Final Results

RNS Number : 8810G

Investec PLC

19 May 2011

 



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

19 May 2011

Strong momentum in asset management and wealth management businesses

Improving outlook for specialist banking

Investec, the international specialist bank and asset manager, announces today its results for the year ended 31 March 2011

Highlights

·      Five out of the group's six divisions recorded strong growth in operating profit

·      Momentum in the asset management and wealth management businesses continued

o  total third party assets under management increased by 20% to GBP88.9bn

o  operating profit from these businesses rose 53.5% to GBP167.7mn

o  together they accounted for 38.6% of group operating profit (2010: 25.3%)

·      Recurring income as a percentage of total operating income increased to 62.3% (2010: 60.3%)

·      Activity levels in specialist banking showed improvement; the investment banking and capital markets businesses recorded strong increases in operating profit 

·      Strong capital position maintained; capital structure and capital ratios exceed Basel III requirements for 2013

o  Tier 1 ratios for Investec plc and Investec Limited of 11.6% and 11.9%, respectively

o  Cash and near cash balances rose to GBP9.3bn (2010: GBP9.1bn)

o  Low gearing ratios; core loans and advances to equity fell to 4.7 times (2010:5.4 times)

·      The credit loss ratio was marginally ahead of expectations at 1.27%; the group expects this ratio to decrease during the forthcoming financial year

·      Investment in the Investec brand continues

Financial features

	Year to 31 March 2011	Year to 31 March 2010	% Change
Operating profit before tax* (GBP'mn)	434.4	432.3	+0.5%
Earnings attributable to shareholders* (GBP'mn)	327.9	309.7	+5.9%
Adjusted EPS* (pence)	43.2	45.1	-4.2%
Dividends per share (pence)	17.0	16.0	+6.3%
Net tangible asset value per share (pence)	343.8	324.1	+6.1%
ROE	11.2%	13.5%
Cost to income ratio	61.7%	57.8%

Business highlights - operating profit before tax*

·      Asset Management: increase of 52.6% to GBP127.3mn (2010: GBP83.4mn)

·      Wealth and Investment: increase of 56.2% to GBP40.4mn (2010: GBP25.9mn)

·      Property Activities: increase of 42.5% to GBP47.7mn (2010: GBP33.5mn)

·      Private Banking: posted a loss of GBP91.4mn (2010 profit: GBP37.1mn)

·      Investment Banking: increase of 62.1% to GBP67.4mn (2010: GBP41.6mn)

·      Capital Markets: increase of 35.1% to GBP242.0mn (2010: GBP179.1mn)

·      Group Services and Other Activities: GBP1.0mn (2010: GBP31.7mn)

*Before non-operating item, acquired intangibles and goodwill and after minorities

Stephen Koseff, Chief Executive Officer of Investec said:

"The group has achieved further strong growth in third party assets under management and five of our six divisions recorded substantial increases in operating profit. Looking ahead, regulatory uncertainties remain and we will continue to maintain excess levels of liquidity and capital until there is further clarity. However we expect earnings to benefit from continued momentum in our businesses and the normalising of impairment losses." 

Bernard Kantor, Managing Director of Investec said:

"We have sought to realign the business model and grow revenues from less capital intensive activities. This strategy is paying off and we are developing the right balance of businesses for the long-term. Investec has taken advantage of the dislocation that occurred in financial markets to attract talented people and extend brand awareness.  The group is on the right footing and well placed to benefit from steadily improving market activity."

For further information please contact:

Investec [phone]   or [phone]

Stephen Koseff, Chief Executive Officer

Bernard Kantor, Managing Director

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

Citigate Dewe Rogerson - UK PR advisors

[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 7 200 permanent employees.

Investec focuses on delivering distinctive profitable solutions for its clients in six core areas of activity namely, Asset Management, Wealth and Investment, 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 GBP3.8bn.

