Investec Plc · LSE:INVP
Investec — FY2025 Earnings Presentation
56 slides from Investec's earnings presentation, May 22, 2025
Slide 1: Creating enduring worth: Results presentation
Creating enduring worth RESULTS PRESENTATION Month Yearfor the year ended 31 March 2025
Slide 2: Agenda: Overview
Agenda Overview Fani Titi Group Chief Executive 2
Slide 3: Business Overview
Business Overview Overall results in line with guidance provided in May 2024 1 Strong performance in a volatile environment, generating ROE of 13.9% 2 Pre-provision adjusted operating profit grew 7.8% to over £1bn 3 Since 2019 CMD, the strategy to simplify and focus the business has driven a 200bps
Slide 4: Key takeaways
Key takeaways Earnings continue to Deep client franchises, Strong capital Returns to shareholders show resilience diversified earnings generation within target £’bn 41.2 39.5 79.1 587.7 32.4 Target range: 13 - 17% 30.9 510.0 13.9% 23.4 55.1 20.9 11.4% Mar-22 Mar-23 Mar-24 Mar-25 Mar-24 Mar-25 Mar-22
Slide 5: Results highlights
Results highlights Pre-provision adjusted operating profit Cost to income Credit loss ratio £1 039.2mn 52.6% 38bps (Mar-24: £963.6mn) (Mar-24: 53.8%) (Mar-24: 28bps) 7.8% ahead of prior year Up 6.6% in Rands Adjusted operating profit Return on Tangible Equity Tangible Net Asset Value per share £920.
Slide 6: Our pathway to Net Zero by 2050
Our pathway to Net Zero by 2050 Three channels of impact FY25 loan book exposure: 1 Meeting our fossil fuel exposure commitments Coal: 0.05%* (down from 0.08% in FY24) Fossil fuels: 1.06%* (down from 1.90% in FY24) 2 Driving sustainable and transition finance activities Targeting £18bn by 2030 3 Inf
Slide 7: Agenda: Financial review
Agenda Financial review Nishlan Samujh Group Finance Director 2
Slide 8: Macroeconomic environment | GDP growth
Macroeconomic environment | GDP growth Annual GDP Growth (%) 2023 2024 2025 (Forecast) 1.3% 1.1% 1.1% 0.7% 0.6% 0.4% SA UK • SA economy expected to expand by 1.3% y/y in calendar year 2025 vs 0.6% in 2024 • The UK economy is expanding slowly, with GDP growth projected at 1.1% in 2025 • Limitations i
Slide 9: Macroeconomic environment: Interest rates
Macroeconomic environment Interest Rates (%) Mar-2024 Mar-2025 Mar-2026 (Forecast) 11.75% 11.00% 10.50% 5.25% 4.50% 3.50% SA prime rate UK Bank rate SA UK Closing rates Average rates Closing rates Average rates Interest rates Mar-25 Mar-24 Mar-25 Mar-24 Interest rates Mar-25 Mar-24 Mar-25 Mar-24 SA
Slide 10: Market indicators
Market indicators GBP/ZAR exchange rate Markets FY2024 FY2025 FY2024 FY2025 26.00 95 000 5 500 90 000 5 000 85 000 24.00 80 000 4 500 75 000 4 000 22.00 70 000 3 500 65 000 20.00 60 000 3 000 Apr- Jun- Aug- Oct- Nov- Jan- Mar- May- Jul- Sept- Nov- Jan- Mar- Apr- Jun- Aug- Oct- Nov- Jan- Mar- May- Ju
Slide 11: Earnings drivers
Earnings drivers 41.2 £’bn 39.5 Diversified core loan book 30.9 32.4 23.4 20.9 SA Corporate UK & Other Banking & Other Private Banking ▲ 13.7% ▲ 3.7% ▲ 12.6% in neutral currency Mar-24 Mar-25 FUM - SA Loans Deposits £32.4bn ▲ 4.7% FUM for IW&I SA Net core loans 11.8% 4.7% 10.9% in neutral currency 4
Slide 12: Unpacking Group performance
Unpacking Group performance NII benefitted from growth in average lending books and lower funding costs in SA, partly offset by declining interest rates and negative effects of deposits repricing £’mn Mar-25 Mar-24 % change Net interest income (NII) 1 358 1 339 1.5% Non-interest revenue (NIR) 11.5%
Slide 13: Technology investment to fuel our growth
Technology investment to fuel our growth STRATEGIC PRIORITIES Technology spend Run vs Business investment Modernising our Drive our Deliver out of the Protect Unlock technology and growth agenda ordinary experiences Investec the power strengthening our across the for clients and and our of data engi
Slide 14: Agenda: Divisional review
Agenda Divisional review 9
Slide 15: Adjusted operating profit: UK & Other
Adjusted operating profit UK & Other adjusted operating profit £457.0mn Mar 2024: £455.5mn £’mn Mar-25 Mar-24 % change Wealth & Investment* 69.1 66.9 3.3% Specialist Banking 410.4 406.2 1.0% Group Investments 11.0 11.7 (5.9%) Group costs (33.5) (29.2) 14.9% Total 457.0 455.5 0.3% Note: The above num
Slide 16: Specialist Banking UK and Other | Operating income
