Interim Results

Investec PLC
20 November 2002


20th November 2002

Investec plc

Interim results for the six months ended 30 September 2002



Investec plc (incorporating the results of Investec Limited)

Unaudited consolidated financial results in UK GAAP Pounds Sterling for the six
months ended 30 September 2002

Financial Highlights

Headline earnings per shares increase by 1.5%

Headline earnings up 2.3%




Presentation of financial information

In July 2002 Investec implemented a Dual Listed Companies (DLC) structure, and
listed its offshore businesses on the London Stock Exchange. For further
information please refer to Investec's web site: www.investec.com/
investorrelations

Under the contractual arrangements implementing the DLC structure, Investec
Limited and Investec plc effectively form a single economic entity, in which the
economic and voting rights of shareholders are equalised. In accordance with
this structure, the directors of the two companies consider that for financial
reporting purposes, the fairest presentation is achieved by consolidating the
results and financial position of both companies using merger accounting
principles.

Accordingly, the interim report for Investec plc presents the results and
financial position of the combined DLC group under UK GAAP, denominated in
Pounds Sterling. The interim financial report for Investec Limited is also
prepared on a DLC basis under SA GAAP, denominated in South African Rand.

SA GAAP differs in certain respects from UK GAAP. A high-level reconciliation of
the principal differences between SA GAAP and UK GAAP is provided.

The financial information contained in the 'commentary' section has been
prepared in accordance with UK GAAP. Rand values included in the 'commentary'
section of this announcement have been translated into Pounds Sterling, in the
case of the profit and loss accounts, at the weighted average rate for the
relevant period and, in the case of the balance sheets, at the relevant period
end rate. Reuters quote the average Rand/Pound Sterling exchange rate at 15.67
and 11.48 for the periods ended 30 September 2002 and 30 September 2001,
respectively. This represents depreciation of the Rand of some 36% during the
period under review.

This depreciation of the Rand has a significant negative effect on the results
expressed in Sterling of those Investec businesses that generate the majority of
their revenues and profits in Rand. Where the impact of Rand depreciation is key
to understanding the performance of one of the group's businesses, this has been
noted in the 'commentary' section.


Dividend declaration

The dividends per share declared by Investec Limited and Investec plc are
determined with reference to the combined group's headline EPS, denominated in
Pounds Sterling and prepared in accordance with UK GAAP.


Commentary


Operating environment

The protracted economic slowdown and increasing corporate governance concerns
presented a deeply challenging environment for capital markets. Financial
markets continued to be characterised by price volatility, low volumes and
diminishing deal flow which further entrenched negative investor sentiment.

These adverse factors have had a negative impact on Investec's equity related
activities. However, strong performances from the group's Private Banking,
Treasury and Specialised Finance and Assurance Activities served to partially
offset the weaker performance of the group's Investment Banking and Stockbroking
activities.

Furthermore, the depreciation of the average Rand/Pound Sterling exchange rate
by 36% during the period has had a direct negative impact on the results of the
group expressed in Pounds Sterling.

Overall performance

Against this backdrop, Investec is satisfied to announce that headline earnings
per share for the six months ended 30 September 2002 increased by 1.5% to 47.6
pence, with headline earnings increasing by 2.3% to £43 867 million. Investec
has continued to benefit from the portfolio effect of its well-diversified
operating base and has concentrated on balancing profitability and risk.


Highlights of the past six months include:

Established Investec's DLC structure in July 2002. This long sought after
achievement represented a significant milestone in the history of Investec and
is a major stepping-stone in providing the group the opportunity to fulfill its
mission of becoming one of the world's leading specialist banking groups.

Issued 4 million Investec plc shares, for a consideration of £33.2 million, in
July, at a time when markets were exceptionally difficult.

Annualised return on average shareholders' funds remained stable at 12%,
notwithstanding the weaker performance of the group's United Kingdom ('UK') and
United States ('US') operations and the severe depreciation of the Rand.

Annuity income as a percentage of total operating income increased from 72.7% to
76.0%.

An improvement in the quality of the group's advances, as evidenced by the
continuing declining trend in the percentage of gross non-performing loans to
core loans and advances to customers from 1.71% in the previous year to 0.93%.
This facilitated a drop in provisions for bad and doubtful debts charged to the
profit and loss account of 14.9% to £7.6 million.

Operating profit before goodwill amortisation declined from £74.3 million to
£48.5 million, impacted by the weaker performances of the group's UK and US
operations as well as the significant depreciation in the Rand.

