| Thu 20 May 2010, 8:01 | | INLP - Investec Bank Limited - Reviewed preliminary condensed consolidated |
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JSE INLP
INLP
INLP - Investec Bank Limited - Reviewed preliminary condensed consolidated
financial results for the year ended 31 March 2010
Investec Bank Limited
(Registration number 1969/004763/06)
JSE Code: INLP ISIN: ZAE000048393
Investec Bank Limited
Reviewed preliminary condensed consolidated financial results for the year ended
31 March 2010
Consolidated income statement
Year to 31 March
Reviewed Audited
R` million 2010 2009
Interest income 23,494 20,861
Interest expense (19,563) (16,834)
Net interest income 3,931 4,027
Fee and commission income 921 1,087
Fee and commission expense (49) (61)
Principal transactions 1,629 1,560
Operating loss from associates (47) (1)
Other income 2,454 2,585
Total operating income before impairment 6,385 6,612
losses on loans and advances
Impairment losses on loans and advances (858) (756)
Operating income 5,527 5,856
Administrative expenses (2,879) (3,113)
Depreciation, amortisation and impairment of (122) (78)
property, equipment and intangibles
Profit before taxation 2,526 2,665
Taxation (520) (600)
Profit after taxation 2,006 2,065
Loss/(Earnings) attributable to minority 1 (3)
interests
Earnings attributable to shareholders 2,007 2,062
Headline earnings
Earnings attributable to shareholders 2,007 2,062
Preference dividends paid (149) (167)
Earnings attributable to ordinary shareholders 1,858 1,895
Headline adjustments, net of taxation (13) 6
Gain on realisation of available for sale (13) (56)
financial assets
Impairment of associate - 62
Headline earnings attributable to ordinary 1,845 1,901
shareholders
Condensed consolidated statement of total comprehensive income
Year to 31 March
Reviewed Audited
R` million 2010 2009
Profit after taxation 2,006 2,065
Fair value movements on cash flow hedges* 18 2
Fair value movements on available for sale 29 (11)
assets*
Gain on realisation of available for sale (13) (56)
assets recycled through the income statement*
Foreign currency adjustments (359) -
Total comprehensive income 1,681 2,000
Total comprehensive income attributable to (1) 3
minority shareholders
Total comprehensive income attributable to 1,682 1,997
ordinary shareholders
Total comprehensive income 1,681 2,000
* Net of taxation of R10 million (2009: (R10
million)).
Consolidated balance sheet
At 31 March
Reviewed Audited
R` million 2010 2009
Assets
Cash and balances at central banks 3,660 3,158
Loans and advances to banks 13,245 10,063
Cash equivalent advances to customers 6,455 5,203
Reverse repurchase agreements and cash 3,776 6,914
collateral on securities borrowed
Trading securities 36,375 19,938
Derivative financial instruments 7,829 9,950
Investment securities 3,605 993
Loans and advances to customers 111,919 112,155
Securitised assets 3,531 4,512
Loans to group companies 6,093 6,776
Interest in associated undertakings 180 166
Deferred taxation assets 22 307
Other assets 924 892
Property and equipment 164 168
Investment properties 5 5
Intangible assets 96 88
197,879 181,288
Liabilities
Deposits by banks 9,554 12,159
Derivative financial instruments 7,144 10,482
Other trading liabilities 454 701
Repurchase agreements and cash collateral on 6,281 2,290
securities lent
Customer accounts (deposits) 143,390 127,139
Debt securities in issue 1,559 954
Liabilities arising on securitisation 2,707 3,186
Current taxation liabilities 857 849
Deferred taxation liabilities 444 558
Other liabilities 3,694 3,684
176,084 162,002
Subordinated liabilities 5,341 5,091
181,425 167,093
Equity
Ordinary share capital 25 22
Share premium 10,530 9,056
Other reserves (156) 101
Retained income 6,051 5,011
Shareholders` equity excluding minority 16,450 14,190
interest
Minority interest 4 5
Total equity 16,454 14,195
Total liabilities and equity 197,879 181,288
Condensed consolidated statement of changes in equity
Year to 31 March
Reviewed Audited
R` million 2010 2009
Balance at the beginning of the year 14,195 12,960
Total comprehensive income 1,681 2,000
Issue of ordinary shares 1,450 500
Issue of perpetual preference shares 27 -
Dividends paid to ordinary shareholders (750) (1,100)
Dividends paid to perpetual preference (149) (167)
shareholders
Movement in minorities on acquisitions and - 2
disposals
Balance at the end of the year 16,454 14,195
Condensed consolidated cash flow statement
Year to 31 March
Reviewed Audited
R` million 2010 2009
Net cash inflow from operating activities 2,854 3,327
Net cash outflow from banking activities (1,473) (4,554)
Net cash outflow from investing activities (187) (149)
Net cash inflow/(outflow) from financing 828 (386)
activities
Net increase/(decrease) in cash and cash 2,022 (1,762)
equivalents
Cash and cash equivalents at the beginning of 8,552 10,314
the year
Cash and cash equivalents at the end of the 10,574 8,552
year
Cash and cash equivalents are defined as including: cash and balances at central
banks, on demand loans and advances to banks and cash equivalent advances to
customers (all of which have a maturity profile of less than three months).