Investec plc and Investec Limited (combined results)

Unaudited combined consolidated financial results in Pounds Sterling for the year ended 31 March 2011

Overall group performance

The group has delivered a sound operational performance underpinned by a strong recurring income base with five of its six core businesses recording increased earnings. The group's non-capital intensive asset management and wealth management businesses reported a strong increase in their contribution to group earnings as a result of the acquisition of Rensburg Sheppards plc and significant net inflows. Whilst some of the group's banking businesses have performed well, notably Capital Markets, overall group results have been constrained by lower levels of transactional activity and the slow recovery of non-performing loans in the Private Bank. The balance sheet remains strong, with an increase in capital and liquidity over the year.

Against this backdrop the main features of the year under review are:

·      Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests ("operating profit") increased 0.5% to GBP434.4 million (2010: GBP432.3 million).

·      Impairments on loans and advances increased 11.0% to GBP318.2 million (2010: GBP286.6 million)

·      Adjusted earnings attributable to shareholders before goodwill, acquired intangibles and non-operating items increased 5.9% to GBP327.9 million (2010: GBP309.7 million).

·      Adjusted earnings per share (EPS) before goodwill, acquired intangibles and non-operating items decreased 4.2% from 45.1 pence to 43.2 pence, largely as a result of an increase in the number of shares in issue.

·      Third party assets under management increased 20.0% to GBP88.9 billion (2010: GBP74.1 billion)

·      Customer accounts (deposits) increased 11.4% to GBP24.4 billion (2010: GBP21.9 billion)

·      Core loans and advances increased 4.8% to GBP18.8 billion (2010: GBP17.9 billion)

·      Net asset value per share increased 14.3% to 416.0 pence and net tangible asset value per share (which excludes goodwill and intangible assets) increased by 6.1% to 343.8 pence

·      The board proposes a final dividend of 9.0 pence per ordinary share equating to a full year dividend of 17.0 pence (2010: 16.0 pence) resulting in a dividend cover based on the group's adjusted EPS before goodwill and non-operating items of 2.5 times (2010: 2.8 times), consistent with the group's dividend policy.

Strategic review

The group has realigned its business model towards less capital intensive activities by building strong asset management and wealth management businesses thereby growing its annuity net fee and commission income. This strategy has been successful, resulting in a substantial rise in funds under management and an increase in operating profit from these businesses of 53.5% to GBP167.7 million (2010: GBP109.3 million). This has resulted in a change in the proportion of the group's earnings, with the asset management and wealth management businesses now accounting for 38.6% of the group's operating profit during the last year, compared to 25.3% in 2010.

The banking environment remains fluid as regulators continue their review and adjustment of the regulatory framework in an attempt to strengthen the system and avoid future crises. The group has as a consequence continued to maintain high  levels of liquidity and capitalas it adjusts to a system where  higher levels of liquidity and capital will become the norm. 

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 continues to benefit from its growing retail franchise recording an increase in customer deposits in all three core geographies. Cash and near cash balances amount to GBP9.3 billion (2010: GBP9.1 billion).

Capital adequacy

The group targets 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 respectively. Capital adequacy ratios are strong in Investec plc and Investec Limited, as reflected in the table below.

Basel II ratios	31 Mar 2011	31 Mar 2010
Investec plc
Capital adequacy ratio	16.8%	15.9%
Tier 1 ratio	11.6%	11.3%
Investec Limited
Capital adequacy ratio	15.9%	15.6%
Tier 1 ratio	11.9%	12.1%

The group has conducted a review of the proposed Basel III requirements and believes that its current capital structure and capital ratios exceed the minimum capital requirements for 2013. 

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 Capital Markets primarily transacts with mid to large sized corporates, public sector bodies and institutions. Defaults on core loans and advances have increased but are fully collateralised, as detailed in the "Financial statement analysis" below. Investec continues to focus on improving the quality of its loan portfolio in all geographies.

