Investec Plc · LSE:INVP
Investec — Investor Presentation (March 2006)
22 slides from Investec's investor presentation, Mar 23, 2006
Slide 1: Investec a distinctive specialist banking group
Investec a distinctive specialist banking group Investor pre-close briefing - 23 March 2006 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 t
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 2006 and compare 1H06 vs 2H06 2
Slide 3: Favourable operating environment
Favourable operating environment % move 28 Feb 2006 30 Sept 2005 31 Mar 2005 since Sept JSE ALSI 19 085 16 876 13 299 13.1% FTSE All Share Index 2 956 2 746 2 458 7.6% Australian All Ord 4 878 4 593 4 100 6.2% SA Prime 10.50% 10.50% 11.00% - UK Clearing Banks 4.50% 4.50% 4.75% - RBA cash rate target
Slide 4: Private Banking; Private Client Portfolio Management and Broking
Private Banking • The Private Banking Loan portfolio operations in all geographies £'bn 6 have performed well Up 37.9% to £5.9bn 5 since 1 Apr 2005 • Momentum in lending turnover 4 and transactional activity has 3 continued to drive performance 2 • Notable increase in Growth 1 and Acquisition Financ
Slide 5: Treasury and Specialised Finance; Investment Banking
Treasury and Specialised Finance • Pipeline of activity has been good Loan portfolio across the advisory and £'bn structuring areas 3 Up 41.0% to £2.8bn • Growth in core advances since 1 Apr 2005 continues to be underpinned by: 2 – strong activity in the UK Acquisition Finance and SA 1 lending divis
Slide 6: Asset Management; Property Activities
Asset Management • Favourable market conditions Funds under management and performance fees £’bn 35 contribute to earnings growth 30 Up 33.9% to £30.7bn since 1 Apr 2005 • Highly saleable investment 25 performance across the board 20 15 • Strong international net inflows 10 predominantly from mutual
Slide 7: Other Activities; Additional aspects
Other Activities • Central Funding continues to be positively impacted by: – Increased cash holdings following corporate actions concluded – Strong performance of the underlying assets in the SA shareholders portfolio • Central costs will increase due to performance related remuneration Additional a
Slide 8: Summary headcount by business; Other information
Summary headcount by business 28 Feb 31 Mar 31 Mar 31 Mar 2006 2005 2004 2003 Private Banking 1 602 1 280 1 150 1 121 Private Client Portfolio Management and Stockbroking 163 415 472 544 Treasury and Specialised Finance 522 445 434 474 Investment Banking 289 245 275 336 Asset Management 785 723 784
Slide 9: Conclusion: Sustainable business model
Conclusion Sustainable business model Balance operational risk businesses Pools of with financial risk businesses to Pools of third party build a sustainable business model proprietary assets risk capital Core advisory businesses Core banking businesses Securitisation Talent management Networking an
Slide 10: Sustainable business model
Sustainable business model Third party assets under management up 52.9% to £51.8 billion £’bn 60 50 40 30 20 Pools of 10 proprietary 0 risk capital 1996 1998 2000 2002 2004 Feb-06 Core advisory businesses Core banking businesses Securitisation Talent management Networking and distribution Sustainabl
Slide 11: Sustainable business model; Conclusion
Sustainable business model Third party assets under management Core loans and advances up 38.9% up 52.9% to £51.8 billion to £8.7 billion £’bn £’bn 60 10 50 8 40 6 30 4 20 10 2 0 0 1996 1998 2000 2002 2004 Feb-06 1996 1998 2000 2002 2004 Feb-06 Core advisory businesses Core banking businesses Securi
Slide 12: Gaining recognition: Private Banking; Treasury and Specialised Finance
Gaining recognition…Private Banking Nominated as the “Best Private Bank Internationally for Innovative Products and Services” The Private Banker International Awards 2005 Gaining recognition... Treasury and Specialised Finance “Leading bank advisor” (by number of closed projects in the EMEA region,
Slide 13: Gaining recognition... Investment Banking
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Slide 14: Gaining recognition: Investment Banking; Asset Management
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Slide 15: Conclusion
Conclusion • Strong performance from all our businesses • Not only benefited from favourable market conditions • Quality of business is good • Outlook positive on the basis of our expectation that global economic and financial conditions remain stable Appendices 15
Slide 16: Operating profit before tax by division, six months to 30 September 2005
Operating profit before tax, impairment of goodwill and non-operating items: for the six months ended 30 September 2005 Southern UK & Total IFRS £'000 Africa Europe Australia Other group Private Banking 12 473 24 676 5 183 - 42 332 Private Client Portfolio Management and Stockbroking 3 771 3 953* -
Slide 17: Private Banking: retail deposits; Treasury and Specialised Finance loans
Private Banking: retail deposits % Change YTD £'million 28 Feb 2006 30 Sept 2005 1 April 2005 vs April 2005 UK and Europe 2 677 2 401 2 047 30.8% South Africa 1 618 1 258 1 035 56.3% Australia 217 217 182 19.4% Total deposits 4 512 3 876 3 264 38.2% Home currency % Change YTD 'million 28 Feb 2006 30
Slide 18: Private Banking and Treasury loans and advances; SA Private Client Securities
Private Banking and Treasury and Specialised Finance: loans and advances % Change YTD £'million 28 Feb 2006 30 Sept 2005 1 April 2005 vs April 2005 Total Private Bank 5 933 5 086 4 302 37.9% UK and Europe 1 857 1 657 1 522 22.0% South Africa 3 679 3 084 2 483 48.2% Australia 397 345 297 33.7% Total
Slide 19: Investec Asset Management: assets under management
Investec Asset Management: assets under management % Change YTD £'million 28 Feb 2006 30 Sept 2005 1 April 2005 vs April 2005 UK and international 11 609 10 685 9 244 25.6% Retail 5 866 4 964 3 680 59.4% Institutional 5 743 5 721 5 564 3.2% Southern Africa 19 063 16 400 13 669 39.5% Retail 5 476 4 5
Slide 20: Investec Asset Management: UK and global investment performance
Investec Asset Management: UK and global retail investment performance One year Three years 4th Quartile 9.3% 4th Quartile 20.0% 1st Quartile 30.0% 3rd Quartile 1st Quartile 20.9% 41.9% 3rd Quartile 17.5% 2nd Quartile 2nd Quartile 27.9% 32.5% Performance to 28 February 2006 Source: Calculated from L
Slide 21: Investec Asset Management: SA investment performance
Investec Asset Management: SA retail investment performance One year Three years 4th Quartile 4th Quartile 1st Quartile 11.1% 13.3% 16.7% 3rd Quartile 3rd Quartile 1st Quartile 16.7% 13.3% 40.1% 2nd Quartile 2nd Quartile 55.5% 33.3% Performance to 28 February 2006 Source: Calculated from Standard &
Slide 22: Contact details
Contact details • For further information please refer to the investor relations website: www.investec.com/grouplinks/investorrelations • Or contact the investor relations team: – Telephone: • UK: +44 207 597 5546 • SA: +27 11 286 7070 – E-mail: investorrelations@investec.com 22