Investec plc · LSE:INVP
Investec — Corporate Update (September 2010)
19 slides from Investec's corporate update, Sep 16, 2010
Slide 1: Investor pre-close briefing
Investor p pre-close briefing g 16 September 2010 Proviso • Please note that matters discussed in today’s 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 p of
Slide 2: Operational review
Operational p review • Proviso: unless otherwise stated stated, figures and trends discussed in the operational review relate to the five month period to 31 August 2010 and compare 1H2011 vs 1H2010 • References to operating profit relate to normalised* operating profit. Trends within the divisional
Slide 3: Overview of the six months ended 30 Sep 2010
Overview of the six months ended 30 Sep 2010 • We have continued to build our asset management g and investment p platforms and these businesses have recorded strong inflows during the period • Operating conditions within our banking and advisory businesses remain mixed with low levels of economic a
Slide 4: Healthy capital ratios
Healthy capital ratios • We target a total capital adequacy ratio of 14% to 17% and a Tier 1 ratio of 11% • We have conducted an initial review of the Basel III requirements as set out in the Basel Committee on Banking g Supervision p announcement on 12 September 2010. Based on this review we believ
Slide 5: Divisional review
Leverage ratios remain low 31 Aug 31 Mar 30 Sep 2010 2010 2009 Core loans to capital ratio 4.8x 5.4x 5.8x Total gearing 11.5x 12.5x 12.1x Total gearing (excluding securitised 10.7x 11.7x 11.2x assets) 9 Divisional review
Slide 6: Overview of period on period performance
Overview of period on period* performance • Recurring income as a percentage of total operating income amounts to approximately 62% (2009: 61%) • Moderate increase in total operating income: – Net interest income is in line with the prior year – Significant increase in net fees and commissions recei
Slide 7: Private Wealth and Property Activities
Private Wealth^ • Performing ahead of 1H10 - Funds under management: higher ave funds under Since 31 March 2010: down 4% to £25.9bn management Ave*: up 22% • Acquisition q of Rensburg g £'bn £ bn 30 Sheppards plc – effective 25 June 2010 • Integration of the Private Bank 20 Private Wealth business i
Slide 8: Private Banking and Investment Banking
Private Banking • Market conditions continue to Loans: since L i 31 M March h 2010: 2010 ddown 1% tto £12 £12.7bn 7b Ave*: up 11% impact exits and activity levels resulting in lower operating Deposits: since 31 March 2010: up 3% to £12.1bn Ave*: up 37% profit year on year £'bn • South Africa: perfor
Slide 9: Capital Markets and Other Activities
Capital Markets • Very strong performance Loans: since L i 31 M March h 2010 2010: fl flatt att £4.5bn £4 5b Ave*: down 7% globally (particularly in the UK) • Good levels of activity across £'bn the advisory and structuring 4 businesses: – Notably from the Principal Finance Structured Finance Financ
Slide 10: Additional aspects
Additional aspects p Other information • Effective tax rate: expected to be approximately 23% • Weighted number of shares in issue for the six months ended 30 september 2010 expected to be approximately y 741mn • Net exceptional gain arising from the requirement under new accounting rules to fair va
Slide 11: Conclusion
Conclusion Conclusion – signs of life but still hesitant • Operating profit continues to be underpinned by a solid recurring income base as well as a strong performance from our non-capital intensive Asset Management and Private Wealth businesses • The Capital Markets division has benefitted from go
Slide 12: Appendices
Investor p pre-close briefing g 16 September 2010 Appendices
Slide 13: Operating environment – difficult trading conditions
Operating environment – difficult trading conditions % move since 31 Aug 2010 31 Mar 2010 30 Sep 2009 Mar 2010 JSE ALSI 27,254 28,748 24,911 -5.2% FTSE ALSI 2,697 2,910 2,635 -7.3% A t li All O Australian Ord d 4 439 4,439 4 893 4,893 4 739 4,739 -6.3% 6 3% SA Prime 10.00% 10.00% 10.50% - UK Clearin
Slide 14: Normalised operating profit and Asset Management AUM
Normalised* operating profit: For the six months ended 30 September 2009 Southern UK & Europe Australia Total Africa group £’000 A Asset t Management M t 21 419 21,419 7 513 7,513 - 28 932 28,932 Private Wealth^ 6,619 5,389 - 12,008 Property Activities 9,464 619 1,650 11,733 Private Banking 8,283 8,
Slide 15: Investec Asset Management: UK and global investment performance
Investec Asset Management: UK and global retail investment performance One year Three years 4th Quartile 4th Quartile 15.5% 12.5% 1st Quartile 29.3% 1st Quartile 3rd Quartile 45.8% 3rd Quartile 25.0% 22.4% 2nd Quartile 2nd Quartile 16.7% 32.8% Performance to 31 August 2010, excludes cash, cash plus
Slide 16: Investec Asset Management: SA investment performance
Investec Asset Management: SA retail investment performance One year Three years 4th Quartile 4th Quartile 0.0% 0.0% 3rd Quartile 3rd Quartile 1st Quartile 27.8% 1st Quartile 27.8% 27.8% 33.3% 2nd Quartile 2nd Quartile 38.9% 44.4% Performance to 31 August 2010. Source: Calculated from Standard & Poo
Slide 17: Private Wealth: funds under management
Private Wealth SA: funds under management % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs Mar R'million 2010 2010 2009 2009 2010 Discretionary 19,569 19,726 17,569 15,594 -0.8% Non-discretionary 92,926 93,292 85,682 69,386 -0.4% Annuityy (non- ( discretionary)* 21,830 20,876 19,619 21,926 4.6% Total 134
Slide 18: Private Banking: loans and advances; retail deposits
Private Banking: loans and advances % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs Mar £'million 2010 2010 2009 2009 2010 UK and Europe 3,497 3,585 3,595 3,645 -2.5% South Africa 7,654 7,696 7,044 6,191 -0.5% Australia 1,588 1,644 1,416 1,240 -3.4% Total core loans 12,739 12,925 12,055 11,076 -1.4% % C
Slide 19: Capital Markets: loans and advances; Contact details
Capital Markets: loans and advances % Change 31 Aug 31 Mar 30 Sep 31 Mar YTD vs Mar £'million 2010 2010 2009 2009 2010 UK and Europe 1,806 1,752 2,099 2,241 3.1% South Africa 2,531 2,590 2,630 2,393 -2.3% Australia 162 166 160 167 -2.0% Total core loans 4,499 4,508 4,889 4,801 -0.2% % Change Home cu