Business unit review

Asset Management

Asset Management increased operating profit 52.6% to GBP127.3 million (2010: GBP83.4 million) benefiting from substantially higher funds under management and a solid investment performance. The division recorded strong net inflows of GBP7.4 billion contributing to an increase in assets under management of 26.7% from GBP46.4 billion to GBP58.8 billion.

Wealth and Investment

Wealth and Investment increased operating profit 56.2% to GBP40.4 million (2010: GBP25.9 million) benefiting from higher funds under management and the acquisition of Rensburg Sheppards plc. Total funds under management increased by 8.5% from GBP27.1 billion to GBP29.4 billion.

Property Activities

Property Activities generated an increase in operating profit of 42.5% to GBP47.7 million (2010: GBP33.5 million). The results of the division were largely supported by a good performance from the investment property portfolio in South Africa.

Private Banking

Private Banking posted a loss of GBP91.4 million (2010: profit of GBP37.1 million) as a result of low activity levels, increased impairments and write offs. The private client core lending book increased by 3.1% from GBP12.9 billion to GBP13.3 billion and the deposit book increased by 5.9% from GBP11.8 billion to GBP12.5 billion.

Investment Banking

Investment Banking increased operating profit 62.1% to GBP67.4 million (2010: GBP41.6 million). Principal Investments recorded a robust result, primarily driven by an improved performance from certain investments held in the UK and South African portfolio. The Agency divisions benefited from a good deal pipeline, however, trading conditions in the Institutional Stockbroking business remain difficult.

Capital Markets

Capital Markets reported an increase in operating profit of 35.1% to GBP242.0 million (2010: GBP179.1 million). The division benefited from satisfactory levels of activity across the advisory and structuring businesses, notably within the Principal Finance, Structured Finance and Structured Equity Finance teams. Core loans and advances increased 7.2% from GBP4.5 billion to GBP4.8 billion.

Group Services and Other Activities

Group Services and Other Activities posted a profit of GBP1.0 million (2010: profit of GBP31.7 million). Central Funding's results were impacted by lower levels of interest rates and a weaker performance from equity investments held within the South African portfolio. Central Services incurred an increase in both personnel and marketing costs.

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 increased by 18.0% to GBP1 955.0 million (2010: GBP1 657.2 million), with recurring income as a percentage of total operating income amounting to 62.3% (2010: 60.3%).

Net interest income increased by 11.2% to GBP681.5 million (2010: GBP613.1 million) largely as a result of improved margins within the South African Private Bank and a sound performance from the group's fixed income portfolios.

Net fee and commission income increased by 44.5% to GBP787.7 million (2010: GBP545.1 million). Funds under management have grown substantially, supported by improved market indices and strong net inflows. The banking businesses recorded an increase in net fees and commissions, although transactional activity levels remain mixed.

Income from principal transactions decreased by 8.5% to GBP418.7 million (2010: GBP457.8 million). The group has benefited from a solid performance from its investment banking, fixed income and property investment portfolios. This was offset by a weaker performance from some of the equity investments held within the South African central funding portfolio.

Other operating income includes the operating results of certain investments which were consolidated; associate income, and income earned on operating leases acquired during the year.

Impairment losses on loans and advances

The uncertain pace of economic recovery has slowed the improvement in the level of non-performing loans and defaults have continued to increase. Impairment losses on loans and advances have increased from GBP205.4 million to GBP248.3 million (excluding Kensington). The credit loss charge as a percentage of average gross loans and advances has increased from 1.16% to 1.27%. The group expects this ratio to decrease during the forthcoming financial year. The percentage of default loans (net of impairments but before taking collateral into account) to core loans and advances has increased from 4.0% to 4.7%. The ratio of collateral to default loans (net of impairments) remains satisfactory at 1.36 times (2010: 1.33 times). 

Impairment losses on loans and advances relating to the Kensington business amount to GBP69.9 million (2010: GBP81.2 million). The Kensington book has reduced from GBP4.7 billion to GBP4.2 billion.

 

Operating costs and depreciation

The ratio of total operating costs to total operating income amounts to 61.7% (2010:57.8%).

