17th May 2007 07:01
Investec PLC17 May 2007 17 May 2007 - Investec plc Balanced business model drives continued growth at Investec Pre-tax operating profit increased by 20.0%; Adjusted EPS increased by 27.2%; Dividends increased by 26.4% Investec, the international specialist banking group, announces today itsresults for the year ended 31 March 2007. Financial highlights • All core geographies performed well in local currencies. Our UK and Australian operations posted a significant increase in attributable post-tax earnings of 55.5% and 71.4%, respectively, comprising 43.8% of total attributable earnings, reflecting the benefits of our strategy of increasing the scale and market penetration in these businesses. +--------------------------------+------------+------------+----------+| |31 March |31 March |% Change || |2007 |2006 | |+--------------------------------+------------+------------+----------+|Operating profit before taxation| 466.6| 388.8| 20.0%||* (£'mn) | | | |+--------------------------------+------------+------------+----------+|Earnings attributable to | 340.3| 315.1| 8.0%||shareholders after taxation, | | | ||goodwill and non-operating items| | | ||(£'mn) | | | |+--------------------------------+------------+------------+----------+|Adjusted EPS* (pence) | 53.3| 41.9| 27.2%|+--------------------------------+------------+------------+----------+|Dividends per share (pence) | 23.0| 18.2| 26.4%|+--------------------------------+------------+------------+----------+|ROE | 26.1%| 25.5%| |+--------------------------------+------------+------------+----------+|Cost to income ratio | 59.0%| 58.7%| |+--------------------------------+------------+------------+----------+|Average loans and advances | 9.9| 8.0| 23.6%||(£'bn) | | | |+--------------------------------+------------+------------+----------+|Average third party assets under| 55.7| 45.6| 22.0%||management (£'bn) | | | |+--------------------------------+------------+------------+----------+ Business highlights • Private Client Activities: increase of 49.3% to £176.5 million (2006: £118.2 million)* • Capital Markets: increase of 75.3% to £117.3 million (2006: £66.9 million)* • Investment Banking: decrease of 9.6% to £91.2 million (2006: £100.9 million)* • Asset Management: increase of 14.7% to £68.1 million (2006: £59.4 million)* • Property Activities: decrease of 23.9% to £14.1 million (2006: £18.6 million)* *before non-operating items of zero (2006: a non-operating gain of £73.6 millionlargely relating to the sale of Carr Sheppards Crosthwaite Limited to Rensburgplc) and goodwill of £2.6 million (net income) (2006: £21.4 million (net loss)) Stephen Koseff, Chief Executive Officer of Investec, said:"In another strong year for global financial markets, Investec has deliveredanother very satisfactory performance. We have increased the scale of ouractivities in each geography and delivered on all our stated financialobjectives. We have a good balance in terms of our business activities and areconfident of continued growth going forward." Bernard Kantor, Managing Director of Investec, said:"These results demonstrate the strength and depth of our business. We havecontinued to build the brand, improve the range of our products and attract highquality talent. We believe that this approach will continue to deliver growthgoing forward". For further information please contact:Investec +44 (0) 20 7597 4508Stephen Koseff, Chief Executive OfficerBernard Kantor, Managing DirectorUrsula Nobrega, Investor Relations (mobile:+27 (0) 82 552 98808) Citigate Dewe Rogerson+44(0)20 7638 9571Jonathan ClareSimon RigbyTom Baldock Presentation details:The management of Investec will host a presentation commencing at 09:00 (UKtime)/10:00 (SA time) from their office in London (2 Gresham Street, London EC2V7QP), and via video linkup to their office in Johannesburg. Details of theconference call facilities and webcast of the presentation are available atwww.investec.com. Information provided on the Company's website at www.investec.com includes: • Copies of this statement. • The results presentation. • Additional report produced for the investment community including more detail on the results. • Excel worksheets containing the salient financial information under IFRS in Pounds Sterling. Alternatively for further information please contact the Investor Relationsdivision on e-mail [email protected] or telephone +44 (0) 207 5975546/+27 (0) 11 286 7070. About InvestecInvestec is an international specialist banking group that provides a diverserange of financial products and services to a niche client base in threeprincipal markets, the United Kingdom, South Africa and Australia as well ascertain other countries. The group was established in 1974 and currently hasapproximately 5 400 employees. Investec focuses on delivering distinctive profitable solutions for its clientsin five core areas of activity namely, Private Client Activities, CapitalMarkets, Investment Banking, Asset Management and Property Activities. In July 2002 the Investec group implemented a dual listed company structure withlistings on the London and Johannesburg Stock Exchanges. The combined group'scurrent market capitalisation is approximately £4.5 billion. --------------------------------------------------------------------------------- Investec plc and Investec Limited (combined results)Unaudited IFRS consolidated financial results in Pounds Sterling for the yearended 31 March 2007 Overall performance We are pleased to announce that for the year ended 31 March 2007, adjustedearnings per share (EPS) before goodwill and non-operating items increased by27.2% to 53.3 pence from 41.9 pence. Our strategy of maintaining a balancedbusiness model continues to support the operating fundamentals of the group. Wehave benefited from the strong performance by the majority of our businesses andhave achieved our stated growth and financial return objectives. The main features of the year under review are:• Operating profit before goodwill, non-operating items and taxation increased 20.0% from £388.8 million to £466.6 million.