Wrap Text
Reviewed Condensed Combined Consolidated Financial Results for the six months ended 30 Sep 2024 and Cash Dividend
Investec plc Investec Limited
Incorporated in England and Wales Incorporated in the Republic of South Africa
Registration number 3633621 Registration number 1925/002833/06
LSE ordinary share code: INVP JSE ordinary share code: INL
JSE ordinary share code: INP JSE hybrid code: INPR
ISIN: GB00B17BBQ50 JSE debt code: INLV
LEI: 2138007Z3U5GWDN3MY22 NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
REVIEWED CONDENSED COMBINED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024 AND
CASH DIVIDEND DECLARATION
Fani Titi, Group Chief Executive commented:
"The Group has delivered a solid performance in the first half of the 2025 financial year in an evolving environment. Adjusted operating
profit grew 7.6% to £475 million demonstrating continued momentum from our differentiated client franchises. We are pleased to report a
ROE of 13.9% putting us on track to achieve the Group's full year ROE guidance. The Group has maintained strong capital and liquidity levels,
positioning us well to support our clients and pursue disciplined growth in an improving operating environment. We remain committed to our
purpose of creating enduring worth for all our stakeholders."
Basis of presentation
The comparability of the Group's total period on period performance is impacted by the financial effects of the combination of Investec
Wealth & Investment UK (IW&I UK) with the Rathbones Group (Rathbones) and the disposal of the property management companies to
Burstone Group Limited (formerly known as Investec Property Fund (IPF)), which result in IW&I UK and IPF being presented as discontinued
operations in the prior period in line with applicable accounting standards.
Key financial metrics
Given the nature of the IW&I UK and IPF transactions completed in the prior period, the Group essentially retained similar economic interest
to these investments before and after the transactions. To provide information that is more comparable to the current period, the prior
period has been presented on a pro-forma basis as if the transactions had been in effect from the beginning of the prior period, i.e. IW&I UK
has been presented as an equity accounted investment and IPF as an investment at fair value through profit or loss in the prior period.
Adjusted Adjusted Basic Total NAV per TNAV
Cost to operating EPS EPS* HEPS DPS share per share
£'millions Revenue income CLR profit (pence) (pence) (pence) ROE ROTE (pence) (pence) (pence)
1H2025 1 102.6 50.8% 42bps 474.7 39.5 36.6 36.6 13.9% 16.4% 16.5 575.7 491.6
1H2024 1 043.8 53.3% 32bps 441.4 38.7 69.6 36.9 14.6% 16.5% 15.5 554.0 467.7
% change in £ 5.6% 7.6% 2.1% (47.4%) (0.8%) 6.5% 3.9% 5.1%
% change in
Rands 5.2% 4.4% 1.8% (47.6%) (0.5%) 4.4% 5.6%
Totals and variances are presented in £'millions which may result in rounding differences.
* The Basic EPS decrease reflects the impact of significant net gains from strategic actions executed in the prior period.
Group financial summary:
Pre-provision adjusted operating profit increased 11.1% to £541.6 million (1H2024: £487.7 million), as revenue grew 5.6% against operating
cost growth of 0.8%, resulting in a positive jaws ratio.
Revenue benefitted from balance sheet growth, the breadth and depth of our client franchises, as well as the elevated interest rate
environment. Net interest income (NII) was supported by higher average lending books and higher average interest rates, partly offset
by the effects of deposit repricing in the UK. Non-interest revenue (NIR) growth reflects increased capital-light income from our Banking
businesses, as well as strong growth in fees from our SA Wealth & Investment business. Investment income also contributed positively to
NIR growth given the improving global markets backdrop. Trading income was lower in the current period due to the non-repeat of prior-
year risk management gains from hedging the remaining financial products run down book in the UK, as well as due to the implementation of
hedge accounting in the South African credit investments portfolio from the first quarter of the current period.
The cost to income ratio improved to 50.8% (1H2024: 53.3%) as revenue grew ahead of costs. Total operating costs remained broadly flat
increasing by 0.8%. Fixed operating expenditure increased 6.7% reflecting continued investment in people and technology for growth and
inflationary pressures. Variable remuneration in each geography was in line with respective performance.
