Highlights
Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ("operating profit") increased 6.0% to GBP451.8 million (2013: GBP426.3 million) - an increase of 20.3% on a currency neutral basis
Recurring income as a percentage of total operating income amounted to 70.7% (2013: 68.6%)
Wealth & Investment's operating profit increased by 30.5% and Asset Management reported operating profit 2.4% ahead of the prior year, with both divisions benefiting from higher levels of average funds under management and combined net inflows of GBP4.0 billion
The Specialist Banking business reported an increase in operating profit of 2.8%
The South African Specialist Bank posted a strong performance from the majority of its businesses, with operating profit increasing 29.2% in Rands
The UK Specialist Bank benefited from a significant decline in impairments, reporting an increase in operating profit of 29.9%. The ongoing business reported an operating profit of GBP157.4 million, whilst the legacy business continues to be managed down reporting a loss of GBP102.8 million
The Australian business reported a loss impacted by strategic restructuring, with the pending sale of a large portion of the business announced post the year-end
The combined South African business reported operating profit 25.3% ahead of the prior year in Rands, whilst the combined UK business posted a 24.4% increase in operating profit
Total group impairments have decreased by 33.8% with the credit loss charge as a percentage of average gross core loans and advances improving from 0.84% at 31 March 2013 to 0.68%
Capital remained well in excess of current regulatory requirements. All our banking subsidiaries meet current internal targets. Investec Limited and Investec plc should comfortably achieve a common equity tier one ratio above 10% by March 2016
Liquidity remains strong with cash and near cash balances amounting to GBP9.1 billion
