Investor Presentaiton
Sound capital ratios in excess of internal and regulatory minimums
Robust headroom of 4.1% above the MDA threshold based on the latest regulatory requirements
Capital ratios: Investec plc
Minimum CET 1 requirement %5
31 Mar 20221
31 Mar 2021
Target
12% 11.0%
11.0%
10.7% 10.7%
10.1%
Common equity tier 1 ratio²
Common equity tier 1 ratio ('fully loaded')³
11.0%
10.5%
Tier 1 ratio²
12.8%
12.7%
Total capital ratio²
Leverage ratio4
Leverage ratio - 'fully loaded'³
8.7%
7.4%
11.4%
11.0%
>10%
Investec plc:
lowest min CET 1
requirement
10%
8.8%
8.7%
7.6%
8%
7.3%
6%
>11%
4%
16.5%
14.9%
14% to 17%
2%
ou do do
0%
9.0%
7.8%
>6%
Barclays plc
(Mar-22)
Investec plc
(Jun-22)
•
.
Investec holds capital in excess of regulatory requirements and internal capital targets and intends to
perpetuate this philosophy and ensure that it remains well capitalised
The bank has never required shareholder or government support and we have never missed a
preference share or AT1 instrument coupon payment
As Investec plc is a financial holding company and Investec Bank plc (IBP) is its most significant entity,
the Investec plc resolution strategy is expected to be driven and determined by the resolution strategy
for IBP. In March 2021, the Bank of England confirmed the preferred resolution strategy for IBP
remains 'modified insolvency'. As a result, the Bank of England has set IBP's MREL requirement as
equal to its Total Capital Requirement (Pillar 1 + Pillar 2A)
Investec plc's minimum current CET1 requirement at 31 March 2022 is 7.3% comprising a 4.5%
Pillar 1 minimum requirement, a 2.5% CCB, a 0.31% Pillar 2A requirement and a 0.03%
Countercyclical Capital Buffer (CCyB)
Investec plc's reported CET1 ratio was 11.4% at 31 March 2022, providing a 4.1% surplus relative
to the current regulatory minimum before buffers (which are also allow ed to be used in times of
stress)
Investec plc continues to have the low est PRA prescribed Pillar 2A capital requirement of all UK
holding companies shown above
28
1 The capital adequacy disclosures for Investec plc include the deduction of foreseeable charges and dividends when calculating Common Equity Tier (CET)1 capital. These disclosures differ from the capital adequacy disclosures included in the Investec Group's 2022 integrated and strategic report, which follow our normal basis of
presentation and do not include this deduction when calculating CET1 capital. Investec plc CET1 ratio would be 28bps (31 March 2021: 17bps) higher, on this basis. 2 The CET1, Tier 1 and total capital ratios are calculated applying the IFRS 9 transitional arrangements (including the Capital Requirements Regulation (CRR) II
changes introduced by the 'quick fix' regulation adopted in June 2020). 3 The CET1 ratio (fully loaded) and the leverage ratio (fully loaded) assume full adoption of IFRS 9 (including the 'quick fix' regulation in the UK). 4 The leverage ratios are calculated on an end-quarter basis. In the UK, the 31 March 2022 leverage ratio is
calculated applying the UK leverage ratio framework, which applies to all UK firms from 1 January 2022. The 31 March 2021 comparative is calculated on a Capital Requirements Directive (CRD) IV basis. 5 Information sourced from latest financial reports.View entire presentation