Credit loss ratio (CLR) on core loans was 42bps (1H2024: 32bps), at the upper end of the Group's through-the-cycle (TTC) range of 25bps
to 45bps. Expected credit loss (ECL) impairment charges increased to £66.9 million (1H2024: £46.3 million). The overall credit quality
remained strong, with no evidence of trend deterioration.
Return on equity (ROE) of 13.9% (1H2024: 14.6%) is within the Group's upgraded medium-term 13% to 17% target range, notwithstanding the
increase in the average equity base resulting from the net gain recognised on completion of the combination of IW&I UK with Rathbones at
the end of the prior period. Return on tangible equity (ROTE) was 16.4% (1H2024: 16.5%) within the Group's upgraded medium-term 14% to
18% target range.
Net asset value (NAV) per share amounted to 575.7p (31 March 2024: 563.9p), driven by strong capital generation in the current period and
foreign exchange translation gains, partly offset by distribution to shareholders.
Tangible net asset value (TNAV) per share increased to 491.6p (31 March 2024: 477.5p).
Key drivers
Net core loans increased 5.4% annualised to £31.7 billion (31 March 2024: £30.9 billion) and grew by 1.9% annualised on a neutral currency
basis; driven by growth from private clients lending in both geographies alongside muted overall growth in corporate lending portfolios
which were offset by higher repayment rates given the elevated interest rate environment.
Customer deposits increased by 4.7% annualised to £40.4 billion (31 March 2024: £39.5 billion) and grew by 1.3% in neutral currency.
Investec plc grew customer deposits by 8.1% annualised in a competitive deposit market. Investec Limited continued its strategy to
increase the more efficient retail deposits (up 6.9% annualised) and reduce shorter term wholesale deposits (down 22.2% annualised); and
consequently, lengthened the deposit tenure. As a result, total Investec Limited customer deposits decreased by 6.2% annualised in neutral
currency.
Funds under management (FUM) in Southern Africa increased by 11.9% to £23.4 billion (31 March 2024: £20.9 billion) driven by net inflows
in our discretionary and annuity funds of R10.0 billion (£428 million), as well as increased market levels. These were partly offset by FX
translation losses and non-discretionary outflows of R1.9 billion (£79 million).
Investec Wealth & Investment UK FUM is now reported as part of the Rathbones Group following the completion of the combination in
September 2023. Rathbones Funds Under Management and Administration (FUMA) totalled £108.8 billion at 30 September 2024. Investec
owns 41.25% of Rathbones.
Balance sheet strength and strategic execution:
The Group remained well capitalised in both our anchor geographies, with Investec Limited reporting a CET1 ratio of 14.8% measured on the
Advanced Internal Ratings-Based approach and the Investec plc CET1 at 12.6% measured on a standardised approach. The strong capital
generation from our client franchises gives us the ability to continue to support our clients, invest in the business, and make distributions to
our shareholders. Liquidity levels remained strong and well ahead of regulatory and board-approved minimums.
The Group remains committed to its strategic priority to optimise shareholder returns. The investment in Bud Group Holdings reduced
significantly to £108.7 million / R 2.5 billion at 30 September 2024 from £179.6 million / R4.3 billion at 31 March 2024 following the
completion of the previously announced disposal of Assupol. The UK business continues to make progress towards migrating its capital
measurement from the standardised approach to the internal ratings-based approach.
The Board has proposed an interim dividend of 16.5p per share (1H2024: 15.5p), translating to a 41.7% payout ratio and within the Group's
current 35% to 50% payout policy.
FY2025 Outlook
Revenue momentum is expected to be underpinned by average book growth, stronger client activity levels given expected improvement in
GDP growth and continued success in our client acquisition strategies, partly offset by the effects of reducing global interest rates.
