Slide 1: Results Presentation
RESULTS PRESENTATION For the six months ended 30 September 2016
Slide 2: Proviso
Unless otherwise stated, all information on this slide relates to the ongoing business Proviso Please note that matters discussed in today's presentation may contain forward looking statements which are subject to various risks and uncertainties and other factors including, but not limited to: t
Slide 3: Volatile operating environment
Unless otherwise stated, all information on this slide relates to the ongoing business Volatile operating environment With high levels of macro uncertainty Period end Average 120 % change % change 110 Since Since Since Since Mar-16 Sep-15 Mar-16 Sep-15 Rebased to 100 100 £ / Euro -8.4% -14.8% -3.0%
Slide 4: Highlights for the six month period
Unless otherwise stated, all information on this slide relates to the ongoing business Highlights for the six month period Notwithstanding the volatile environment, we continued to see the development of our core franchise businesses: Growth in third party funds under management Growth in net
Slide 5: As a result … Stable statutory performance
Unless otherwise stated, all information on this slide relates to the ongoing business As a result … Stable statutory performance Statutory results showed stable performance % change on neutral Sep-16 Sep-15 % change currency basis Operating profit* (£’mn) 281.4 279.4 0.7% 1.6% Adjusted earning pe
Slide 6: Diversified business model
Unless otherwise stated, all information on this slide relates to the ongoing business Diversified business model Consistent contribution across geographies and businesses Operating profit* % contribution to group by geography 100% Combined UK and Other business up 1.3% in Pounds 80% UK and Other
Slide 7: Solid growth in key earnings drivers
Unless otherwise stated, all information on this slide relates to the ongoing business Solid growth in key earnings drivers £‘bn 150 Strong growth in third party Other assets under management of 120 Third party 16.5% to £141.8bn - (10.3% on Wealth & Investment assets under 90 a currency neutral ba
Slide 8: Strong operational performance
Unless otherwise stated, all information on this slide relates to the ongoing business Strong operational performance Supporting growth in operating income £'mn Series 1 Total operating income up 1200 6.1% to £1,052.3mn Trading income Net interest income up 10.6% 1000 Investment and associate in
Slide 9: The Investec Equity Partners (IEP) transaction
Unless otherwise stated, all information on this slide relates to the ongoing business The Investec Equity Partners (IEP) transaction Impacted group investment income In South Africa, a new investment vehicle, IEP, was created on 11 January 2016 Investec holds a 45% stake alongside other strateg
Slide 10: Costs increase due to planned investment
Unless otherwise stated, all information on this slide relates to the ongoing business Costs increase due to planned investment Cost to income up to 66.7% from 65.4% last year £’mn 1 200 Operating income increased 1 000 Operating income 6.1% to £1,052.3mn 800 Jaws ratio for Operating costs Opera
Slide 11: Total impairments flat
Unless otherwise stated, all information on this slide relates to the ongoing business Total impairments flat With increased defaults in the SA banking business £’mn Impairments on loans and 160 Legacy and sale assets* advances increased South Africa marginally to £46.6mn 140 (2015: £46.1mn) UK an
Slide 12: Resulting in a stable group performance
Unless otherwise stated, all information on this slide relates to the ongoing business Resulting in a stable group performance % change currency neutral POUND RESULTS Sep-16 Sep-15 % change basis^^ Operating profit* before tax (£’mn) 314.5 315.0 (0.2%) 0.8% Attributable earnings**^ (£’mn) 230.0 222.
