16th Nov 2006 07:01
Investec PLC16 November 2006 16 November - Investec plc Investec reports continued growth in first half year Operating profit increased by 34.4%; Adjusted EPS increased by 37.1%; Dividend increased by 31.6% Investec, the international specialist banking group, announces today itsresults for the six months ended 30 September 2006 Financial highlights • Operating profit before taxation* increased 34.4% to £152.8 million (2005: £205.3 million) • Profit after tax, goodwill and non-operating items decreased 13.5% to £153.6 million (2005: £177.5 million) largely due to a non-operating gain recorded in the prior period (refer note below). • Adjusted earnings per share* increased 37.1% to 23.3p (2005: 17.0p) • Interim dividend of 10p per ordinary share (2005: 7.6p) equating to a dividend cover of 2.3 times • Annualised return on adjusted average shareholders' equity of 23.8% (2005: 22.2%) - target of greater than 20% • Cost to income ratio of 60.0% (2005: 61.9%) - target of below 65% • Average loans and advances increased 31.9% to £9.4 billion (2005: £7.2 billion). Asset quality remains satisfactory with the percentage of gross non-performing loans to loans and advances remaining constant at 0.75%. • Average third party assets under management increased 27.0% to £52.6 billion (2005: £41.4 billion) Business highlights Strong operating profit growth from the majority of our businesses: • Private Client Activities: increase of 68.4% to £83.4 million (2005: £49.5 million)* • Treasury and Specialised Finance: increase of 99.2% to £57.1 million (2005: £28.6 million)* • Investment Banking: decrease of 16.3% to £35.8 million (2005: £42.7 million)* • Asset Management: increase of 46.3% to £31.9 million (2005: £21.8 million)* • Property Activities: decrease of 35.6% to £6.3 million (2005: £9.8 million)* *before non-operating items of zero (2005: a non-operating gain of £75.7 millionlargely relating to the sale of Carr Sheppards Crosthwaite Limited to Rensburgplc) and goodwill of £7.5 million (net income) (2005: £6.6 million (net loss)) Stephen Koseff, Chief Executive Officer of Investec, said: "All our businesses benefited from high levels of activity and maintained themomentum established in the second half of last year. Our strategy of buildinga balanced and diversified business ensures we do not rely on any one part.This very satisfactory performance across the board means we have achieved allour stated growth and financial return objectives." Bernard Kantor, Managing Director of Investec, said: "We are gaining traction in all the markets in which we operate, with all coregeographies performing well in local currencies. Our UK and Australianoperations posted a significant increase in post-tax earnings of 68.3% and56.1%, respectively. We are benefiting from increased depth, strong brandrecognition and are attracting good people." For further information please contact: Investec +44 (0) 20 7597 4508Stephen Koseff, Chief Executive OfficerBernard Kantor, Managing DirectorInvestec +44 (0) 20 7597 4508Ursula Nobrega, Investor Relations (mobile:+27 (0) 82 552 98808) Citigate Dewe Rogerson+44(0)20 7638 9571Jonathan ClareSimon RigbySara Batchelor Presentation details: The management of Investec will host a presentation commencing at 09:00 (UKtime)/11:00 (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 Investec Investec 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 4 700 employees. Investec focuses on delivering distinctive profitable solutions for its clientsin five core areas of activity namely, Private Client Activities, Treasury andSpecialised Finance, Investment Banking, Asset Management and PropertyActivities. 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 £3.4 billion. Investec plc and Investec Limited Unaudited combined financial results for the six months ended 30 September 2006prepared using International Financial Reporting Standards and expressed inPounds Sterling. Overall performance We are pleased to announce that for the six months ended 30 September 2006,adjusted earnings per share (EPS) before goodwill and non-operating itemsincreased by 37.1% to 23.3 pence from 17.0 pence. Our strategy of maintaining abalanced business model continues to support the operating fundamentals of thegroup. We have benefited from the strong performance by the majority of ourbusinesses and have achieved our stated growth and financial return objectives. The main features of the period under review are: • Operating profit before goodwill, non-operating items and taxationincreased 34.4% from £152.8 million to £205.3 million. • Earnings attributable to ordinary shareholders before goodwill andnon-operating items increased 37.8% from £93.4 million to £128.7 million. • Earnings attributable to ordinary shareholders after taxation,goodwill and non-operating items decreased by 13.5% from £177.5 million to£153.6 million largely as a result of a non-operating profit recorded in theprior period amounting to £79.0 million on the sale of Carr SheppardsCrosthwaite Limited to Rensburg plc. • All core geographies performed well in local currencies. Our UK andAustralian operations posted a significant increase in post-tax earnings of68.3% and 56.1%, respectively, comprising 49.3% of total attributable earnings,reflecting the benefits of our strategy of increasing the scale and marketpenetration in these businesses. • Annualised return on adjusted average shareholders' equity (inclusiveof compulsorily convertible instruments) increased from 22.2% to 23.8% against atarget of greater than 20%. • The ratio of total operating expenses to total operating incomeimproved from 61.9% to 60.0% against a target of below 65%. • Average loans and advances to customers increased 31.9% from £7.2billion to £9.4 billion. Asset quality remains satisfactory with the percentageof gross non-performing loans to loans and advances remaining constant at 0.75%. • Average third party assets under management increased 27.0% from£41.4 billion to £52.6 billion. • The board declared a dividend of 10 pence per ordinary share (2005:7.6 pence) resulting in a dividend cover based on the group's adjusted EPSbefore goodwill and non-operating items of 2.3 times (2005: 2.2 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 Activities Private Client Activities, comprising the Private Banking and Private ClientPortfolio Management and Stockbroking divisions, reported substantial growth inoperating profit of 68.4% to £83.4 million (2005: £49.5 million). • Private Banking Operating profit of our Private Banking division increased by 76.3% to £73.6million (2005: £41.8 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 29.1% to £6.1 billion (2005: £4.7 billion)and the division increased its average retail deposit book by 37.3% to £4.9billion (2005: £3.6 billion). • Private Client Portfolio Management and Stockbroking Private Client Portfolio Management and Stockbroking recorded solid growth,generating operating profit of £9.7 million (2005: £7.7 million), an increase of26.1%. The Private Client business in South Africa benefited from increasedvolumes with average funds under management increasing by 40.8% to £6.9 billion(2005: £4.9 billion). The results of our UK operations include our 47.1%associate shareholding in Rensburg Sheppards plc post tax profit. Treasury and Specialised Finance Treasury and Specialised Finance posted a significant increase in operatingprofit of 99.2% to £57.1 million (2005: £28.6 million). Growth was underpinnedby a solid performance from the division's advisory, structuring, assetcreation, trading and distribution activities, with average advances increasingby 31.9% to £3.0 billion (2005: £2.3 billion). A number of the businesses thathave been established over the past two years have started to generatesubstantial revenue and have increased the scale of the businesses in the UK andAustralia. Investment Banking Our Investment Banking division recorded a 16.3% decline in operating profit to£35.8 million (2005: £42.7 million). Institutional Stockbroking performed wellagainst a backdrop of increased volumes and Corporate Finance benefited from astrong deal pipeline across all geographies. The results were negativelyimpacted by the absence of any significant realisations within the PrivateEquity division and a decline in value of certain of the listed investmentswithin the Direct Investments portfolio. The majority of our unlistedinvestments continued to perform well. Asset Management Asset Management posted an increase in operating profit of 46.3% to £31.9million (2005: £21.8 million) underpinned by the strong momentum of the UK andinternational business and continued solid performance in Southern Africa.Average assets under management increased by 16.3% to £29.1 billion (2005: £25.0billion). Solid long term investment performance has continued to support thefundamentals of the business. Property Activities Our Property Activities generated operating profit of £6.3 million (2005: £9.8million), a decline of 35.6%. There have been no significant realisations in theperiod. Activity in South Africa however, remains buoyant and we expect to posta stronger