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INVESTEC ANNUAL REPORT 2024
Investec plc silo (excluding Investec Limited) annual financial statements

| Alternative performance measures We supplement our IFS figures with alternative performance measures used by management internally and which provide valuable, relevant information. These measures are highlighted with the symbol shown here. The description of alternative performance measures and their calculation is provided in the alternative performance measures section.
| Page references Refers readers to information elsewhere in this report.
| Website Indicates that additional information is available on our website: www.investec.com
| Group sustainability Refers readers to further information in the Investec Group's 2023 sustainability report which is published and available on our website: www.investec.com
| Reporting standard Denotes our consideration of a reporting standard
| Unaudited information Indicated information which has not been audited.
| Integrating sustainability Indicates where we have incorporated sustainability content, aims and ambitions.

Feedback
We value feedback and invite questions and comments on our
reporting. To give feedback please contact our Investor
Relations division.
For queries regarding information in this document:
Investor relations
Tel:(27) 11 286 7070
(44) 20 7597 5546
Email:investorrelations@investec.com

| www.investec.com/en_za/ welcome-to-investec/about-us/ investor-relations.html

01 | Operational and strategic overview |  | Our business at a glance | 4
| Overview of the Investec Group’s and Investec plc’s organisational structure | 5
| Overview of the activities of Investec plc | 6
| Salient features | 9
02 | Risk management and governance |  | Risk management approach and framework | 28
| Year in review from a risk perspective | 29
| Principal risks | 31
|  |  | Investec plc Audit Committee report | 46
|  |  | Directors’ report | 58
03 | Annual financial statements |  | Directors’ responsibilities | 70
| Independent auditor’s report to the members of Investec plc | 72
| Consolidated income statement | 74
| Consolidated statement of comprehensive income | 75
|  | Consolidated balance sheet | 76
|  | Consolidated cash flow statement | 77
|  | Consolidated statement of changes in equity | 78
|  | Accounting policies | 80
|  | Notes to the annual financial statements | 92
|  | Notes to risk and capital management | 139
| Parent Company annual financial statements |  | Balance sheet | 206
|  | Statement of changes in shareholders’ equity | 207
|  | Notes to the Investec plc parent company annual financial statements | 208
|  |  | Alternative Performance Measures | 216
|  |  | Definitions | 217
|  |  | Glossary | 218
|  |  | Corporate information | 220

01 |  | Contents |  |  | Investec plc Annual Financial Statements 2024
CONTENTS

1
Operational
and strategic
overview

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024

2
Our purpose is to create enduring
worth. This underpins who we are
and how we create long term
sustainable value. This section
provides an overview of Investec plc.
IN THIS SECTION

4 | Our business at a glance
5 | Overview of the Investec Group’s and Investec plc’s organisational structure
6 | Overview of the activities of Investec plc
9 | Salient features

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024

3
One Investec
Our purpose is to create enduring worth.

| Our mission |  |  | Investec is a distinctive bank and wealth manager, driven by commitment to our purpose, values, core philosophies and culture. We deliver exceptional service to our clients in the areas of banking and wealth management, striving to create long-term value for all of our stakeholders and contributing meaningfully to our people, communities and the planet. |
| Our distinction |  |  | The Investec distinction is embodied in our entrepreneurial culture, supported by a strong risk management discipline, client-centric approach and an ability to be nimble, flexible and innovative. We do not seek to be all things to all people. Our aim is to build well defined, value-adding businesses focused on serving the needs of select market niches where we can compete effectively and build scale and relevance. Our unique positioning is reflected in our iconic brand, our high-touch and high-tech approach and our positive contribution to society, macro-economic stability and the environment. Ours is a culture that values purposeful thinking and stimulates extraordinary performance. We take pride in the strength of our leadership team and our people are empowered and committed to our values and culture. |
| Our philosophies |  |  | Single organisation |
|  |  | Meritocracy |
|  |  |  | Focused businesses |
|  |  |  | Differentiated, yet integrated |
|  |  |  | Material employee ownership |
|  |  |  | Creating an environment that stimulates extraordinary performance |
| Our values |  |  | Deep client partnerships, built on trust and out-of-the-ordinary service, are the bedrock of our business |
|  |  |  | We are dedicated to building meaningful relationships with all our stakeholders |
|  |  |  | We uphold cast-iron integrity in all we do |
|  |  |  | We are committed to living in society, not off it |
|  |  |  | We embrace our responsibility to the environment |
|  |  |  | We thrive on change and challenge convention with courage, constantly adapting to an ever-changing world |
|  |  |  | We believe in open and honest dialogue to test decisions, seek consensus and accept responsibility |
|  |  |  | We trust our people to exercise their judgement, promoting entrepreneurial flair and freedom to operate within the context of prudent risk parameters and unwavering adherence to our values |
|  |  |  | We embrace diversity in a deeply caring organisation in which everyone can bring their whole selves |

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
OUR BUSINESS AT A GLANCE

4
Investec plc , which houses our non-Southern African businesses, has been listed
on the London Stock Exchange since 2002 with a secondary listing on the
Johannesburg Stock Exchange Limited (JSE) and A2X in South Africa.
All references in this report to the Group relate to Investec plc, whereas references to Investec, Investec Group or DLC relate to the
combined DLC Group comprising Investec plc and Investec Limited.

| A circular on the establishment of our DLC structure was issued on 20 June 2002 and is available on our website.

How we are structured

| Non-Southern African operations |  |  | Southern African operations
| Investec plc |  | Investec Limited
| LSE primary listing |  | JSE primary listing
| JSE secondary listing |  | BSE secondary listing
| A2X secondary listing |  | NSX secondary listing
|  |  | A2X secondary listing

Investec Bank plc |  | Investec Bank Limited |  | Investec Wealth & Investment International Group |
|  |  |  |  | 41.25% economic interest |  |  |
Rathbones Group plc* |  |  |

All shareholdings in the ordinary share capital of the subsidiaries shown are 100%.
Salient features of the DLC structure
• Investec plc and Investec Limited are separate legal entities and listings, but are bound together by contractual agreements
and mechanisms
• Investec operates as if it is a single unified economic enterprise
• Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company
• Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross-guarantees between
the companies.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
OVERVIEW OF THE INVESTEC GROUP'S AND INVESTEC PLC'S ORGANISATIONAL STRUCTURE

5
We provide our clients with an extensive depth and breadth of product and services in the corporate mid market,
bespoke solutions to high net worth clients and access to a wealth management offering through our strategic
partnership with Rathbones. We leverage our connected client ecosystem to deliver an exceptional client service
with an entrepreneurial approach.
Specialist Banking
Our teams are well positioned to provide solutions to meet
private, corporate and institutional clients' needs. Each business
provides specialised products and services to defined target
markets.
What makes us distinct?
• Provision of high-touch personalised service, with the ability
to execute quickly
• Ability to leverage international, cross-border platforms
• Well positioned to capture opportunities between the
developed and the emerging world
• Strong ability to originate, manufacture and distribute
• Balanced business model with good business depth
and breadth
• Provision of high-quality solutions to corporate and private
clients, with leading positions in select areas.

| Focus on helping our clients create and preserve wealth |  |  | A highly valued partner and adviser to our clients
| High net worth (HNW) private clients |  |  | Corporate, private, intermediary, government and institutional clients

| Private client banking activities |  |  |  | Corporate and investment banking activities |
| • Lending • Private capital • Transactional banking • Savings • Foreign exchange. |  |  |  | • Lending • Treasury and risk management solutions • Advisory • Institutional research, sales and trading. |
| UK Channel Islands |  |  |  | UK and Europe Channel Islands USA India |
| Our high-touch and high-tech private client offering provides transactional banking, lending, private capital, savings and foreign exchange tailored to suit our clients’ needs. Our target market includes HNW active wealth creators (with >£300 000 annual income and >£3mn net asset value). Our savings offering targets primarily UK retail savers. |  |  |  | Our client-centric, solution-driven offering provides Corporate Banking and Investment Banking services to private companies, private equity and sponsor-backed companies and publicly listed companies. |
| Natural linkages between the private client and corporate business

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
OVERVIEW OF THE ACTIVITIES OF INVESTEC PLC

6
In April 2023, the Boards and Management of Investec Group and Rathbones Group plc (“Rathbones”) announced a
definitive agreement regarding an all-share combination of Investec Wealth & Investment Limited (“IW&I UK”) and Rathbones
(the “Combination”). The Combination brought together two trusted and prestigious UK wealth management businesses with
closely aligned cultures and operating models.
The IW&I UK and Rathbones combination creates the UK’s leading discretionary wealth manager with c.£107.6 billion in funds
under management and administration (“FUMA”), delivering the scale that will underpin future growth.
The announcement on 21 September 2023 marked the completion of the combination and the beginning of an exciting
long-term strategic partnership between Investec and Rathbones, with a coordinated banking and wealth management
offering for clients.

| Overview of the transaction |  |  |  |
Under the terms of the Combination, Rathbones has now issued to Investec Bank plc as consideration: |  | i. | 27,056,463 ordinary voting shares representing 29.9% of the Rathbones enlarged ordinary voting share capital; and |
| ii. | 17,481,868 convertible non-voting ordinary shares, |
|  |  | such that Investec Group now has an economic interest of 41.25% in Rathbones’ enlarged share capital. |

| Strategic review and rationale |
| 1 |  |  |
|  | Created the UK’s leading discretionary wealth manager |
|  | — Scale and operating efficiencies to power future growth — Enhanced client and employee proposition — Increased investment in capability and technology |
| 2 |  |  |
|  | Reaffirmed Investec Group’s commitment to the strategically attractive UK wealth management sector |
| 3 |  |  |
|  | Creates sustainable value for Investec Group’s shareholders |
| 4 |  |  |
|  | Increases earnings contribution from capital light activities in the medium term |

| Further considerations |
Accounting implications

The IW&I UK transaction included Investec Group’s wealth and investment businesses in the UK and Channel Islands but excludes
Investec Bank (Switzerland) AG (“IBSAG”) and Investec Wealth & Investment International (Pty) Ltd (“Investec W&I SA”). Both IBSAG
and Investec W&I SA remain wholly-owned subsidiaries of the Investec Group.
IW&I UK was previously 100% consolidated. Going forward the Group's investment in Rathbones is now equity accounted and
recognised as an associate.
In accordance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), the Group’s interest in IW&I UK up to
the date of combination has been presented as a discontinued operation and the income statements for the prior periods have
been appropriately re-presented. Refer to page 68 for discontinued operations.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
SUMMARY OF IW&I UK AND RATHBONES ALL-SHARE COMBINATION

