Investec Final 2011/12 Results - dividend maintained

DividendMax Ltd.

Investec Final 2011/12 Results - dividend maintained

Further progress made with strategy to grow non-lending revenues

Investec, the international specialist bank and asset manager, announces today its results for the year ended 31 March 2012


  • The group has continued to grow the proportion of its revenues derived from non-lending activities
  • Investec's asset and wealth management businesses now account for 48.1% of group operating profits* (2011: 38.6%)
  • Recurring revenues as a proportion of total operating income rose to 67.7% (2011: 62.3%)
  • Net interest income increased by 2.6% to GBP699mn and net fees and commissions increased by 12.3% to GBP884.2mn
  • Investment income decreased by 31.6% to GBP174.3mn
  • Impairments on loans and advances increased by 2.2% with the credit loss charge improving from 1.27% at 31 March 2011 to 1.12%
  • The group maintained a strong capital position with Tier one ratios of 11.6% for Investec plc and 11.6% for Investec Limited. Liquidity remains strong with cash and near cash balances amounting to GBP 10.3bn

Financial features


Year to

31 Mar


Year to

31 Mar


% Change

Operating profit before taxation* (GBP'mn)




Adjusted earnings attributable to shareholders* (GBP'mn)




Adjusted EPS** (pence)




Total shareholders' equity (GBP'mn)

4 013

3 961


Dividends per share (pence)








Cost to income ratio %




Business highlights - operating profit before tax*

  • Asset Management: increase of 5.0% to GBP133.7mn (2011: GBP127.3mn)
  • Wealth and Investment: decrease of 4.2% to GBP38.7mn (2011: GBP40.4mn)
  • Specialist Banking: decrease of 30.2% to GBP186.2mn (2011: GBP266.7mn)

*Before non-operating items, goodwill and acquired intangibles and after minorities.

**During the reporting period the weighted number of ordinary shares increased by 6.6% to 809.6mn

Stephen Koseff, Chief Executive Officer of Investec said:

Stephen Koseff, CEO of Investec, commented: "These results are disappointing but reflective of very challenging market conditions. Asset Management continued its strong momentum. Net interest and net fee and commission income has increased across all businesses and geographies. Our main businesses have continued to deliver with the overall picture being masked by legacy issues and a weaker performance from our investment activities. Our competitive position is strong and our platforms in place. We are well positioned to benefit from an economic recovery and the continued realignment of the global financial landscape"

Bernard Kantor, Managing Director of Investec said:

Bernard Kantor, Managing Director of Investec, commented: "Although I am disappointed with our performance I believe that Investec emerged in a strong position at the end of the past financial year. We remain profitable, our revenues have been growing consistently, our capitalisation is solid and our costs are under control. The quality of our earnings has improved strongly and we have been agile and flexible in reshaping our business to meet the ever-evolving market needs. We have an excellent, well recognised brand name and a loyal customer base. My confidence in our future is unwavering."

Companies mentioned