The Group currently expects:
- Group ROE to be c.14.0% and ROTE to be c.16.0%. Southern Africa is expected to report ROE of c.19.0%, and UK & Other is expected to
report ROTE of c.13.5% in line with 1H2025
- Overall costs to be well managed in the context of inflationary pressures and continued investment in the business, with cost to income
ratio expected to be between 51.0% and 53.0%
- The credit loss ratio to be within the through-the-cycle range of 25bps to 45bps. Southern Africa is expected to be close to the lower end
of the TTC range of 15bps to 35bps. UK & Other credit loss ratio is expected to be between 50bps and 60bps.
The Group has maintained strong capital and liquidity levels and is well positioned to continue supporting our clients and build to scale our
identified growth opportunities, in an improving economic environment.
Key financial data
This announcement covers the results of Investec plc and Investec Limited (together "the Investec Group" or "Investec" or "the Group") for
the six months ended 30 September 2024 (1H2025). Unless stated otherwise, comparatives relate to the Group's operations for the six
months ended 30 September 2023 (1H2024).
Basic earnings per share in the prior period includes a gain of £360.9 million on the combination of Investec Wealth & Investment UK with
Rathbones plc, partly offset by the net loss on deconsolidation of IPF totalling £95.3 million.
Neutral
% currency
Performance 1H2025 1H2024^ Variance change % change
Operating income (£'m)* 1 102.6 1 043.8 58.8 5.6% 5.4%
Operating costs (£'m) (560.3) (556.1) (4.2) 0.8% 0.6%
Adjusted operating profit (£'m) 474.7 441.4 33.3 7.6% 7.3%
Adjusted earnings attributable to shareholders (£'m) 337.9 329.8 8.1 2.5% 2.1%
Adjusted basic earnings per share (pence) 39.5 38.7 0.8 2.1% 1.8%
Basic earnings per share (pence) 36.6 69.6 (33.0) (47.4%) (47.6%)
Headline earnings per share (pence) 36.6 36.9 (0.3) (0.8%) (1.1%)
Dividend per share (pence) 16.5 15.5
Dividend payout ratio 41.7% 40.1%
CLR (credit loss ratio) 0.42% 0.32%
Cost to income ratio 50.8% 53.3%
ROE (return on equity) 13.9% 14.6%
ROTE (return on tangible equity) 16.4% 16.5%
* Operating income in the prior period has been prepared on a pro-forma basis.
^ Restated.
Neutral
30 Sept 31 March % currency
Balance sheet 2024 2024 Variance change % change
Funds under management (£'bn)
IW&I Southern Africa 23.4 20.9 2.5 11.9% 8.4%
Rathbones/IW&I UK** 108.8 107.6
Customer accounts (deposits) (£'bn) 40.4 39.5 0.9 2.4% 0.7%
Net core loans and advances (£'bn) 31.7 30.9 0.8 2.7% 1.0%
Cash and near cash (£'bn) 17.2 16.4 0.8 4.9% 3.3%
NAV per share (pence) 575.7 563.9 11.8 2.1% 1.6%
TNAV per share (pence) 491.6 477.5 14.1 3.0% 2.4%
Totals and variances are presented in £'billions which may result in rounding differences.
** Following the all-share combination of IW&I UK and Rathbones, IW&I UK now forms part of the Rathbones Group. As at
30 September 2024, Rathbones Group, of which Investec holds a 41.25% economic interest, had funds under management of £108.8 billion.
% % change
Salient features by geography 1H2025 1H2024 Variance change in Rands
Investec Limited (Southern Africa)
Adjusted operating profit (£'m) 252.0 205.9 46.1 22.4% 21.9%
Cost to income ratio 49.3% 52.5%
ROE 19.9% 16.2%
ROTE 19.9% 16.3%
CET1 14.8% 13.2%
Leverage ratio 6.3% 5.9%
Customer accounts (deposits) (£'bn) 18.8 20.0 (1.2) (6.0%) (5.5%)
Net core loans and advances (£'bn) 15.0 14.7 0.3 1.8% 2.3%
Investec plc (UK & Other)
Adjusted operating profit (£'m) 222.7 235.4 (12.7) (5.4%)
Cost to income ratio 52.2% 53.9%
ROE 10.3% 13.6%
ROTE 13.5% 16.7%
CET1 12.6% 11.7%
Leverage ratio 9.9% 8.7%
Customer accounts (deposits) (£'bn) 21.6 19.9 1.7 8.5%
Net core loans and advances (£'bn) 16.7 16.3 0.4 2.5%
Totals and variance are presented in £'billions unless otherwise stated which may result in rounding differences.
