IBL Financial Overview
Revenue supported by resilient franchises
Annuity income*
14,000
12,000
10,000
8,000
6,000
4,000
2,000
R'mn
0
2017
2018
2019
2020
Revenue versus expenses
R'mn
85.4%
90.0%
14,000
80.0%
12,000
70.0%
10,000
60.0%
8,000
50.0%
40.0%
6,000
30.0%
4,000
20.0%
2,000
10.0%
0.0%
0
2021
2017
2018
2019
2020
60.0%
53.7%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2021
•
•
Trading income
Other fees and other operating income
Net interest income
Investment and associate income
Annuity fees and commissions
Annuity income* as a % of total income
Operating income before expected credit loss impairment charges (LHS)
Operating costs (LHS)
Cost to income ratio (RHS)
A diversified business model continues to support a large recurring income base comprising net interest income and net annuity fees and
commissions, currently 85.4% of operating income (up from 74.8% in 2012).
Total operating income before expected credit loss impairment charges for the financial year ended 31 March 2021 decreased 4.4% year on
year due to the combined impact of lower non-interest revenue and subdued lending and transactional activity, particularly in 1H21. In addition,
investment income declined as a result of lower realisations, dividend income and negative fair value adjustments.
We maintained a disciplined approach to cost control. Operating costs decreased 2.5% year on year reflecting lower discretionary spending
and effective cost containment. Taken together with the decreased revenue, the cost to income ratio for the financial year ended 31 March 2021
increased to 53.7% (31 March 2020: 52.6%)
*Where annuity income is net interest income plus net annuity fees and commissions
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