performance in the second half of the financial year. Group Services and Other Activities Group Services and Other Activities posted an operating loss of £9.1 million(2005: profit of £0.3 million) largely as a result of increased variableremuneration, given the growth in the group's profitability. Financial statements analysis Operating income Operating income increased by 28.2% to £525.0 million (2005: £409.5 million).The movements in total operating income are analysed below. Net interest income increased by 41.3% to £162.4 million (2005:£114.9 million)as a result of strong growth in average advances and increased cash holdingswithin the Central Funding division. Net fees and commissions increased by 32.5% to £251.6 million (2005: £190.0million) benefiting from increased transactional activity and higher averageassets under management. Income from principal transactions increased 11.0% to £103.9 million (2005:£93.6 million) mainly as a result of a strong performance from our Growth andAcquisition Finance, Principal Finance (securitisation) and Trading activities.This result was offset partially by a weaker performance from some of theunderlying investments in the Direct Investments and Central Funding divisionsand the absence of any significant realisations within the Private Equity andProperty divisions. Operating income from associates increased by 45.1% to £4.3 million (2005: £2.9million). The current periods figure includes Investec's 47.1% share of thepost-tax profit of Rensburg Sheppards plc for the period 1 April 2006 to 30September 2006. In the prior period, Rensburg Sheppards plc was accounted for asan associate with effect from 6 May 2005. After administration expenses, a profit of £0.7 million (2005: £1.5 million) wasgenerated from assurance activities. Other operating income amounts to £10.0 million. The operating results of twoinvestments held within the Private Equity portfolio have been consolidated withthe respective income and expenses reflected in other operating income andadministration expenses. These investments generated a net loss after tax andminority interest of £1.6 million. Any realisation of these investments inexcess of their carrying values will be recognised as income from principaltransactions. Impairment losses on loans and advances Impairment losses on loans and advances increased by 56.3% to £8.2 million(2005: £5.2 million) largely as a result of an increase in specific impairmentsin relation to assets which are in the process of being restructured.Notwithstanding the rising interest rate environment, which could imply a weakercredit cycle, we have not seen evidence of a decline in the performance of ourloan portfolios. The percentage of gross non-performing loans (NPLs) to loansand advances has remained at 0.75% since 31 March 2006. Administrative expenses and depreciation Total expenses increased by 24.6% to £319.7 million (2005: £256.7 million).Variable remuneration increased by 60.0% to £96.1 million due to increasedprofitability. Other operating expenses (excluding variable remuneration)increased by 13.7% to £223.6 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 and an investment in product development and IT infrastructure. We achieved our target of operating expenses to total operating income of lessthan 65% with the ratio improving from 61.9% to 60.0%, principally as a resultof the strong growth in operating income of 28.2%. Goodwill The current period reflects net income of £7.5 million largely relating to: • The acquisition of NM Rothschild & Sons (Australia) Limited at a discount to net assets resulting in a net gain of £9.6 million. • An impairment of £2.0 million attributable to property management contracts with respect to a portfolio of properties sold. Taxation The effective tax rate of the group increased from 26.9% to 28.3%. Earnings attributable to minority interests Earnings attributable to minority interests of £2.3 million largely comprise: •Operating profits in relation to investments held in the Private £3.8mn Equity division. •A profit on the sale of a portfolio of investment properties in £1.9mn which minorities had a 23.1% holding. •In accordance with IFRS the Euro denominated preferred (£3.7mn) 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 Since 31 March 2006 total shareholders' equity (including minority interests)increased by 8.4% to £1.6 billion largely as a result of the issue of £80.6million of non-redeemable, non-cumulative, non-participating preference sharesby Investec plc in August 2006, the net disposal of treasury shares