Total expenses grew by 26.8% to GBP1 213.3 million (2009: GBP957.2 million)  as a result of the appreciation of the Rand and Australian Dollar; the acquisitions of Rensburg Sheppards plc, Masterlease UK and Lease Direct Finance Limited; an increase in variable remuneration in certain divisions given improved profitability; an increase in headcount in certain divisions; and increased spending on brand development.

 

Impairment of goodwill

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

 

Amortisation of acquired intangibles

The current period amortisation of acquired intangibles relates to the acquisition of Rensburg Sheppards plc and mainly comprises amortisation of amounts attributable to client relationships.

 

Profit arising from associate converted to a subsidiary

A net gain of GBP73.5 million has arisen on the acquisition of Rensburg Sheppards plc, as detailed in the "Notes to the commentary" section below.

 

Net loss on sale of subsidiaries

The net loss on sale of subsidiaries of GBP17.3 million arose from a loss on sale and deconsolidation of previously consolidated group investments, partially offset by a gain on the sale of Rensburg Fund Management Limited.

 

Taxation

The operational effective tax rate (excluding taxation on intangibles and sale of subsidiaries) of the group decreased from 20.6% to 15.5%, due to the resolution of matters for which a provision was previously held.

Losses attributable to non-controlling interests

Losses attributable to non-controlling interests of GBP11.0 million largely comprise:

·      GBP9.2 million relating to investments consolidated in the Private Equity division;

·      GBP1.4 million relating to Euro denominated preferred securities issued by a subsidiary of Investec plc which are reflected on the balance sheet as part of non-controlling interests. (The transaction is hedged and a forex transaction loss arising on the hedge is reflected in operating profit before goodwill with the equal and opposite impact reflected in earnings attributable to non-controlling interests).

Balance sheet analysis

Since 31 March 2010:

·      Total shareholders' equity (including non-controlling interests) increased by 20.3% to GBP4.0 billion largely as a result of retained earnings and the issue of shares.

·      Total assets increased from GBP46.6 billion to GBP50.9 billion largely as a result of increased cash and near cash balances and advances, as well as an increase in goodwill and intangibles associated with the acquisition of Rensburg Sheppards plc.

·      Core loans and advances (excluding own originated securitised assets) as a percentage of customer deposits improved from 76.2% to 72.4%.

·      The return on adjusted average shareholders' equity declined from 13.5% to 11.2%.

The group's gearing ratios remain low with core loans and advances to equity at 4.7 times (2010:5.4 times) and total assets (excluding assurance assets) to equity at 11.3 times (2010:12.5 times).

Outlook

Over the past two years, we have re-positioned the group as a "specialist bank and asset manager" and made substantial progress in realigning our business model in response to the challenging and uncertain regulatory landscape. Whilst our performance remains sensitive to the global economy, our current assessment of the environment is for an improvement in impairments and growth in the overall business for the year ahead.

On behalf of the boards of Investec plc and Investec Limited

Hugh Herman	Stephen Koseff	Bernard Kantor
Chairman	Chief Executive Officer	Managing Director

18 May 2011

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 2010.

·      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 31 Mar 2011		Year to 31 Mar 2010
Currency per GBP1.00	Close	Ave	Close	Ave
South African Rand	10.88	11.16	11.11	12.38
Australian Dollar	1.55	1.65	1.66	1.88
Euro	1.13	1.17	1.12	1.13
Dollar	1.60	1.55	1.52	1.59

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 9.9% and the closing rate has appreciated by 2.1% since 31 March 2010.

