Investec Plc · LSE:INVP
Investec — Investor Presentation (May 2025)
45 slides from Investec's investor presentation, May 2025
Slide 1: Creating enduring worth: Investec plc investor generic presentation
Creating enduring worth Investec plc Investor generic presentation May 2025 The information in this presentation relates to the year ended 31 March 2025, unless otherwise indicated.
Slide 2: Contents
Contents 01 Investec Group 02 03 04 05 Overview Investec plc Further Appendix at a glance of Investec plc operating information and fundamentals peer analysis 2 2
Slide 3: Investec Group at a glance
Investec Group at a glance 3
Slide 4: Dual Listed Company structure
Investec Dual Listed Company structure Non-Southern African operations Southern African operations • Investec plc and Investec Limited are separate legal entities and listings, but are Investec plc Investec Ltd bound together by contractual agreements and mechanisms Sharing Agreement • Investec oper
Slide 5: Our international footprint
Our international footprint Wealth & Investment Activities Since inception, we have Private Client Banking Activities expanded through a combination of substantial organic growth and Corporate and Investment Banking Activities a series of strategic acquisitions. Corporate Advisory and Investment Act
Slide 6: One Investec
One Investec Our purpose is to create enduring worth. Our values 50 years of Deep client partnerships, built on trust and Out of the Ordinary service, are the bedrock of our business heritage. We uphold cast-iron integrity in all our dealings, consistently displaying moral strength Two core We seek
Slide 7: Investment proposition
Investment proposition Well positioned to pursue long-term growth 1 Well capitalised and highly liquid balance sheet 2 Committed to optimising shareholder returns – managing capital dynamically and allocating it to activities that generate returns above cost of capital 3 Diversified mix of earnings
Slide 8: Fuelling a robust growth agenda
Fuelling a robust growth agenda 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
Slide 9: Our pathway to Net Zero by 2050
Our pathway to Net Zero by 2050 Three channels of impact FY25 loan book exposure: Coal: 0.05% (down from 0.08% in FY24) 1 Meeting our fossil fuel exposure commitments Fossil fuels: 1.07%* (down from 1.90% in FY24) 2 Driving sustainable and transition finance activities Targeting £18bn by 2030 3 Infl
Slide 10: Investec's commitment to society and the environment
Highlights: Investec’s commitment to society and the environment Commercial activity Philanthropic activity Own operations Investec Promaths We pursue diversity and strive to Prioritising the development of the mid-market sector – has supported a crucial driver of job creation and economic growth cr
Slide 11: Overview of Investec plc
Overview of Investec plc 3 3
Slide 12: Investec plc key highlights
Investec plc The Investec Group was established in 1974 and has been operating in the UK for more than 30 years since 1992. Total assets Net core loans Customer deposits FUMA Employees £29.8bn £16.8bn £21.5bn Rathbones Group Plc* £104.1bn at 31 March 2025 2 300+ Key highlights Diversified revenue st
Slide 13: Strategic positioning
Strategic positioning Building scale & relevance with the client at the centre – creating enduring worth DELIVERING A UNIQUE BREADTH OF CAPABILITIES IN THE UK MID-MARKET “Hi-tech & Hi-touch” Private Private Private Client Companies Equity Enhanced by the strategic partnership with Rathbones Group Li
Slide 14: Specialist Banking
Specialist Banking Winning in under-serviced parts of the market through dynamic, full service offering Private equity and sponsor- Private clients Private companies Publicly listed companies Specialist sectors backed companies For UK mid-market founder For high net worth clients that For UK mid-mar
Slide 15: Investec plc ranks 7th for UK banks by revenue and 8th by profits
Investec plc ranks 7th for UK banks by revenue and 8th by profits • Investec plc is a substantial business generating strong and consistent revenues over many years • Investec plc revenue during the 6 months to 30 September 2024 totaled £587mn (£1,174mn annualised). The chart below shows the relativ
Slide 16: Investec plc's operating fundamentals
Investec plc’s operating fundamentals 8
Slide 17: Profitability supported by diversified revenue streams