andincreased retained earnings offset partially by negative foreign currencyadjustments. The annualised return on adjusted average shareholders' equity (inclusive ofcompulsorily convertible instruments) increased from 22.2% to 23.8%, meeting ourtarget of greater 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 17.1%(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%). Total assets On balance sheet assets have declined by 3.8% to £23.0 billion since 31 March2006 as a result of the depreciation of the Rand (discussed below). Outlook The high levels of activity and increase in scale and market penetration acrossall our geographies should continue to support the operating results of ourbusiness. Accordingly, we anticipate a strong performance from all ourbusinesses expressed in local currencies. 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 information Investec 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 interim 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 six months ended 30 September 2005. Averagebalances are based on the period 1 April 2005 to 30 September 2005 and 1 April2006 to 30 September 2006. • Foreign currency impact Our 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 andUS Dollars. These results are then translated into Pounds Sterling at theapplicable 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 period: 30 Sept 2006 31 March 2006 30 Sept 2005Currency per Period Average Period Average Period Average£1.00 end end endSouth African 14.49 12.66 10.72 11.43 11.23 11.76RandAustralian 2.50 2.46 2.44 2.37 2.32 2.38DollarEuro 1.47 1.46 1.43 1.47 1.47 1.47US Dollar 1.87 1.85 1.73 1.78 1.77 1.82 Exchange rates between local currencies and Pounds Sterling have fluctuated overthe period. The most significant impact arises from the depreciation of theRand. The average exchange rate over the period has depreciated by 7.7% and theclosing rate has depreciated by 35.2% since 31 March 2006. • Sub-division of Investec plc and Investec Limited ordinary shares Following 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 policies The accounting policies applied in the preparation of the results for the sixmonths ended 30 September 2006 are consistent with those adopted in thefinancial statements for the year ended 31 March 2006, except for the adoptionof accounting standards interpretations issued with effect from 1 January 2006.The adoption of these interpretations has had no material reportable impact onthe financial results, position or cash flows of the combined group. Dividend announcement Investec plc 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 and paidon the SA DAS share issued by Investec Limited. Notice is hereby given that an interim dividend (No 9) has been declared by theboard in respect of the six months ended 30 September 2006. Shareholders in Investec plc will receive a distribution of 10 pence (2005 : 7.6pence) per ordinary share, which will be paid as follows : •for non-South African resident Investec plc shareholders, through a dividend paid by Investec plc of 10 pence per ordinary share. •for South African resident shareholders of Investec plc, through a dividend payment by Investec plc of 5 pence per ordinary share and through a dividend paid, on the SA DAS share equivalent to 5 pence per ordinary share. The relevant dates for the payment of the dividends are : Last day to trade cum-dividend: - On the London Stock Exchange Tuesday, 12 December 2006- On the JSE Limited Friday, 8 December 2006 Shares commence trading ex-dividend : - On the London Stock Exchange Wednesday, 13 December 2006- On the JSE Limited Monday, 11 December 2006 Record date:- On the London Stock Exchange Friday, 15 December 2006- On the JSE Limited Friday, 15 December 2006 Payment date:- United Kingdom register Friday, 22 December 2006- South African register Friday, 22 December 2006 Share certificates on the South African branch register may not bedematerialised or rematerialised between Monday, 11 December 2006 and Friday, 15December 2006, both dates inclusive, nor may transfers between the UK and SAregisters take place between Monday, 11 December 2006 and Friday, 15 December2006, both dates inclusive. Shareholders registered on the South African register are advised that the totaldistribution of 10 pence, equivalent to 138 cents per share, has been arrived atusing the Rand/Pound Sterling average buy/sell forward rate, as determined at11h00 (SA time) on 15 November 2006. By order of the board R Vardy 16 November 2006Company Secretary Investec plc and Investec Limited Unaudited combined