·      Acquisition of Rensburg Sheppards plc

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 would acquire the entire issued and to be issued ordinary share capital of Rensburg Sheppards plc not already owned by it. Following shareholder and regulatory approvals the acquisition became effective on 25 June 2010. Prior to this date Investec's 47.1% interest in Rensburg Sheppards plc was accounted for as an associate. As a result of requirements under new accounting rules, the group was required to fair value its existing 47.1% holding in Rensburg Sheppard's plc at the point it acquired the remaining 52.9%. This has resulted in an exceptional gain of GBP73.5 million (net of acquisition costs). The group issued 37.9 million shares to acquire the remaining shares in Rensburg Sheppards plc for a consideration of GBP180.4 million. This consideration combined with the existing fair valued holding resulted in the recognition of goodwill and intangibles of GBP198.5 million and GBP133.4 million, respectively.

·      Accounting policies and disclosures

The accounting policies applied in the preparation of the results for the year ended 31 March 2011 are consistent with those adopted in the financial statements for the year ended 31 March 2010, except for the adoption of the revised IFRS 3 - Business Combinations. This standard is applicable to all business combinations effective from 1 April 2010 in the group accounts. The main change arising from the adoption is that acquisition related costs are expensed in the period in which the costs are incurred and the services rendered, except for costs related to the issue of debt (recognised as part of the effective interest rate) and the cost of issue of equity (recognised directly in shareholders' equity).

These unaudited condensed summarised 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.

·      Restatements and presentation of information

Offsetting of intergroup interest received and interest paid

On review, it was detected that the gross interest income and expense, as reported at 31 March 2010, had not appropriately netted certain intergroup interest income and expense between the two line items. Whilst net interest income was correctly reported, the restatement to interest received and paid is noted below:

GBP'000	31 March 2010
Restated Interest income	2,041,153
Interest expense	(1,428,067)
Net interest income	613,086
As previously reported Interest income	2,726,011
Interest expense	(2,112,925)
Net interest income	613,086
Changes to previously reported Interest income	(684,858)
Interest expense	684,858
Net interest income	-

The above change has no impact to the income statement (other than as noted above), balance sheet nor cash flow statement.

Redeemable preference shares

The group had previously included cumulative redeemable preference shares as a component of other liabilities. The presentation has been amended to include the cumulative redeemable preference shares as a component of debt securities in issue.

GBP '000	31 March 2010	31 March 2009
Restated
Debt Securities in issue	2,187,040	1,275,615
Other liabilities	1,177,589	1,003,400
As previously reported
Debt Securities in issue	1,791,869	1,014,871
Other liabilities	1,572,760	1,264,144
Changes to previously reported
Debt Securities in issue	395,171	260,744
Other liabilities	(395,171)	(260,744)

·      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 18 May 2011.

·      The information in the announcement for the year ended 31 March 2011, which was approvedby the board of directors on 18 May 2011, 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 2011

Salient features

	31 March	31 March	%
	2011	2010	change
Operating profit before goodwill, acquired intangibles, non-operating items, taxation and after non-controlling interests (£'000)	434 406	432 258	0.5
Earnings attributable to shareholders (£'000)	420 516	346 133	21.5
Adjusted earnings before goodwill, acquired intangibles and non-operating items (£'000)	327 897	309 710	5.9
Adjusted earnings per share (pence)	43.2	45.1	(4.2)
Earnings per share (pence)	49.7	44.0	13.0
Dividends per share (pence)	17.0	16.0	6.3
Total equity (£'million)	3 961	3 292	20.3
Third party assets under management (£'million)	88 878	74 080	20.0