Specialist Banking UK and Other | Operating income £'mn 1 200.0 UK & Other 1 109.5 1 090.3 Operating income £1 090.3mn Mar 2024: £1109.5mn 800.0 NII decreased 4.4%; the benefit of a larger average loan book was offset by higher cost of funding as deposits repriced higher and lower average interest r
Slide 17: Specialist Banking UK and Other | Cost to income
Specialist Banking UK and Other | Cost to income £'mn UK & Other Cost to income 1 200.0 70% 1 109.5 1 090.3 53.5% Mar 2024: 55.6% 800.0 60% Cost to income ratio improved to 53.5% (Mar-24: 55.6%) 616.1 55.6% 582.9 Operating income decreased by 1.7% 53.5% Operating costs decreased by 5.4%: • Fixed cos
Slide 18: Unpacking the credit loss ratio - UK & Other
Unpacking the credit loss ratio - UK & Other ECL impairment charge 2024 2025 CLR ECL impairment charge (£'mn) 86.0 97.0 in line with guidance Credit loss ratio (bps) 58 60 60bps (Mar-24: 58bps) Gross core loans and coverage Stage 1 Stage 2 Stage 3 Total Gross core loans* (£'mn) 1 391 531 16 103 ECL
Slide 19: Underlying profit attributable to shareholders
Underlying profit attributable to shareholders* Wealth & Investment UK Combination with Rathbones successfully completed end of 1H2024 £69.1 million (Mar-24: £66.9 million) post-taxation profit from associates was recognised from our 41.25% holding in the combined Rathbones Group 2 1 3 4 Created the
Slide 20: Adjusted operating profit: SA
Adjusted operating profit up 6.7% SA adjusted operating profit R10 775mn Mar 2024: R10 097mn R’mn Mar-25 Mar-24 % change Wealth & Investment 1 004 871 15.3% Specialist Banking 9 976 9 516 4.8% Group Investments 178 63 >100.0% Group costs (383) (353) 8.5% Total 10 775 10 097 6.7% 15
Slide 21: Specialist Banking SA | Operating income
Specialist Banking SA | Operating income R'bn 21 20.2 SA 18.1 Operating income 18 R20.2bn 15 Mar 2024: R18.1bn 12 NII increased 8.8% driven by lower cost of funds and higher average advances 9 NIR increased by 17.3% driven by: • Net fee and commission income benefitted from higher FX and ECM fees an
Slide 22: Specialist Banking SA | Cost to income
Specialist Banking SA | Cost to income R'bn SA Cost to income 21 20.2 70% 18.1 48.1% 18 65% Mar 2024: 48.4% 15 60% 12 Cost to income ratio decreased to 48.1% (Mar-24: 48.4%) 9.7 55% Operating income grew 11.4% 8.8 9 Operating costs increased 10.7%: • Higher personnel expenses (increased headcount an
Slide 23: Unpacking the credit loss ratio - Southern Africa
Unpacking the credit loss ratio - Southern Africa ECL impairment charge 2024 2025 CLR in line with guidance ECL impairment charge (R'mn) (163.0) 517.0 Credit loss ratio (bps) (4) 15 15bps (Mar-24: -4bps) driven by: Gross core loans and coverage Stage 1 Stage 2 Stage 3 Total • Higher stage 3 ECL char
Slide 24: Wealth & Investment
Wealth & Investment Strong financial performance in a challenging operating environment Funds under management Adjusted operating profit Operating margin R’bn R’mn 555.2 1 100 600 501.3 1 004 29.9% 30.1% 1 000 30% 500 224 201 400 900 871 20% 300 331 800 300 200 700 10% 100 600 Mar-21 Mar-22 Mar-23 M
Slide 25: Solid underlying performance
Solid underlying performance Adjusted operating profit* £’mn SA^ ▲ 9% (▲ 7% in ZAR) UK & Other^ ▲ 0.3% ▲ 4% 1 000 950 4 2 6 5 24 900 (1) (6) 920.0 884.5 850 800 750 700 650 600 ▲ 6% ▲ 17% in GBP ▲ >100% in GBP ▲ 1% ▲ 3% ▼ 6% ▼ 13% 550 ▲ 5% in ZAR ▲ 15% in ZAR ▲ >100% in ZAR 500 Mar-24 Specialist Ban
Slide 26: Attributable earnings
Attributable earnings Reconciliation between operating profit and adjusted earnings £'000 Mar-25 Mar-24 % change Operating Profit 919.8 885.9 3.8% Non-controlling interest 0.2 (1.4) >100.0% Operating profit after non-controlling interest 920.0 884.5 4.0% Preference dividends - perpetual prefs and ti
Slide 27: ROE and ROTE
ROE and ROTE UK & Other SA Group Return on equity (ROE) Return on Equity 11.2% 18.3% 13.9% 13.9% (Mar-24: 14.6%) within the Group’s medium- term 13% to 17% target range Return on Tangible Equity 14.5% 18.4% 16.2% Average allocated Equity £3 044mn £1 842mn £4 886mn Average Allocated Tangible Equity £
Slide 28: Net Asset Value
Net Asset Value Underpinned by strong earnings growth and gains from strategic actions Net asset value per share Tangible net asset value per share Pence Pence 650 79 650 600 -36 600 -20 587.7 587.7 -9 563.9 550 550 500 -73 506.3 500 450 450 400 400 350 350 NAV Goodwill and Goodwill and TNAV Mar-24
