Investec Plc · LSE:INVP
Investec — Investor Presentation (March 2011)
11 slides from Investec's investor presentation, Mar 17, 2011
Slide 1: Investor pre-close briefing
Investor pre-close briefing 17 March 2011 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: – the further development of standards and inte
Slide 2: Operational review
Operational review • Proviso: unless otherwise stated, figures and trends discussed in the operational review relate to the eleven month period to 28 February 2011 and compare 1H11 vs 2H11 • References to operating profit relate to normalised* operating profit. g Trends within the divisional section
Slide 3: Overview of the year ending 31 March 2011
Overview of the year ending 31 March 2011 • Operating conditions across the group have continued the trends seen in the first half of the year • The asset and wealth management businesses have benefitted from substantial b t ti l inflows i fl and d a good d investment i t t performance f • Operating
Slide 4: Healthy capital ratios
Healthy capital ratios • We target a total capital adequacy ratio of 14% to 17% and a Tier 1 ratio of 11% Expected capital 30 Sep 2010 31 Mar 2010 adequacy ratios at 31 Mar 2011 Investec plc Total 16.5% 16.7% 15.9% Tier 1 12.0% 12.1% 11.3% Investec Limited Total 15.7% 16.2% 15.6% Tier 1 11.8% 12.1%
Slide 5: Divisional review
Di i i Divisional l review i Overview of year on year* performance • Recurring income as a percentage of total operating income is expected to be approximately 62% (2010: 60%) • Strong increase in total operating income: – An increase in net interest income – Significant increase in net fees and com
Slide 6: Asset Management
Asset Management • Solid long term performance across Assets under management: investment capabilities* Since 31 March 2010: up 22% to £56.6bn £'bn • Record net flows (in excess of £6.5bn) 60 with total assets under management of £56.6bn 50 40 • Performingg significantly g y ahead of 1H11 and the pr
Slide 7: Property Activities
Property Activities • Good performance from the investment property portfolio • We remain focused on building our property funds across all geographies • We will be listing our property fund in South Africa mid-April 2011 13 Private Banking • Market conditions continue to impact Loans: since 31 Marc
Slide 8: Investment Banking
Investment Banking Agency and Advisory • Corporate Finance activity levels have started to improve • T di conditions Trading diti remain i diffi difficultlt ffor th the IInstitutional tit ti l Stockbroking St kb ki business b i Principal Investments (Direct Investments and Private Equity) • South Af
Slide 9: Other Activities
Other Activities • Central Funding: – South Africa: results significantly down from the prior year largely due to lower average levels of interest rates and weaker performance from equity investments – UK: performing ahead of the prior year º Profits recorded due to the debt exchange offer programme
Slide 10: Other information
Other information • Effective tax rate: expected to be approximately 16% • Weighted number of shares in issue for the year ending 31 March 2011 p expected to be approximately pp y 761mn • Exceptional gain of approximately £18mn on the sale of Rensburg Fund Management Limited 19 C Conclusion l i
Slide 11: Conclusion
Conclusion • Operating conditions remain difficult as the global geopolitical landscape continues to be uncertain • The year under Th d review i h has echoed h d the th difficulties diffi lti off the th broader b d environment with the group’s various businesses moving at different speeds • The grou