• Earnings attributable to ordinary shareholders before goodwill and non-operating items increased 30.7% from £230.0 million to £300.7 million.• Earnings attributable to ordinary shareholders after goodwill and non-operating items increased by 8.0% from £315.1 million to £340.3 million.• All core geographies performed well in local currencies. Our UK and Australian operations posted a significant increase in attributable post-tax earnings of 55.5% and 71.4%, respectively, comprising 43.8% of total attributable earnings, reflecting the benefits of our strategy of increasing the scale and market penetration in these businesses.• Return on adjusted average shareholders' equity (inclusive of compulsorily convertible instruments) increased from 25.5% to 26.1% against a target of greater than 20%.• The ratio of total operating expenses to total operating income increased marginally from 58.7% to 59.0% against a target of below 65%.• Average loans and advances to customers increased 23.6% from £8.0 billion to £9.9 billion.• Average third party assets under management increased 22.0% from £45.6 billion to £55.7 billion.• The board proposes an increased final dividend of 13 pence per ordinary share equating to a full year dividend of 23 pence (2006: 18.2 pence) resulting in a dividend cover based on the group's adjusted EPS before goodwill and non-operating items of 2.3 times (2006: 2.3 times), consistent with our dividend policy. Business unit review Unless the context indicates otherwise, reference to "operating profit" in thebusiness unit review below, refers to profit before goodwill, non-operatingitems and taxation. Private Client ActivitiesPrivate Client Activities, comprising the Private Banking and Private ClientPortfolio Management and Stockbroking divisions, reported strong growth inoperating profit of 49.3% to £176.5 million (2006: £118.2 million). • Private BankingOperating profit of our Private Banking division increased by 52.1% to £154.4million (2006: £101.5 million) driven by strong growth in advances andnon-interest income. The division continues to penetrate its core markets andrecorded strong performances across its areas of specialisation. The averageprivate client lending book grew by 24.4% to £6.5 billion (2006: £5.2 billion)and the division increased its average retail deposit book by 28.6% to £5.2billion (2006: £4.0 billion). • Private Client Portfolio Management and StockbrokingPrivate Client Portfolio Management and Stockbroking recorded solid growth,generating operating profit of £22.1 million (2006: £16.7 million), an increaseof 32.7%. The Private Client business in South Africa benefited from increasedvolumes with average funds under management increasing by 33.8% to £7.6 billion(2006: £5.7 billion). The results of our UK operations include Investec's 47.1%share of the directors' estimate of the post-tax profit of Rensburg Sheppardsplc. Capital MarketsCapital Markets (formerly known as Treasury and Specialised Finance) posted asignificant increase in operating profit of 75.3% to £117.3 million (2006: £66.9million). Growth was underpinned by a solid performance from the division'sadvisory, structuring, asset creation, trading and distribution activities, withaverage advances increasing by 22.2% to £3.0 billion (2006: £2.5 billion). Anumber of the businesses that have been established over the past two years havegenerated substantial revenue and have increased the scale of the businesses inthe UK and Australia. Investment BankingOur Investment Banking division recorded a 9.6% decline in operating profit to£91.2 million (2006: £100.9 million). Corporate Finance benefited from a strongdeal pipeline across all geographies with profits increasing by 36.9%. Theunlisted investments within the Private Equity and Direct Investments portfolioscontinued to perform well. However, the entrepreneurial investment component ofthe Direct Investment division generated less revenue than in prior years. Asset Management Asset Management posted an increase in operating profit of 14.7% to £68.1million (2006: £59.4 million) underpinned by the strong momentum of the UK andinternational business and continued sound performance in Southern Africa.Average assets under management increased by 12.8% to £30.8 billion (2006: £27.3billion). Solid long term investment performance has continued to support thefundamentals of the business. Property ActivitiesOur Property Activities generated operating profit of £14.1 million (2006: £18.6million), a decline of 23.9%. The South African division continued to performwell benefiting from strong equity and property fundamentals, higher averagefunds under management and realisations. The results were negatively impacted bya lower contribution from our investment property portfolio due to increasedfunding costs. Group Services and Other ActivitiesGroup Services and Other Activities posted an operating loss of £0.7 million(2006: profit of £24.8 million) largely as a result of increased variableremuneration, given the growth in the group's profitability, and a decline inthe contribution from the group's assurance activities. Financial statements analysis Operating incomeOperating income increased by 22.0% to £1,177 million (2006: £964.6 million).The movements in total operating income are analysed below. Net interest income increased by 32.7% to £343.9 million (2006: £259.2 million)as a result of strong growth in advances and increased cash holdings within theCentral Funding division. Net fees and commissions increased by 19.4% to £521.5 million (2006: £436.9million) benefiting from increased transactional activity and higher assetsunder management. Income from principal transactions decreased marginally by 0.2% to £245.5million (2006: £246.1 million). Our Growth and Acquisition Finance, PrincipalFinance (securitisation) and Treasury and Specialised Finance lending divisionsdelivered a strong performance. This result was offset by a relatively weakerperformance from some of the underlying investments in the Direct Investments,UK Private Equity, Property and Central Funding divisions. Operating income from associates increased by 59.6% to £10.7 million (2006: £6.7million). The current year's figure includes Investec's 47.1% share of thedirectors' estimate of the post-tax profit of Rensburg Sheppards plc for theperiod 1 April 2006 to 31 March 2007. In the prior year, Rensburg Sheppards plcwas accounted for as an associate with effect from 6 May 2005. The decline in net income from assurance activities is as a result of thereinsurance of the group risk business. After administration expenses, a profitof £1.6 million (2006: £11.5 million) was generated from assurance activities,which represents the residual earnings from the businesses that were retained. Other operating income amounts to £49.7 million (2006: £2.7 million). Theoperating results of two investments held within the Private Equity portfoliohave been consolidated with the respective income and expenses reflected inother operating income and administration expenses. These investments generateda net loss after tax and minority interest of £2.3 million. Any realisation ofthese investments in excess of their carrying values will be recognised asincome from principal transactions. Impairment losses on loans and advancesImpairment losses on loans and advances increased by 80.5% to £16.5 million(2006: £9.2 million). The 2006 year included recoveries of approximately £6.5million and we have seen a moderate increase in impairment losses in the 2007year in line with growth in advances. The percentage of gross defaults to loans and advances has increased from 0.9%to 1.2%. Total impairment coverage as a percentage of net defaults (grossdefaults net of security) remains highly satisfactory at 137.9% (2006: 141.4%). Administrative expenses and depreciationTotal expenses increased by 22.5% to £694.0 million (2006: £566.6 million).Variable remuneration increased by 31.2% to £205.8 million due to increasedprofitability. Other operating expenses (excluding variable remuneration)increased by 19.4% to £488.2 million largely as a result of an increase inheadcount in certain of the businesses in line with our growth initiatives, anincrease in costs associated with complying with new and forthcoming regulatoryrequirements, an investment in product development and IT infrastructure and theconsolidation of two private equity investments (resulting in an additional £25million of costs). We achieved our target of operating expenses to total operating income of lessthan 65% with the ratio increasing marginally from 58.7% to 59.0%. GoodwillThe current year reflects net income of £2.6 million largely relating to:• The acquisition of NM Rothschild & Sons (Australia) Limited at a discount to net assets resulting in a net gain of £10.7 million.• An impairment of £6.1 million in the South African Asset Management business relating to businesses acquired in prior years.• An impairment of £2.0 million attributable to property management contracts with respect to a portfolio of properties sold. TaxationThe operational effective tax rate of the group decreased marginally from 27.3%to 26.3%. Earnings attributable to minority interestsEarnings attributable to minority interests of £9.1 million largely comprise: •Operating profits in relation to investments held in the £10.0mn Private Equity division. •A profit on the sale of a portfolio of investment £2.2mn properties in which minorities had a 23.1% holding. •In accordance with IFRS the Euro denominated preferred (£3.4mn) securities issued by a subsidiary of Investec plc are reflected on the balance sheet as part of minority interests. The transaction is hedged and a forex translation loss arising on the hedge is reflected in operating profit before goodwill, with the equal and opposite impact reflected in earnings attributable to minorities. Capital resources and total assetsSince 31 March 2006 total shareholders' equity (including minority interests)increased by 21.3% to £1.8 billion largely as a result of the issue of £131.2million of non-redeemable, non-cumulative, non-participating preference sharesby Investec plc and increased retained earnings offset partially by negativeforeign currency adjustments. Net asset value per share increased from 182.2 pence to 216.0 pence, and nettangible asset value per share (which excludes goodwill and intangible assets)increased from 148.9 pence to 178.6 pence. The return on adjusted average shareholders' equity (inclusive of compulsorilyconvertible instruments) increased from 25.5% to 26.1%, meeting our target ofgreater than 20%. Investec plc and Investec Limited have capital adequacy ratios well in excess ofthe minimum regulatory requirements. The capital adequacy of Investec plc(applying UK Financial Services Authority rules to its capital base) is 24.7%(31 March 2006: 17.7%). The capital adequacy of Investec Limited (applying SouthAfrican Reserve Bank rules to its capital base) is 14.7% (31 March 2006: 16.3%). On balance sheet assets have increased by 10.0% to £26.3 billion since 31 March2006. Outlook The levels of activity and momentum have continued into the new financial year.The increase in scale and market penetration that we have achieved across allour geographies should continue to support the operating results of ourbusinesses as expressed in local currencies. Should current favourable market conditions persist we would expect to deliveron our stated growth and financial return objectives. On behalf of the boards of Investec plc and Investec Limited Hugh Herman Stephen Koseff Bernard KantorChairman Chief Executive Officer Managing Director Notes to the commentary section above • Presentation of financial informationInvestec operates under a Dual Listed Companies (DLC) structure with primarylistings of Investec plc on the London Stock Exchange and Investec Limited onthe JSE Limited. In terms of the contracts constituting the DLC structure, Investec plc andInvestec Limited effectively form a single economic enterprise in which theeconomic and voting rights of ordinary shareholders of the companies aremaintained in equilibrium relative to each other. The directors of the twocompanies consider that for financial reporting purposes, the fairestpresentation is achieved by combining