Profitability supported by diversified revenue streams Revenue mix (£'mn) 1 400 1 206 1 189 1 200 1 000 800 600 Other operating income Trading income 400 Share of post taxation profit of associates and joint venture holding 200 Investment income Net fee and commisssion income 0 Net interest income 2
Slide 18: Cost to income ratio decreasing overtime
Cost to income ratio decreasing overtime Costs and cost to income ratio (£'mn) 1000 900 77.5% 800 700 657 632 65.1% 600 500 54.5% 53.1% 400 57.8% 300 200 Operating costs (LHS) 100 Cost to income ratio (RHS) 0 2021 2022 2023 2024 2025 • Focused on managing costs while building for the future ◦ Contin
Slide 19: Profitability supported by diversified revenue streams
Profitability supported by diversified revenue streams Adjusted operating profit1 (£'mn) Business mix percentage contribution to adjusted operating profit1 600 2% 2% 14% 15% 400 Mar 25 Mar 24 200 0 83% 83% 2021 2022 2023 2024 2025 Adjusted operating profit Specialist Banking Wealth & Investment Grou
Slide 20: Specialist capabilities with exposures in select target markets
Specialist capabilities with exposures in select target markets • Focus remains on deployment of capital into core business activities and ensuring that concentration risk to certain asset types, industries and geographies is prudently managed, mitigated and controlled • Our portfolios have performe
Slide 21: Consistent asset growth, gearing ratios remain low
Consistent asset growth, gearing ratios remain low Total assets composition Gearing1 remains low £'bn 50.0 12 10.4 10.4 9.9 10 40.0 8.7 8.5 20.4 20.7 8 30.0 4.7 4.3 6 5.7 5.4 5.6 4.9 4.8 4.8 9.7 9.1 20.0 8.6 8.9 4 6.9 10.0 15.6 16.6 16.8 2 12.3 14.4 0.0 0 2021 2022 2023 2024 Sept 24 2021 2022 2023 2
Slide 22: 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 lending segment
Slide 23: Unpacking the credit loss ratio
Unpacking the credit loss ratio 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 31 March Gross core loans* (£'mn) 14 181 1 391 531 16 103 E
Slide 24: Asset quality metrics
Asset quality metrics Asset quality metrics reflect the solid performance of core loans to date Balance sheet ECL provisions (£’mn) Gross core loans by Stage (£’mn) 200 1500 111 101 100 100 75 67 1000 Stage 1 42 32 33 Stage 2 35 31 43 1242 1321 1391 1328 2021 Stage 3 27 32 39 34 0 500 992 2022 2021
Slide 25: Investec plc – Diversified funding strategy
Investec plc – Diversified funding strategy Credit Ratings Conservative and prudent funding strategy 1 Maintaining a high base of high-quality liquid assets • On 23 August 2024, Moody's affirmed IBP's long-term deposit rating at A1 and Investec plc’s rating at Baa1. The outlook for Investec plc has
Slide 26: Primarily customer deposit funded with low loan to deposit ratio
Primarily customer deposit funded • Loans as a percentage of customer deposits with low loan to deposit ratio remains conservative at 78.4% • Customer deposits have grown by 40% (9% CAGR) since 2021 to £21.5bn at 31 March 2025 • Low usage of central bank funding schemes as a Fully self funded: conse
Slide 27: Maintaining robust surplus liquidity
Maintaining robust surplus liquidity • We maintain a high level of readily available high quality liquid assets – Cash and near cash composition targeting a minimum cash to customer deposit ratio of 25%. These balances 3.5% amounted to £9.1bn at 31 March 2025 9.2% • At 31 March 2025 the Liquidity Co
Slide 28: Sound capital ratios in excess of internal and regulatory minimums
Sound capital ratios in excess of internal and regulatory minimums Robust headroom of 3.6% above the MDA threshold based on the latest regulatory requirements Capital ratios : Investec plc Minimum CET 1 requirement % 5 31 March 2025 31 March 20241 Target 15% Investec plc: lowest min CET 1 12.2% 12.0
Slide 29: We inherently hold more capital per unit of risk
Investec plc: We inherently hold more capital per unit of risk As we use the standardised approach for RWA calculations, our capital ratios are not directly comparable with peers RWA density – Total RWA / Total Assets CET 1 / Total Assets (%) 75% 10% 8% 50% 6% 25% 4% 0% 2% 2021 2022 2023 2024 2025 2
Slide 30: Further information and peer analysis
Further information and peer analysis 22
Slide 31: UK high net worth banking: journey to scale
Private Clients UK high net worth (HNW) banking: journey to scale Journey to profitability Growth £’mn Mar 25** Mar 24 Mar 23 6 5 Revenue 100.6 112.9 135.5 5.2 Loan book (£’bn) 5.0 4 ECL impairments (5.6) (4.3) (6.3) 3 2 Costs (47.9) (49.9) (59.0) 1 Profit 47.1 58.7 70.2 0 2021 2022 2023 2024 2025**