Combined consolidated income statement

Year to 31 March	Unaudited	Audited*
£'000	2011	2010
Interest income	2 238 783	2 041 153
Interest expense	(1 557 314)	(1 428 067)
Net interest income	681 469	613 086
Fee and commission income	896 300	612 574
Fee and commission expense	(108 642)	(67 497)
Principal transactions	418 686	457 759
Investment income on assurance activities	64 834	94 914
Premiums and reinsurance recoveries on insurance contracts	6 110	31 938
Other operating income	54 003	34 332
Other income	1 331 291	1 164 020
Claims and reinsurance premiums on insurance business	(57 774)	(119 918)
Total operating income net of insurance claims	1 954 986	1 657 188
Impairment losses on loans and advances	(318 230)	(286 581)
Operating income	1 636 756	1 370 607
Operating costs	(1 196 865)	(957 151)
Depreciation on operating leased assets	(16 447)	-
Operating profit before goodwill and amortisation of acquired intangibles	423 444	413 456
Impairment of goodwill	(6 888)	(3 526)
Amortisation of acquired intangibles	(6 341)	-
Operating profit	410 215	409 930
Profit arising from associate converted to subsidiary	73 465	-
Net loss on sale of subsidiaries	(17 302)	-
Profit before taxation	466 378	409 930
Taxation on operating profit before goodwill and acquired intangibles	(65 075)	(82 599)
Taxation on intangibles and sale of subsidiaries	6 610	-
Profit after taxation	407 913	327 331
Operating losses attributable to non-controlling interests	10 962	18 802
Loss on subsidiaries attributable to non-controlling interests	1 641	-
Earnings attributable to shareholders	420 516	346 133
Earnings attributable to shareholders	420 516	346 133
Impairment of goodwill	6 888	3 526
Amortisation of acquired intangibles, net of taxation	3 509	-
Loss on subsidiaries attributable to non-controlling interests	(1 641)	-
Profit arising from associate converted to subsidiary	(73 465)	-
Net loss on sale of subsidiaries, net of taxation	13 524	-
Preference dividends paid	(43 019)	(43 860)
Additional earnings attributable to other equity holders	1 585	3 911
Adjusted earnings before goodwill, acquired intangibles and non-operating items	327 897	309 710
Earnings per share (pence)
-  Basic	49.7	44.0
-  Diluted	46.7	41.5
Adjusted earnings per share (pence)
-  Basic	43.2	45.1
-  Diluted	40.6	42.5
Number of weighted average shares
-  basic (millions)	759.8	686.3

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

Summarised combined consolidated statement of total comprehensive income

Year to 31 March	Unaudited	Audited
£'000	2011	2010
Profit after taxation	407 913	327 331
Other comprehensive income:
Cash flow hedge movements taken directly to other comprehensive income†	9 929	14 202
Fair value movements on available for sale assets taken directly to other comprehensive income†	27 631	20 370
Gains on realisation of available for sale assets  recycled through the income statement†	(4 845)	(8 887)
Foreign currency adjustments on translating foreign operations	39 588	239 789
Pension fund actuarial gains/(losses)	10 157	(8 180)
Total comprehensive income	490 373	584 625
Total comprehensive income attributable to non-controlling interests	(10 710)	9 918
Total comprehensive income attributable to ordinary shareholders	458 064	493 073
Total comprehensive income attributable to perpetual preferred securities	43 019	81 634
Total comprehensive income	490 373	584 625

†Net of taxation of £5.7 million (2010: £10.0 million).

Summarised combined consolidated statement of changes in equity

Year to 31 March	Unaudited	Audited
£'000	2011	2010
Balance at beginning of the year	3 291 861	2 620 537
Total comprehensive income	490 373	584 625
Share based payment adjustments	69 518	56 942
Dividends paid to ordinary shareholders	(123 630)	(91 946)
Dividends paid to perpetual preference shareholders	(43 019)	(43 860)
Dividends paid to non-controlling interests	(356)	(578)
Issue of ordinary shares	325 886	84 178
Issue of perpetual preference shares	16 138	40 869
Share issue expenses	(3 632)	(3 559)
Movement of treasury shares	(45 461)	40 974
Issue of equity instruments by subsidiaries	1 493	3 547
Movement of non-controlling interests on disposals and acquisitions	(3 970)	132
Non-controlling interest relating to disposal of subsidiaries	(14 099)	-
Balance at end of the year	3 961 102	3 291 861