7

| Investec plc structure pre-combination |  |
|  |  |  |  | Investec plc |  |  |  |
|  | Specialist banking |  |  |  |  |  | Wealth and Investment UK |  |
| Investec plc structure post combination |  |
| Investec plc | 41.25% economic interest | Rathbones Group plc |
|  | Specialist banking |  |
|  |  | 29.9% voting rights and two board seats |

| Governance and management

Following completion, and as described in the combined prospectus and circular published on 1 June 2023, Investec Group is
entitled to appoint two Non-Executive Directors onto the Rathbones Board. Investec Group has nominated Ruth Leas (CEO of
Investec Bank plc) and Henrietta Baldock (Non-Executive Director of the Investec Group), and consequently their respective
appointments have now taken effect.

| The combination of Investec W&I UK and Rathbones brings together two businesses which have a long-standing heritage in UK wealth management and closely aligned cultures. The strategic fit of the two businesses is compelling with complementary strengths and capabilities to enhance the overall proposition for clients. This will be supported by the strategic partnership which offers attractive growth and collaboration opportunities for both groups. The transaction represents a real step-change and long-term opportunity for our UK wealth strategy, underscores our commitment to the UK wealth management market and enhances our UK business as a whole . |  |  |  |
| Fani Titi |  |  |  |  |
| Investec Group Chief Executive |  |  |  |  |

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
SUMMARY OF IW&I UK AND RATHBONES ALL-SHARE COMBINATION

8

| 31 March 2024 | 31 March 2023* | % change
Income statement and selected returns on a pro-forma basis |  |  |
Earnings attributable to ordinary shareholders (£’000) | 706 210 | 293 131 | >100.0%
Adjusted operating profit (£’000)^^ | 462 268 | 369 974 | 24.9%
Operating costs (£’000) | 656 599 | 598 966 | 9.6%
Cost to income ratio^^ | 54.5% | 57.8% |
Return on average assets* | 2.43% | 1.04% |
Return on average risk weighted assets* | 3.91% | 1.69% |
Net interest income as a % of operating income | 67.2% | 69.0% |
Non-interest income as a % of operating income | 32.8% | 31.0% |
Annuity income as a % of total operating income | 68.7% | 71.1% |
| 31 March 2024 | 31 March 2023* | % change
Balance sheet |  |  |
Total assets (£’million) | 30 061 | 28 386 | 5.9%
Net core loans (£’million) | 16 557 | 15 563 | 6.4%
Cash and near cash balances (£’million) | 9 652 | 8 550 | 12.9%
Customer accounts (deposits) (£’million) | 20 791 | 19 122 | 8.7%
Funds under management (£’million) | 2 130 | 42 422 | (95.0%)
Gearing ratio (total assets to equity) | 8.7x | 10.4x |
Level 3 (fair value assets) as a % of total assets | 8.2% | 6.5% |
Core loans to equity ratio | 4.8x | 5.7x |
Loans and advances to customers as a % of customer deposits | 79.7% | 81.4% |
Credit loss ratio | 0.58% | 0.37% |
Stage 3 exposures as a % of gross core loans subject to ECL | 3.3% | 2.3% |
Stage 3 exposures net of ECL as a % of net core loans subject to ECL | 2.6% | 1.8% |
Other regulatory ratios |  |  |
LCR | 453% | 383% |
NSFR | 146% | 147% |
Capital and leverage ratios ^ |  |  |
Total Capital ratio | 18.4% | 17.2% |
Tier 1 ratio | 14.6% | 13.1% |
Common Equity Tier 1 ratio | 12.1% | 11.7% |
Leverage ratio | 10.0% | 9.2% |

*Average balances are calculated on a straight-line average
^The capital and leverage ratios are calculated applying the IFRS 9 transitional arrangements.
^^Presented on a pro-forma basis. See page 216 for calculation.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
SALIENT FEATURES

9
Pro-forma income statements
Given the nature of the IW&I UK transaction, Investec plc’s economic interest remained similar before and after the transaction. To
provide information that will be more comparable to the future presentation of returns from Investec plc’s interest in this entity and
given the new holding structures, pro-forma information has been prepared as if the transaction had been in effect from the
beginning of the period, i.e. IW&I UK has been presented as an equity accounted investment.

£’000 | Year to 31 March 2024 | Re-presentation of Investec Wealth & Investment Limited | Year to 31 March 2024 Pro-forma
Interest income | 1 914 473 | — | 1 914 473
Interest expense | (1 103 546) | — | (1 103 546)
Net interest income | 810 927 | — | 810 927
Fee and commission income | 173 213 | — | 173 213
Fee and commission expense | (16 451) | — | (16 451)
Investment income | 14 322 | — | 14 322
Share of post-taxation profit of associates and joint venture holdings | 55 793 | 35 855 | 91 648
Trading income/(loss) arising from |  |  |
– customer flow | 103 158 | — | 103 158
– balance sheet management and other trading activities | 27 099 | — | 27 099
Other operating income | 2 150 | — | 2 150
Operating income | 1 170 211 | 35 855 | 1 206 066
Expected credit loss impairment charges | (85 995) | — | (85 995)
Operating income after expected credit loss impairment charges | 1 084 216 | 35 855 | 1 120 071
Operating costs | (656 599) | — | (656 599)
Operating profit before goodwill, acquired intangibles and strategic actions | 427 617 | 35 855 | 463 472
Impairment of goodwill | — | — | —
Amortisation of acquired intangibles | (940) | — | (940)
Amortisation of acquired intangibles of associate | (5 679) | — | (5 679)
Closure and rundown of the Hong Kong direct investments business | (784) | — | (784)
Operating profit | 420 214 | 35 855 | 456 069
Financial impact of strategic actions | (16 576) | — | (16 576)
Profit before taxation | 403 638 | 35 855 | 439 493
Taxation on operating profit before goodwill, acquired intangibles and strategic actions | (86 502) | — | (86 502)
Taxation on goodwill, acquired intangibles and strategic actions | 727 | — | 727
Profit after taxation from continuing operations | 317 863 | 35 855 | 353 718
Profit after taxation from discontinued operations* | 389 551 | (35 855) | 353 696
Profit after taxation | 707 414 | — | 707 414
Profit attributable to other non-controlling interests | (1 204) | — | (1 204)
Earnings attributable to shareholders | 706 210 | — | 706 210
Cost to income ratio | 56.2% |  | 54.5%

* Refer to note 34 for discontinued operations disclosure.
Note: No adjustments have been made to the balance sheet for the purposes of our pro-forma disclosures.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
PRO FORMA

10

| Year to | Re-presentation of | Year to
| 31 March 2023 | Investec Wealth & | 31 March 2023
£’000 | as previously reported | Investment Limited | restated
Interest income | 1 215 245 |  | 1 215 245
Interest expense | (501 025) |  | (501 025)
Net interest income | 714 220 |  | 714 220
Fee and commission income | 131 795 |  | 131 795
Fee and commission expense | (15 442) |  | (15 442)
Investment income | 18 223 |  | 18 223
Share of post-taxation profit of associates and joint venture holdings | 4 950 | 74 567 | 79 517
Trading income/(loss) arising from |  |  | —
– customer flow | 87 366 |  | 87 366
– balance sheet management and other trading activities | 13 134 |  | 13 134
Other operating income | 6 879 |  | 6 879
Operating income | 961 125 | 74 567 | 1 035 692
Expected credit loss impairment charges | (66 752) |  | (66 752)
Operating income after expected credit loss impairment charges | 894 373 | 74 567 | 968 940
Operating costs | (598 966) |  | (598 966)
Operating profit before goodwill, acquired intangibles and strategic actions | 295 407 | 74 567 | 369 974
Impairment of goodwill | (805) |  | (805)
Amortisation of acquired intangibles | — |  | —
Closure and rundown of the Hong Kong direct investments business | (480) |  | (480)
Operating profit | 294 122 | 74 567 | 368 689
Financial impact of strategic actions | (402) |  | (402)
Profit before taxation | 293 720 | 74 567 | 368 287
Taxation on operating profit before goodwill, acquired intangibles and strategic actions | (59 623) |  | (59 623)
Taxation on goodwill, acquired intangibles and strategic actions | — |  | —
Profit after taxation from continuing operations | 234 097 | 74 567 | 308 664
Profit after taxation from discontinued operations* | 59 034 | (74 567) | (15 533)
Profit after taxation | 293 131 | — | 293 131
Profit attributable to other non-controlling interests | — |  | —
Earnings attributable to shareholders | 293 131 | — | 293 131
Cost to income ratio | 62.3% |  | 57.8%

* Refer to note 34 for discontinued operations disclosure.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
PRO FORMA CONTINUED

11
Climate-
related
disclosures
Our climate-related
disclosures as at the end
of 31 March 2024 are in
accordance with sections
414CA and 414CB of the
Companies Act 2006
which outline requirements
for non-financial reporting.
The table on page 13 to 25
is intended to provide our
stakeholders with the
content they need to
understand our
development,
performance, position and
the impact of our activities
with regards to non-
financial and sustainability
matters. Further
information on these
matters is included within
the nonfinancial reporting
section in the 2024 Group
sustainability report on our
website.
We believe that our widest and most
positive influence is realised when our
businesses use their specialist skills in
advisory, lending and investing to support
our clients and stakeholders to move
as quickly and smoothly as possible
towards a zero-carbon economy.