Slide 32: Investec Bank plc: peer group comparisons
Investec Bank plc: peer group comparisons Funding: Loans and advances to customers as a % Credit loss ratio: ECL impairment charges as a % of average core loans of customer deposits (smaller number is better) and advances (smaller number is better) 1.00 1.00 109.6% 109.2% 95.3% 92.3% 100% 78.4% 0.60
Slide 33: Appendix
Appendix 05 25
Slide 34: IFRS 9 macro-economic scenario forecasts
IFRS 9 macro-economic scenario forecasts For Investec plc, four macro-economic scenarios are used in the measurement of ECL. These scenarios incorporate a base case, an upside case and two downside cases. The table below shows the key economic factors that form part of the UK and Other macro-economi
Slide 35: Investec plc: salient financial features (statutory)
Investec plc: salient financial features (statutory) Key financial statistics 31 March 2025 31 March 2024 % Change Operating income (£’000) 1 154 666 1 147 956 0.6 % Operating costs (£’000) 631 810 656 599 (3.8)% Adjusted operating profit (£’000) 460 103 462 268 (0.5%) Earnings attributable to ordin
Slide 36: Investec plc: Statutory Income Statement
Investec plc: Statutory Income Statement £'000 31 March 2025 31 March 2024 % Change Interest income 1 960 100 1 914 473 2% Interest expense (1 185 447) (1 103 546) 7% Net interest income 774 653 810 927 (4)% Fee and commission income 194 743 173 213 12 % Fee and commission expense (13 911) (16 451)
Slide 37: Investec plc: Pro-forma Income Statement
Investec plc: Pro-forma Income Statement Given the nature of the IW&I UK all-share combination with Rathbones, the Group essentially retains similar economic interest to this investment before and after the transaction. In order to provide information that will be more comparable to the future prese
Slide 38: Investec plc: Balance Sheet
Investec plc: Balance Sheet £'000 31 Mar 2025 31 Mar 2024 Assets Cash and balances at central banks 4 191 750 5 661 623 Loans and advances to banks 860 267 676 464 Reverse repurchase agreements and cash collateral on securities borrowed 1 640 765 1 140 115 Sovereign debt securities 2 524 702 1 928 1
Slide 39: Investec plc: Balance Sheet (continued)
Investec plc: Balance Sheet (continued) £'000 31 Mar 2025 31 Mar 2024 Liabilities Deposits by banks 1 477 568 2 174 305 Derivative financial instruments 274 791 409 255 Other trading liabilities 16 242 18 449 Repurchase agreements and cash collateral on securities lent 178 202 85 091 Customer accoun
Slide 40: Statutory segmental analysis of operating profit
Investec plc: Statutory segmental analysis of operating profit Specialist Banking For the year ended 31 March 2025 Wealth & Group £'000 Investment Private Banking CIB & Other Investments Group Costs Total Group Net interest income 7 381 96 639 670 633 — — 774 653 Fee and commission income 10 424 979
Slide 41: Statutory segmental analysis of operating profit (continued)
Investec plc: Statutory segmental analysis of operating profit (continued) Specialist Banking For the year ended 31 March 2024^ Wealth & Group £'000 Investment Private Banking CIB & Other Investments Group Costs Total Group Net interest income 8 340 107 268 695 319 — — 810 927 Fee and commission inc
Slide 42: Investec plc: asset quality under IFRS 9
Investec plc: asset quality under IFRS 9 £‘mn 31 Mar 2025 31 Mar 2024 Gross core loans 16 956 16744 Gross core loans at FVPL 572 641 Gross core loans subject to ECL1 16 384 16103 Stage 1 14 520 14181 Stage 2 1 328 1391 of which past due greater than 30 days 60 150 Stage 3# 536 531 ECL^ (165) (187) S
Slide 43: Investec plc: capital adequacy
Investec plc: capital adequacy * * £‘mn 31 Mar 2025 31 Mar 2024 Tier 1 Capital Shareholders’ equity 3 042 2 917 Non-controlling interests — — Regulatory adjustments to the accounting basis (8) (3) Deductions (674) (677) Common equity tier 1 capital 2 360 2 237 Additional Tier 1 instruments 350 458 *
Slide 44: Investec Group's sustainability awards and recognition
Investec Group’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 fo
Slide 45: Investec plc sustainability highlights
Investec plc sustainability highlights Operate responsibly, finance and invest in a sustainable future and maintain our competitive sustainability position PROGRESS MADE ON OUR IMPACT SDGs Net-zero commitments Equality commitments Achieved our commitment of zero coal exposure in Awarded best FTSE 25