| Thu 31 Jul 2008, 8:00 | | INL - INP - Investec - Interim Management Statement |
|
INL INP
INL INP
INL - INP - Investec - Interim Management Statement
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06
JSE share code: INL
ISIN: ZAE000081949
Investec plc
Incorporated in England and Wales
Registration number 3633621
JSE share code: INP
ISIN: GB00B17BBQ50
As part of the dual listed company ("DLC") structure, Investec plc and Investec
Limited notify both the London Stock Exchange and the JSE Limited of matters
which are required to be disclosed under the Disclosure and Listing Rules of the
United Kingdom Listing Authority (the "UKLA") and/or the JSE Listing
Requirements.
Accordingly we advise of the following:
Investec plc - Interim Management Statement
31 July 2008
This Interim Management Statement is issued by Investec in accordance with the
UK Listing Authority`s Disclosure and Transparency rules. Unless stated
otherwise, key trends and figures highlighted below refer to the three months
ended 30 June 2008 and the corresponding period last year.
Overview of operating fundamentals
Trading conditions and markets have remained volatile during the first three
months of the group`s 2009 financial year. The group has, however, continued to
benefit from its strong recurring revenue base driving operating profit before
tax ahead of that in the corresponding period in the prior year, with the South
African and UK operations recording an increase and the Australian operations a
decline in operating profit.
Since 31 March 2008 core loans and advances grew by 7% to GBP13.7 billion,
customer deposits grew by 4% to GBP12.6 billion and third party assets under
management increased by 4% to GBP54.7 billion supporting the group`s growing
base of recurring income.
Disciplined risk and financial management remain important elements of
Investec`s sustainable growth strategy. The group continues to maintain a high
level of liquidity and capital well in excess of minimum regulatory
requirements. As at 30 June 2008 the capital adequacy ratio of Investec plc
(applying UK Financial Services Authority rules to its capital base) was 15.2%
and the capital adequacy ratio of Investec Limited (applying South African
Reserve Bank rules to its capital base) was 14.2%. Furthermore, the group
currently has approximately GBP5.4 billion of cash and near cash available to
support its activities. As a result of the weaker credit cycle we have seen a
marginal decline in the performance of the loan portfolio. Impairment losses on
loans and advances have thus increased year on year, although at a lower level
than that recorded in the second half of the 2008 financial year.
Outlook and strategy
Although the group has traded ahead of the equivalent period last year, the
operating environment remains challenging and the outlook uncertain. The group`s
strategy remains to build a diversified and balanced portfolio of businesses.
The group will continue to leverage off its existing platforms, seeking to
create additional operational efficiencies and organic growth opportunities
across all geographies. The scale and diversity of the group`s business and
earnings should support its long-term growth objectives and enable it to
navigate through this period of continued uncertainty.
As in prior years the group will be holding a pre-close briefing on 18 September
2008 at which it will provide further detail on the performance of its
businesses.
On behalf of the board
Hugh Herman (Chairman), Stephen Koseff (Chief Executive Officer) and Bernard
Kantor (Managing Director)
Notes:
1. Please note that matters highlighted above 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 interpretations under
International Financial Reporting Standards (IFRS) applicable to past,
current and future periods, evolving practices with regard to the
interpretation and application of standards under IFRS.
- domestic and global economic and business conditions.
- market related risks.
- A number of these factors are beyond the group`s control.
- These factors may cause the group`s actual future results, performance or
achievements in the markets in which it operates to differ from those
expressed or implied.
- Any forward looking statements made are based on the knowledge of the group
at 31 July 2008.
2. The group`s reporting currency is Pounds Sterling. Certain of the group`s
operations are conducted by entities outside the UK. The results of
operations and the financial condition of the group`s individual companies
are reported in the local currencies in which they are domiciled, including
Rands, Australian Dollars and Euros. These results are then translated into
Pounds Sterling at the applicable foreign currency exchange rates for
inclusion in our combined consolidated financial statements. In the case of
the income statement, the weighted average rate for the relevant period is
applied and, in the case of the balance sheet, the relevant closing rate is
used. The following table sets out the movements in certain relevant
exchange rates against Pounds Sterling over the period:
30 June 2008 31 March 2008 30 June 2007
Currency per Period Average Period Average Period Average
GBP1.00 end end end
South African 15.62 15.26 16.17 14.31 14.12 14.10
Rand
Australian 2.07 2.10 2.18 2.32 2.36 2.38
Dollar
Euro 1.26 1.27 1.25 1.42 1.49 1.48
US Dollar 1.99 1.98 1.99 2.01 2.01 1.99
3. The following disclosures are made with respect to Basel II quarterly
disclosure requirements.
Investec IBUK* IBAL* Investec IBL*
plc Limited
As at 30 June GBP mn GBP mn AUD mn ZAR mn ZAR mn
2008
Primary 1,033 830 635 14,497 13,335
capital (Tier
1)
Other capital 752 624 120 5,649 5,372
(Tier 2 and 3)
1,785 1,454 755 20,146 18,706
Less: (230) (182) (207) (722) (483)
impairments
Net qualifying 1,555 1,272 548 19,424 18,224
capital
Risk-weighted 10,217 8,560 3,047 136,932 122,880
assets
(banking and
trading)
Capital 817 685 457 13,009 11,674
requirements
Credit risk 675 576 393 11,175 10,361
Equity risk 16 15 15 410 397
Market risk 29 29 4 163 66
Operational 97 65 45 1,261 850
risk
Capital 15.2% 14.9% 18.0% 14.2% 14.8%
adequacy ratio
Tier 1 ratio 9.3% 9.3% 15.0% 10.2% 10.6%
Capital 17.3% 16.4% 20.0% 15.7% 16.0%
adequacy ratio
- pre
operational
risk
Tier 1 ratio 10.6% 10.3% 16.7% 11.3% 11.4%
- pre
operational
risk
*IBUK is Investec Bank (UK) Limited; IBAL is Investec Bank (Australia) Limited
and IBL is Investec Bank Limited
Timetable:
Pre-close briefing: 18 September 2008
Half-year: 30 September 2008
Release of interim results: 13 November 2008
For further information please contact:
Investec Investor Relations
UK: +44 (0) 207 597 5546
South Africa: +27 (0) 11 286 7070
investorrelations@investec.com
About Investec
Investec is an international specialist banking group that provides a diverse
range of financial products and services to a niche client base in three
principal markets, the United Kingdom, South Africa and Australia as well as
certain other countries. The group was established in 1974 and currently has
approximately 5 900 permanent employees.
Investec focuses on delivering distinctive profitable solutions for its clients
in five core areas of activity namely, Private Client Activities, Capital
Markets, Investment Banking, Asset Management and Property Activities.
In July 2002 the Investec group implemented a dual listed company structure with
listings on the London and Johannesburg Stock Exchanges. The combined group`s
current market capitalisation is approximately GBP2.2 billion.
Sponsor: Investec Bank Limited
Date: 31/07/2008 08:00:15 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