the results and financial position of bothcompanies. Accordingly, the year end results for Investec plc and Investec Limited presentthe results and financial position of the combined DLC group under IFRS,denominated in Pounds Sterling. In the commentary above, all references toInvestec or the group relate to the combined DLC group comprising Investec plcand Investec Limited. Unless the context indicates otherwise, all comparatives included in thecommentary above relate to the year ended 31 March 2006. Average balances arebased on the period 1 April 2005 to 31 March 2006 and 1 April 2006 to 31 March2007. • Foreign currency impactOur reporting currency is Pounds Sterling. Certain of our operations areconducted by entities outside the UK. The results of operations and thefinancial condition of our individual companies are reported in the localcurrencies in which they are domiciled, including Rands, Australian Dollars,Euros and US Dollars. These results are then translated into Pounds Sterling atthe applicable foreign currency exchange rates for inclusion in our combinedconsolidated financial statements. In the case of the income statement, theweighted average rate for the relevant period is applied and, in the case of thebalance sheet, the relevant closing rate is used. The following table sets out the movements in certain relevant exchange ratesagainst Pounds Sterling over the financial year: +--------------------------+--------------------------+--------------------------+| | 31 March 2007 | 31 March 2006 |+--------------------------+--------------+-----------+--------------+-----------+|Currency per £1.00 |Year end |Average |Year end |Average |+--------------------------+--------------+-----------+--------------+-----------+|South African Rand | 14.20| 13.38| 10.72| 11.43|+--------------------------+--------------+-----------+--------------+-----------+|Australian Dollar | 2.42| 2.47| 2.44| 2.37|+--------------------------+--------------+-----------+--------------+-----------+|Euro | 1.47| 1.47| 1.43| 1.47|+--------------------------+--------------+-----------+--------------+-----------+|US Dollar | 1.96| 1.90| 1.74| 1.78|+--------------------------+--------------+-----------+--------------+-----------+ Exchange rates between local currencies and Pounds Sterling have fluctuated overthe year. The most significant impact arises from the depreciation of the Rand.The average exchange rate over the year has depreciated by 17.1% and the closingrate has depreciated by 32.4% since 31 March 2006. • Sub-division of Investec plc and Investec Limited ordinary sharesFollowing shareholder approval, the group implemented a subdivision of theordinary shares of both Investec plc and Investec Limited by way of a five forone split, effective 4 September 2006. Comparative information has been adjustedaccordingly. • Accounting policiesThe year end results are prepared in accordance with the recognition andmeasurement requirements of International Financial Reporting Standards and thepresentation and disclosure requirements of IAS 34. The accounting policiesapplied in the preparation of the results for the year ended 31 March 2007 areconsistent with those adopted in the financial statements for the year ended 31March 2006, except for the adoption of accounting standards interpretationsissued with effect from 1 January 2006. The adoption of these interpretationshas had no material reportable impact on the financial results, position or cashflows of the combined group. -------------------------------------------------------------------------------- Investec plc and Investec Limited (combined results)Unaudited IFRS consolidated financial results in Pounds Sterling for the yearended 31 March 2007 Combined consolidated income statement +-------------------------------------------------+-------------+---------------+| |Year to | Year to|| | | |+-------------------------------------------------+-------------+---------------+| | 31 March| 31 March|+-------------------------------------------------+-------------+---------------+|£'000 | 2007| 2006|+-------------------------------------------------+-------------+---------------+|Interest receivable | 1,233,226| 934,389|+-------------------------------------------------+-------------+---------------+|Interest payable | (889,311)| (675,237)|+-------------------------------------------------+-------------+---------------+|Net interest income | 343,915| 259,152|| | | |+-------------------------------------------------+-------------+---------------+|Fees and commissions receivable | 577,773| 478,465|+-------------------------------------------------+-------------+---------------+|Fees and commissions payable | (56,275)| (41,591)|+-------------------------------------------------+-------------+---------------+|Principal transactions | 245,463| 246,059|+-------------------------------------------------+-------------+---------------+|Operating income from associates | 10,685| 6,694|+-------------------------------------------------+-------------+---------------+|Investment income on assurance activities | 36,821| 141,559|+-------------------------------------------------+-------------+---------------+|Premiums and reinsurance recoveries on insurance | 80,542| 164,631||contracts | | |+-------------------------------------------------+-------------+---------------+|Other operating income | 49,685| 2,721|+-------------------------------------------------+-------------+---------------+|Other income | 944,694| 998,538|+-------------------------------------------------+-------------+---------------+|Claims and reinsurance premiums on insurance | (111,492)| (293,135)||business | | |+-------------------------------------------------+-------------+---------------+|Total operating income net of insurance claims | 1,177,117| 964,555|+-------------------------------------------------+-------------+---------------+|Impairment losses on loans and advances | (16,530)| (9,160)|+-------------------------------------------------+-------------+---------------+|Operating income | 1,160,587| 955,395|+-------------------------------------------------+-------------+---------------+|Administrative