| 01 |  | Maintaining carbon neutral status within our global operations |
| Highlights |
| • We are incorporating environmental values into our culture and decision making • We have maintained carbon neutral status for the sixth consecutive year • We have procured 100% global electricity from renewable sources using green tariffs and renewable electricity certificates where feasible • We have committed to net-zero in our Scope 3 financed emissions by 2050. |

| 03 |  | Managing and steering our portfolios towards a net-zero world |
| Highlights |
| • We have committed to zero thermal coal exposures in our loan book by 31 March 2030 • We are monitoring and managing our exposures to fossil fuels and other high-emitting sectors • We have made significant progress in improving the data quality and processes for our Scope 3 financed emissions. This involved implementing rigorous data collection processes to ensure that the data we use is accurate, reliable, and up-to-date • We have dedicated significant resources to automate the financed emissions calculations using the PCAF methodology which improved alignment across our jurisdictions and improved the consistency of applied methodologies |

| 02 |  | Financing a resilient economy and partnering with our clients |
| Highlights |
| • We introduced an enhanced Sustainable and Transition Finance Classification Framework to guide our decision-making processes as we actively pursue our 2050 net- zero ambition • We are developing and rigorously testing targets to be released by the end of March 2025. These targets will be integrated with executive KPIs, ensuring that leaders are held accountable for achieving our sustainability ambitions. • We have established a Sustainable Business Forum in the UK and South Africa that develop and integrate sustainability strategies into our business processes, commercial plays, and incentive frameworks, addressing our own aspirations as well as the expectations of our stakeholders. |

| 04 |  | Continuing our participation in advocacy and collaboration
| Highlights |
| • Our commitment to sustainability is evident from the many organisations with whom we engage and support • Active collaboration and participation in sustainable initiatives can direct capital towards environmentally and socially responsible projects • Actively working with regulators allows us to stay informed around regulatory changes and ensure compliance with evolving sustainability frameworks. Furthermore, participation and engagement can help shape policies and standards that promote sustainability within the industry. |

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
CLIMATE RELATED DISCLOSURES

12
Climate-related disclosures overview
The following complies with the Companies (Strategic Report) (Climate-related Financial Disclosures) Regulations 2022.
Additionally, we have prepared a comprehensive Climate Report that provides a more detailed and tailored perspective for our
stakeholders, as required by the Financial Conduct Authority (FCA) Listing Rule 9.8.6R(8). The information provided, along with our
extensive Climate Report available on our website, demonstrates our recognition and alignment with the Task Force on Climate-
related Financial Disclosures (TCFD) guidelines. These disclosures outline how we integrate climate-related risks and opportunities
into our governance, strategy, risk management, metrics, targets, and our approach to meeting stakeholder expectations.
Investec publicly committed to support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD)
recommendations in 2019 and we released our first stand-alone TCFD report in 2019. During the year ended 31 March 2024, we
have made progress in improving the data quality and processes for our financed emissions. In addition, we dedicated significant
resources to automate the financed emissions calculations using the PCAF methodology which improved alignment across our
jurisdictions and improved the consistency of applied methodologies.
Please refer to the Investec Group’s 2024 climate and nature-related financial disclosures report for further detail.

Governance
The Board’s oversight of climate and nature-related risks and opportunities
Reporting requirements: Climate-related financial disclosures: CFD-a. TCFD: G-a
Board
Responsibility At the highest governance level, the DLC Board establishes the purpose of the Group, incorporates sustainability, climate and nature-related matters when reviewing and guiding strategy and strategic objectives, and monitors progress against sustainability-related targets and ambitions. Furthermore, they track the progress of goals and targets, including overseeing major capital expenditures, acquisitions, and divestitures. In addition, the Board is responsible for overseeing Investec's response to climate change and the prevention of nature loss. They receive support from Group executive forums and management teams in managing climate and nature-related risks and identifying opportunities.
Board meetings The composition of the Board has been designed to ensure that we have the appropriate mix of knowledge, skills, experience, independence and diversity. The Board considers the collective skills and experience, knowledge and experience of the directors when assessing the overall composition and suitability of the Board. In addition to a range of skills, the Board also values the innate difference in approach and thinking styles, which results from the varied backgrounds and experiences of our directors.The skills and experience of the members of the Board are detailed on page 159 of the Investec Group’s 2024 integrated and strategic annual report. All members have a strong awareness of climate-related and sustainability matters. The Board met six times during which climate-related and sustainability matters were presented. 86% of the Board members have sustainability-related experience.
Information and escalation channels The DLC SEC Chair reports to the Board after each meeting on the nature and content of its discussions, recommendations, and action to be taken, and makes recommendations to the Board it deems appropriate on any area within its remit where action or improvement is needed. In addition, climate-related and sustainability risk matters are escalated to the Board through the DLC BRCC and the Group ESG Executive Committee, with documented feedback provided at every meeting.
Monitoring and oversight Our climate-related goals and targets are set at an operational level with the overarching commitment to remain carbon neutral within our operations (Scope 1 and 2 and operational Scope 3). This has resulted in us being carbon neutral for the sixth consecutive year. Additionally, the Board has provided oversight for our enhanced climate impact roadmap, which outlines our strategy for sustainable finance and our pathway to achieving net zero carbon emissions by 2050. We will establish sustainable finance targets by the end of March 2025 that will be overseen by the Board. The Board has received regular updates throughout the financial year, both written and verbal.
Key achievements for the year ending FY2024 • The concept of double materiality – in which we understand the impacts of climate change and biodiversity loss on our business, and the impact of our activities on the natural environment/biodiversity and climate change has been a key focus for the Board • The Board approved the enhanced Sustainable and Transition Finance Classification framework • The Board noted the emerging sustainability disclosure regulations, specifically the ISSBs IFRS S1 and IFRS S2 recommendations, the recommendations published by the Prudential Authority and the CSRD • The Board was upskilled in climate-related matters, specifically in sustainable and transition finance as a result of our enhanced Sustainable and Transition Finance Classification Framework.
Focus areas for the year ending FY2025 • Oversee progress of establishing sustainable finance targets for the Group • Monitor sustainable and transition finance initiatives across the Group • Oversee the developments regarding the inclusion of additional asset classes in the calculations of our Scope 3 financed emissions • Further enhancements of skills in climate and sustainability-related matters.

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CLIMATE RELATED DISCLOSURES CONTINUED

13

Governance continued
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD-a. TCFD: G-a continued
DLC Social and Ethics Committee (DLC SEC)
Responsibility The DLC SEC is a Board-appointed committee with a direct reporting line to the DLC Board. The DLC SEC has accountability for monitoring the non-financial elements of sustainability and monitors the Group’s performance in terms of sustainability, climate and nature-related matters. Furthermore, it is accountable for monitoring the Group’s activities with regard to any relevant legislation, other legal requirements, or prevailing codes of best practice. The responsibilities of the DLC SEC is documented on page 101 of the 2024 Group risk and governance report.
Committee meetings The DLC SEC consists of four independent Non-Executive Directors and the Group Chief Executive. The Committee met four times during the year ended 31 March 2024 where climate and sustainability-related matters were discussed at every meeting. The committee is confident that they have a strong and diverse team of directors who will continue to oversee oversee the sustainability of the Group’s business and the interests of the Group’s stakeholders.
Information and escalation channels The DLC SEC receives feedback on the latest climate and nature-related matters through a standing agenda item. The Chief Strategy and Sustainability Officer escalates any sustainability-related matters raised by the Group ESG Executive Forum either verbally or in written format to the DLC SEC. During FY2024, the DLC SEC climate-related discussion points for the Group included: • An update on the business initiatives designed to support our clients in their participation in the transition to net zero by 2050 • A discussion on our enhanced Sustainable and Transition Finance Classification Framework and the linkage of a sustainable finance target to executive remuneration.
Monitoring and oversight The DLC SEC monitors and oversees progress against climate and sustainability-related goals and targets through ongoing communication to the Committee through a standing agenda item. Key points that are overseen and monitored include: • Sustainability strategy, framework and policies • Alternatives to link sustainability-related metrics and KPIs to Executive Directors’ compensation • Scope 3 financed emissions • ESG transactions that are deemed of high concern • ESG ratings and rankings.
Key achievements for the year ending FY2024 • A review of our progress following the commitment made to achieving net-zero carbon emissions by 2050 and processes to enhance our Scope 3 financed emissions calculations with refined assumptions and systems automation • Approved the enhanced Sustainable and Transition Finance Classification Framework • Noted our reporting readiness with the increased sustainability reporting developments internationally • Acknowledgement of the outcomes of the double materiality assessment disclosed in the Investec Group's 2024 integrated and strategic annual report.
Focus areas for the year ending FY2025 • Contribute to the setting of a sustainable finance target for the Group • Monitor the response to the double materiality assessment completed in 2024 • Monitor the progress in managing the Group’s Scope 3 emissions from our lending and investing activities.