The assumptions can be obtained in the full announcement available on our website www.investec.com. The financial information on which
forward-looking statements are based is the responsibility of the directors of the Group and has not been reviewed and reported on by the
Group's auditors.
On behalf of the Boards of Investec plc and Investec Limited
Philip Hourquebie Fani Titi
Chair Group Chief Executive
20 November 2024
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained in the full
announcement and does not contain full or complete details. Any investment decision should be based on the full viewed announcement
which can be accessed from Thursday 21 November 2024 using the following JSE link:
https://senspdf.jse.co.za/documents/2024/jse/isse/INL/Interims.pdf
Alternatively, the full announcement is available on our website www.investec.com
The full announcement is also available at our registered offices for inspection at no charge, during office hours.
Copies of the full announcement may be requested by contacting Investor Relations on:
Telephone: (+27 11) 286 7000/e-mail: investorrelations@investec.com
Investec plc
Incorporated in England and Wales
Registration number 3633621
JSE ordinary share code: INP
LSE ordinary share code: INVP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22
Registered office:
30 Gresham Street, London
EC2V 7QP, United Kingdom
Registrars in the United Kingdom:
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol
BS99 6ZZ, United Kingdom
Transfer secretaries:
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Company Secretary:
David Miller
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06
JSE ordinary share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
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
Directors:
Philip Hourquebie(1) (Chair)
Fani Titi(2) (Chief Executive)
Nishlan Samujh(2) (Finance Director)
Henrietta Baldock(1)
Stephen Koseff(2)
Nicky Newton-King(2)
Jasandra Nyker(2)
Vanessa Olver(2)
Diane Radley(2)
Brian Stevenson(1)
1 British
2 South African
Zarina Bassa and Philisiwe Sibiya stepped down from the Board on 8 August 2024.
Investec plc
Incorporated in England and Wales
Registration number: 3633621
LSE ordinary share code: INVP
JSE ordinary share code: INP
ISIN: GB00B17BBQ50
LEI: 2138007Z3U5GWDN3MY22
Ordinary share dividend announcement
In terms of the DLC structure, Investec plc shareholders registered on the United Kingdom share register may receive all or part of their
dividend entitlements through dividends declared and paid by Investec plc on their ordinary shares and/or through dividends declared and
paid on the SA DAN share issued by Investec Limited.
Investec plc shareholders registered on the South African branch register may receive all or part of their dividend entitlements through
dividends declared and paid by Investec plc on their ordinary shares and/or through dividends declared and paid on the SA DAS share
issued by Investec Limited.
Declaration of dividend number 44
Notice is hereby given that interim dividend number 44, being a gross dividend of 16.50000 pence (2023: 15.50000 pence) per ordinary
share has been declared by the Board from income reserves in respect of the six months ended 30 September 2024, payable to
shareholders recorded in the shareholders' register of the Company at the close of business on Friday 13 December 2024.
- For Investec plc shareholders, registered on the United Kingdom share register, through a dividend payment by Investec plc from income
reserves of 16.50000 pence per ordinary share
- For Investec plc shareholders, registered on the South African branch register, through a dividend payment by Investec Limited, on the SA
DAS share, payable from income reserves, equivalent to 16.50000 pence per ordinary share.
The relevant dates relating to the payment of dividend number 44 are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange (JSE) Tuesday 10 December 2024
On the London Stock Exchange (LSE) Wednesday 11 December 2024
Shares commence trading ex-dividend
On the Johannesburg Stock Exchange (JSE) Wednesday 11 December 2024
On the London Stock Exchange (LSE) Thursday 12 December 2024
Record date (on the JSE and LSE) Friday 13 December 2024
Payment date (on the JSE and LSE) Tuesday 31 December 2024
Share certificates on the South African branch register may not be dematerialised or rematerialised between Wednesday
11 December 2024 and Friday 13 December 2024, both dates inclusive, nor may transfers between the United Kingdom share
register and the South African branch register take place between Wednesday 11 December 2024 and Friday 13 December 2024,
both dates inclusive.