expenses | (680,687)| (558,887)|+-------------------------------------------------+-------------+---------------+|Depreciation and amortisation of property, | (13,315)| (7,741)||equipment and software | | |+-------------------------------------------------+-------------+---------------+|Operating profit before goodwill | 466,585| 388,767|+-------------------------------------------------+-------------+---------------+|Goodwill | 2,569| (21,356)|+-------------------------------------------------+-------------+---------------+|Operating profit | 469,154| 367,411|+-------------------------------------------------+-------------+---------------+|Profit on disposal of group operations | -| 73,573|+-------------------------------------------------+-------------+---------------+|Profit before taxation | 469,154| 440,984|| | | |+-------------------------------------------------+-------------+---------------+|Taxation | (119,781)| (111,616)|+-------------------------------------------------+-------------+---------------+|Profit after taxation | 349,373| 329,368|+-------------------------------------------------+-------------+---------------+|Earnings attributable to minority interests | 9,054| 14,267|+-------------------------------------------------+-------------+---------------+|Earnings attributable to shareholders | 340,319| 315,101|+-------------------------------------------------+-------------+---------------+| | 349,373| 329,368|+-------------------------------------------------+-------------+---------------+ +-------------------------------------------------+-------------+---------------+|Earnings attributable to shareholders | 340,319| 315,101|| | | |+-------------------------------------------------+-------------+---------------+|Goodwill | (2,569)| 21,356|+-------------------------------------------------+-------------+---------------+|Profit on disposal of group operations | -| (73,573)|+-------------------------------------------------+-------------+---------------+|Preference dividends paid | (31,850)| (19,940)|+-------------------------------------------------+-------------+---------------+|Additional earnings attributable to other equity | (5,196)| (12,927)||holders | | |+-------------------------------------------------+-------------+---------------+|Adjusted earnings before goodwill and | 300,704| 230,017||non-operating items | | |+-------------------------------------------------+-------------+---------------+|Earnings per share (pence) | | |+-------------------------------------------------+-------------+---------------+|- basic | 54.7| 53.8|+-------------------------------------------------+-------------+---------------+|- diluted | 50.4| 50.0|+-------------------------------------------------+-------------+---------------+|Adjusted earnings per share (pence) | | |+-------------------------------------------------+-------------+---------------+|- basic | 53.3| 41.9|+-------------------------------------------------+-------------+---------------+|- diluted | 49.2| 39.0|+-------------------------------------------------+-------------+---------------+|Dividends per share (pence) | | |+-------------------------------------------------+-------------+---------------+|- interim | 10.0| 7.6|+-------------------------------------------------+-------------+---------------+|- final | 13.0| 10.6|+-------------------------------------------------+-------------+---------------+|Number of weighted average shares | 563.8| 548.8||- basic (million) | | |+-------------------------------------------------+-------------+---------------+ Summarised combined consolidated cash flow statement +-------------------------------------------------+-------------+---------------+| | Year to| Year to|+-------------------------------------------------+-------------+---------------+| | 31 March| 31 March|+-------------------------------------------------+-------------+---------------+|£'000 | 2007| 2006|+-------------------------------------------------+-------------+---------------+|Cash inflow from operations | 400,308| 369,546|+-------------------------------------------------+-------------+---------------+|Increase in operating assets | (6,124,269)| (2,950,085)|+-------------------------------------------------+-------------+---------------+|Increase in operating liabilities | 5,858,320| 2,749,528|+-------------------------------------------------+-------------+---------------+|Net cash inflow from operating activities | 134,359| 168,989|+-------------------------------------------------+-------------+---------------+|Net cash outflow from investing activities | (178,985)| (473,159)|+-------------------------------------------------+-------------+---------------+|Net cash inflow from financing activities | 430,471| 38,076|+-------------------------------------------------+-------------+---------------+|Effects of exchange rate changes on cash and cash| (301,588)| 73,721||equivalents | | |+-------------------------------------------------+-------------+---------------+|Net increase/(decrease) in cash and cash | 84,257| (192,373)||equivalents | | |+-------------------------------------------------+-------------+---------------+|Cash and cash equivalents at the beginning of the| 1,190,183| 1,382,556||year | | |+-------------------------------------------------+-------------+---------------+|Cash and cash equivalents at the end of the year | 1,274,440| 1,190,183|+-------------------------------------------------+-------------+---------------+ Cash and cash equivalents is defined as including: cash and balances at centralbanks, on demand loans and advances to banks and cash equivalent advances tocustomers (all of which have a maturity profile of less than three months). Combined consolidated balance sheet at +--------------------------------------------------+------------+------------+| | 31 March| 31 March|+--------------------------------------------------+------------+------------+|£'000 | 2007| 2006|+--------------------------------------------------+------------+------------+|Assets | | || | | |+--------------------------------------------------+------------+------------+|Cash and balances at central banks | 102,751| 190,838|+--------------------------------------------------+------------+------------+|Loans and advances to banks | 2,476,969| 1,830,603|+--------------------------------------------------+------------+------------+|Cash equivalent advances to customers | 687,918| 690,236|+--------------------------------------------------+------------+------------+|Reverse repurchase agreements and cash collateral | 2,185,322| 756,645||on securities borrowed | | |+--------------------------------------------------+------------+------------+|Trading securities | 2,151,036| 1,640,088|+--------------------------------------------------+------------+------------+|Derivative financial instruments | 724,492| 1,081,287|+--------------------------------------------------+------------+------------+|Investment securities | 1,776,601| 1,266,673|+--------------------------------------------------+------------+------------+|Loans and advances to customers | 10,190,252| 9,604,589|+--------------------------------------------------+------------+------------+|Interests in associated undertakings | 70,332| 63,099|+--------------------------------------------------+------------+------------+|Deferred taxation assets | 59,394| 60,035|+--------------------------------------------------+------------+------------+|Other assets | 1,408,159| 1,272,787|+--------------------------------------------------+------------+------------+|Property and equipment | 131,505| 26,916|+--------------------------------------------------+------------+------------+|Investment properties | 85,424| 163,049|+--------------------------------------------------+------------+------------+|Goodwill | 195,883| 183,560|+--------------------------------------------------+------------+------------+|Intangible assets | 35,829| 10,094|+--------------------------------------------------+------------+------------+| | 22,281,867| 18,840,499|+--------------------------------------------------+------------+------------+|Other financial instruments at fair value through | | ||income in respect of | | |+--------------------------------------------------+------------+------------+|- liabilities to customers | 3,024,997| 3,628,574|+--------------------------------------------------+------------+------------+|- assets related to reinsurance contracts | 992,824| 1,431,876|+--------------------------------------------------+------------+------------+| | 26,299,688| 23,900,949|+--------------------------------------------------+------------+------------+|Liabilities | | || | | |+--------------------------------------------------+------------+------------+|Deposits by banks | 2,347,095| 1,879,483|+--------------------------------------------------+------------+------------+|Derivative financial instruments | 509,919| 705,764|+--------------------------------------------------+------------+------------+|Other trading liabilities | 321,863| 457,254|+--------------------------------------------------+------------+------------+|Repurchase agreements and cash collateral on | 1,765,671| 358,278||securities lent | | |+--------------------------------------------------+------------+------------+|Customer accounts | 9,384,848| 8,699,165|+--------------------------------------------------+------------+------------+|Debt securities in issue | 3,333,716| 2,950,103|+--------------------------------------------------+------------+------------+|Current taxation liabilities | 113,967| 137,426|+--------------------------------------------------+------------+------------+|Deferred taxation liabilities | 48,048| 26,210|+--------------------------------------------------+------------+------------+|Other liabilities | 1,790,405| 1,582,856|+--------------------------------------------------+------------+------------+|Pension fund liabilities | 1,467| 2,013|+--------------------------------------------------+------------+------------+| | 19,616,999| 16,798,552|+--------------------------------------------------+------------+------------+|Liabilities to customers under investment | 3,004,254| 3,488,756||contracts | | |+--------------------------------------------------+------------+------------+|Insurance liabilities, including unit-linked | 20,743| 139,818||liabilities | | |+--------------------------------------------------+------------+------------+|Reinsured liabilities | 992,824| 1,431,876|+--------------------------------------------------+------------+------------+| | 23,634,820| 21,859,002|+--------------------------------------------------+------------+------------+|Subordinated liabilities (including convertible | 830,705| 529,854||debt) | | |+--------------------------------------------------+------------+------------+| | 24,465,525| 22,388,856|+--------------------------------------------------+------------+------------+ +--------------------------------------------------+------------+------------+|Equity | | |+--------------------------------------------------+------------+------------+|Called up share capital | 169| 165|+--------------------------------------------------+------------+------------+|Share premium | 1,129,859| 1,028,737|+--------------------------------------------------+------------+------------+|Treasury shares | (109,279)| (96,300)|+--------------------------------------------------+------------+------------+|Equity portion of convertible instruments | 2,191| 2,191|+--------------------------------------------------+------------+------------+|Perpetual preference shares | 292,173| 215,305|+--------------------------------------------------+------------+------------+|Other reserves | 134,606| 156,103|+--------------------------------------------------+------------+------------+|Profit and loss account | 92,766| (79,709)|+--------------------------------------------------+------------+------------+|Shareholders' equity excluding minority interests | 1,542,485| 1,226,492|+--------------------------------------------------+------------+------------+|Minority interests | 291,678| 285,601|+--------------------------------------------------+------------+------------+|- Perpetual