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CLIMATE RELATED DISCLOSURES CONTINUED

14

Governance continued
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD-a. TCFD: G-a continued
DLC Board Risk and Capital Committee (DLC BRCC)
Responsibility The role of the Committee is to provide independent challenge and oversight of the Group’s risk and capital frameworks, management and governance structures. They ensure that effective risk and capital frameworks, plans, policies, processes and systems are in place to ensure current and emerging risks are adequately assessed and appropriately addressed within a reasonable timeframe. The DLC BRCC oversees and signs off on the Group’s risk management policies. The Committee is also responsible for managing the principal risks of the Group, of which climate-related risk is explicitly listed.
Committee meetings The Committee comprises Executive and Non-Executive members, with the composition designed to provide the breadth of risk expertise and commercial acumen to fulfil their responsibilities. All members have a strong awareness of climate and sustainability-related matters. The Committee met five times during the financial year ended 31 March 2024 where members were informed of climate and sustainability-related matters on an ad-hoc basis.
Information and escalation channels The DLC BRCC receives feedback through Committee meetings and interactions with the Group Chief Risk Officer, the IBP Chief Risk Officer, the IBL Chief Risk Officer (who are all members of the DLC ESG Executive Committee) and Heads of Risk of the various subsidiaries. Furthermore, the DLC BRCC receives feedback from the IBL BRCC and IBP BRCC where the risks of the banks are addressed, which includes risks relating to sustainability-related matters.
Monitoring and oversight The Group’s exposure to fossil fuels was considered. The Committee was kept updated on the improvement actions being taken from a sustainability and climate risk perspective. These included assessing core loans and advances as well as reviewing the risk classifications per the International Finance Corporation (IFC) guidelines. The Committee received confirmation from management that credit decisions considered financial risks from climate change and that these decisions were being documented.
Key achievements for the year ending FY2024 The DLC SEC and the Committee reviewed all the ESG related policies. The Group also conducted a double materiality assessment the findings of which are included in the Investec Group's 2024 integrated and strategic annual report.
Focus areas for the year ending FY2025 • Stronger focus on climate, nature and energy security • Monitored the increased reporting requirements from stakeholders, monitored our fossil fuel exposures and our exposure to high-emitting industries • Increase engagement on climate and nature-related goals and targets • Regular feedback from the various sustainability committees on climate and nature-related goals and targets • Development and upskilling of DLC BRCC members on climate and nature-related matters.
DLC Audit Committee
Responsibility The role of the Committee is to consider the appropriateness of financial and non-financial disclosures and provide oversight on compliance to climate-related reporting regulations. The Committee also considers the level of assurance provided by external audit on sustainability and climate disclosures made in the annual report.
Committee meetings The Audit Committee met eleven times during the financial year ended 31 March 2024, where regulations, specifically the BIS Pillar 3 requirements and the ISSB’s disclosure guidance on IFRS S1 and IFRS S2, were discussed at some of these meetings.
Information and escalation channels The Committee receives regular updates from Group Sustainability, Group Finance and from External Audit on the latest regulatory and disclosure requirements. Significant judgments and estimates were discussed, including the inherent risks posed by climate-related matters.
Key achievements for the year ending FY2024 The DLC Audit Committee reviewed the assurance provided for KPIs relating to: • Fossil fuel exposure • Carbon footprint • Limited assurance on the mortgage asset class with regards to Scope 3 financed emissions • Appropriateness and completeness of the sustainability and climate disclosures provided in the Investec Group’s 2024 integrated and strategic annual report.
Focus areas for the year ending FY2025 Development and upskilling of members on climate and nature-related matters. The implications of sustainability-related risks in measuring the sustainability and societal impact of an investment in a company or business, together with sustainability-related accounting disclosures and assurance processes.

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CLIMATE RELATED DISCLOSURES CONTINUED

15

Governance continued
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD-a. TCFD: G-a continued
DLC Remuneration (REM) Committee
Responsibility The DLC REM Committee establishes performance-related targets in respect of sustainability measures, which incorporate climate-related aspects.
Committee meetings The DLC REM Committee met eight times during the financial year ended 31 March 2024 and considered climate-related matters at three of those meetings.
Information and escalation channels The DLC REM Committee gets informed on climate-related targets when the Executive remuneration framework is reviewed. The DLC REM Committee will then assess the performance of the Executive against these targets. Refer to the 2024 Group Remuneration report page 11 for executive remuneration.
Key achievements for the year ending FY2024 Approved the executive remuneration framework regarding sustainability targets (including climate-related aspects). Refer to the 2024 Group Remuneration report page 4.
Focus areas for the year ending FY2025 Approve the executive remuneration framework regarding sustainability targets (including climate-related aspects). Refer to the 2024 Group Remuneration report page 4.
Management’s role in assessing and managing climate and nature-related risks and opportunities
Reporting requirements: Climate-related financial disclosures: BEIS (a). TCFD: G-b
Chief Executive (CE) responsibility
Responsibility The CE, Fani Titi, takes ultimate executive accountability for all sustainability, climate and nature-related matters. He is also on the board of the UN Global Compact network in South Africa.
Information and escalation channels The CE is informed of sustainability, climate and nature-related risks and opportunities through the Chief Strategy and Sustainability Officer, the Group ESG Executive Committee and the DLC SEC, of which he is also a member. He also receives written feedback through the Board reports.
Monitoring and oversight The CE is part of the DLC SEC and DLC BRCC, which monitor and oversee sustainability and climate-related goals and targets.
Key achievements for the year ending FY2024 • Approved the enhanced Sustainable and Transition Finance Classification Framework • Endorsed the double materiality assessment conducted according to the guidelines provided by the CSRD • Received recognition for the second year in a row by Corporate Knights as one of the top 100 most sustainable companies in the world.
Focus areas for the year ending FY25 • Monitor progress on setting a sustainable finance target and incorporating this target into Executive remuneration • Advocate industry participation, in particular engagement with the UN Global Compact network in South Africa • Monitor progress on the Group’s net-zero ambitions • Inform the strategic direction for climate and nature initiatives and alignment with the Group strategy.

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16

Governance continued
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: BEIS (a). TCFD: G-b continued
Group ESG Executive Committee
Responsibility The Group CE is supported by the Group ESG Executive Committee to help align and coordinate the sustainability strategy and governance efforts across geographies and businesses. The Group ESG Executive Committee, mandated by the Group's Executive Directors, reports relevant sustainability, climate and nature-related matters to the DLC SEC and Group ERC.
Information and escalation channels Key sustainability, climate and nature-related matters raised by the business and forums mentioned below are escalated to the Chief Strategy and Sustainability Officer who presents these matters verbally and in written format at each Group ESG Executive Committee meeting. The forums include: • The Group sustainability team • Investec Limited Sustainable Business Forum • Investec plc Sustainable Business Forum • IW&II Responsible Investment Committee • Group ERC • IBL ERC • IBP ERC.
Monitoring and oversight • Receives updates on sustainability, climate and nature-related matters at each meeting in a verbal or presentation format • Reviews Investec Group’s ESG ratings (in particular Sustainalytics, MSCI, CDP, CSA Dow Jones and ISS), assessing and engaging on suggested actions to improve ratings and performance of climate and nature-related goals and targets • Discusses and approves actions towards carbon neutrality to meet our net-zero ambitions • The committee met six times during FY2024 where sustainability, climate and nature-related matters were discussed at every meeting.
Key achievements for the year ending FY2024 • Initiated a collaborative process to enhance the Sustainable and Transition Finance Classification Framework, which will serve as the foundation for establishing sustainable finance targets • Endorsed the automation of the Scope 3 financed emissions, aiming to enhance accuracy and efficiency • Reviewed and discussed the emerging sustainability regulations from the Prudential Authority, the ISSB’s recommendations specifically relating to IFRS S1 and IFRS S2, and the CSRD • Reviewed the double materiality assessment conducted in accordance with the requirements of the CSRD • Reviewed the sustainability strategy of the group, with a particular focus on our net-zero pathway • Provided capacity building for frontline staff on the application of sustainable finance in commercial activities.
Focus areas for the year ending FY2025 • Engage actively in the process of establishing sustainable finance targets for the Group • Track sustainable and transition finance initiatives across the Group • Review decarbonisation efforts • Monitor the developments regarding the inclusion of additional asset classes in the calculations of our Scope 3 financed emissions • Monitor new product offerings, with a strict focus on identifying greenwashing practices and staying informed about emerging anti- greenwashing regulations • Oversee the development of sustainability competencies across all global business units.
Executive responsibility within the Specialist Bank The Board assigned executive responsibility to Marc Kahn (Chief Strategy and Sustainability Officer) to drive the sustainability agenda across the Group. Mark Currie, our Group Chief Risk Officer as well as Kevin McKenna, our UK Chief Risk Officer are members of the Group ESG Executive Committee. Kevin McKenna is also the Senior Management Function (SMF) for climate risk for Investec Bank plc.
Executive responsibility within Wealth & Investment Joubert Hay as the Chief Executive Officer of Investec Wealth & Investment International has executive responsibility for sustainability and climate‑related matters. The implementation has been assigned to key members of the Wealth & Investment Responsible Investment Committee who coordinate the integration of the sustainability, climate and nature-related matters in our Wealth & Investment International business.
Chief Strategy and Sustainability Officer The Chief Strategy and Sustainability Officer, has a direct reporting line to the Group Chief Executive, Fani Titi. Any sustainability, climate and nature-related matters are reported to the CE verbally as and when they arise. The Chief Strategy and Sustainability Officer is the Chair of the Group ESG Executive Committee and collaborates with a range of directors, executives and senior leaders on sustainability matters. The sustainability teams within each of our jurisdictions report directly to the Chief Strategy and Sustainability Officer.

