Investec Plc · LSE:INVP
Investec — Corporate Update (September 2006)
17 slides from Investec's corporate update, Sep 14, 2006
Slide 1: Investec a distinctive specialist banking group
Investec a distinctive specialist banking group Investor pre-close briefing – 14 September 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 limit
Slide 2: Operational review
Operational review • Proviso: unless otherwise stated, figures and trends discussed in the operational review relate to the five month period to 31 August 2006 (i.e. 1H07) and are intended to compare 1H07 vs 1H06 2
Slide 3: Operating environment
Operating environment % move 31 Aug 2006 31 Mar 2006 30 Sept 2005 since Mar JSE ALSI 21 670 20 352 16 876 ▲6.5% FTSE All Share Index 2 996 3 048 2 746 ▼1.7% Australian All Ord 5 034 5 087 4 593 ▼1.0% SA Prime 11.50% 10.50% 10.50% ▲1.0% UK Clearing Banks 4.75% 4.50% 4.50% ▲0.25% RBA cash rate target
Slide 4: Private Banking; Private Client Portfolio Management and Broking
Private Banking • Very strong performance Loan portfolio Since 31 Mar 2006: • Benefiting from growth ▼1.8% to £6.0bn strategy with continued Neutral Currency:▲13.7% to £7.0bn Ave 1H07: 1H06: ▲30.0% penetration in all areas of specialisation £'bn 7 • Good momentum in lending 6 turnover and transactio
Slide 5: Treasury and Specialised Finance; Investment Banking
Treasury and Specialised Finance • Pipeline and levels of activity have Loan portfolio been good across the advisory, Since 31 Mar 2006: lending, debt capital markets and ▲0.2% to £3.0bn structured derivative areas (trading) Neutral Currency:▲12.4% to £3.4bn Ave 1H07: 1H06: ▲31.4% • Initiatives unde
Slide 6: Asset Management; Property Activities
Asset Management • Earnings growth enhanced by Assets under management momentum of UK and Since 31 Mar 2006: ▼14.9% to £26.9bn international business Neutral Currency: ▼1.9% to £31.1bn Ave 1H07: 1H06: ▲17.2% • Solid long term investment £’bn performance 35 • Good demand for high potential 30 25 prod
Slide 7: Other Activities; Additional aspects
Other Activities • Central Funding weaker performance: – Negative market impact on underlying assets in the SA shareholders portfolio – UK impacted by hedging loss on the translation of the Euro prefs (equal and opposite effect reflected in the minority interest line) • Central Costs – marginally up
Slide 8: Summary headcount by business; Other information
Summary headcount by business 31 Aug 31 Mar 31 Mar 31 Mar 2006 2006 2005 2004 Private Banking 1 729 1 598 1 280 1 150 Private Client Portfolio Management and Stockbroking 174 167 415 472 Treasury and Specialised Finance 623 530 445 434 Investment Banking 294 287 245 275 Asset Management 840 790 723
Slide 9: Conclusion
Conclusion Conclusion • Continue to penetrate core markets • Key earnings drivers are significantly higher than the equivalent period last year 9
Slide 10: 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 businesses with financial proprietary third party risk businesses to build a asse
Slide 11: Appendices: Operating profit before tax by division
Appendices 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 3,77
Slide 12: Private Banking: loans and advances; retail deposits
Private Banking: loans and advances % Change Aug vs £'million 31 Aug 2006 31 Mar 2006 30 Sept 2005 1 Apr 2005 Mar 2006 UK and Europe 2,136 1,978 1,657 1,522 8.0% South Africa 3,446 3,800 3,084 2,483 -9.3% Australia 463 380 345 297 21.8% Total loans 6,045 6,158 5,086 4,302 -1.8% % Change Aug vs Home
Slide 13: Private Banking funds under advice; Treasury and Specialised Finance loans
Private Banking: funds under advice % Change Aug vs Mar £'million 31 Aug 2006 31 Mar 2006 30 Sept 2005 1 Apr 2005 2006 UK and Europe 716 642 459 362 11.5% South Africa 935 1,006 809 532 -7.1% Australia 244 240 219 179 1.7% Funds under advice 1,895 1,888 1,487 1,073 0.4% % Change Aug vs Mar Home curr
Slide 14: SA Private Client Securities AUM; Investec Asset Management AUM
SA Private Client Securities: assets under management % Change Aug vs R'million 31 Aug 2006 31 Mar 2006 30 Sept 2005 1 Apr 2005 Mar 2006 Discretionary 14,595 14,339 11,698 7,428 1.8% Non-discretionary 70,811 69,748 57,737 34,557 1.5% Total 85,406 84,087 69,435 41,985 1.6% % Change Aug vs £'million 3
Slide 15: Total third party assets under management; UK and global retail
Investec: total third party assets under management % Change Aug vs £'million 31 Aug 2006 31 Mar 2006 30 Sept 2005 1 Apr 2005 Mar 2006 Private Banking funds under advice 1,895 1,888 1,487 1,073 0.4% SA 935 1,006 809 532 -7.1% UK and Europe 716 642 459 362 11.5% Australia 244 240 219 179 1.7% Private
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 31 July 2006 Source: Calculated from Standard & Poors, WM Spectrum, Lipper Hindsight data Investec Asset Manageme
Slide 17: SA institutional investment performance; 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 31 July 2006 Source: Calculated from SPA, Alexander Forbes, Datastream data Contact details • For further information please