Investec Plc · LSE:INVP
Investec — Corporate Update (September 2009)
19 slides from Investec's corporate update, Sep 17, 2009
Slide 1: Investor pre-close briefing
Investor pre-close briefing 17 September 2009 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: – the further development of standards and
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 2009 and compare 1H2010 vs 1H2009 • References to operating profit relate to normalised* operating profit. Trends within the divisional sections
Slide 3: Overview of the six months to 30 September 2009
Overview of the six months to 30 September 2009 • Operating fundamentals although improving remain mixed and activity levels below historic trends • Operating profits will be lower than that reported in 1H2009 but are ahead of 2H2009 • UK and European operating profits are ahead of the prior year an
Slide 4: Sound balance sheet and diversified business model
Sound balance sheet and diversified business model • Supported by: Surplus cash and near cash* – A liquidity management philosophy that has been in place for many years £'mn 7,000 – Continue to focus on: 6,000 º maintaining a high level of readily Average 5,000 available, high quality liquid assets
Slide 5: Sound balance sheet and diversified business model
Sound balance sheet and diversified business model • Supported by: Defaults and core loans – Credit and counterparty £'bn exposures to a select 4% 18 target market 16 – Continued strong focus on 3% 14 12 asset quality and credit risk 10 in all geographies 2% 8 – Impairments and defaults 6 1% have in
Slide 6: Divisional review
Divisional review Overview • As 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 of opportunities in
Slide 7: Private Banking; Private Client Portfolio Management and Stockbroking
Private Banking • Market conditions continue to Loan portfolio*: up 5% to £11.6 bn impact impairments, exits and £'bn activity levels resulting in 12 significantly lower operating 10 profit in 1H2010 across all 8 geographies 6 4 • Increased efforts on retail 2 deposit raising initiatives have 0 prov
Slide 8: Capital Markets; Kensington
Capital Markets • Reasonable levels of activity Loan portfolio*: down 1% to £4.8 bn across the advisory businesses £'bn 5 • Trading and balance sheet management activities have 4 been impacted by lower rate environment and declining 3 volatility 2 • Increase in impairments across 1 all geographies 0
Slide 9: Investment Banking; Asset Management
Investment Banking Agency and Advisory • Activity levels have started to improve but this is not yet reflected in earnings Principal Investments (Direct Investments and Private Equity) • South Africa Principal Investments continues to perform well • UK Principal Investments continues to be impacted
Slide 10: Property Activities; Other Activities
Property Activities • Reasonable performance from the investment property portfolio • Weaker property fundamentals, although opportunities exist to enhance value within the portfolio • We remain focused on building our property funds across all geographies 19 Other Activities • Central Funding: – We
Slide 11: Additional aspects
Additional aspects Other information • Effective tax rate: expected to be approximately 20% • Weighted number of shares in issue for the six months ended 30 September 2009 expected to be approximately 669 mn 22
Slide 12: Conclusion
Conclusion Conclusion • Over the past two years the group’s strategy has been defensive focusing on maintaining a sound balance sheet and increasing capital and liquidity • Given that the financial system appears to be stabilising, the group can now turn its attention to moving on to the front foot
Slide 13: Appendices: Operating environment – some signs of improvement
Appendices Operating environment – some signs of improvement % move since 31 Aug 2009 31 Mar 2009 30 Sep 2008 Mar 2009 JSE ALSI 24,929 20,364 23,836 22.4% FTSE ALSI 2,521 1,984 2,484 27.1% Australian All Ord 4,484 3,532 4,631 26.9% SA Prime 10.50% 13.00% 14.50% (2.50%) UK Clearing Banks 0.50% 0.50%
Slide 14: Normalised operating profit; Private Banking: loans and advances
Normalised* operating profit: For the six months ended 30 September 2008 Southern UK & Europe Australia Total Africa group £’000 Private Banking 22,614 35,080 5,532 63,226 Private Client Portfolio Management and 6,549 6,579 - 13,128 Stockbroking Capital Markets 31,212 39,488 1,430 72,130 Investment
Slide 15: Private Banking: retail deposits; funds under advice
Private Banking: retail deposits % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs Mar £'million 2009 2009 2008 2008 2009 UK and Europe 4,666 4,077 3,687 3,961 14.4% South Africa 3,882 2,990 2,658 2,220 29.8% Australia 664 657 357 423 1.0% Total deposits 9,212 7,724 6,702 6,604 19.3% % Change Home currenc
Slide 16: Capital Markets: loans and advances; SA Private Client funds under management
Capital Markets: loans and advances % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs Mar £'million 2009 2009 2008 2008 2009 UK and Europe 2,058 2,241 2,164 1,997 -8.2% South Africa 2,548 2,393 2,051 1,658 6.5% Australia 149 167 142 141 -10.6% Total core loans 4,755 4,801 4,358 3,796 -1.0% % Change Home c
Slide 17: Investec Asset Management: assets under management
Investec Asset Management: assets under management* % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs £'million 2009 2009 2008 2008 Mar 2009 UK and international 16,374 13,108 14,229 13,834 24.9% Retail 7,894 5,116 5.545 6,406 54.3% Institutional 8,480 7,992 8,684 7,428 6.1% Southern Africa 19,715 15,727
Slide 18: Investec Asset Management: investment performance
Investec Asset Management: UK and global institutional investment performance 100% 75% 50% 25% 0% 1 year 3 years p.a. 5 years p.a. since inception Above benchmark Below benchmark Performance to 31 August 2009. Source: Calculated from PerformaGlobal data. 35 Investec Asset Management: SA retail inves
Slide 19: Contact details
Investec Asset Management: SA institutional investment performance 100% 75% 50% 25% 0% 1 year 3 years p.a. 5 years p.a Since inception* Above benchmark Below benchmark *Since GIPs inception Performance to 31 August 2009 Source: Calculated from StatPro data. 37 Contact details For further information