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Strategy
Climate and nature-related risks and opportunities identified over the short, medium and long term
Reporting requirements: Climate-related financial disclosures: BEIS (d1) (d2). TCFD: S-a
Time horizons: Our time horizons are shown below and defined according to the average maturity of our portfolio: • Short-term (0 – 1 year): Sectors already experiencing some risk implications as a result of transition or physical risk • Medium-term (1 – 5 years): Sectors with exposure to transition or physical risk that is broadly manageable • Long-term (5 – 40 years): Modest sector-wide exposure to transition or physical risk or where the consequences are not likely to be material to credit quality.
Transition risks
Risk | Drivers | Potential impacts | Expected time horizon | Mitigation actions
Policy and legal risk | • Efforts to remain carbon neutral • Carbon tax • Climate and nature-related reporting regulations • Litigation actions • Potential risk of regulatory breaches from existing climate-related regulation | • Increased operating costs • Potential write off’s due to early retirement of assets • Changes in asset valuations | • Short term • Medium term • Long term | • Apply a balanced approach towards meeting stakeholder demands through active stakeholder engagement • Participating in industry initiatives to test and develop climate and nature-related reporting
Technology risk | • New technologies favoured due to lower carbon footprint • Investment in new technologies | • Costs associated with the substitution of technology to cleaner alternatives • Write off or early retirement of technology assets • Research and development expenses towards newer and greener technologies | • Short term • Medium-term | • Reduce environmental footprint through operational efficiencies • Adoption of cloud services and reduction of the reliance of on- premise data centres • Research on new and innovative technologies to mitigate cost issues
Market risk | • Competitor entrance with innovative sustainable finance product offerings • Change in consumer behaviour toward low carbon products • Increased costs and volatility in prices for carbon heavy products | • Scaling costs associated with implementing sustainable finance product offerings • Research and development costs for new product offerings • Operational costs associated with increased client engagements | • Medium term • Long term | • Increase sustainable finance offerings in line with client and market demand • Manage exposures to high emitting industries (e.g. fossil fuels)
Reputational risk | • Risk of greenwashing in product offerings and disclosure • Increased stakeholder concern and pressure on emission reduction strategies | • Increased costs relating to penalties associated with greenwashing • Potential increase in costs relating to additional reporting requirements | • Short term • Medium term | • Transparent disclosures • Targeted stakeholder engagement

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18

Strategy continued
Climate and nature-related risks and opportunities identified over the short, medium and long term continued
Reporting requirements: Climate-related financial disclosures: BEIS (d1) (d2). TCFD: S-a continued
Physical risks
Risk | Drivers | Potential impacts | Expected time horizon | Mitigation actions
Acute risk | • Damage to fixed assets, infrastructure and supply chain due to extreme climate events | • Supply chain disruption due to impacted production capacity • Disruption in operations due to extreme climate events • Costs associated with geospatial analysis of assets • Increased impairments for assets that are impacted severely by acute climate events • Forgone returns from riskier property assets | • Short term • Medium term • Long term | • Ensure resilience of operations to acute climate events (business continuity) • Identification and assessment of assets impacted by climate- related physical risks within our loan book • Evaluate our supply chain for potential exposure to physical climate risks • Ensure resilience through acute physical risk scenario analysis • Given the (relative) short-term nature of our loan book, we may be able to realign our loan book relatively frequently to pivot away from assets that may be at risk for acute physical events
Chronic risk | • Change in average temperature and precipitation patterns • Increase in sea level rise | • Cost associated with geospatial analysis of physical assets • Cost relating to adaptation measures within our own buildings | • Medium term • Long term | • Evaluate asset classes that may be exposed to chronic physical risks • Ensure resilience through chronic physical risk scenario analysis • Evaluate risks in supply chain that might be exposed to chronic physical risks
Opportunities
Within our business, we contribute to climate action and protecting nature through our financing activities. We actively support climate action by addressing critical environmental concerns, reducing greenhouse gas emissions, and fostering resilient communities. Through our investments, we promote a sustainable future where climate change impacts and biodiversity loss are mitigated, clean energy is accessible to all, and cities are environmentally friendly and adaptable.
Opportunity |  | Time horizon
Renewable energy | Financing renewable energy projects not only helps to decarbonise the energy sector but also contributes to energy access, security and affordability, especially in underserved communities. In addition, these financing activities can accelerate the transition towards a low-carbon economy and foster climate resilience. | • Short term
Water solutions and infrastructure | Financing water projects that enhance water infrastructure, promote water conservation, and improve sanitation systems. Through these projects we contribute to mitigating the adverse effects of climate change and building resilient communities. | • Medium term
Urban planning, green infrastructure and transportation | Financing projects that enhance urban planning, promote green infrastructure, and invest in public transportation systems contribute to reducing carbon emissions from transportation and buildings. By building sustainable cities that prioritise energy efficiency, renewable energy integration, and resilient infrastructure, we address the risks posed by climate change and promote sustainable development. | • Short term

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Strategy continued
The impact of climate and nature-related risks and opportunities on our businesses, strategy and financial planning
Reporting requirements: Climate-related financial disclosures: BEIS (e). TCFD: S-b
Products and services • Climate and nature-related risk has led to an enhanced ESG screening process, with transactions that fall within high-risk industries subject to even further due diligence. More detail on our ESG screening criteria is shown on page 50 of the 2024 Group climate and nature-related disclosures report • We have committed to zero coal exposures within our loan book by 31 March 2027 • There are numerous opportunities presented by climate change to move towards lower carbon product offerings as noted above.
Adaptation and mitigation activities: To date our activities largely focused on financing mitigation activities. These include: • Offering various sustainability-linked loans • Financing renewable energy solutions and water infrastructure (adaptation).
Investment in research and development: We have invested in research and development through the following: • Co-chairing the production of International Chamber of Commerce (ICC) Export Finance Sustainability White Paper: Global Trade Review (GTR), a leading publication in the trade and export finance market • Member in a network to transform industry ESG practices: Investec is part of a membership network, Sustainable Trading, that launched a non- profit membership to transform ESG practices within the financial markets trading industry.
Operations • Within our operations, we manage our own carbon footprint and source 100% of our Scope 2 energy from renewables, through the purchase of renewable energy certificates. • In the UK, Investec’s Corporate Estate Facilities Management upheld its commitment to environmental stewardship and energy efficiency by maintaining the certification of our integrated Environmental and Energy Management Systems. This system adheres to the internationally recognised ISO 14001 standard, and is implemented across nine of our offices in the UK and the Channel Islands. We continued to meet the rigorous requirements of the ISO 50001 standard, which was first achieved in 2018, across ten of our UK, Ireland and Channel Island locations.
Supply chain Our Investec Group procurement statement acknowledges the potential for our procurement and supply chain practices to be agents of change for different aspects of sustainability. Our supply chain statement incorporates standards on human rights, labour rights and environmental and anti-corruption principles, as set out in the UN Global Compact. All suppliers undergo a rigorous online screening and ESG due-diligence process before they are onboarded. With regards to environment- and climate-related conditions, we aim to only engage with suppliers who: • Operate in compliance with all applicable environmental laws and regulations of the countries in which they operate, manufacture or conduct business • Maintain an effective environmental policy and/or environmental management system that supports environmental protection.
The resilience of our strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario
Reporting requirements: Climate-related financial disclosures: BEIS (f). TCFD: S-c
Within Investec plc: Climate change-related financial risks are becoming increasingly significant for firms and the financial system. During April 2024, the Bank of England released their expectations for Banks regarding climate change. This included an expectation for banks to further advance and demonstrate the development and integration of processes to identify, measure, manage, and mitigate climate-related financial risks, based on our previous feedback. In addition, banks should also consider incorporating relevant and ambitious stress scenarios to enhance their assessment of the impact of climate change on their business resilience. Furthermore, they have started to initiate work to update the supervisory statement SS3/19, which will include effective practices and developments in broader regulatory thinking. Investec Bank plc performed climate scenario analysis and risk assessments in line with the requirements stipulated by Supervisory Statement SS3/19 ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’, on a proportionate basis for the size and complexity of the firm. The Bank of England’s ‘2021 Climate Biennial Exploratory Scenario’ has been used as the framework for scenario analysis. Short-term transition and physical risk is low and Investec plc has sufficient capital and liquidity to continue as a going concern and meet regulatory capital and liquidity requirements.

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Risk management
Our processes for identifying and assessing climate and nature-related risks
Reporting requirements: Climate-related financial disclosures: BEIS (b). TCFD: R-a
Credit risk: Credit risk increases if climate risk drivers reduce borrowers’ ability to repay and service debt (income effect) or the banks’ ability to fully recover the value of a loan in the event of default (wealth affect). • Investec supports international best practice regarding the responsibility of the financial sector in financing and investing in transactions. Social, environmental and ethical risk considerations are implicit in our values, culture and code of conduct, and are applied as part of our risk frameworks • Our approach to managing the risks from climate change is continually evolving as we improve our understanding of this complex and interconnected risk. We are also aware of the enormity of the challenge of navigating through continuously changing methodologies • Climate risk was incorporated into the Investec Group’s risk frameworks as a principle risk in 2018 • Environmental, nature, climate-related and broader sustainability considerations are implicit in our values, culture and code of conduct and are applied as part of our environmental, nature and climate-related risk frameworks. We assess sustainability risk as part of the credit committee and investment committee’s evaluation of lending and investment decisions. This includes additional due diligence for transactions that fall into the high-risk ESG category (as defined by the IFC), which involves a comprehensive review by the Group sustainability team. This review identifies any potential risks relating to: • Social injustice (including human rights, diversity, inclusion and modern slavery, community displacement and health and safety risk) to support SDG 10 • Environmental impacts (including climate, nature degradation and animal welfare) so support SDG 13 • Governance matters (including corruption, fraud and controversies) • Macro-economic impacts (including poverty, growth, and unemployment) to support SDG 13 and SDG 10. • We consider double materiality as a critical factor to inform our decisions. We take a cautious approach to industries known to have an adverse effects on the environment, biodiversity and climate • If the Group sustainability team flags a transaction as a high concern issue, it will be escalated to a IBL, IBP, or Group ERC before any credit or investment decision is made. Moreover, the DLC SEC is informed of any transaction identified as high concern issues. Potential risks include: • Stranded assets where these assets are seen to be carbon intensive. This is particularly the case in fossil fuel assets • Lower earnings resulting from carbon intensive assets could lead to a need for higher capital expenditure to adapt to the changing market or higher operational expenditure due to fines and taxes imposed on these activities • Decrease in the value of collateral for high carbon intensive assets, leading to higher loss given defaults (LGDs) • Concentration risk in GHG-intensive sectors may arise, as many banks are aiming to divest from carbon intensive exposures.
Market risk: Market risks may occur due to shifts in supply and demand for certain commodities, products, and services as climate-related risks and opportunities are increasingly taken into account. • New competitors may emerge with product offerings with greener credentials. This could impact market share and potentially lead to a loss of customers • Consumer behaviours may change as they become more conscious of their carbon footprint and actively seek out lower carbon-intensive products and greener alternatives. This may lead to a decline in demand for non-green product offerings • The transition to a low-carbon economy can have an impact on equities, bonds, and derivatives. If we are not aligning our operations and strategies with market expectations for sustainability, financial instruments may be at risk of devaluation or becoming less attractive to investors.
Liquidity risk: Access to stable sources of funding could be reduced as market conditions change. Climate risk drivers may cause counterparties to draw down deposits and credit. • We may face challenges in obtaining funding from retail and corporate clients, or may pay substantially higher costs if we are perceived as not transitioning in line with market expectations. This could result in a loss of business opportunities and limited access to capital • We may face higher borrowing costs as lenders may perceive us as higher risk if we are lagging behind in the transition to a more sustainable business model.
Operational risk: Risk associated with disruptive incidents which can impact premises, staff, equipment, systems, and key business processes. • We may have an increased likelihood and impact of business disruption events due to physical climate risks.
Reputational risk: Increasing reputational risk as a result of changing market or consumer sentiment. • We may face reputational damage due to an association with clients who are perceived to be negatively affected by climate change or other risks. A link to clients that are viewed unfavorably by the market, could harm our reputation and undermine stakeholder confidence • Changing customer and community perceptions regarding a detraction from the transition to a lower-carbon economy could lead to a loss of trust and potentially impact client or investor sentiment