Dividends of 26 pence per share, equating to a dividend cover of 1.83, which is
in line with the group's stated policy of maintaining a dividend cover under
this basis of between 1.75 and 2.3

Business unit review

Investment Banking

The prolonged weakness in financial markets and subdued trading volumes has
substantially impacted the performance of the Investment Banking division which
posted an operating loss of £2.6 million.

In South Africa ('SA'), Investment Banking reported results significantly down
on the previous period, largely as a result of a lack of appetite for direct and
private equity investments as well as declining trading portfolio values.
Investec Corporate Finance continued to maintain a strong deal flow off the back
of the division's distinctive ability to provide innovative and creative deal
structures and advice. Accordingly, the division's prime focus during the period
under review was on group and corporate restructuring activities, shareholder
activism mandates and black economic empowerment initiatives. Investec Corporate
Finance retained its first place rankings in the 2002 Dealmakers survey for M&A
volume, corporate finance value and volume, and was further awarded the
'Dealmaker of the Year' award. During the period under review, Investec
Securities focused on augmenting the depth and breadth of its research offering
while the structured equity desk performed well despite the difficult SA
stockbroking environment.

In the UK, Investec Investment Banking and Securities posted an operating loss
during the period under review. The division was severely impacted by the lack
of corporate advisory and capital market activity, with the number of deals
concluded declining substantially over the period. Trading income declined
significantly reflecting the poor performance of the house stocks in which the
division makes markets. This initiated a shift in focus to non-house stocks
where the division was successful in gaining market share in large-cap broking.
The UK Private Equity division's performance was negatively affected by
declining equity portfolio values and a lack of viable exit opportunities.

Investec Inc in the US, was affected by the severe decline in equity markets,
recording operating losses of £4.6 million. The strategic review undertaken in
the US (see below) resulted in Investec Inc repositioning itself as an
institutional research-driven investment bank in the chosen niches of
technology, media, telecommunications, healthcare, retail and consumer goods.

In Australia, Investec Wentworth demonstrated growth in a challenging investment
banking environment enjoying a strong pipeline of mandates and prospective
deals.


Private Client Activities

The Private Client Activities division, which comprises Private Banking and
Private Client Portfolio Management and Stockbroking divisions, recorded a
period of strong growth in operating profit before goodwill amortisation of
11.7% to £19.9 million. The strong performance of the Private Banking division
was somewhat offset by the weaker performance of Private Client Portfolio
Management and Stockbroking which suffered as a result of the lower market
prices and reduced demand for equity and other investment products.


Private Banking

The Private Banking division reported operating profit before goodwill
amortisation of £16.5 million, an increase of 18.8% on the previous period. This
performance was driven by solid growth in total advances, non-interest income
and assets under administration, both in SA and the UK. Since the year-end, the
group's total private client lending book in SA grew by 10.1% in Rand terms to
R15.2 billion (£922 million), and the private client lending book in the UK grew
by 6.2% in Sterling terms to £846 million.

In SA, Investec Private Bank retained its number one ranking in the 2002
PriceWaterhouseCoopers SA Banking survey demonstrating its ability to
continually develop innovative alternatives to investment planning that provide
real returns regardless of market conditions.

The Private Banking division in the UK developed a private client investment
banking service which focuses on clients whose wealth is inextricably linked to
their businesses. Furthermore, in line with the group's increased cost
consciousness, an initiative was undertaken during the period to relocate the UK
retail call centre to SA.

In Australia, a more focused strategy within the Private Client Group has
improved profitability with a steady increase in the number and quality of
clients and notable growth in total funds under advice.


Private Client Portfolio Management and Stockbroking

The Private Client Portfolio Management and Stockbroking division reported
operating profit before goodwill amortisation of £3.3 million, a decrease of
13.9% on the previous period.

Despite the decline in market volumes which had a negative impact on overall
commissions, Investec Securities in SA, managed to increase funds under
management marginally from R27.3 billion to R28.3 billion (£1.7 billion) since
the last year-end. The business posted a creditable result, which is largely
attributable to the Merrill Lynch acquisition in the previous period and the
vigilant reduction of costs as a result of natural attrition and the
introduction of STRATE (share transactions totally electronic). Furthermore, the
business supplemented its revenue stream with a number of new investment
initiatives including a new Money Market fund launched in conjunction with
Investec Asset Management.

In the UK, Carr Sheppards Crosthwaite's performance was adversely impacted by
the testing operating environment, with funds under management falling by 20% in
relation to a 30% decline in the UK market since the group's year-end. Funds
under management at September 2002 were £4.8 billion, of which £2.9 billion were
managed under discretionary mandates. The business continued to experience a
healthy flow of net new funds under management with the addition of £225 million
funds over the past six months, further confirming the viability of the
division's business model, notwithstanding the difficult environment.