Slide 13: Performance against financial targets
Unless otherwise stated, all information on this slide relates to the ongoing business Performance against financial targets Ongoing Statutory Target Sep-16 Sep-15 Sep-16 Sep-15 ROE (post tax) 12%-16% over a rolling 5-yr period 13.9% 14.8% 12.1% 12.6% Summary of financial Adjusted* EPS growth 10% >
Slide 14: Stable capital position
Unless otherwise stated, all information on this slide relates to the ongoing business Stable capital position As at 30 Sep-16 Investec Bank Investec Bank 14.9% 10.8% Limited Limited Capital Investec Limited 14.4% As Tier 1 Investec Limited 10.8% As reported adequacy reported Investec Bank plc 16.7%
Slide 15: Divisional highlights
Divisional highlights
Slide 16: Asset Management - Overview
Unless otherwise stated, all information on this slide relates to the ongoing business Asset Management - Overview Into our 26th year, momentum remains positive £’mn Solid growth of 16.6% in operating 100 Operating profit profit to £82.3mn from £70.6mn 80 D 16.6% Operating Earnings benefited from
Slide 17: Asset Management – Outlook
Unless otherwise stated, all information on this slide relates to the ongoing business Asset Management – Outlook Strong platform for growth Industry challenged by increased regulation, market illiquidity and volatility, and the threat of digital disruption Outlook Strong platform for growth and
Slide 18: Wealth & Investment - overview
Unless otherwise stated, all information on this slide relates to the ongoing business Wealth & Investment - overview Solid overall performance £’mn 50 Total operating profit up 14.1% to 40 £43.2mn from £37.9mn Southern Operating 30 Africa Strong performance from SA, up 20.8% in Rands profit* 20 U
Slide 19: Wealth & Investment – strategic review
Unless otherwise stated, all information on this slide relates to the ongoing business Wealth & Investment – strategic review Investing for long-term sustainability SA environment has proved challenging with anaemic GDP growth forecast and political developments exacerbating consumer and investor
Slide 20: Specialist Banking – global overview
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – global overview Underlying operational performance sound £’mn Operating profit down 7.1% to 250 £212.8mn from £229.2mn Results impacted by a decline in investment income 200 Operating prof
Slide 21: Specialist Banking – UK Legacy
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – UK Legacy Continued to reduce the UK legacy business exposures £'mn Sep-16 Sep-15 The legacy portfolio has Total income (0.6) 4.0 continued to be actively Total impairments (28.6) (28.4) man
Slide 22: Specialist Banking – UK and Other Ongoing
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – UK and Other Ongoing Solid performance across the business £'mn Other operating income 400 Strong book growth and sound levels of Customer flow trading lending activity 300 income Increase
Slide 23: Specialist Banking – UK and Other Ongoing
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – UK and Other Ongoing Continue to build and develop the client franchises Outlook While we remain cautious on the environment, our businesses have experienced good levels of activity and cont
Slide 24: Specialist Banking – SA Ongoing
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – SA Ongoing Solid performance across businesses R’mn % Other operating income 7000 Sound levels of client activity 6000 Customer flow trading Analysis of 5000 income Solid growth in net int
Slide 25: Specialist Banking – SA Ongoing
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Banking – SA Ongoing Build and develop client franchises Strategic Despite the current social, political and economic challenges in the SA environment, we are well Outlook priorities positioned to tak
Slide 26: Strategic review
Strategic review
Slide 27: Asset Management – strategic priorities
Unless otherwise stated, all information on this slide relates to the ongoing business Asset Management – strategic priorities Focus on clients, people and long-term growth Scale Multi-Asset and Global Equities Some progress, but not enough due to short-term performance headwinds Go on the fro
Slide 28: Wealth & Investment – strategic priorities
Unless otherwise stated, all information on this slide relates to the ongoing business Wealth & Investment – strategic priorities Investing for long-term sustainability Internationalisation Building our capabilities in Hong Kong Integrating platforms, infrastructure and investment process for
Slide 29: Specialist Bank – strategic priorities Corporate Client
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Bank – strategic priorities Corporate Client Building franchises and broadening client base Broaden client base by building franchise while deepening client relationship Continuously developing stro
Slide 30: Specialist Bank – strategic priorities Private Client
Unless otherwise stated, all information on this slide relates to the ongoing business Specialist Bank – strategic priorities Private Client Providing a personalised and integrated private client experience International platform for clients with global access to products and services Created On
Slide 31: Building capital light activities
Unless otherwise stated, all information on this slide relates to the ongoing business Building capital light activities With a steady increase over past 7 years £’mn Third party assets and 700 Net interest, investment advisory income 600 and trading income £614mn £438mn 500 400 Net annuity fees and
Slide 32: Steadily improving ROE across businesses
Unless otherwise stated, all information on this slide relates to the ongoing business Steadily improving ROE across businesses £’mn % £’mn % 200 90 375 30 80 160 300 25 70 60 20 120 225 Asset 50 40 Wealth & 15 80 Management 30 Investment 150 10 40 20 75 5 10 - 0 - 0 Mar-11 Mar-12 Mar-13 Mar-14 Mar-
Slide 33: As a result, Group ROE within the target range
Unless otherwise stated, all information on this slide relates to the ongoing business As a result, Group ROE within the target range £’mn % The improvement in ROE 4 000 16 Target range: 12-16% reflects: Growth in client franchise 3 500 14 businesses Ordinary Growth in our annuity businesses 3
Slide 34: Closing
Closing
Slide 35: Summary
Unless otherwise stated, all information on this slide relates to the ongoing business Summary Focused on growth and shareholder return Over the past few years we have been through a significant transition as a firm, realigning our business model and at the same time positioning our organisation f
Slide 36: Outlook
Unless otherwise stated, all information on this slide relates to the ongoing business Outlook Uncertainty persists in the macro environment as the UK prepares for Brexit, the US adopts a new presidential administration and South Africa deals with economic, political and social volatility While
Slide 37: End
End