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21

Risk management continued
Our processes for identifying and assessing climate and nature-related risks continued
Reporting requirements: Climate-related financial disclosures: BEIS (b). TCFD: R-a continued
Regulatory and compliance risk: Changing legislation, regulation, policies, voluntary codes of practice and their interpretation in the markets in which we operate can have an impact on the Group’s operations, business prospects, costs, liquidity and capital requirements. • As governments and regulatory bodies continue to address climate change, we may need to adapt to new requirements and comply with evolving standards. This can lead to increased legal and regulatory compliance risks, particularly in relation to climate-sensitive investments and businesses • Maintaining carbon neutrality is crucial for Investec, as any failure to do so may result in additional cost implications for our operations. We may incur expenses to reduce our carbon footprint or offset emissions to maintain carbon-neutral status • We may face the potential for increased claims in the form of environmental liability exposures. As awareness of environmental issues grows, stakeholders may hold Investec accountable for any negative environmental impacts resulting from our activities or investments • We may face increased costs due to the pricing of emissions or the imposition of carbon taxes • Non-adherence to new requirements can result in fines or penalties • We may face the potential for litigation as a means to drive increased climate change mitigation activity across various sectors.
To address these risks, we incorporate sustainable practices, diversify product offerings with greener alternatives where feasible, and monitor market trends. We prioritise sustainability and communicate our commitment to responsible business practices. Where possible we align our operations with market expectations and engage with our clients and stakeholders on environmental issues. In addition, we monitor and adapt to changing regulations, proactively manage our environmental impact, and ensure compliance with evolving standards.
Our processes for managing climate and nature-related risks
Reporting requirements: Climate-related financial disclosures: BEIS (b). TCFD: R-b
Investec has a holistic approach to sustainability, and support the precautionary approach to sustainability management, guided by international best practices regarding the responsibilities of the financial sector in financing and investing transactions. This approach runs beyond recognising the Group’s own footprint on the environment and is based on a broader responsibility to the environment and society. We recognise the complexity and urgency of climate change. We are committed to supporting the transition to a clean and energy efficient world while preserving our planet and the wellbeing of our people. The Group ESG Executive Committee mandated by the Group’s Executive Directors reports relevant sustainability-related matters to the DLC SEC and Group ERC. The main objectives of the committee are to coordinate sustainability-related efforts across geographies and businesses Accordingly, sustainability risk considerations are considered by the relevant credit committee or investment committee when making lending or investment decisions. Investec’s climate change position statement stems from the belief that one of the greatest socio-economic impacts we can have is to partner with our clients and stakeholders to accelerate a cleaner, more resilient and inclusive world. Our environmental policy considers the risks and opportunities that climate change and nature degradation present to the global economy. We have linked sustainability-related metrics and KPIs to Executive Directors compensation.

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22

Risk management continued
How our processes for identifying, assessing, and managing climate and nature-related risks are integrated into overall risk management
Reporting requirements: Climate-related financial disclosures: BEIS (c). TCFD: R-c
We assess sustainability risks as part of the credit committee or investment committee’s evaluation of lending or investment decisions. This includes additional due diligence for transactions that fall into the high-risk ESG category (as defined by the IFC), which involves a comprehensive review by the Group sustainability team. We continuously support and adhere to international best practices regarding the responsibilities of the financial sector in financing and investing in transactions. We adopt a precautionary approach to environmental, nature, climate-related, and broader sustainability matters. These risk considerations are integrated into multidisciplinary, company-wide management processes throughout the Group and are effectively managed within our lending and investment portfolios. We have established an environmental policy, climate change statement, biodiversity statement, and a fossil fuel policy. We conduct screening to identify possible adverse climate and nature-related impacts in both our lending and investment activities, as well as in our deposit-taking activities. We have a strict policy of not onboarding clients who do not comply with our Group environmental policy, climate change statement, biodiversity statement, or fossil fuel policy. Regular training is provided to business units to identify any potential high-risk transactions as classified by the IFC. High risk transactions are escalated to the Group sustainability team who will conduct screening and additional due-diligence. In the case where the Group sustainability team flag a transaction as high concern, the transaction will be escalated to IBL, IBP, or Group ERC before any credit or investment decision is made. Additionally, the ESG Executive Committee and the DLC SEC are informed at every meeting regarding the number of transactions screened, high risk transactions identified, and high concern transactions escalated. Credit risk: We continue to enhance our screening process across all our business activities. The identification of high-risk industries has been automated within Investec plc. Transactions are classified according to the World Bank IFC guidelines into high, medium and low risk. • High risk: Proposed funding or investment is likely to have significant adverse social or environmental impacts that are diverse, irreversible, or unprecedented without mitigation • Medium risk: Proposed funding or investment is likely to have limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. • Low risk: Proposed funding or investment is likely to have minimal or no social or environmental impacts. This largely relates to services, consulting, training and education, trading, retail sales, etc. Once a transaction has been identified as being in a high-risk industry, these activities go through a comprehensive due diligence process performed by the Group ESG team. In depth analysis is done by the team to: • Assess the alignment of the transaction with our climate-related and sustainability (including ESG) policies • Ensure there is no contravention of our ESG screening requirements or zero-tolerance activities (refer to page 62) • Assess the client’s ambitions towards net-zero pathways • Assess ESG ratings by globally accredited bodies (e.g. CDP, Sustainalytics) • Assess public reporting on climate-related and sustainability (including ESG) matters and impacts • Assess disclosures in line with the GRI and TCFD • Assess alignment with the UN SDGs • Assess any other publicly available information around their contribution to, and positive/negative impact on ESG aspects • Investigate any media controversies or reputational issues facing the client involved. For each high-risk transaction, an ESG opinion is provided by the Group ESG team for consideration by our credit committees. Operational risk: We reviewed our exposure to physical risk within Investec plc operations. Our operational risk systems incorporate climate change in their risk assessments. Our business units complete a climate-related risk impact assessment annually. In addition, we perform ESG due diligence on all suppliers when they are onboarded. Litigation/liability: Where required our legal documentation includes sustainability and climate-related terms and conditions.

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Metrics and targets
The metrics used to assess climate-related risks and opportunities in line with our strategy and risk management process
Reporting requirements: Climate-related financial disclosures: BEIS (g). TCFD: M-a
For the year ending 31 March 2024 we have reported on a range of metrics to measure progress against our climate ambitions.
Measure | Target
Carbon footprint: Refer to the Basis of Reporting on our website
Scope 1: This includes natural gas, LPG stationary, refrigerant and vehicle fleet. | 350 tCO 2 e ( 2023 : 44 tCO 2 e) The increase relates to more KPI’s included in 2024* | Our target is to remain carbon neutral for our Scope 1, Scope 2 and operational Scope 3 emissions, through the use of renewable energy certificates and carbon offsets for unavoidable residual emissions.
Scope 2: This includes emissions from electricity and district heating and cooling used in Investec Group premises. These emissions are evaluated based on market-based and location-based factors. | 937 tCO 2 e ( 2023 : 974**tCO 2 e)
Scope 3: Category 1: Purchased goods and services (paper) Category 5: Waste generated in our operations Category 6: Business travel (includes rail travel, road travel, taxi and commercial airlines) Category 7: Work from home emissions. | 6 996 tCO 2 e ( 2023 : 5 623**tCO 2 e)
Total operational footprint: location based | 8 283 tCO 2 e ( 2023 : 6 641**tCO 2 e)
Total operational footprint: market based | 7 346 tCO 2 e ( 2023 : 5 667**tCO 2 e
Fossil fuels • Fossil fuels as a % of core loans and advances 2.50% ( 2023: 2.43%) • Coal as a % of core loans and advances 0.05% ( 2023 : 0.10%) • Coal exposure as a % of total energy lending portfolio 0.90% ( 2023 : 2.26%) • Renewables exposure as a % of total energy lending portfolio 52.35% ( 2023 : 42.47%). | We have set the following targets: • Investec plc to have zero coal exposure in their loan book by 31 March 2027 • Investec Group to have zero thermal coal exposure in their loan book by 31 March 2030 • To cease financing of new oil and gas, exploration,extraction or production projects directly, regardless of jurisdiction, from 1 January 2035.
High-risk industries in our loan book (as defined by the IFC) • 8.0% of our loan book is within high-risk industries (as defined by the IFC). | We have not explicitly set a target for high-risk industries, however we remain under the IFC targets being 5% towards one particular industry. Our high risk transactions across all industries account for only 8% of our loans and advances.
Financed emissions within our loans and investments • 1 422 299 tCO 2 e (March 2023: 2 223 963 tCO 2 e) | Efforts to influence our client ecosystem have focused on improving the quality and accuracy of our Scope 3 financed emissions rather than expanding the scope of asset classes included in these calculations. While we acknowledge that this is just the beginning, we recognise the importance of active client engagement and advocating for better quality data and sustainability practices. Although we have not set sector targets yet, we endeavour to do this in the next 2 years, however, our target remains to be net zero by 2050 through our commitment to the Net-Zero Banking Alliance.