Treasury and Specialised Finance

The Treasury and Specialised Finance division posted operating profit before
goodwill amortisation and taxation of £18.6 million, a decline of 30%. The UK
operations reported an operating loss of £2.5 million, while the South African
operation's contribution increased by 7.7% in Rand terms. This percentage would
amount to 19.8% if the results of Securities Investment Bank, which posted a
loss, are excluded.

The solid performance of the SA Treasury and Specialised Finance division's core
operations is largely attributable to its overall diversity of income. The
Financial Market Activities performed particularly well with meaningful
contributions from all desks. The Banking Activities continued to maintain their
strong positioning in the local market, with flows of deals and mandates
concluded by the Structured and Project Finance division's during the period.

In the UK, the Treasury and Specialised Finance businesses are in a development
phase and hence the group continued to focus on enhancing and expanding its
capabilities, particularly in its Banking Activities. In July, a structured
finance team was acquired to focus on cross-border structured finance, with
particular emphasis on leasing structures. Sound performances, off a very low
base, were recorded from the project and resource finance division as it
continued to position itself as a leader in the public private partnership
market. The division was selected as preferred bidder on the 2nd largest UK
hospital private financing deal, with a deal value of £330 million. The
division's Financial Market Activities posted a loss, with the interest rate
desk suffering from market volatility while the commodities division struggled
in the face of the downturn in certain base metals prices.


Asset Management

The Asset Management division delivered operating profit growth before goodwill
amortisation of 11.9% in Rand terms and a 15.3% fall in Sterling terms. Although
assets under management of £15.8 billion (R260.8 billion) declined by 0.9% in
Rand terms and 2.9% in Sterling terms since March 2002, the impact of the weak
equity markets was offset by the achievement of net new business flows of £545
million (R8.7 billion). The key achievement in the reporting period was the
impressive investment performance achieved across the board by the division's
London based investment team, complemented by the strong retail funds and
specialist performance of its South African business.

Investec Asset Management recorded strong growth in its market share of UK
retail funds. In spite of weakening industry conditions and declining equity
markets, the Investec Asset Management UK retail business grew assets under
management by 19%, positioning it as one of the UK's fastest growing retail fund
businesses. Net inflows of £81 million represents a market share of 3% of net
sales. Investec Asset Management has made significant progress in terms of
market positioning, with the authoritative SWAY industry survey ranking Investec
as the third best supported supplier of retail funds to the UK discretionary
independent financial advisor market. Offshore funds, listed in Guernsey and
Dublin, achieved positive net inflows during the six months under review at a
time when the industry as a whole is experiencing significant redemptions. This
was achieved by all the division's retail businesses.

In the broad based CAPS survey for UK balanced pension funds, Investec Asset
Management was placed in the top decile out of a field of 85 competitors for the
twelve-month period to 30 September 2002. Investec Asset Management continues to
win fixed income mandates in the UK local authority market on the back of a
strong track record and proven investment process. Investec Asset Management,
after a relatively short period in the UK, is now on the list for recommendation
by some of the major investment consultants.

The South African Personal Investments division was successful in attracting
domestic net new business flows, attracting R2.3 billion. The division's unit
trusts also excelled over the reporting period, with half of the in-house
managed funds in the top quartile over a one-year period, and achieving an
average ranking well above the median. Investec also achieved fourth place
overall in the most recent Plexus survey, which assesses three-year investment
performance.

In summary, the core South African businesses continue to show resilience, while
the international expansion prospects are developing in line with management
expectations.

Assurance Activities

The results of the group's SA life assurance activities, conducted by Investec
Employee Benefits Limited ('IEB'), were positively influenced by further
restructuring of the business and its investment portfolios over the course of
the past six months. The overall effect of which was to increase earnings from
£13.6 million to £18.8 million.


Group Services and Other Activities

Group Services and Other Activities posted an operating loss of £16.4 million,
reflecting a 35.5% improvement on the previous year. This was largely
attributable to the performance of the group's Central Funding division, which
benefited from effective capital management facilitated through the group's
restructure, as well as increased returns on shareholder's funds within IEB,
whose earnings were included for a full six months in the current period as
opposed to four months in the prior period. Some of these gains were offset by
the weaker performances of the group's Traded Endowment and Clearing and
Execution Activities.

The Traded Endowments activities were affected by poor trading conditions as
well as general market uncertainty surrounding the frequency, timing and
magnitude of bonus rate cuts.