Slide 29: Capital and liquidity
Capital and liquidity Group cash and near cash £’bn 20 Group liquidity summary 16.9bn • Strong liquidity positions to support growth 18 16 Min • Loans to customers as a % of customer deposits of 77.8% Average 11.9bn (Mar-24: 77.5%) 14 Max Capital summary 12 19.0bn • CET1 ratio well in excess of >10%
Slide 30: Agenda: Medium-term outlook
Agenda Medium-term outlook Fani Titi Group Chief Executive 25
Slide 31: Key strategic actions executed in the past six years
Key strategic actions executed in the past six years Simplify, Focus and Grow OUR EXECUTION SINCE CMD 2019 £1.7bn Ninety One distribution Share Buy Back £4.6bn Valuation £4.1bn Rerating Dividends TNAV Growth Distribution to shareholders £2.7bn Market Cap @ CMD Current Market Cap
Slide 32: Our focus today...disciplined growth
Our focus today...disciplined growth Key strategies to underpin our growth • Leverage our powerful client franchises and continue to build scale • With an enhanced focus on initiatives driving incremental returns – PRIVATE CLIENT ▪ Next phase of growth for UK Private Client, transitioning to a compr
Slide 33: SA Corporate Mid-market: Roadmap to scale
SA Corporate Mid-market Strategic focus The strategic partner that delivers a private client experience for business areas Our right to win Dedicated relationships A corporate style offering New client acquisition delivered through meaningful engagement and understanding Make and receive Capacity to
Slide 34: UK Corporate Mid-market: Roadmap to scale
UK Corporate Mid-market Strategic focus Becoming a leading relationship corporate bank for UK mid-market businesses areas Our right to win Comprehensive offering Term Incorporating transactional banking Proposition build-out Lending capabilities to complement the (transactional banking) current prop
Slide 35: SA Private Client: Key Drivers
SA Private Client Strategic focus Providing an integrated offering to our clients both locally and internationally areas Our right to win Dedicated service Increased market penetration Through our digital channels, 24/7 in the high income segment global Client Support Centre, specialist private bank
Slide 36: UK Private Client: Roadmap to scale
UK Private Client Strategic focus Providing tailored solutions, through trusted advisors, in one seamless digital experience across all channels areas Our right to win One Investec connectivity Deepening client engagement within New banking platform our ecosystem and maximising the commercial value
Slide 37: Financial outlook | FY2026
Financial outlook | FY2026 The global macro-economic environment is facing heightened uncertainty, creating volatility in economic forecasts and financial markets. We are continuously monitoring the evolving environment. The guidance below is based on our economic forecasts and expected business act
Slide 38: Outlook to FY2030 | Creating value for the long term
Outlook to FY2030 | Creating value for the long term Progressing ROE to the upper-end of medium-term target range Continuing to scale and leverage our existing client franchises to generate higher returns Investing in specific growth initiatives to drive incremental returns in the medium to long ter
Slide 39: In closing
In closing We are a focused business with deep client franchises Our client franchises have scale and relevance in our chosen markets Strong capital generation to support growth and returns to shareholders Clear set of scalable opportunities to deliver sustainable growth We are dedicated to our purp
Slide 40: Thank you
n~ 6 Investec Thank you
Slide 41: Appendix
Appendix 36
Slide 42: Proviso
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: – changes in the political and/or economic environment that would materially affect the In
Slide 43: Taking stock
Taking stock Consistent execution of our strategy underpinned the achievement of all our medium-term targets £’mn FY21 FY22 FY23 FY24 FY25 Adjusted EPS - pence per share 28.9 55.1 68.9 78.1 79.1 Sustained earnings growth Total operating income 1641 1990 1986 2 085 2 190 Total costs 1165 1234 1086 11
Slide 44: Macro-economic scenarios – 31 March 2025
Macro-economic scenarios – 31 March 2025 At 31 March 2025 Base case average 2025 - 2030 Downside 2 global Macro-economic scenarios Downside 1 synchronised % 2025/2026 2026/2027 2027/2028 2028/2029 2029/2030 Upside Base case trade war downturn UK GDP growth 1.0 1.7 1.8 1.8 1.9 2.1 1.7 0.4 0.4 UK & Un
