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Interim condensed consolidated financial results for the period ended 30 September 2023
Investec Bank Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1969/004763/06)
LEI No: 549300RH5FFHO48FXT69
JSE Interest rate issuer code: BIINLP
JSE Structured product issuer code: INVP
JSE ETN issuer code: INVSN
CTSE stock code: INV
Interim condensed consolidated financial results for the period ended 30 September 2023
The interim condensed consolidated financial results for the period ended 30 September 2023 are available for inspection at the registered office of the
Issuer, as well as on Investec's website at www.investec.com.
Pursuant to paragraph 6.17(c) of the JSE Debt Listings Requirements, Investec advises of the following restatements:
1. Derivative financial instruments
Certain derivative financial assets and liabilities that are managed by trading desks were previously presented on a gross basis. Due to an upgrade of the
internal reporting processes, it became clear that the derivative financial assets and liabilities with a value of R824 million as at 30 September 2022 should
have been reported on a net settlement basis in accordance with IAS32. The comparative balance sheet has been restated for the reclassification. This
change has no impact on the comparative income statement or cash flow statement.
2. Non-sovereign and non-bank cash placements and loans and advances to customers
- Change in classification from non-sovereign and non-bank cash placements to loans and advances to customers
Following a revision of management's internal policies, management concluded that R4 538 million as at September 2023 (March 2023: R4 428 million,
September 2022: R4 671 million) previously classified in non-sovereign and non-bank cash placements should be disclosed within loans and advances to
customers. The change in classification is considered more relevant on the basis that certain short term facilities to small and medium enterprises are better
reflected as loans and advances to customers as it forms part of the funding strategy of these clients. This change has no impact on the comparative
income statements.
- Restatement of non-sovereign and non-bank cash placements in the cash flow statement
R9 113 million (net of ECL of R17 million) as at September 2023 [March 2023: R14 133 million (net of ECL of R50 million), September 2022:
R13 237 million (net of ECL of R65 million)] of non-sovereign and non-bank cash placements were previously classified as cash and cash equivalents for
the purposes of the cash flow statement. Management concluded that whilst these balances are available on demand, the nature of these products and the
underlying credit risk more closely aligns with operating cash flow rather than cash and cash equivalents. The comparative cash flow statements have been
restated to more appropriately reflect the nature of these balances. This change has no impact on the comparative income statements or balance sheets.
3. Cash flow hedge reserve
Management identified that that the fair value of instruments designated as fair value hedges were incorrectly booked in equity to the cash flow hedge
reserve. Accordingly, the cash flow hedging reserve was reclassified to the underlying hedged items that are disclosed in bank debt securities and other
debt securities on the balance sheet. The adjustment was made to the hedged item line item as the hedged item was accounted for at amortised cost. The
associated deferred taxation was reversed. The hedges were effective and accordingly did not have any impact on the income statement. This change
has no impact on the cash flow statement. It was further identified that amounts previously recognised within the cash flow hedging reserve were not
correctly released to the income statement within the respective periods in which the hedged risk impacted earnings. These amounts have been restated
retrospectively against retained earnings.
4. Fee and commission expense and operating costs
Management identified that R89 million as at 30 September 2023 (September 2022: R51 million; March 2023: R146 million) of costs relating to fee and
commission income would be more appropriately disclosed within fee and commission expense, due to the nature of these costs. As a result, fee and
commission expense and operating costs for the prior periods have been voluntarily restated. The restatement has no impact on operating profit in the income
statement, headline earnings, the cash flow statement and balance sheet.
The impact of the above restatements is disclosed in the financial results on Investec's website at www.investec.com.
By order of the board
Niki van Wyk
Company Secretary
15 November 2023
For further information
Registered office
100 Grayston Drive
Sandown, Sandton, 2196
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Company Secretary
Niki van Wyk
JSE Debt Sponsor and CTSE External Debt Issuer Agent
Investec Bank Limited
Date: 16-11-2023 09:00:00
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