Condensed consolidated segmental information
Year to 31 March 2010
Reviewed Group
Services and
R` million Private Investment Capital Other Total
Banking Banking Markets Activities
Operating 1,675 752 1,805 1,295 5,527
income
Operating (1,339) (219) (967) (476) (3,001)
expenses
Operating 336 533 838 819 2,526
profit
Cost to 61.8 28.0 50.4 31.3 47.0
income ratio
(%)
Year to 31
March 2009
Audited Group
Services and
R` million Private Investment Capital Other Total
Banking Banking Markets Activities
Operating 1,792 1,195 1,878 991 5,856
income
Operating (1,348) (429) (1,007) (407) (3,191)
expenses
Operating 444 766 871 584 2,665
profit
Cost to 65.8 34.3 45.1 37.6 48.3
income ratio
(%)
These preliminary condensed consolidated financial results are published to
provide information to holders of Investec Bank Limited`s listed non-redeemable,
non-cumulative, non-participating preference shares.
Commentary
Overview of results
Investec Bank Limited, a subsidiary of Investec Limited, posted a decrease in
headline earnings attributable to ordinary shareholders of 2.9% to R1,845
million (2009: R1,901 million). For full information on the Investec group
results, refer to the combined results of Investec plc and Investec Limited.
Business unit review
Unless the context indicates otherwise, all comparatives referred to in the
business unit review relate to the year ended 31 March 2009. Operating profit is
before taxation and headline adjustments.
Salient operational features of the year under review include:
The Private Banking division posted a decrease in operating profit of 24.3% to
R336 million (2009: R444 million). The division focused resources during the
period on substantially increasing its deposit book by 26.1% to R51.2 billion
(2009: R40.6 billion). However, while the private client core lending book grew
by 4.6% to R79.6 billion (2009: R76.1 billion) activity levels declined and
impairment losses on loans and advances increased. Funds under advice decreased
4.6% to R20.9 billion (2009: R21.9 billion).
Operating profit of the Investment Banking division decreased by 30.4% to R533
million (2009: R766 million). The Corporate Finance division generated lower fee
income in comparison to the prior year. The investments held within the
Principal Investment portfolio generated a steady performance. The division,
however, recorded lower revaluations and fewer realisations in the current year.
The Capital Markets division posted a decrease in operating profit of 3.8% to
R838 million (2009: R871 million). In line with the bank`s liquidity management
policies, the Central Treasury division has been successful in increasing the
bank`s cash and near cash balances held. Given the declining rate environment,
the division`s results have, however, been impacted by a reduced return on the
excess cash held. In addition, the results have been impacted by lower levels of
activity with the division`s lending book declining by 11.4% to R28.8 billion
(2009: R32.5 billion).
Group Services and Other Activities contributed R819 million (2009: R584
million) largely as a result of an increased return on the investments held
within the Central Funding portfolio and foreign currency gains.
Accounting policies and disclosures
These reviewed preliminary condensed consolidated financial results for the year
ended 31 March 2010 have been prepared in terms of the recognition and
measurement criteria of International Financial Reporting Standards, and the
presentation and disclosure requirements of IAS 34, Interim Financial Reporting.
The accounting policies applied in the preparation of the results for the year
ended 31 March 2010 are consistent with those adopted in the financial
statements for the year ended 31 March 2009, except for the adoption of the
following standards and interpretations:
IAS 1 Presentation of Financial Statements (revised)
IFRIC 13 Customer Loyalty Programmes
The adoption of these standards and interpretations had no material effect on
the results and no resulting prior year restatements.
On behalf of the Board of Investec Bank Limited
Fani Titi Stephen Koseff Bernard Kantor
Chairman Chief Executive Officer Managing Director
19 May 2010
Review conclusion
KPMG Inc. and Ernst & Young Inc, the Group`s independent auditors, have reviewed
the preliminary condensed consolidated financial statements, and have issued an
unmodified review conclusion on the preliminary condensed consolidated financial
statements, which is available for inspection at the company`s registered
office.
Non-redeemable non-cumulative non-participating preference shares
Declaration of dividend number 14
Notice is hereby given that preference dividend number 14 has been declared for
the period 01 October 2009 to 31 March 2010 amounting to 392.05 cents per share
payable to holders of the non-redeemable non-cumulative non-participating
preference shares as recorded in the books of the company at the close of
business on Friday, 18 June 2010.
The relevant dates for the payment of dividend number 14 are as follows:
Last day to trade cum-dividend Thursday, 10 June 2010
Shares commence trading ex-dividend Friday, 11 June 2010
Record date Friday, 18 June 2010
Payment date Thursday, 01 July 2010
Share certificates may not be dematerialised or rematerialised between Friday,
11 June 2010 and Friday, 18 June 2010, both dates inclusive.
By order of the Board
B Coetsee
Company Secretary
Sandton
20 May 2010
Registered office Transfer secretaries
100 Grayston Drive Computershare Investor Services (Pty) Ltd
Sandown 70 Marshall Street
Sandton Johannesburg 2001
2196
Directors: F Titi (Chairman), D M Lawrence* (Deputy Chairman), S Koseff* (Chief
Executive), B Kantor* (Managing Director), S E Abrahams, G R Burger*, M P
Malungani, K X T Socikwa, B Tapnack*, P R S Thomas, C B Tshili.
*Executive
Company Secretary: B Coetsee
Date: 20/05/2010 08:01:03 Produced by the JSE SENS Department.
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