Investec Plc · LSE:INVP
Investec — Investor Presentation (March 2005)
17 slides from Investec's investor presentation, Mar 14, 2005
Slide 1: A distinctive specialist banking group
A distinctive specialist banking group Investor pre-close briefing Monday, 14th March 2005 • Proviso: unless otherwise stated, figures and trends discussed in the operational review relate to the five month period to 28 February 2005 (i.e. 2H05)
Slide 2: Favourable operating environment
Favourable operating environment 28 Feb 2005 30 Sep 2004 % Move 31 Mar 2004 JSE ALSI 13 476.6 11 160.4 20.8% 10 692.6 FTSE All Share Index 2 495.5 2 271.7 9.9% 2 197.0 Year to date 28 Feb 2005 30 Sep 2004 31 Mar 2004 Currency per £1.00 Close Ave Close Ave Close Ave South African Rand 11.13 11.47 11.
Slide 3: Private Banking; Private Client Portfolio Management and Stockbroking
Private Banking • The Private Banking operations Loan portfolio have continued to perform £'bn exceptionally well driven by: 5 – Healthy growth in advances in Up 29% to £.4.2 billion 4 since March 2004 the UK and SA 3 – High levels of transactional activity leading to strong growth 2 in non-interest
Slide 4: Treasury and Specialised Finance; Investment Banking
Treasury and Specialised Finance • Trading Activities Loan portfolio £'bn – Performance reflects the focus on customer flow as opposed to 1.5 Up 17% to £1.4 billion proprietary trading since March 2004 1 • Banking and Advisory Activities – Lending and advisory activities 0.5 continue to perform well
Slide 5: Asset Management; Property Investment Banking and Asset Management
Asset Management • Strong financial performance in Funds under management SA £’bn 25 Up 17% to £24.0 billion • Significantly improved financial since March 2004 20 performance in the UK 15 • Good investment performance across core products 10 5 0 2000 2001 2002 2003 2004 Feb-05 Retail Institutional
Slide 6: Other Activities
Other Activities • Assurance Activities – Expect stronger second half performance • International Trade Finance – Sound performance with macro economic environment remaining supportive • Traded Endowments – Closure of operations • Central Services – Increased costs largely due to an increase in vari
Slide 7: Additional aspects: Summary headcount by business
Additional aspects Summary headcount by business 28 Feb 30 Sep 31 Mar 31 Mar 2005 2004 2004 2003 Private Banking 1 172 1 192 1 106 1 085 Private Client Portfolio Management and Stockbroking 412 452 463 544 Treasury and Specialised Finance 459 493 477 507 Investment Banking 245 271 276 336 Asset Mana
Slide 8: Other information
Other information • Sale of Israel – Completed sale on 22nd December 2004 • CAL and Liberty transactions (approved by shareholders; subject to Regulatory and Court approval) • Effective tax rate: expected to average 26% • Weighted number of shares in issue for year ended 31 March 2005 expected to be
Slide 9: Outlook
Outlook Outlook Key growth drivers UK Aus SA Third party assets under management ¸ ¸ ¸ £’bn 40 30 20 10 0 1995 1997 1999 2001 2003 Feb-05 Key µ Strong growth ¸ Reasonable conditions
Slide 10: Outlook
Outlook Key growth drivers UK Aus SA Loans and advances ¸ ¸ ¸ £’bn 6 5 4 3 2 1 0 1995 1997 1999 2001 2003 Feb-05 Key µ Strong growth ¸ Reasonable conditions Outlook Key growth drivers UK Aus SA Transactional activity µ µ µ Key µ Strong growth ¸ Reasonable conditions
Slide 11: Outlook
Outlook Key growth drivers UK Aus SA Stock market activity ¸ µ µ Key µ Strong growth ¸ Reasonable conditions Outlook Key growth drivers UK Aus SA General economic conditions ¸ ¸ µ Key µ Strong growth ¸ Reasonable conditions
Slide 12: Conclusion
Conclusion • Significant progress has been made in reaching the financial targets that were laid out in 2004 ROE: 20% Cost to income ratio: 65% EPS* growth: 10% >RPI Recurring income**: 70% - 75% Dividend cover: 1.7 – 2.3 times Capital adequacy ratio***: 13% - 16% *pre exceptional items and amortisa
Slide 13: Operating profit
Appendices Operating profit* six months to 30 September 2004 £’mn SA UK & Australia Israel US Total Europe Private Banking 13.8 18.2 1.2 1.7 - 34.9 Private Client Portfolio 2.5 3.6 - - - 6.1 Management and Stockbroking Treasury and Specialised 15.0 6.2 0.6 (0.3) - 21.5 Finance Investment Banking 11.
Slide 14: Operating profit - Group Services and Other; Core loans and advances
Operating profit* - Group Services and Other Activities six months to 30 September 2004 £’mn SA UK & Australia Israel US Total Europe International Trade Finance 0.9 0.7 - - - 1.6 Property Activities 2.6 4.2 - - - 6.8 US Continuing Activities - - - - - - UK Traded Endowments (0.6) - - - - (0.6) Cent
Slide 15: Funds under management; SA Institutional investment performance
Funds under management 31 Mar 30 Sep 28 Feb % growth % growth 2004 2004 2005 since Mar since Sep Carr Sheppards Crosthwaite (£’bn) 5.9 5.7 6.1 3.4% 7.0% SA Private Client Portfolio 30.0 33.7 42.3 41.0% 25.5% Management and Stockbroking (R’bn) Investec Asset Management (£’bn) 20.6 22.1 24.0 16.6% 8.8
Slide 16: Asset Management SA Retail and UK Institutional performance
Asset Management SA Retail investment performance One Year Three Years 4th Quartile 6.6% 4th Quartile 1st Quartile 27.8% 27.8% 3rd Quartile 20.0% 1st Quartile 46.7% 3rd Quartile 16.6% 2nd Quartile 2nd Quartile 27.8% 26.7% Performance to 31 January 2005 Source: Calculated from Standard & Poors or Dat
Slide 17: Asset Management UK Retail performance; Outlook
Asset Management UK Retail investment performance One Year Three Years 4th Quartile 4th Quartile 8.5% 10.8% 1st Quartile 28.8% 1st Quartile 32.1% 3rd Quartile 25.4% 3rd Quartile 25.0% 2nd Quartile 2nd Quartile 37.3% 32.1% Performance to 31 January 2005 Source: Calculated from Standard & Poors or Dat