preferred securities issued by | 241,081| 278,459||subsidiaries | | |+--------------------------------------------------+------------+------------+|- Minority interests in partially held | 50,597| 7,142||subsidiaries | | |+--------------------------------------------------+------------+------------+|Total equity | 1,834,163| 1,512,093|+--------------------------------------------------+------------+------------+|Total liabilities and equity | 26,299,688| 23,900,949|+--------------------------------------------------+------------+------------+ A geographical breakdown of business operating profit before goodwill, nonoperating items and taxation for the year to 31 March 2007 +--------------------------------+--------+--------+---------+-----------+--------+| | United| | | | |+--------------------------------+--------+--------+---------+-----------+--------+| | Kingdom| | | | |+--------------------------------+--------+--------+---------+-----------+--------+| | and|Southern| | Other| Total|+--------------------------------+--------+--------+---------+-----------+--------+|£'000 | Europe| Africa|Australia|geographies| group|+--------------------------------+--------+--------+---------+-----------+--------+|Private Banking | 96,734| 41,413| 16,244| -| 154,391|+--------------------------------+--------+--------+---------+-----------+--------+|Private Client Portfolio | 10,065| 12,016| -| -| 22,081||Management and Stockbroking | | | | | |+--------------------------------+--------+--------+---------+-----------+--------+|Capital Markets | 51,409| 56,145| 9,737| -| 117,291|+--------------------------------+--------+--------+---------+-----------+--------+|Investment Banking | 23,294| 60,632| 7,309| -| 91,235|+--------------------------------+--------+--------+---------+-----------+--------+|Asset Management | 17,555| 50,557| -| -| 68,112|+--------------------------------+--------+--------+---------+-----------+--------+|Property Activities | 1,292| 12,852| -| -| 14,144|+--------------------------------+--------+--------+---------+-----------+--------+|Group Services and Other |(32,967)| 35,058| (3,141)| 381| (669)|+--------------------------------+--------+--------+---------+-----------+--------+| | 167,382| 268,673| 30,149| 381| 466,585|+--------------------------------+--------+--------+---------+-----------+--------+|% change since 31 March 2006 | 55.4%| 1.2%| 91.5%| >100.0%| 20.0%|+--------------------------------+--------+--------+---------+-----------+--------+ A geographical breakdown of business operating profit before goodwill, nonoperating items and taxation for the year to 31 March 2006 +--------------------------------+--------+--------+---------+-----------+--------+| | United| | | | |+--------------------------------+--------+--------+---------+-----------+--------+| | Kingdom| | | | |+--------------------------------+--------+--------+---------+-----------+--------+| | and|Southern| | Other| Total|+--------------------------------+--------+--------+---------+-----------+--------+|£'000 | Europe| Africa|Australia|geographies| group|+--------------------------------+--------+--------+---------+-----------+--------+|Private Banking | 61,533| 31,981| 8,009| -| 101,523|+--------------------------------+--------+--------+---------+-----------+--------+|Private Client Portfolio | 7,399| 9,243| -| -| 16,642||Management and Stockbroking | | | | | |+--------------------------------+--------+--------+---------+-----------+--------+|Capital Markets | 22,507| 43,560| 849| -| 66,916|+--------------------------------+--------+--------+---------+-----------+--------+|Investment Banking | 29,631| 65,887| 5,412| -| 100,930|+--------------------------------+--------+--------+---------+-----------+--------+|Asset Management | 10,609| 48,767| -| -| 59,376|+--------------------------------+--------+--------+---------+-----------+--------+|Property Activities | 2,023| 16,575| -| -| 18,598|+--------------------------------+--------+--------+---------+-----------+--------+|Group Services and Other |(25,966)| 49,397| 1,473| (122)| 24,782|+--------------------------------+--------+--------+---------+-----------+--------+| | 107,736| 265,410| 15,743| (122)| 388,767|+--------------------------------+--------+--------+---------+-----------+--------+ Summarised combined consolidated statement of changes in equity +-----------------------------------------------------+-------------+-----------+| | Year to| Year to|+-----------------------------------------------------+-------------+-----------+| | 31 March| 31 March|+-----------------------------------------------------+-------------+-----------+|£'000 | 2007| 2006|+-----------------------------------------------------+-------------+-----------+|Balance at the beginning of the year | 1,512,093| 1,075,611|+-----------------------------------------------------+-------------+-----------+|Foreign currency adjustments | (184,847)| 52,564|+-----------------------------------------------------+-------------+-----------+|Retained profit for the year attributable to ordinary| 340,319| 315,101||shareholders | | |+-----------------------------------------------------+-------------+-----------+|Retained profit for the year attributable to minority| 9,054| 14,267||interests | | |+-----------------------------------------------------+-------------+-----------+|Share based payments adjustments | 33,990| 19,221|+-----------------------------------------------------+-------------+-----------+|Fair value movements on available for sale assets | 12,287| 8,480|+-----------------------------------------------------+-------------+-----------+|Transfer (to)/from pension fund deficit | (2,470)| 2,035|+-----------------------------------------------------+-------------+-----------+|Total recognised gains and losses for the year | 208,333| 411,668|+-----------------------------------------------------+-------------+-----------+|Dividends paid to ordinary shareholders | (112,592)| (84,435)|+-----------------------------------------------------+-------------+-----------+|Dividends paid to minority