Investor Presentaiton
20
20
Investec plc - we inherently hold more capital per unit of risk
As we use the standardised approach for RWA calculations, our capital ratios are not directly comparable with peers
80%
RWA density - Total RWA / Total Assets
Minimum CET 1 requirement %*
12%
11.0%
11.0%
10.7%
10.1%
10.7%
10%
8.7%
8.8%
8%
60.8%
6%
4%
33.6%
2%
0%
70%
60%
50%
40%
30%
25.4%
20%
10%
0%
2017
2018
2019
2020
2021
2022
■Investec plc UK 'big 5'
■Total UK sector
Barclays plc (Mar-
22)
Lloyds Banking
Group plc (Mar-
22)
Standard
Chartered (Mar-
22)
HSBC Holdings
plc (Mar-22)
Virgin Money UK
plc (Mar-22)
Investec plc:
lowest min CET 1
requirement
7.6%
7.3%
NatWest Group
plc (Mar-22)
Santander UK
Group Holdings
plc (Mar-22)
Close Brothers
Group plc (Jan-
22)
Investec plc (Jun-
22)
•
We use the standardised approach for our RWA calculations - while peers are largely
on the advanced approach
•
The result is that our RWA density at 60.8% is above the sector average of 33.6%
Our RWA density is more than 2x higher than the 'big 5' UK peers
•
•
Investec plc's current minimum CET1 requirement is 7.3% comprising a 4.5% Pillar 1
minimum requirement, a 2.5% CCB, a 0.31% Pillar 2A requirement (effective end June
2022, 31 Mar 2022 was 0.45%) and a 0.03% Countercyclical Capital Buffer (CCyB)
Investec plc's reported CET1 ratio was 11.4%** at 31 Mar 2022, providing a 3.9% surplus
relative to the regulatory minimum before buffers (which are also allowed to be used in
times of stress)
Investec plc continues to have the lowest PRA prescribed Pillar 2A capital requirement of
all UK holding companies shown above
Where the UK 'big 5' banks include HSBC, RBS, Lloyds, Barclays and Standard Chartered (source: Thomson Reuters - All adjusted to GBP) and the Total UK sector is per the Bank of England
(source: https://www.bankofengland.co.uk/statistics/banking-sector-regulatory-capital/2021/2021-q4). Peers are shown at the December 2021 period as this is the closest match to the year under review. *Information sourced from latest financial reports. **After the deduction
of foreseeable charges and dividends as required under the Capital Requirements Regulation. The Investec plc CET1 ratio would be 28bps higher before the deduction (i.e. 11.7% as shown on previous slides).View entire presentation