The group's Property Activities performed reasonably well. The SA business
benefited from an increase in assets under administration as a consequence of
the Growthpoint restructure, the Melrose Arch mandate and the Fedsure
acquisition. Furthermore, the demand for investment properties in the UK
remained buoyant.


Geographic performance

The group's Southern African businesses accounted for 73.2% (2001:45.8%) of
Investec's operating profit before goodwill amortisation. Notwithstanding the
above, the concentration of assets is weighted towards the group's Non-Southern
African operations with 63.4% located in these countries. Highlights of the
developments and performance of the regions in which the group operates follow.

Southern Africa

The group's SA operating profit before goodwill amortisation in SA increased
significantly by 32.7% in Rand terms and 5.0% in Pound Sterling terms. Most of
the group's SA businesses performed strongly, and the group continues to
maintain a sound positioning in most of its SA businesses.

UK

In the UK, the group posted an operating profit before goodwill amortisation of
£14.5 million, a decrease of 58.1%. These results reflected the adverse market
conditions which had a negative impact on the UK Investment Banking and Treasury
Trading Activities. The consequent negative impact on investment appetite and
asset values also impeded the performance of the Private Client Stockbroking
activities. The UK Private Banking operations grew advances by 19% over the year
and generated pleasing growth in non-interest related income. Furthermore, the
group's Asset Management division in the UK made significant progress,
particularly on investment performance.


US

As part of Investec's continued strategic focus on building niched businesses in
its core areas of competence and in select markets where it can compete
effectively, a strategic review of the US business was undertaken over the past
year which resulted in the following:

-The decision to sell the private client stockbroking business to management in
 May 2002 ('the PCG management buy-out').

-The sale of the Clearing Division to Fiserv Securities in August 2002 for US$44
 million ('the Fiserv transaction').

-The streamlining of support services and infrastructure.

The remaining US businesses will be combined into one broker-dealer and operate
under the Investment Banking pillar enabling Investec to align its US operations
with its other global businesses. The overall headcount will be reduced to
around 165 staff from some 688 at the year-end. For further financial
information regarding the sale of these businesses refer to the 'financial
statements analysis' section of this report.

Israel

The Israeli operations posted satisfactory results against the backdrop of a
fragile geopolitical situation, poor domestic capital markets and severe
depreciation of the Shekel. Noteworthy accomplishments were achieved in the
mutual fund custodial and administration activities with total assets under
custody increasing 134% to NIS9.6 billion during the period under review.


Australia

A strong performance was posted by the Australian subsidiary which increased its
contribution to the group from £0.07 million to £3.2 million. In August,
Investec Australia received a full banking licence which has opened up many
growth opportunities for the business. Investec Wentworth has had a strong
impact on the region's activities with increased investment banking earnings. A
more focused strategy for private banking drove a breakthrough to profitability.
Australia now has a solid platform to build a strong reputation, quality client
list and effective corporate network.


Financial statements analysis

Operating income

Operating income of £256.4 million decreased by 12.2% over the period largely as
a result of significant declines in fees and commissions and other operating
income (investment income). These declines were partially offset by solid growth
in dealing profits (trading income). The movements in operating income are
further analysed as follows:

The group's net interest income remained relatively stable at £75.3 million,
largely as a result of the significantly lower Rand/Pound Sterling exchange rate
during the period. The group was able to achieve sound growth in its lending
portfolios.

Fees and commissions, both annuity and deal, were impacted by the weaker
economic and equity environment and the weakness of the Rand, resulting in a
decline of 19.9% to £137.8 million. The Investment Banking division in the UK,
Investec Asset Management and the Private Client Portfolio Management and
Stockbroking divisions were the primary contributors to this negative variance.

Dealing profits increased significantly by 187.4% to £23.3 million. The group's
Financial Market Activities performed exceptionally well in the period under
review. The equity derivatives division posted a profit after generating losses
in the prior period in the aftermath of the 11 September 2001 attacks.
Furthermore, the group's interest rate and currency activities were well placed
to exploit movements in the market.

The performance of the group's long-term assurance activities was discussed
earlier in this report.

Other operating income reflected a loss of £1.9 million, largely as a result of
the weaker performance of the group's Investment Banking division. In the prior
period the group benefited from the disposal of certain direct and private
equity investments. The income from these activities is affected by macro-and
micro-economic market conditions, as well as the unavailability of profitable
exit routes. Furthermore, difficult market conditions had an adverse impact on
the values of the trading portfolios.


Administrative expenses

Total expenses decreased by 3.9% from £201.7 million to £193.7 million
principally due to rationalization of the group's activities in North America,
ongoing focus on cost control and the depreciation of the Rand.

