Hard work and continued focus applied by Investec (comprising Investec Limited and Investec plc) on its core businesses has allowed the group to capitalise on improved market conditions to deliver a strong performance for the year ended 31 March 2005.

CEO Stephen Koseff said that providing innovative solutions for the group’s clients continued to drive profitable growth across business units and geographies and enabled Investec to meet many of its stated financial objectives.

Operating profits before exceptional items and amortisation of goodwill of the group’s operations grew 57.5% to GBP 208.3 million from GBP 132.3 million (50.2% in Rand terms to R2.4 billion). Headline earnings of GBP 152.2 million (R1.7 billion) were up in pound sterling terms of 43.7% over the previous year.

“We have continued to build scale in our businesses to provide a platform for sustainable growth. Although the operating environment remains competitive, we believe we are well positioned with balanced, quality earnings.”

Contributions to operating profit was as follows: Private Client Activities 36.8%; Treasury and Specialised Finance 20.8%; Investment Banking 20.5%;  Asset Management 16.6%; and Property Activities 5.3%.

“We have achieved a return on equity shareholders’ funds of 21.3% up from 15.4% in the previous year and enabling us to surpass our target of 20%.”

Earnings per share (EPS) before exceptional items and goodwill amortisation increased from 103.8 pence to 140.8 pence, or 35.6 %. The group proposed a final dividend of 37 pence (437 cents) per share, which represents a full-year dividend of 67.0 pence, an increase of 15.5%. At year-end 2004, the dividend per share was 58.0 pence. This dividend declaration equates to a cover of 2.1 times, in line with Investec’s policy to increase cover to the upper end of its target range during a period of strong performance.

Koseff said annuity income as a percentage of operating income grew from 64.8% to 65.2%, reflecting Investec’s strong financial services model with breadth and regional diversity.

“An improvement of overall cost-to-income ratio from 72.7% to 66.8% demonstrates our on-going commitment to reducing fixed costs and driving revenues,” said MD Bernard Kantor.

“We firmly believe that our niche focus, ability to be distinctive and the quality of our people will position us to take advantage of market conditions. We are confident that we will capitalise on opportunities lie ahead of us will allow us to continue to grow profitably in the forthcoming year.”

Summary of additional salient financial information (according to UK GAAP calculations):

• Total operating income grew 23.5% to GBP 692.6 million from GPB 560.8 million. The group’s net interest income rose by 26.1% to GBP 132.7 million. Other income increased by 22.9% to GBP 559.9 million from GPB 455.6 million.
  
• Total capital resources increased by 13.6% to GBP 1.5 billion. Investec’s capital adequacy ratio (applying South African Reserve Bank rules to Investec Limited’s capital base) is 20.1%, up from 15.1%, surpassing the required 10% by a healthy margin. The capital adequacy in the UK (applying Financial Services Authority rules to Investec plc’s capital base) is 15.5% and was 17.3% at the end of the last financial year.
  
• Total shareholders’ funds (excluding preference shares) grew by 0.6% from GBP 639 million to GBP 643 million, or R7.5 billion. Including perpetual preference shares, total shareholders’ funds grew 26.2% to GBP 967 million.
  
• Client assets under management increased 12.8% from GBP 30.0 billion to GBP33.9 billion.
  
• Core advances grew by 20.7% from GBP 4.8 billion to GBP 5.8 billion (R68 billion).
  
• The group’s effective tax rate grew from 21.0% to 27.5%.

ENDS
Prepared by: Beachhead Media & Investor Relations (Jennifer Cohen)
 011 214 2401 / 082 468 6469 / jennifer@bmsa.co.za
On behalf of: Investec Limited

Further info: Stephen Koseff, CEO
 +44 207 597 4000

 Bernard Kantor
 +44 207 597 4000

 Ursula Munitich, Investor Relations 
 082 552 8808