Investec Plc · LSE:INVP
Investec — Investor Presentation (March 2010)
19 slides from Investec's investor presentation, Mar 18, 2010
Slide 1: Investor pre-close briefing
Investor p pre-close briefing g 18 March 2010 Proviso • Please note that matters discussed in today’s 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 p of stan
Slide 2: Operational review
Operational p review • Proviso: unless otherwise stated stated, figures and trends discussed in the operational review relate to the eleven month period to 28 February 2010 and compare 1H10 vs 2H10 • References to operating profit relate to normalised* operating profit. Trends within the divisional
Slide 3: Overview of the financial year ending 31 March 2010
Overview of the financial year ending 31 March 2010 • The group group’s s recurring revenue base and operational diversity continue to support profitability in all three core geographies • The global economy continues to show signs of recovery, however, operating fundamentals remain mixed with activ
Slide 4: Sound balance sheet and diversified business model
Sound balance sheet and diversified business model • Supported by: – Healthy capital ratios º We target a total capital adequacy ratio of 14% to 17% and a Tier 1 ratio of 11% º Capital ratios are within our target range across all geographies Expected 30 Sep 2009 31 Mar 2009 capital adequacy ratios
Slide 5: Sound balance sheet: low leverage ratios
Sound balance sheet and diversified business model • Supported by: – Low leverage ratios 28 Feb 30 Sep 31 Mar 2010 2009 2009 Core loans to capital ratio 5.7x 5.8x 6.2x Core loans* to customer deposits 83.6% 89.5% 103.6% Total gearing 12.3x 12.1x 12.9x Total gearing (excluding securitised 11.5x 11.2x
Slide 6: Overview of year on year performance
Overview of year on year performance • As expected, expected net interest income has been negatively impacted by lower average interest rates over the period • Lower levels of activity over the period have resulted in a decline in net fees and commissions receivable • The group has taken advantage o
Slide 7: Private Client Portfolio Management and Capital Markets
Private Client Portfolio Management and Stockbroking South Africa Funds£'bn under management*: up 33% to • Performing in line with 1H10 £21.6 bn £'bn Discretionary Non-discretionary *Since Since 31 March 2009 and includes £12 £12.3 3 bn of Rensburg Sheppards plc as reported in January 2010 Trends re
Slide 8: Kensington and Investment Banking
Kensington • Good performance from Kensington as house prices stabilise – performing slightly ahead of the prior year • The total book has decreased from £5.2 bn to £4.7 bn • Arrears have increased marginally as the book becomes more seasoned • Average LTVs have improved to 78% from 83% 15 Investmen
Slide 9: Asset Management and Property Activities
Asset Management • Record net flows in excess of Assets under management*: up 50% £4.5 bn across all distribution to £43.4 bn channels and a broad range of investment capabilities £'bn • Record assets under management for the business • Performing significantly ahead of 1H10 Retail Institutional *Si
Slide 10: Other Activities
Other Activities • Central Funding: – South Africa behind 1H10 largely due to lower average levels of interest rates – Good performance in the UK due to the debt purchase programme – not repeated in 2H10 • Central Costs: – Marginally ahead of 1H10, although in line with the prior year 19 Additional
Slide 11: Other information
Other information • Effective tax rate: expected to be approximately 21% • Weighted number of shares in issue for the year ended 31 March 2010 expected to be approximately y 686 mn 21 Conclusion
Slide 12: Conclusion
Conclusion • We have remained focused on managing our balance sheet whilst at the same time moving the organisation onto the front foot • Our steadyy and resilient pperformance throughout g the crisis,, coupled p with ongoing brand investment, strong growth in assets under management and a sound bal
Slide 13: Operating environment – improving
Operating environment – improving % move since 28 Feb 2010 30 Sep 2009 31 Mar 2009 Mar 2009 JSE ALSI 26,765 24,911 20,364 31.4% FTSE ALSI 2,737 2,635 1,984 38.0% A t li All O Australian Ord d 4 651 4,651 4 739 4,739 3 532 3,532 31 7% 31.7% SA Prime 10.50% 10.50% 13.00% (2.50%) UK Clearing Banks 0.50
Slide 14: Normalised operating profit: year ended March 09
Normalised* operating profit: For the year ended 31 March 2009 Southern UK & Europe Australia Total Africa group £’000 Pi t B Private Banking ki 35 954 35,954 42 034 42,034 2 475 2,475 80 463 80,463 Private Client Portfolio Management and 12,058 12,044 - 24,102 Stockbroking Capital Markets 61,150 78
Slide 15: Private Banking: retail deposits
Private Banking: retail deposits % Change 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar YTD vs Mar £'million 2010 2009 2009 2008 2008 2009 UK and Europe 5,939 4,888 4,077 3,687 3,961 45.7% South Africa 4,225 4,098 2,990 2,658 2,220 41.3% Australia 819 731 657 357 423 24.6% Total deposits 10,983 9,717 7,724 6,7
Slide 16: Capital Markets: loans and advances
Capital Markets: loans and advances % Change 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar YTD vs £'million 2010 2009 2009 2008 2008 Mar 2009 UK and Europe 2,081 2,099 2,241 2,164 1,997 -7.1% South Africa 2,660 2,630 2,393 2,051 1,658 11.2% Australia 166 160 167 142 141 -0.7% Total core loans 4,907 4,889 4,801
Slide 17: Investec Asset Management: assets under management
Investec Asset Management: assets under management* % Change Ch 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar YTD vs £'million 2010 2009 2009 2008 2008 Mar 2009 UK and international 20,164 17,583 13,108 14,229 13,834 53.8% Retail 10,167 8,770 5,116 5,545 6,406 98.7% Institutional 9,997 8,813 7,992 8,684 7,428
Slide 18: Investec Asset Management: investment performance
Investec Asset Management: UK and global institutional investment performance Performance to 28 February 2010. Source: Calculated from PerformaGlobal data. 35 Investec Asset Management: SA retail investment performance One year Three years Performance to 28 February 2010. Source: Calculated from Sta
Slide 19: Contact details
Investec Asset Management: SA institutional investment performance *Since GIPs inception Performance to 28 February 2010 Source: Calculated from StatPro data. 37 Contact details For further information please refer to the Investor Relations section of www.investec.com Or contact the Investor Relatio