Year to 31 March	Unaudited	Audited
GBP'000	2010	2009
Balance at the beginning of the
year	2,620,537	2,210,019
Total comprehensive income	584,625	472,082
Share based payments adjustments	56,942	92,848
Dividends paid to ordinary shareholders	(91,946)	(143,995)
Dividends paid to perpetual preference shareholders	(43,860)	(47,503)
Issue of ordinary shares	84,178	91,764
Issue of perpetual preference shares	40,869	-
Share issue expenses	(3,559)	-
Movement of treasury shares	40,974	(58,164)
Issue of equity instruments
by subsidiaries	3,547	3,486
Dividends paid to minorities	(578)	-
Movement of minorities on
disposals and acquisitions	132	-
Balance at the end of the year	3,291,861	2,620,537

 

Investec plc

Ordinary dividend announcement

Registration number:      3633621

Share code:                   INP

ISIN:                             GB00BI7BBQ50

In terms of the DLC structure, Investec plc shareholders who are not South African resident shareholders 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 who are South African residents, 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.

Notice is hereby given that final dividend number 16 of 8 pence (2009:  5 pence) per ordinary share has been recommended by the board in respect of the financial year ended 31 March 2010 payable to shareholders recorded in the members' register of the company at the close of business on Friday, 30 July 2010, which will be paid as follows:

·      For non-South African resident Investec plc shareholders, through a dividend payment by Investec plc of 8 pence per ordinary share

·      For South African resident shareholders of Investec plc, through a dividend payment by Investec plc of 1.5 pence per ordinary share and through a dividend payment on the SA DAS share of 6.5 pence per ordinary share.

The relevant dates for the payment of the dividends are as follows:

Last day to trade cum-dividend:
On the London Stock Exchange (LSE)	Tuesday, 27 July 2010
On the Johannesburg Stock Exchange (JSE)	Friday, 23 July 2010
Shares commence trading ex-dividend:
On the London Stock Exchange (LSE)	Wednesday, 28 July 2010
On the Johannesburg Stock Exchange (JSE)	Monday, 26 July 2010
Record date (on the LSE and the JSE)	Friday, 30 July 2010
Payment date (on the LSE and the JSE)	Tuesday, 17 August 2010

Share certificates on the South African branch register may not be dematerialised or rematerialised between Monday, 26 July 2010 and Friday, 30 July 2010, both dates inclusive, nor may transfers between the UK and SA registers take place between Monday, 26 July 2010 and Friday, 30 July 2010, both dates inclusive.

Shareholders registered on the South African register are advised that the distribution of 8 pence, equivalent to 89 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, 19 May 2010.

By order of the board

D Miller                                                                   

Company Secretary

Investec plc

Dividend announcement

Registration number:      3633621

Share code:                   INPP

ISIN:                             GB00B19RX541

Non-redeemable non-cumulative non-participating preference shares

Declaration of dividend number 8

Notice is hereby given that preference dividend number 8 has been declared for the period 01 October 2009 to 31 March 2010 amounting to 7.48 pence per 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, 18 June 2010.

For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 7.48 pence per share is equivalent to 83 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA Time) on Wednesday, 19 May 2010.

The relevant dates relating to the payment of dividend number 8 are as follows:

Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE)	Thursday, 10 June 2010
On the Channel Islands Stock Exchange (CISX)	Tuesday, 15 June 2010
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE)	Friday, 11 June 2010
On the Channel Islands Stock Exchange (CISX)	Wednesday, 16 June 2010
Record date (on the JSE and CISX)	Friday, 18 June 2010
Payment date (on the JSE and CISX)	Thursday, 01 July 2010

Share certificates may not be dematerialised or rematerialised between Friday, 11 June 2010 and Friday, 18 June 2010, both dates inclusive, nor may transfers between the UK and SA registers take place between Friday, 11 June 2010 and Friday, 18 June 2010, both dates inclusive.

By order of the board

D Miller

Company Secretary

 

END

 

 

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