shareholders | (31,850)| (19,940)|+-----------------------------------------------------+-------------+-----------+|Issue of ordinary shares | 47,861| -|+-----------------------------------------------------+-------------+-----------+|Issue of perpetual preference shares | 131,187| -|+-----------------------------------------------------+-------------+-----------+|Share issue expenses | (1,688)| (556)|+-----------------------------------------------------+-------------+-----------+|Re-issue of treasury shares | 44,811| 13,113|+-----------------------------------------------------+-------------+-----------+|Issue of equity instruments by subsidiaries | 20,949| 132,520|+-----------------------------------------------------+-------------+-----------+|Dividends and capital reductions paid to minorities | (6,799)| -|+-----------------------------------------------------+-------------+-----------+|Movement on minorities on disposals and acquisitions | 21,858| (15,888)|+-----------------------------------------------------+-------------+-----------+|Balance at the end of the year | 1,834,163| 1,512,093|+-----------------------------------------------------+-------------+-----------+ -------------------------------------------------------------------------------- Investec plc ordinary dividend announcement In terms of the DLC structure, Investec plc shareholders who are not SouthAfrican resident shareholders may receive all or part of their dividendentitlements through dividends declared and paid by Investec plc on theirordinary shares and / or through dividends declared and paid on the SA DAN shareissued by Investec Limited. Investec plc shareholders, who are South African residents, may receive all orpart of their dividend entitlements through dividends declared and paid byInvestec plc on their ordinary shares and / or through dividends declared andpaid on the SA DAS share issued by Investec Limited. Notice is hereby given that a final dividend (No 10) of 13 pence (2006: 10.6pence) per ordinary share has been proposed by the board in respect of thefinancial year ended 31 March 2007. The Annual General Meeting of members atwhich the proposed dividend will be considered for approval is scheduled to takeplace on Wednesday, 08 August 2007. The dividend is payable to shareholders recorded in the members' register of thecompany at the close of business on Friday, 27 July 2007. The relevant dates for the payment of the dividends are:- Last day to trade cum-dividend:-- On the London Stock Exchange Tuesday, 24 July 2007- On the JSE Limited Friday, 20 July 2007 Shares commence trading ex-dividend :-- On the London Stock Exchange Wednesday, 25 July 2007- On the JSE Limited Monday, 23 July 2007 Record date :- On the London Stock Exchange Friday, 27 July 2007- On the JSE Limited Friday, 27 July 2007 Payment date :- United Kingdom register Monday, 13 August 2007- South African register Monday, 13 August 2007 Share certificates on the South African branch register may not bedematerialised or rematerialised between Monday, 23 July 2007 and Friday, 27July 2007, both dates inclusive, nor may transfers between the UK and SAregisters take place between Monday, 23 July 2007 and Friday, 27 July 2007, bothdates inclusive. Shareholders registered on the South African register are advised that the totaldistribution of 13 pence is equivalent to 180 cents per share which has beenarrived at using the Rand/Pound Sterling average buy/sell forward rate, asdetermined at 11h00 (SA time) on 16 May 2007. By order of the board D MillerCompany Secretary 17 May 2007 ---------------------------------------------------------------------------------------- Investec plc dividend announcementShare code: INPPISIN: GB00B19RX541 & GB00B1N73946 Non-redeemable non-cumulative non-participating preference sharesDeclaration of dividend number 2 Notice is hereby given that preference dividend number 2 has been declaredamounting to: (i) 30.2 pence per share for the period 01 October 2006 to 31 March 2007 inrespect of the preference shares trading on the JSE Limited ("JSE") (ISIN:GB00B19RX541); and (ii) 6.51 pence per share in respect of the further tranche of preference sharesissued on 22 February 2007 in respect of the period 22 February 2007 to 31 March2007 (ISIN: GB00B1N73946) and trading on the Channel Islands Stock Exchange("CISX") The dividend is payable to holders of the non-redeemable non-cumulativenon-participating preference shares as recorded in the books of the company atthe close of business on 29 June 2007. For shares trading on the JSE, the dividend of 30.2 pence per share isequivalent to 415.36 cents per share, which has been determined using the Rand/Pound Sterling average buy/sell forward rate as at 11h00 (SA Time) on Wednesday,16 May 2007. The relevant dates relating to the payment of dividend number 2 are as follows:- Last day to trade cum dividend:On the JSE Friday, 22 June 2007On the CISX Tuesday, 26 June 2007 Shares trade ex dividend:On the JSE Monday, 25 June 2007On the CISX Wednesday, 27 June 2007Record date (on the JSE and CISX) Friday, 29 June 2007Payment date (on the JSE and CISX) Wednesday, 4 July 2007 Share certificates may not be dematerialised or rematerialised between Monday,25 June 2007 and Friday, 29 June 2007, both dates inclusive, nor may transfersbetween the UK and SA registers take place between Monday, 25 June 2007 andFriday, 29 June 2007, both dates inclusive. The further tranche of preference shares issued on 22 February 2007 (ISIN:GB00B1N73946) are listed and trade separately from the first tranche ofpreference shares issued (ISIN: GB00B19RX541) until payment of the dividend forthe period to 31 March 2007 has been made. Following the dividend payment dateof Wednesday 4 July 2007, the preference shares issued on 22 February 2007(ISIN: GB00B1N73946) will rank pari passu with the existing perpetual preferenceshares and all preference shares will then trade under ISIN: GB00B19RX541.Preference shares will be transferable between the JSE and the CISX. By order of the board D MillerCompany Secretary 17 May 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Investec