* The increase is due to the improved data available for Scope 1 refrigerants, LPG stationary and vehicle fleet reported in Investec plc.
** Restated, the information in this report includes estimates or other information that are subject to uncertainties, which may include the methodology, collection
and verification of data, various estimates and assumptions, and/or underlying data that is obtained from third parties. As a result, we expect that certain
disclosures made in this report may be amended, updated, recalculated and restated in the future as the quality and completeness of our data and
methodologies continue to improve.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
CLIMATE RELATED DISCLOSURES CONTINUED

24

Metrics and targets continued
The metrics used to assess climate-related risks and opportunities in line with our strategy and risk management process continued
Reporting requirements: Climate-related financial disclosures: BEIS (g). TCFD: M-a continued
Sustainable and transition finance Our Sustainable and Transition Finance Classification Framework outlines the methodology and supporting policies and procedures to support sustainable and transition finance practices within the Group. This framework describes our approach for classifying sustainable and transition finance activities. The framework enables the classification of environmentally-sustainable finance, transition finance and social sustainable finance activities. The framework is based on a combination of best practice guidelines and taxonomies, including the harmonised framework for impact reporting released by the International Capital Market Association (ICMA), the Net-Zero Banking Alliance (NZBA) transition finance guidance, the Loan Market Association (LMA) principles, the South African Green Finance Taxonomy, and the EU Taxonomy for sustainable finance activities. The framework is built on the principles of addressing climate action (SDG 13) and reduced inequalities (SDG 10) being fundamental to the success of our business. The following categories are addressed as part of this framework. | In the year under review, we introduced an enhanced Sustainable and Transition Finance Classification Framework to guide our decision-making processes as we actively pursue our 2050 net-zero ambition. We have established a Sustainable Business Forum in the UK that develops and integrates sustainability strategies into our business processes, commercial plays, and incentive frameworks, addressing our own aspirations as well as the expectations of our stakeholders. We are developing and rigorously testing targets to be released by the end of March 2025.
Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
Reporting requirements: Climate-related financial disclosures: BEIS (h). TCFD: M-b
• Our operational footprint increased by 25% compared to March 2023. Every year, we endeavour to improve the accuracy and completeness of our data collection processes. Within each geography, the environmental manager is responsible for monitoring the GHG emissions. We will continue to pursue further decarbonisation in line with our net-zero ambition for 2050, as outlined in our Climate transition plan. We maintained carbon neutrality in our direct emissions for the sixth financial year as part of our commitment to ongoing carbon neutrality in our Scope 1, Scope 2 and operational Scope 3 emissions. We continue to source 100% of our Scope 2 emissions from renewable sources through the purchase of renewable energy certificates. Refer to page 63 for the SECR disclosures. • In line with our ambition to be net-zero by 2050, our focus this year was on improving the process to calculate our financed emissions, while concurrently working on the foundations of new sectors to be included. We have made substantial progress in improving the quality of our data inputs. This involved implementing rigorous data collection processes to ensure that the data we use is accurate, reliable, and up-to-date. We have dedicated significant resources to automate the financed emissions calculations using the PCAF methodology which improved alignment across our jurisdictions and improved the consistency of applied methodologies. We have enhanced the process thereby increasing our data governance and data integrity. As a result, we have analysed 78% of our loans and investment exposure as of 31 March 2023. For information on related risks and limitations, please see page 64 to 81 of our 2024 Climate and nature-related disclosures report.
The targets used by the organisation to manage climate and nature-related risks and opportunities and performance against targets
Reporting requirements: Climate-related financial disclosures: BEIS (h). TCFD: M-c
Progress is monitored through climate-related targets and ambitions across the following: • As of 31 March 2023, Investec Group stopped all project financing to new thermal coal mines, regardless of jurisdiction • Investec Group committed not to finance any new oil and gas extraction, exploration, or production from 1 January 2035 • Investec Group commitment to zero thermal coal exposure in their loan book by 31 March 2030 • Investec plc committed to zero coal exposure in their loan book by 31 March 2027 • Continue our efforts in financing climate solutions • Embedding climate into our culture and decision-making.

01 |  | Operational and strategic overview |  |  | Investec plc Annual Financial Statements 2024
CLIMATE RELATED DISCLOSURES CONTINUED

25
Risk management
and governance

02 |  | Risk management and governance |  |  | Investec plc Annual Financial Statements 2024

26
Our risk management culture ensures
we are locally responsive yet globally
aware. This section contains our risk
management disclosures.
IN THIS SECTION

28 | Risk management approach and framework
29 | Year in review from a risk perspective
31 | Principal risks
46 | Investec plc Audit Committee report
58 | Directors’ report

02 |  | Risk management and governance |  |  | Investec plc Annual Financial Statements 2024

27
Information provided in this section of the
annual report is prepared on an Investec
plc consolidated basis unless otherwise
stated.
Philosophy and approach
to risk management
The Group's comprehensive risk
management process involves
identifying, quantifying, managing,
monitoring, mitigating and reporting the
risks associated with each of the
businesses to ensure the risks remain
within the stated risk appetite.
The Board ensures that there are
appropriate resources to manage the
risks arising from running our businesses.
The DLC Board Risk and Capital
Committee (DLC BRCC) (comprising both
Executive and Non-Executive Directors)
is the Board mandated committee to
monitor and oversee risk. The DLC BRCC
meets at least five times per annum and
recommends the overall risk appetite for
the Investec Group to the Board for
approval.
We monitor and control risk exposure
through independent credit, market,
liquidity, operational, legal, internal audit,
capital and compliance teams. This
approach is core to assuming a tolerable
risk and reward profile, helping us to
pursue controlled growth across our
business.
Group risk management operates within
an integrated but geographical and
divisional structure, in line with our
management approach, ensuring that the
appropriate processes are used to
address all risks across the Group.
There are specialist divisions in the UK
and smaller risk divisions in other regions
tasked with promoting sound risk
management practices.
Risk management units are locally
responsive yet globally aware. This helps
to ensure that all initiatives and
businesses operate within our defined
risk parameters and objectives. We
continually seek new ways to enhance
risk management techniques.
We believe that the risk management
systems and processes we have in place
are adequate to support the Group’s
strategy and allow the Group to operate
within its risk appetite tolerance.
Group risk management
objectives are to:
• Ensure adherence to our risk
management culture
• Support the long-term sustainability
of the Group by providing an
established, independent framework
for identifying, evaluating, monitoring
and mitigating risk with good customer
outcomes
• Set, approve and monitor adherence to
underlying risk parameters and limits
across the Group and ensure they
are implemented and adhered
to consistently within the Board-
approved risk appetite
• Aggregate and monitor exposure
across risk classes
• Coordinate risk management activities
across the organisation, covering
all legal entities and jurisdictions
• Give the Board reasonable assurance
that the risks the Group is exposed to
are identified and appropriately
managed and controlled
• Resource risk teams suitably and with
appropriate expertise and facilitate
operating independence
• Establish and convene appropriate risk
committees to provide oversight and
assurance to to the Board as
mandated
• Maintain compliance in relation
to regulatory requirements.
Risk management
framework, committees
and forums
A number of committees and forums
identify and manage risk at Group level,
as shown in the diagram below. These
committees and forums, mandated by
the Board, operate together with Group
risk management, the IBP Board and sub
committees within respective operating
jurisdictions. The Board of IBP, our
regulated banking subsidiary, is
responsible for the statutory matters,
corporate governance and compliance
with the applicable legislation and
governance requirements within
jurisdictions of operation. The Board and
Board committees of IBP report to the
Board and the Board committees of the
Group with the interconnection between
the respective Board committees
supported by the membership or
attendance of the chairman of the Group
B oard committee at the respective
subsidiary Board committees.

| Investec plc Board
| DLC Audit Committee |  | DLC Remuneration Committee |  | DLC Nominations and Directors’ Affairs Committee (DLC Nomdac) |  | DLC Board Risk and Capital Committee (DLC BRCC) |  | DLC Social and Ethics Committee (DLC SEC)
|  |  |  | DLC IT Risk and Governance Committee |  | Investec plc Asset and Liability Committee |  | DLC Capital Committee |  | Group Executive Risk Committee (Group ERC)
|  |  |  |  |  |  |  |  |  | Investec plc Capital Committee |  |  |

02 |  | Risk management and governance |  |  | Investec plc Annual Financial Statements 2024
RISK MANAGEMENT APPROACH AND FRAMEWORK