Notwithstanding this nominal value decrease, the ratio of operating expenses to
total operating income increased from 71.5% to 78.1%. The increase in the ratio
is attributable to the reduced revenues in the group's Investment Banking
activities as well as investments made in systems enhancement in the UK Treasury
and Specialised Finance units, the latter also explaining the increase in group
equipment expenditure of 3.4% from £11.9 million to £12.3 million.

These factors resulted in the cost to income ratio declining in SA (from 62.1%
to 59.4%) while the same ratio for the non-SA businesses increased from 77.1% to
90.4%.


Goodwill amortisation

Goodwill amortisation over the period increased by 38.5% due to the inclusion of
a full six month amortisation in relation to those acquisitions which were made
towards the end of the previous reporting period of which Fedsure and PMG
Capital were the most material.

Taxation

The operational effective tax rate of the group (extracting the tax effect on
the profit on disposal of subsidiaries of £3.5m) has decreased from 23.7% in
2001 to 16.9% in 2002, mainly as a consequence of taxable credits in the US
arising out of the losses incurred within the investment banking business and
the lower taxable earnings in Israel and South Africa. The latter was
particularly influenced by the increase in the income from long-term assurance
business which bears a lower effective tax rate due to losses brought forward.


Share of income of associated companies

The marked increase in associate income is attributable to the fact that the
group's interest in its main associate, Capital Alliance Holdings Limited
('CAL'), was acquired in October 2001. An amount of R73 million (£3.5 million)
has been accrued, representing Investec's share in CAL's operating earnings for
the six month period ended 31 March 2002.


Provision for losses on termination of business

A pre-tax loss of £5.2 million was incurred during the period under review in
connection with the sale of certain of the group's US activities. Specifically,
the Fiserv transaction realised net proceeds (after provisions for severance
payments, professional fees, lease penalties and other related expenditure) of
£9.7 million, against which unamortised goodwill of £8.6 million was deducted,
resulting in a net gain of £1.1 million. Offsetting this gain were losses
suffered as a result of the delayed completion of the Private Client Group
management buy-out. This transaction was finally concluded in October 2002
resulting in additional disposal costs linked to the ongoing management of this
and other inter-related activities of £6.3 million. This amount included a
write-off of unamortised goodwill of £1.8 million which represented the future
earn-out to Investec in respect of the anticipated clearing on behalf of the
private client group business which fell away as a consequence of the Fiserv
transaction.

Due to the non-deductibility of goodwill amortisation for tax purposes, a net
tax provision of £3.5 million was raised on the combined transactions, resulting
in an overall post tax loss of £8.7 million which constitutes a headline
adjustment in this period's results.


Capital resources

The DLC structure has two capital bases which contribute to a consolidated pool
of capital. The implementation of the structure resulted in a transfer of
reserves from Investec Limited to the share capital and premium of Investec plc
by means of an unbundling dividend of £356.9 million. Furthermore, the
conversion of certain instruments into shares in both Investec Limited and
Investec plc switched these resources into equity. While altering the split of
shareholders' funds, the net effect on the combined group was neutral.

Apart from this, net capital of £37.1 million (after share issue expenses of
£27.5 million) was raised by Investec plc through its offer undertaken in July
2002 and through the issue of 5 251 616 ordinary shares to the Investec plc
share scheme which is included under 'Own Shares' in the balance sheet. After
taking into account the interim dividend and the net movements on the foreign
currency and revaluation reserves, shareholders' funds increased marginally from
£734 million to £738 million since the last year-end.

Given that the South African Reserve Bank ('SARB') exercises the role of lead
supervisor to the group, capital adequacy returns for Investec plc and Investec
Limited are submitted under the requisite DI401 consolidated capital
regulations. As at 30 September 2002, capital adequacy ratios of 16.0% and 14.3%
applied to Investec Limited and Investec plc respectively, both of which were
comfortably above the minimum ratio as prescribed by SARB and by the FSA.


Total assets under administration

Total assets under administration decreased by 8.2% from £45.2 billion at 31
March 2002 to £41.5 billion at 30 September 2002. This was mainly attributable
to a decline in assets under management of £2.8 billion across all ranges of
third party funds due to depressed equity values and the effect of the
devaluation of the Rand.


Accounting policies and disclosures

Share options

During the period, Investec issued 4 million options to staff at a strike price
of R165 per share and 875 000 options at a strike price of R170 per share. These
options have vesting periods varying between 6 months and 5 years.

Future accounting standards are likely to require that options are valued at the
date of issue and expensed over the period that employees become entitled to
them. Had Investec applied this treatment to the options issued during the
current period, reported earnings would have decreased by £1.9 million (R30.5
million) resulting in a decrease in headline earnings per share of 2.1 pence
(31.6 cents per share) for the six months ended 30 September 2002.