financial results for the six months ended 30 September 2006prepared using International Financial Reporting Standards and expressed inPounds Sterling. Salient features 30 Sept. 30 Sept. % 31 March 2006 2005 Change 2006Adjusted earnings beforegoodwill and non- operating items (£'000) 128,676 93,357 37.8 230,017Operating profit beforegoodwill, non-operatingitems and taxation (£'000)205,291 152,771 34.4 388,767Earnings attributable to shareholders (£'000) 153,579 177,469 (13.5) 315,101Adjusted earnings per share (before goodwill and non-operating items) (pence) 23.3 17.0 37.1 41.9Earnings per share (pence) 24.1 31.1 (22.5) 53.8Headline earnings per share (pence) 22.4 16.7 34.1 40.6Dividends per share (pence) 10.0 7.6 31.6 18.2Dividends per share (cents) 138.0 89.2 54.7 214.6 Combined consolidated income statements 6 months to 6 months to Year to 30 Sept. 30 Sept. 31 March£'000 2006 2005 2006Interest receivable 565,786 410,559 934,389Interest payable (403,409) (295,613) (675,237) Net interest income 162,377 114,946 259,152Fees and commissions receivable 279,276 208,857 478,465Fees and commission payable (27,638) (18,902) (41,591)Principal transactions 103,928 93,592 246,059Operating income from associates 4,279 2,949 6,694Investment income on assurance activities 13,767 76,387 141,559Premiums and reinsurance recoveries on insurance contracts 55,995 72,486 164,631Other operating income 10,030 3,851 2,721 Other income 439,637 439,220 998,538Claims and reinsurance premiums on insurance business (68,828) (139,464) (293,135) Total operating income net of insurance claims 533,186 414,702 964,555Impairment losses on loans and advances (8,173) (5,230) (9,160) Operating income 525,013 409,472 955,395Administrative expenses (313,966) (252,783) (558,887)Depreciation and amortisation of property, equipment and software (5,756) (3,918) (7,741) Operating profit before goodwill 205,291 152,771 388,767Goodwill 7,533 (6,595) (21,356) Operating profit 212,824 146,176 367,411Profit on disposal or termination of group operations - 75,660 73,573 Profit before taxation 212,824 221,836 440,984Taxation (56,974) (40,323) (111,616) Profit after taxation 155,850 181,513 329,368Earnings attributable to minority interests 2,271 4,044 14,267Earnings attributable to shareholders 153,579 177,469 315,101 Earnings attributable to shareholders' equity 155,850 181,513 329,368 Earnings attributable to shareholders 153,579 177,469 315,101Goodwill (7,533) 6,595 21,356Profit on disposal or termination of group operations - (75,660) (73,573)Preference dividends paid (20,411) (6,917) (19,940)Additional earnings attributable to other equity holders 3,041 (8,130) (12,927) Adjusted earnings before goodwill and non-operating items 128,676 93,357 230,017Adjustments to derive headline earnings (4,997) (1,885) (7,212) Headline earnings 123,679 91,472 222,805 Earnings per share (pence)- basic 24.1 31.1 53.8- diluted 22.1 29.3 50.0 Adjusted earnings per share (pence)- basic 23.3 17.0 41.9- diluted 21.4 16.1 39.0 Headline earnings per share (pence) 22.4 16.7 40.6 Number of weighted average shares- basic (millions) 552.8 548.1 548.8 Combined consolidated cash flow statements 6 months to 6 months to 12 months to 30 Sept. 30 Sept. 31 March£'000 2006 2005 2006Cash inflows from operations 147 474 149,274 369 546Increase in operating assets (2 899 302) (1,015,495) (2 950 085)Increase in operating liabilities 3 257 379 398,799 2 749 528 Net cash inflow/(outflow) from operating activities 505 551 (467,422) 168 989Net cash outflow from investing activities (143 267) (7,867) (473 159)Net cash inflow from financing activities 106 423 92,144 38 076Effects of exchange rate changes on cash and cash equivalents (343 715) 39,770 73 721 Net increase/(decrease) in cash and cash equivalents 124 992 (343,375) (192 373) Cash and cash equivalents at the beginning of the period 1 190 183 1,382,556 1 382 556 Cash and cash equivalents at the end of the period 1 315 175 1,039,181 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 sheets at 30 Sept. 31 March 30 Sept.