Investec Plc · LSE:INVP
Investec — Investor Presentation (March 2007)
17 slides from Investec's investor presentation, Mar 22, 2007
Slide 1: Investec a distinctive specialist banking group
Investec a distinctive specialist banking group Investor pre-close briefing 22 March 2007 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:
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 2007 and compare 1H07 vs 2H07 • Investec will release its results for the year to 31 March 2007 on 17 May 2007 Page 2
Slide 3: Operating environment
Operating environment % move 28 Feb 2007 30 Sept 2006 31 Mar 2006 since Sept JSE ALSI 25 796 22 375 20 352 15.3% FTSE ALSI 3 198 3 050 3 048 4.8% Australian All Ord 5 817 5 113 5 087 13.7% SA Prime 12.50% 11.50% 10.50% 1.00% UK Clearing Banks 5.25% 4.75% 4.50% 0.50% RBA cash rate target 6.25% 6.00%
Slide 4: Private Banking; Private Client Portfolio Management and Broking
Private Banking • Strong performance across all Loan portfolio geographies – with SA and Since 31 Mar 2006: Australia doing particularly well in ▲ 7.9% to £6.6bn 2H07 Neutral Currency:▲28.1% to £7.9bn • UK very strong year on year £'bn performance although 2H07 will 7 be marginally weaker than 1H07
Slide 5: Treasury and Specialised Finance; Investment Banking
Treasury and Specialised Finance • Pipeline and levels of activity have Loan portfolio been high across the advisory, lending and debt capital markets Since 31 Mar 2006: ▲10.6% to £3.3bn areas Neutral Currency:▲26.6% to £3.8bn • Benefiting from the integration of £'bn Rothschilds business in Austral
Slide 6: Asset Management; Property Activities
Asset Management • Earnings growth continues to Assets under management be enhanced by the momentum Since 31 Mar 2006: of UK and international ▼7.1% to £29.4bn Neutral Currency: ▲9.9% to £34.8bn business • Solid long term investment £’bn 35 performance • Strong growth in retail AUM 30 • Significantl
Slide 7: Other Activities
Other Activities • Central Funding stronger performance: – Largely due to improved earnings on the underlying assets in the South African shareholders portfolio • Central Costs – largely in line with 1H07 Additional aspects Page 7
Slide 8: Summary headcount by business; Other information
Summary headcount by business 28 Feb 30 Sept 31 Mar 31 Mar 31 Mar 2007 2006 2006 2005 2004 Private Banking 1 819 1 692 1 598 1 280 1 150 Private Client Portfolio Management and Stockbroking 190 176 167 415 472 Treasury and Specialised Finance 654 596 530 445 434 Investment Banking 332 314 287 245 27
Slide 9: Conclusion
Conclusion Conclusion Strong growth in Strong growth in net fees and net interest commissions income Decline in Decline in other revenue from (largely life principal income) transactions Balance operational risk Pools of Pools of third businesses with financial proprietary party assets risk business
Slide 10: Conclusion
Conclusion • As a consequence… – Strong operational performance expected for 2H07 – On track to deliver a strong performance for the financial year • Momentum has continued in the majority of our businesses • Well placed to once again deliver on our financial targets and objectives • Whilst financia
Slide 11: Operating profit before tax, goodwill and non-operating items
Operating profit before tax, goodwill and non-operating items: for the six months ended 30 September 2006 Southern UK & Total IFRS £'000 Africa Europe Australia Other group Private Banking 17,424 50,476 5,720 - 73,620 Private Client Portfolio Management and Stockbroking 5,664 4,074 * - - 9,738 Treas
Slide 12: Private Banking: retail deposits; funds under advice
Private Banking: retail deposits % Change 28 Feb 30 Sept 31 Mar 30 Sept 1 Apr YTD vs £'million 2007 2006 2006 2005 2005 Mar 2006 UK and Europe 3,375 3,194 2,921 2,401 2,047 15.5% South Africa 1,745 1,596 1,650 1,258 1,035 5.8% Australia 265 240 202 217 182 31.2% Total deposits 5,385 5,030 4,773 3,87
Slide 13: Treasury and Specialised Finance: loans and advances
Treasury and Specialised Finance: loans and advances % Change 28 Feb 30 Sept 31 Mar 30 Sept 1 Apr YTD vs £'million 2007 2006 2006 2005 2005 Mar 2006 UK and Europe 1,702 1,596 1,109 1,080 743 53.5% Loans 1,169 1,330 937 1,002 743 24.8% Assets to be securitised/warehouse assets 533 266 172 78 - >100.0
Slide 14: Investec Asset Management: assets under management
Investec Asset Management: assets under management* % Change 28 Feb 30 Sept 31 Mar 30 Sept 1 Apr YTD vs £'million 2007 2006 2006 2005 2005 Mar 2006 UK and international 12,839 11,874 11,820 10,685 9,244 8.6% Retail 6,818 6,296 6,126 4,964 3,680 11.3% Institutional 6,021 5,578 5,694 5,721 5,564 5.7%
Slide 15: Investec: total third party assets under management
Investec: total third party assets under management % Change 28 Feb 30 Sept 31 Mar 30 Sept 1 Apr YTD vs £'million 2007 2006 2006 2005 2005 Mar 2006 Private Banking funds under advice 2,393 1,932 1,888 1,487 1,073 26.8% South Africa 1,166 924 1,006 809 532 15.9% UK and Europe 934 762 642 459 362 45.5
Slide 16: Investec Asset Management: investment performance
Investec Asset Management: UK and global institutional investment performance 100% 75% 50% 25% 0% 6 months 1 year 2 years p.a. 3 years p.a. Above benchmark Below benchmark Performance to 28 February 2007 Source: Calculated from Standard & Poors, WM Spectrum, Lipper Hindsight data Investec Asset Mana
Slide 17: Contact details
Investec Asset Management: SA institutional investment performance 100% 75% 50% 25% 0% 6 months 1 year 3 years p.a. 5 years p.a. Above benchmark Below benchmark Performance to 28 February 2007 Source: Calculated from SPA, Alexander Forbes, Datastream data Contact details • For further information pl