These changes have been calculated using a Black-Scholes model with an implied
volatility for the Investec Limited share price of 37%, independently projected
dividends, and a risk free rate appropriate to the period of the option.

Goodwill

During the current year, the group changed its policy for the translation of
intangible assets in respect of foreign entities. These intangible assets are
now translated at the closing exchange rate instead of the exchange rate at the
date of acquisition. This change is permitted under both UK GAAP and SA GAAP.
Since a recent exposure draft issued by the International Accounting Standards
Board also proposes to make this treatment mandatory, the group considers it
appropriate to change the policy in the current period. The effect in SA GAAP of
this change is an increase in goodwill as at 31 March 2002 by R1.5 billion. The
effect in UK GAAP of this change in policy is a decrease in goodwill as at 31
March 2002 by £63.5 million. The difference in each case has been taken directly
to foreign currency translation reserves, resulting in an increase (in SA GAAP)
/ decrease (UK GAAP) in ordinary shareholders funds as at 31 March 2002. There
is no effect on the tangible net asset value of the group.


Prospects

Investec has a strong financial services platform with breadth and regional
diversity. With measures taken to address the non-performing elements of our
business, and through vigilant cost and risk management, we continue to position
the group to cope with difficult market conditions. We remain focused on growing
our businesses within our core areas of activity and further enhancing operating
discipline.

The operational health of the group's activities are sound but external market
and economic conditions remain volatile and could have an impact on the
performance of the group for the 2003 financial year.

On behalf of the boards of Investec Limited and Investec plc

Hugh Herman          Stephen Koseff          Bernard Kantor

Chairman             Chief Executive         Managing Director

19th November 2002



Dividend announcement

Investec plc

A maiden interim dividend (No. 1) of 26 pence per ordinary share has been
declared in respect of the six months ended 30 September 2002. The last day to
trade cum dividend will be Friday 6 December 2002.The shares will commence
trading ex dividend on Monday 9 December 2002.The record date will be Friday 13
December 2002 and payment will be made on Tuesday 24 December 2002. Share
certificates may not be dematerialised or rematerialised between Monday 9
December 2002 and Friday 13 December 2002, both dates inclusive.

By order of the board

R Vardy

Secretary

19th November 2002



Investec plc (incorporating the results of Investec Limited)

Unaudited consolidated financial results in UK GAAP Pounds Sterling for the six
months ended 30 September 2002


Consolidated profit and loss accounts

UK GAAP £'000                                                 6 mth to 30 Sept    6 mth to 30 Sept    Year to 31 March
                                                              2002 Unaudited      2001* Unaudited     2002*

                                                                                                      **
Interest receivable - interest income arising from debt       114 423             124 651             226 950
securities
Interest receivable - other interest income                   326 427             409 070             713 293
Other interest payable                                        (351 037)           (436 786)           (745 541)
Interest payable on convertible debt                          (3 411)             (8 530)             (12 177)
Interest payable on subordinated liabilities                  (11 055)            (12 427)            (23 408)
Net Interest income                                           75 347              75 978              159 117

Dividend income                                               3 031               1 724               2 008
Fees and commissions receivable                               137 832             172 149             350 218
- Annuity                                                     119 544             136 286             278 317
- Deal                                                        18 288              35 863              71 901
Dealing profits                                               23 307              8 110               45 300
Income from long-term assurance business                      18 830              13 605              31 079
Other operating income                                        (1 917)             20 548              30 949
Operating income                                              256 430             292 114             618 671

Administrative expenses                                       (193 726)           (201 669)           (428 510)
Depreciation and amortisation                                 (37 965)            (29 832)            (115 361)
- Tangible fixed assets                                       (6 556)             (7 158)             (16 926)
- Goodwill                                                    (31 409)            (22 674)            (98 435)
Provision for bad and doubtful debts                          (7 605)             (8 944)             (14 668)
Operating profit                                              17 134              51 669              60 132

Share of income of associated companies                       3 671               133                 3 083
Provision for losses on termination and disposal of Group     (5 159)             -                   (7 056)
operations
Reorganisation and restructuring costs                        -                   (11 836)            (11 836)
Profit on disposals of subsidiary undertakings                -                   -                   1 363
Profit on ordinary activities before taxation                 15 646              39 966              45 686