Combined consolidated balance sheet

At 31 March	Unaudited	Audited*
£'000	2011	2010
Assets
Cash and balances at central banks	1 769 078	2 338 234
Loans and advances to banks	1 468 705	2 781 630
Cash equivalent advances to customers	535 983	581 117
Reverse repurchase agreements and cash collateral on securities borrowed	2 467 775	911 432
Trading securities	5 114 322	4 221 645
Derivative financial instruments	1 799 204	1 591 841
Investment securities	3 328 609	1 996 073
Loans and advances to customers	18 758 524	17 414 691
Loans and advances to customers - Kensington warehouse assets	1 612 181	1 776 525
Securitised assets	4 924 293	5 334 453
Interests in associated undertakings	23 481	104 059
Deferred taxation assets	114 838	134 355
Other assets	1 410 593	1 240 624
Property and equipment	279 801	161 255
Investment properties	379 527	273 038
Goodwill	456 608	274 417
Intangible assets	136 452	36 620
	44 579 974	41 172 009
Other financial instruments at fair value through profit or loss in respect of
-  Liabilities to customers	6 361 296	5 397 014
-  Assets related to reinsurance contracts	-	2 842
	50 941 270	46 571 865
Liabilities
Deposits by banks	1 858 893	2 439 670
Deposits by banks - Kensington warehouse funding	975 542	1 213 042
Derivative financial instruments	1 486 419	1 193 421
Other trading liabilities	716 556	504 618
Repurchase agreements and cash collateral on securities lent	1 599 646	1 110 508
Customer accounts (deposits)	24 441 260	21 934 044
Debt securities in issue	2 145 213	2 187 040
Liabilities arising on securitisation	4 340 864	4 714 556
Current taxation liabilities	206 957	196 965
Deferred taxation liabilities	148 750	136 974
Other liabilities	1 411 137	1 177 589
Pension fund liabilities	-	1 285
	39 331 237	36 809 712
Liabilities to customers under investment contracts	6 358 732	5 392 662
Insurance liabilities, including unit-linked liabilities	2 564	4 352
Reinsured liabilities	-	2 842
	45 692 533	42 209 568
Subordinated liabilities	1 287 635	1 070 436
	46 980 168	43 280 004
Equity
Ordinary share capital	208	195
Perpetual preference share capital	153	152
Share premium	2 242 067	1 928 296
Treasury shares	(42 713)	(66 439)
Other reserves	315 878	246 718
Retained income	1 131 980	846 060
Shareholders' equity excluding non-controlling interests	3 647 573	2 954 982
Non-controlling interests	313 529	336 879
-  Perpetual preferred securities issued by subsidiaries	317 997	314 944
-  Non-controlling interests in partially held subsidiaries	(4 468)	21 935
Total equity	3 961 102	3 291 861
Total liabilities and equity	50 941 270	46 571 865

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

Summarised combined consolidated cash flow statement

Year to 31 March	Unaudited	Audited
£'000	2011	2010
Cash inflows from operations	779 885	731 000
Increase in operating assets	(4 032 844)	(3 336 695)
Increase in operating liabilities	2 752 392	4 115 640
Net cash (outflow)/inflow from operating activities	(500 567)	1 509 945
Net cash outflow from investing activities	(292 272)	(19 368)
Net cash inflow/(outflow) from financing activities	156 748	(127 794)
Effects of exchange rate changes on cash and cash equivalents	101 032	274 915
Net (decrease)/increase in cash and cash equivalents	(535 059)	1 637 698
Cash and cash equivalents at the beginning of the year	3 922 047	2 284 349
Cash and cash equivalents at the end of the year	3 386 988	3 922 047

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).