Additional information for South African resident shareholders of Investec plc
- Shareholders registered on the South African branch register are advised that the distribution of 16.50000 pence, equivalent to a gross
dividend of 379.92900 cents per share (rounded to 380.00000 cents per share), has been arrived at using the Rand/Pound Sterling
average buy/sell forward rate of 23.02600, as determined at 11h00 (SA time) on Wednesday 20 November 2024
- Investec plc United Kingdom tax reference number: 2683967322360
- The issued ordinary share capital of Investec plc is 696 082 618 ordinary shares
- The dividend paid by Investec plc to South African resident shareholders registered on the South African branch register and the dividend
paid by Investec Limited to Investec plc shareholders on the SA DAS share are subject to South African Dividend Tax (Dividend Tax) of
20% (subject to any available exemptions as legislated)
- Shareholders registered on the South African branch register who are exempt from paying the Dividend Tax will receive a net dividend of
380.00000 cents per share paid by Investec Limited on the SA DAS share
- Shareholders registered on the South African branch register who are not exempt from paying the Dividend Tax will receive a net dividend
of 304.00000 cents per share (gross dividend of 380.00000 cents per share less Dividend Tax of 76.00000 cents per share) per share
paid by Investec Limited on the SA DAS share.
By order of the Board
David Miller
Company Secretary
20 November 2024
Investec Limited
Incorporated in the Republic of South Africa
Registration number: 1925/002833/06
JSE share code: INL
JSE hybrid code: INPR
JSE debt code: INLV
NSX ordinary share code: IVD
BSE ordinary share code: INVESTEC
ISIN: ZAE000081949
LEI: 213800CU7SM6O4UWOZ70
Ordinary share dividend announcement
Declaration of dividend number 137
Notice is hereby given that interim dividend number 137, being a gross dividend of 380.00000 cents (2023: 352.00000 cents) per
ordinary share has been declared by the Board from income reserves in respect of the six months ended 30 September 2024 payable to
shareholders recorded in the shareholders' register of the Company at the close of business on Friday 13 December 2024.
The relevant dates relating to the payment of dividend number 137 are as follows:
Last day to trade cum-dividend Tuesday 10 December 2024
Shares commence trading ex-dividend Wednesday 11 December 2024
Record date Friday 13 December 2024
Payment date Tuesday 31 December 2024
The interim gross dividend of 379.92900 cents per share (rounded to 380.00000 cents per ordinary share) has been determined
by converting the Investec plc distribution of 16.50000 pence per ordinary share into Rands using the Rand/Pound Sterling
average buy/sell forward rate of 23.02600 at 11h00 (SA time) on Wednesday 20 November 2024.
Share certificates may not be dematerialised or rematerialised between Wednesday 11 December 2024 and Friday
13 December 2024 both dates inclusive, nor may transfers between the Botswana and/or Namibia share register/s and the
South African branch register take place between Wednesday 27 November 2024 and Friday 29 November 2024 both dates
inclusive.
Additional information to take note of
- Investec Limited South African tax reference number: 9800/181/71/2
- The issued ordinary share capital of Investec Limited is 295 125 806 ordinary shares
- The dividend paid by Investec Limited is subject to South African Dividend Tax (Dividend Tax) of 20% (subject to any available exemptions
as legislated)
- Shareholders who are exempt from paying the Dividend Tax will receive a net dividend of 380.00000 cents per ordinary share
- Shareholders who are not exempt from paying the Dividend Tax will receive a net dividend of 304.00000 cents per ordinary share (gross
dividend of 380.00000 cents per ordinary share less Dividend Tax of 76.00000 cents per ordinary share).
By order of the Board
Niki van Wyk
Company Secretary
20 November 2024
21 November 2024
Sponsor: Investec Bank Limited
Date: 21-11-2024 09:00:00
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