Investor Presentaiton
27
Maintaining robust surplus liquidity
We maintain a high level of readily available, high-quality liquid assets
targeting a minimum cash to customer deposit ratio of 25%. These balances
have increased since FY2013 (£4.6bn) to £8.9bn at 31 March 2022
(representing 48.5% of customer deposits)
At 31 March 2022, the Liquidity Coverage Ratio for Investec plc was 457%
and the Net Stable Funding Ratio¹ was 145% - both metrics well ahead of
current minimum regulatory requirements
High level of cash and near cash balances
20%
Cash and near cash composition
4%
£8.9bn
76%
■Central bank cash placements and
guaranteed liquidity
Cash
■Near-cash (other 'monetisable'
assets)
Liquidity buffer: Cash and near cash as a proportion of total assets
£'mn
10,000
40%
36.6%
9,000
£8.9bn
35%
31.7%
8,000
(c)
(e)
(d)
30%
(b)
7,000
24.2%
(a)
25%
6,000
Average
21.0%
20.8%
Since
£'mn
20%
17.5%
5,000
FY2013
15.8%
13.6%
4,000
Ave
5 621
15%
12.5%
Min
3 634
3,000
10%
Max
8 963
2,000
5%
1,000
0%
Mar-12
Mar-13
Mar-14
Mar-15 Mar-16 Mar-17
Mar-18
Mar-19
Mar-20 Mar-21 Mar-22
(a) Impacted by sale of Group assets; (b) Prudent increase in cash pre-Brexit referendum; (c) Pre-funding
ahead of loss of Irish deposits; (d) Prior to the onset of the COVID-19 pandemic, cash and near cash reduced
to business-as-usual level as we paid out the Irish deposits that we had already pre-funded; (e) COVID-19
pandemic
NatWest Group
plc (Dec-21)
Investec plc
(Mar-22)
HSBC Holdings
plc (Dec-21)
Barclays plc
(Dec-21)
Standard
Chartered (Dec-
21)
Santander UK
Group Holdings
plc (Dec-21)
Lloyds Banking
Group plc (Dec-
21)
Close Brothers
Group plc (Jan-
22)
Virgin Money
UK plc (Sep-21)
1 The LCR is calculated following the EU Delegated Act and our own interpretations where the regulation calls for it. Banks are required to maintain a minimum LCR of 100%. Within the UK, the NSFR will be onshored by the PRA and expected to
become a binding requirement for banks in January 2022. Banks will be required to maintain a minimum NSFR of 100%. In the meantime, our internally calculated NSFR is based on the version published in the EU Official Journal in June 2019, and
our own interpretations where required.View entire presentation