Segmental geographic and business analysis of operating profit before goodwill,

acquired intangibles, non-operating items and taxation for the year ended 31 March 2011

	United Kingdom
£'000	and Europe	Southern Africa	Australia	Total group
Asset Management	53 002	74 306	-	127 308
Wealth and Investment	25 008	15 418	-	40 426
Property Activities	375	40 178	7 155	47 708
Private Banking	(84 041)	2 990	(10 390)	(91 441)
Investment Banking	8 887	65 191	(6 716)	67 362
Capital Markets	139 978	92 211	9 860	242 049
Group Services and Other Activities	(9 583)	9 780	797	994
Operating profit after non-controlling interests	133 626	300 074	706	434 406
Non-controlling interest - equity				(10 962)
Operating profit before goodwill and acquired intangibles				423 444

Segmental geographic and business analysis of operating profit before goodwill,

acquired intangibles, non-operating items and taxation for the year ended 31 March 2010

	United Kingdom
£'000	and Europe	Southern Africa	Australia	Total group
Asset Management	25 335	58 077	-	83 412
Wealth and Investment	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 non-controlling interests	123 699	290 367	18 192	432 258
Non-controlling interest - equity				(18 802)
Operating profit before goodwill and acquired intangibles				413 456

Investec plc

Ordinary share 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 18 of 9 pence (2010: 8 pence) per ordinary share has been recommended by the board in respect of the financial year ended 31 March 2011 payable to shareholders recorded in the members' register of the company at the close of business on Friday, 29 July 2011, which will be paid as follows:

- for non-South African resident Investec plc shareholders, through a dividend payment by Investec plc of 9 pence per ordinary share

- for South African resident shareholders of Investec plc, through a dividend payment by Investec plc of  1 pence per ordinary share and through a dividend paid, on the SA DAS share equivalent to 8 pence per ordinary share 

The relevant dates for the payment of dividend number 18 are as follows:

Last day to trade cum-dividend

On the London Stock Exchange (LSE)	Tuesday, 26 July 2011
On the Johannesburg Stock Exchange (JSE)	Friday, 22 July 2011
Shares commence trading ex-dividend
On the London Stock Exchange (LSE)	Wednesday, 27 July 2011
On the Johannesburg Stock Exchange (JSE)	Monday, 25 July 2011
Record date (on the JSE and LSE)	Friday, 29 July 2011
Payment date (on the JSE and LSE)	Monday, 08 August 2011

Share certificates on the South African branch register may not be dematerialised or rematerialised between Monday, 25 July 2011 and Friday, 29 July 2011, both dates inclusive, nor may transfers between the UK and SA registers take place between Monday, 25 July 2011 and Friday, 29 July 2011, both dates inclusive.

Shareholders registered on the South African register are advised that the distribution of 9 pence, equivalent to 102 cents per share, has been arrived at using the Rand/Pound Sterling average buy/sell forward rate, as determined at 11h00 (SA time) on Wednesday, 18 May 2011.

By order of the board

D Miller
Company Secretary	18 May 2011

Investec plc

Preference share dividend announcement

Registration number: 3633621

Share code: INPP 

ISIN: GB00B19RX541

Non-redeemable non-cumulative non-participating preference shares

Declaration of dividend number 10

Notice is hereby given that preference dividend number 10 has been declared for the period 01 October 2010 to 31 March 2011 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, 17 June 2011.

For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of 7.48 pence per share is equivalent to 84 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA Time) on Wednesday, 18 May 2011.

The relevant dates relating to the payment of dividend number 10 are as follows:

Last day to trade cum-dividend
On the Channel Islands Stock Exchange (CISX)	Tuesday, 14 June 2011
On the Johannesburg Stock Exchange (JSE)	Thursday, 09 June 2011
Shares commence trading ex-dividend
On the Channel Islands Stock Exchange (CISX)	Wednesday, 15 June 2011
On the Johannesburg Stock Exchange (JSE)	Friday, 10 June 2011
Record date (on the JSE and CISX)	Friday, 17 June 2011
Payment date (on the JSE and CISX)	Thursday, 30 June 2011

Share certificates may not be dematerialised or rematerialised between Friday, 10 June 2011 and Friday, 17 June 2011, both dates inclusive, nor may transfers between the UK and SA registers may take place between Friday, 10 June 2011 and Friday, 17 June 2011, both dates inclusive.

By order of the board

D Miller
Company Secretary	18 May 2011

 

END

 

 

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