Slide 45: Investec
Investec Our purpose is to create Investec is a distinctive bank and We are a people backed business, enduring worth wealth manager, operating in two our distinction is embodied in our core geographies entrepreneurial culture Partner for the long term, guided by Rich heritage in Private Banking, Sup
Slide 46: Our strategic objectives
Our strategic objectives Growth Objectives Continued execution with Accelerate and scale Further develop connected discipline to drive growth initiatives client eco-systems across optimisation of returns business units & geographies Underpinned by Deepening our entrepreneurial culture (Out of the or
Slide 47: A distinctive banking and wealth management business
A distinctive banking and wealth management business creating sustainable, long-term value for our stakeholders Funds under management Principal geographies Total Employees Core loans Customer deposits IW&I SA Rathbones Group plc 2 c.7 900+ £32.4bn £41.2bn £23.4bn FUMA*: £104.1bn Key client groups a
Slide 48: Geographic highlights
Geographic highlights UK & Other SA Loan book £16.8bn ▲ 1.4% £15.6bn ▲ 8.6% (▲ 7.6% in Rands) Deposits £21.4bn ▲ 3.2% £19.7bn ▲ 5.2% (▲ 4.2% in Rands) FUM £104.1bn Rathbones Group plc FUMA* £23.4bn ▲ 11.8% (▲ 10.8% in Rands) Adjusted £457.0mn ▲ 0.3% £463.0mn ▲ 7.9% operating profit (▲ 6.7% in Rands)
Slide 49: Divisional highlights
Divisional highlights UK & Other Southern Africa Specialist Bank Specialist Bank Loan book Deposits Loan book Deposits grew by 1.4% to grew by 3.2% to up 7.6% to up 4.2% to £16.8bn £21.4bn R369.8bn R468.1bn Continued client acquisition and Adjusted operating profit Strong growth in Residential Adjus
Slide 50: Diversified, quality revenue mix across geographies and businesses
Diversified, quality revenue mix across geographies and businesses By Geography By Division 1% 10% Mar-25 Mar-25 Operating income^ up 5.0% to 47% 53% £2 190.5mn 89% 2% 12% Adjusted operating profit* 49% up 4.0% to 51% £970.0mn 86% Southern Africa UK and other Wealth & Investment Specialist Banking G
Slide 51: UK & Other net core loans up 1.4% to £16.8bn
Mar-24 Mar-25 £’mn HNW & Other private 5 500 client lending Property Corporate & Other Lending 5 129 5 000 4 500 4 000 UK & Other net core 3 500 loans up 1.4% to £16.8bn 3 000 2 733 2 500 2 334 2 117 • Growth in the UK residential mortgage 2 000 lending portfolio, while the corporate 1 563 lending s
Slide 52: Southern Africa net core loans up 7.6% to R369.8bn
Mar-24 Mar-25 R’bn HNW & Other private client lending Property Corporate & Other Lending 120 Southern Africa net core 103 loans up 7.6% to R369.8bn 100 92 85 80 • Private Client loan book up 5.5% with strong growth in residential mortgages 60 57 • Strong growth from Listed Corporate lending, Energy
Slide 53: Committed to our purpose to create enduring worth
Committed to our purpose to create enduring worth Sustainability is deeply embedded in our culture and purpose, and we are committed to living in society, not off it Amidst divergent views We firmly believe that financial institutions have a crucial role to play in addressing the pressing challenges
Slide 54: Highlights: Investec's commitment to society and the environment
Highlights: Investec’s commitment to society and the environment Commercial activity Philanthropic activity Own operations Prioritising the development of the mid-market sector – Investec Promaths We pursue diversity and strive to a crucial driver of job creation and economic growth has supported cr
Slide 55: Investec's sustainability awards and recognition
Investec’s sustainability awards and recognition INSEAD Alumni PWM Global Private 2025 Euromoney Balance in Business Banking Awards awards Awards 2024 2022 & 2023 For a third consecutive year, Recognised as Africa’s best Awarded best FTSE 250 Ranked 1st for Best Investec has been recognised for Phil
Slide 56: Group Investments
Group Investments Group Investments pillar consists of equity investments held outside the Group’s banking activities Carrying Income % £’mn value yield Holding Ninety One 134 15.0% 10.0% Burstone Group (formerly IPF) 54 52.7% 19.3% The Bud Group Holdings 106 1.1% 36.4% (formerly IEP) Equity investm