Tax on profit on ordinary activities (^)                      (11 727)            (17 651)            (28 540)
Profit on ordinary activities after taxation                  3 919               22 315              17 146
Minority Interests - equity                                   (492)               (758)               (1 586)
Profit attributable to shareholders                           3 427               21 557              15 560
Dividends - including non-equity                              (27 349)            (31 412)            (57 874)
Retained profit / (loss) for the period                       (23 922)            (9 855)             (42 314)
Headline earnings attributable to ordinary shareholders       43 867              42 898              115 777

Earnings per share (pence)                                    3.2                 22.1                14.8
Headline earnings per share (pence)                           47.6                46.9                126.8
Diluted earnings per share (pence)                            3.2                 21.3                14.8
Dividends per share (pence)                                   26.0                25.9                53.8

*Restated for changes to accounting policies and disclosures

**The audited figures are reported at 31 March 2002, restated for changes to
accounting policies and disclosures

(^) Includes tax on exceptional items as follows:

£000

30 September 2002 3 523

31 March 2002 (2 717)

30 September 2001 -

Consolidated statements of recognised gains and losses

UK GAAP £'000                                                 6 mth to 30 Sept    6 mth to 30 Sept    Year to 31 March
                                                              2002 Unaudited      2001* Unaudited     2002*

                                                                                                      **
Profit for the period attributable to ordinary shareholders   3 427               21 557              15 560
Currency translation differences on foreign currency net      (12 724)            (16 051)            (69 737)
investments
Unrealised surplus on revaluation of investment properties    3 212               5 799               10 254

Total recognised gains and losses for the period              (6 085)             11 305              (43 923)

There was no material difference between the results as
reported and the results that would have been reported on an
unmodified historical cost basis. Accordingly, no note of
historical cost profits and losses has been included.

*Restated for changes to accounting policies and disclosures

** The audited figures are reported at 31 March 2002, restated for changes to
accounting policies and disclosures



Calculation of headline earnings

UK GAAP                                                       6 mth to 30 Sept    6 mth to 30 Sept    Year to 31 March
                                                              2002 Unaudited      2001* Unaudited     2002*

                                                                                                      **
Headline earnings per share
Headline earnings per share (pence per share) continues to
have widespread acceptance and has been calculated in
accordance with the definition in the institute of Investment
Management Research (IMR) Statement of Investment Practice
No.1, 'The Definition of Headline Earnings'.                  47.6                46.9                126.8

                                                              £'000               £'000               £'000

Profit attributable to shareholders                           3 427               21 557              15 560
Dividends - non -equity                                       (431)               (1 333)             (2 015)
Profit attributable to ordinary shareholders                  2 996               20 224              13 545
Amortisation of goodwill                                      31 409              22 674              98 435
Profit on disposal of subsidiary undertakings                 -                   -                   (1 363)
Provision for losses on termination and disposal of Group     8 682               -                   4 339
operations (net of deferred tax)
Amortisation of goodwill of associates                        780                 -                   821

Headline earnings attributable to ordinary shareholders       43 867              42 898              115 777



*Restated for changes to accounting policies and disclosures

** The audited figures are reported at 31 March 2002, restated for changes to
accounting policies and disclosures


Consolidated balance sheets

UK GAAP £'000                               30 Sept 2002 Unaudited        30 Sept 2001* Unaudited     31 March 2002*

                                                                                                      **
Assets
Cash and balances at central banks          221 487                       424 186                     457 222
Treasury bills and other eligible bills     487 019                       328 424                     340 525
Loans and advances to banks                 2 755 770                     3 082 699                   2 583 205
Loans and advances to customers             5 079 600                     3 948 111                   4 780 480
Debt Securities                             3 797 015                     4 875 945                   4 235 119
Equity shares                               145 745                       99 322                      204 352
Interests in associated undertakings        43 051                        17 135                      45 026
Intangible fixed assets                     338 198                       484 263                     384 900
Tangible fixed assets                       178 383                       148 459                     186 761
Own shares                                  70 004                        51 086                      42 130
Other assets                                887 816                       969 984                     1 275 695
Long-term assurance business attributable   97 972                        183 713                     67 116
to the shareholder
                                            14 102 060                    14 613 327                  14 602 531
Long-term assurance assets attributable to  2 022 945                     3 032 530                   2 354 401
policyholders
                                            16 125 005                    17 645 857                  16 956 932
Liabilities
Deposits by banks                           3 697 701                     4 678 773                   3 735 349
Customer accounts                           7 549 341                     6 996 580                   7 584 425
Other liabilities                           1 733 119                     1 657 158                   2 106 191
Accruals and deferred income                197 541                       187 573                     218 132
                                            13 177 702                    13 520 084                  13 644 097
Long-term assurance liabilities             2 022 945                     3 032 530                   2 354 401
attributable to policyholders
                                            15 200 647                    16 552 614                  15 998 498
Capital Resources
Subordinated liabilities (including         153 803                       219 672                     190 659
convertible debt)
Minority interests - equity                 32 580                        26 071                      33 473