£'000 2006 2006 2005AssetsCash and balances at central banks 132,717 190,838 125,343Loans and advances to banks 1,706,742 1,830,603 1,368,108Cash equivalent advances to customers 712,938 690,236 683,731Reverse repurchase agreements and cash collateral on securities borrowed 980,456 756,645 682,354Trading securities 1,562,360 1,640,088 1,308,753Derivative financial instruments 1,200,754 1,081,287 862,235Investment securities 1,750,676 1,266,673 1,220,405Loans and advances to customers 9,271,527 9,604,589 7,903,166Interest in associated undertakings 65,811 63,099 58,545Deferred taxation assets 50,956 60,035 49,285Other assets 1,266,512 1,272,787 1,093,059Property and equipment 121,397 26,916 31,344Investment properties 86,121 163,049 197,484Goodwill 209,176 183,560 190,257Intangible assets 8,707 10,094 9,458 19,126,850 18,840,499 15,783,527Other financial instruments at fair value through income in respect of- liabilities to customers 2,806,067 3,628,574 3,071,676- assets related to reinsurance contracts 1,054,865 1,431,876 1,302,165 22,987,782 23,900,949 20,157,368LiabilitiesDeposits by banks 2,088,156 1,879,483 1,282,297Derivative financial instruments 801,747 705,764 617,201Other trading liabilities 425,385 457,254 408,279Repurchase agreements and cash collateral on securities lent 649,463 358,278 83,117Customer accounts 8,076,640 8,699,165 7,583,753Debt securities in issue 3,223,209 2,950,103 2,296,949Current taxation liabilities 96,606 137,426 85,155Deferred taxation liabilities 31,241 26,210 22,352Other liabilities 1,602,379 1,582,856 1,482,564Pension fund liabilities 1,735 2,013 9,141 16,996,561 16,798,552 13,870,808Liabilities to customers under investment contracts 2,713,438 3,488,756 2,939,994Insurance liabilities, including unit-linked liabilities 92,630 139,818 131,682Reinsured liabilities 1,054,865 1,431,876 1,302,165 20,857,494 21,859,002 18,244,649Subordinated liabilities (including convertible debt) 491,683 529,854 526,578 21,349,177 22,388,856 18,771,227EquityCalled up share capital 166 165 165Share premium 1,106,126 1,028,737 1,029,120Treasury shares (74,824) (96,300) (99,753)Equity portion of convertible instruments 2,191 2,191 2,191Perpetual preference shares 239,132 215,305 205,587Other reserves 80,399 156,103 117,101Profit and loss account (7,555) (79,709) (158,092) Shareholders' equity excluding minority interests 1,345,635 1,226,492 1,096,319Minority interests 292,970 285,601 289,822 - Perpetual preferrred securities issued by subsidiaries 241,640 278,459 272,430- Other 51,330 7,142 17,392 Total shareholders' equity 1,638,605 1,512,093 1,386,141 Total liabilities and shareholders' equity 22,987,782 23,900,949 20,157,368 A geographical breakdown of business operating profit before goodwill,non-operating items and taxation for the 6 months to 30 September 2006 United Kingdom Southern and Other Total£'000 Africa Europe Australia Geographies groupPrivate Banking 17,424 50,476 5,720 - 73,620Private Client PortfolioManagement and Stockbroking 5,664 4,074 - - 9,738Treasury and Specialised Finance 25,833 29,558 1,674 - 57,065Investment Banking 24,789 5,447 5,542 - 35,778Asset Management 23,851 8,045 - - 31,896Property Activities 6,201 118 - - 6,319Group Services and Other 7,522 (17,545) 689 209 (9,125) 111,284 80,173 13,625 209 205,291 % change since 30 September 2005 14.2 72.9 59.6 (53.9) 34.4 A geographical breakdown of business operating profit before goodwill,non-operating items and taxation for the 6 months to 30 September 2005 United Kingdom Southern and Other Total£'000 Africa Europe Australia Geographies groupPrivate Banking 11,908 24,676 5,183 - 41,767Private Client PortfolioManagement and Stockbroking 3,771 3,953 - - 7,724Treasury and Specialised Finance 21,399 7,484 (239) - 28,644Investment Banking 23,525 16,436 2,777 - 42,738Asset Management 18,325 3,484 - - 21,809Property Activities 9,140 675 - - 9,815Group Services and Other 9,348 (10,341) 814 453 274 97,416 46,367 8,535 453 152,771 Summarised consolidated statements of changes in equity 6 months to 6 months to 12 months to 30 Sept. 30 Sept. 31 March£'000 2006 2005 2006Balance at the beginning of the period 1,512,093 1,075,611 1,075,611Foreign currency adjustments (196,773) 31,450 52,564Retained profit for the period attributable to ordinary shareholders 153,579 177,469 315,101Retained profit for the period attributable to minority interest 2,271 4,044 14,267Share based payments adjustments 13,088 9,403 19,221Fair value movements on available for sale assets 1,923 (5,245) 8,480Dividends paid to ordinary shareholders (55,415) (41,681) (84,435)Dividends paid to other shareholders (20,411) (6,917) (19,940)Issue of ordinary shares 22,443 - -Issue of perpetual preference shares 80,628 - -Share issue expenses (787) (556) (556)Movement of treasury shares 85,637 10,043 13,113Transfer from pension fund deficit - - 2,035Issue of equity instruments by subsidiaries 21,173 132,520 132,520Movement of minorities on disposals and acquisitions 19,156 - (15,888) Balance at the end of the period 1,638,605 1,386,141 1,512,093 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Investec