Called up share capital                     123                           7 510                       7 530
Share premium account                       924 945                       845 616                     814 089
Shares to be issued                         41 148                        41 148                      41 148
Revaluation reserves                        14 148                        6 631                       11 202
Other reserves                              (187 415)                     (125 903)                   (176 833)
Profit and loss account                     (54 974)                      72 498                      37 166
Shareholders' funds                         737 975                       847 500                     734 302
- Equity                                    737 975                       804 399                     691 201
- Non-equity                                -                             43 101                      43 101

                                            924 358                       1 093 243                   958 434
                                            16 125 005                    17 645 857                  16 956 932

*Restated for changes to accounting policies and disclosures

** The audited figures are reported at 31 March 2002, restated for changes to
accounting policies and disclosures

Consolidated cash flow statements

                                                              6 mth to              6 mth to           Year to

                                                              30 Sept 2002          30 Sept 2001*      31 March

                                                              Unaudited             Unaudited          2002*

UK GAAP £'000                                                                                          **

Net cash inflow from operating activities                     523 338               1 238 937          595 588
Net cash outflow from return on investments and servicing of  (16 912)              (24 005)           (39 314)
finance
Taxation                                                      (25 341)              (20 019)           (19 380)
Net cash outflow from capital expenditure and financial       (594 473)             (599 147)          (461 662)
investment
Net cash inflow/(outflow) from acquisitions and disposals     5 324                 (47 858)           (95 656)
Ordinary share dividends paid                                 (26 433)              (38 913)           (58 606)
Net cash inflow/(outflow) from financing                      6 025                 (28 316)           (22 510)

(Decrease)/increase in cash                                   (128 472)             480 679            (101 540)
Cash and demand bank balances at beginning of period          2 062 888             2 164 428          2 164 428
Cash and demand bank balances at end of period                1 934 416             2 645 107          2 062 888


*Restated for changes to accounting policies and disclosures

** The audited figures are reported at 31 March 2002, restated for changes to
accounting policies and disclosures

Segmental analysis - geographical and business analysis of operating profit
before taxation and goodwill amortisation


For the six months ended 30 September 2002

UK GAAP £'000         Investment       Private Client   Treasury &        Asset Management  Group Services Total Group
                                       Activities       Specialised                         & Other
                      Banking                           Finance                             Activities

Southern Africa &     1 980            6 151            21 000            27 578            (21 169)       35 540
Other
UK, Europe &          (1 391)          12 619           (2 495)           1 445             6 610          16 788
Australia
Israel                1 374            1 124            94                94                (42)           2 644
USA                   (4 589)          -                -                 -                 (1 840)        (6 429)

Total Group           (2 626)          19 894           18 599            29 117            (16 441)       48 543



For the six months ended 30 September 2001*

UK GAAP £'000            Investment      Private Client  Treasury &        Asset           Group Services Total Group
                         Banking         Activities      specialised       Management      & Other
                                                         Finance                           Activities

Southern Africa & Other  10 069          6 730           22 047            24 904          (29 623)       34 127
UK, Europe & Australia   17 714          9 213           4 488             789             2 473          34 677
Israel                   2 405           1 868           182               182             (593)          4 044
USA                      (576)           -               -                 -               2 071          (1 495)

Total Group              29 612          17 811          26 717            25 875          (25 672)       74 343



         * Restated for changes to accounting policies and disclosures


Basis of preparation

The interim financial report found should be read in conjunction with the
preliminary offering circular distributed in July 2002. It has been prepared
under the historical cost convention, unless otherwise indicated, in accordance
with accounting standards applicable in the United Kingdom (UK GAAP), and, with
the exception of items explained in the 'commentary' section, all have been
applied consistently throughout the current and preceding period, as set out in
the preliminary offering circular. Monetary disclosures are in thousand Pound
Sterling, unless otherwise indicated.

Comparative figures

Comparative figures are restated where necessary to allow for more meaningful
comparison.



Interim review report to Investec plc

Introduction

We have been instructed by the company to review the financial information set
out above and we have read the other information contained in the interim
report, except for the SA GAAP information, which we do not comment on, and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. We did not, however, review the
comparative information for the 6 months ended 30 September 2001 as the company
is presenting its interim report for the first time and it would have been
impractical to do so. A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2002. We do not report on the comparative financial
information for the six months ended 30 September 2001.

Ernst & Young LLP

London

19 November 2002


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