28
A summary of the year in review
from a risk perspective
The executive management is integrally
involved in ensuring stringent
management of risk through our risk
appetite framework, and embedding a
culture of risk consciousness in all staff.
The risk appetite framework is set taking
into consideration prevailing market
conditions and Investec’s strategy. The
primary aim is to achieve a suitable
balance between risk and reward in our
businesses.
Despite rising geopolitical tensions and a
backdrop of a number of upcoming
elections globally, including in the UK, we
have continued to grow our business in a
risk conscious manner. The Group
remains well capitalised, maintains high
levels of liquidity, runs modest levels of
market risk and favours lending to clients
with predictable income streams that
provide sound collateral.
L oans and advances to customers as a
percentage of customer deposits
remained conservative at 79.7%. Investec
plc has a substantial portion of eligible
deposits that are covered by Financial
Services Compensation Scheme (FSCS)
protection.
We have limited reliance on wholesale
funding but we maintain access and
presence, using wholesale issuance to
strategically diversify our funding base
and complement the other liability
channels by focusing, where appropriate,
on tenor and currency as part of a longer
term strategic plan.
The Bank of England (BoE) formally
notified Investec plc on 28 June 2023
that the preferred resolution strategy will
change from bank insolvency procedure
to bail-in and as such Investec plc, and
IBP as a material subsidiary, will be
subject to a revised Minimum
Requirements for Own Funds and Eligible
Liabilities (MREL) requirement. The MREL
transition will commence from 1 January
2026 in a phased manner with end-state
MREL applying from 1 January 2032. Any
additional MREL requirements will be met
over time as part of increasing wholesale
market issuance from the existing
established base and we will continue to
evaluate issuance opportunities in the
near term as part of this glide path.
Cash and near cash balances at
31 March 2024 amounted to £9.7 billion.
We maintain a high level of readily
available, high-quality liquid assets
(HQLA), targeting a minimum cash to
customer deposit ratio of 25%. Current
cash and near cash is equivalent to
46.4% of customer deposits. At 31 March
2024, the Liquidity Coverage ratio (LCR)
for Investec plc was 453% and the Net
Stable Funding ratio (NSFR) was 146%,
both metrics well ahead of current
minimum regulatory requirements.
We continue to maintain a structural
hedging programme in the UK to reduce
sensitivity of earnings to interest rate
movements.
The Group’s focus remains on maintaining
a strong liquidity position as the
geographies in which we operate go
through the current election period.
Funding continues to be actively raised,
across a diverse funding base, supported
by stable credit ratings.
IBP’s long-term Moody’s deposit rating is
A1 (stable outlook) and Investec plc’s
rating is Baa1 (stable outlook). IBP’s long-
term Fitch rating is BBB+ (stable outlook).
We have continued to grow our loan book
while ensuring its resilience, despite the
challenging macro-economic
environment. Increased client activity and
new client acquisition resulted in an
increase in the Bank's net core loan book
by 6.4% to £16.6 billion. Growth was
mainly due to increased activity
diversified across multiple asset classes
of Corporate client lending.
Credit exposures are focused on secured
lending to a select target market,
comprising high-income and high net
worth individuals, established corporates,
and medium-sized enterprises. Our risk
appetite continued to favour lower risk,
income-based lending, with exposures
well collateralised and with credit risk
taken over a short to medium term. We
remain focused on our target market,
supporting clients with significant wealth
and experience in their chosen sectors,
as indicated by our continued growth in
the private banking space as we execute
on our strategy to target this sector of the
market. Over the past few years we have
realigned and rebalanced our portfolios in
line with our risk appetite framework and
this is reflected in the movements in
asset classes on our balance sheet;
showing an increase in private client,
mortgages and corporate and other
lending, and maintaining lending
collateralised by property as a proportion
of net core loans.
The Group’s net core loan exposures
remain well diversified with commercial
rent producing property loans comprising
approximately 7.6% of net core loans,
other lending collateralised by property
7.4%, high net worth and other private
client lending 34.5% and corporate and
other lending 50.5% (with most industry
concentrations well below 5%).
We remain confident that we have a well-
diversified portfolio across sectors.
Asset quality ratios reflect the current
operating environment and underlying
portfolios remain resilient. The credit loss
ratio is at 0.58% at 31 March 2024
(31 March 2023: 0.37%), in line with
guidance provided in November 2023, as
we adequately provisioned for a small
number of new and existing Stage 3
deals to allow for exits in the non-
performing portfolio. We expect the
credit loss ratio to remain elevated
between 50bps and 60bps in the short
term.
Stage 3 exposures totalled 3.3% of gross
core loans subject to ECL at 31 March
2024 (31 March 2023: 2.3%) driven by
isolated individual client default incidents
across multiple asset classes with no
specific trends evident.
Stage 2 exposures as a proportion of
gross core loans subject to ECL
decreased to 8.6% at 31 March 2024 (31
March 2023: 8.7%) as underlying
portfolios continue to perform.
The measurement of ECL under IFRS 9
has increased complexity and reliance on
expert credit judgements. Key
judgemental areas under IFRS 9 are
highlighted in this document and are
subject to robust governance processes.
The Bank applies the IFRS 9 transitional
arrangements to regulatory capital
calculations to absorb the permissible
IFRS 9 impact over time.
We hold a management overlay of £3.7
million at 31 March 2024 (31 March 2023:
£4.9 million) which is apportioned to
Stage 2 assets.

| Further detail on key judgements can be found on page 181 .

We continue to progress in entrenching
sustainability across all aspects of our
business. Our commitment to human rights
and support for internationally recognised
principles, guidelines and voluntary ESG
standards is tightly integrated into our
credit decision-making process which
considers the important aspects of each
geography we operate in. We have
published the Investec Group's enhanced
Sustainable and Transition Finance
Classification Framework, with targets to
be published by 31 March 2025.
Market risk within our trading portfolio
remains modest with Value at Risk (VaR)
and stress testing scenarios remaining at
prudent levels. Trading revenues are
driven by client activity.
We have substantially managed down our
investment portfolio exposure in line with
our objective of optimising capital
allocation, reducing income volatility and
aligning the business with our client
franchises. The investment portfolio on

02 |  | Risk management and governance |  |  | Investec plc Annual Financial Statements 2024
YEAR IN REVIEW FROM A RISK PERSPECTIVE

29
the balance sheet reduced by 17.1% over
the year under review to £405 million at
31 March 2024.
The Group continued to maintain a sound
balance sheet with a low gearing ratio of
8.7 times and a core loans to equity ratio
of 4.8 times at 31 March 2024.
The Group maintained a sound capital
position, well in excess of minimum
regulatory requirements, with a Common
Equity Tier 1 (CET1) ratio of 12.1% (31
March 2023: 11.7%) and a leverage ratio
of 10.0% (31 March 2023: 9.2%). The
Group remains on the Standardised
Approach and with these metrics
comfortably exceeds the target CET1
ratio of greater than 10% and leverage
ratio target of greater than 6%. We
continue our efforts to build Internal
Ratings Based (IRB) approach models.
Good progress is being made towards
the submission of an application to the
Prudential Regulation Authority (PRA).
Non-financial risks that arise through the
Group's operations remain highly topical
and continue to receive a significant
amount of management time, particularly
in light of the evolving technological
landscape and regulatory focus.
Operational risk is managed across the
business through an internal control
environment, with a view to limiting the
risk to acceptable residual risks.
The importance of operational resilience
to ensure minimal client disruption is
paramount. We take a highly disciplined
approach to recovery and resolution
planning and remain focused on
managing conduct, reputational and
operational risks.
Keeping abreast of industry-wide trends
with respect to artificial intelligence (AI)
developments, cyber threats and data
management as well as increased
reliance on big tech and cloud platforms
remains an area of focus and significant
time is spent ensuring we have the
appropriate expertise to assess potential
threats and opportunities.
We remain cognisant of the emerging
risks arising from technological advances
and continually aim to strengthen and
test our systems and controls to mitigate
cyber risk and fulfil our moral and
regulatory obligations to combat money
laundering, fraud and corruption.
We continue to offer access to wealth
management through our strategic
partnership with Rathbones, following
completion of the all-share combination
of the UK Wealth & Investment business
in September 2023. The Partnership
Agreement with Rathbones governs the
long-term, strategic partnership and is
expected to unlock significant value in
the medium to long term.
The Group operates in a legal and
regulatory environment that exposes it to
litigation risks. As a result, the Group is
involved in disputes and legal
proceedings which arise in the ordinary
course of business. The Group evaluates
all facts, the probability of the outcome of
legal proceedings and advice from
internal and external legal counsel when
considering the accounting implications.
We have raised a provision of £30 million
for the potential financial impact of the
recently announced industry-wide
Financial Conduct Authority (FCA) review
into historical motor finance commission
arrangements and sales in the UK.
Investec plc began lending in this space
in June 2015 and at 31 March 2021,
Motor finance totalled £555 million of the
Bank’s loan book. The Group continues to
believe that its historical practices were
compliant with the law and regulations in
place at the time, and welcomes the FCA
intervention through its industry wide
review. The provision includes estimates
for operational and legal costs, including
litigation costs, together with estimates
for potential awards, based on various
scenarios using a range of assumptions.
The Board, through its respective risk
and capital committees, continued to
assess the impact of its principal risks
and the Group’s stress testing scenarios
(including ‘bottom-up’ and reverse stress
testing analyses) on its business. The
Board has concluded that the Group has
robust systems and processes in place to
manage these risks and that, while under
a severe stress scenario business activity
would be very subdued, the Group would
continue to maintain adequate liquidity
and capital balances to support the
continued operation of the Group.
During the year, a number of stress
scenarios were considered and
incorporated into our processes.
Fundamental risk performance during the
period has been solid and management
remains focused on maintaining the
sound underlying balance sheet,
notwithstanding the macro-economic
pressures we continue to face in our
areas of operation. Going forward, we are
closely monitoring developments with
respect to the global geopolitical outlook,
including any potential impact from the
outcomes of a number of elections
globally, including in the UK. We maintain
high levels of liquidity and diversified
funding, supported by a strong capital
base in line with our risk appetite
positioning us well to support our clients
through the period ahead.

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30
An overview of the principal risks
relating to our operations
The most material and significant risks
we face, which the Board and senior
management believe could have an
impact on our operations, financial
performance, viability and prospects are
summarised below with further
information pertaining to the
management and monitoring of these
principal risks shown in the references
provided.
The Board, through its various
committees, has performed a robust
assessment of these principal risks and
regular reporting of these risks is made to
the Board.
The Board recognises that, even with
sound appetite and judgement, extreme
events can happen which are completely
outside of the Board’s control. It is,
however, necessary to assess these
events and their impact and how they
may be mitigated by considering the risk
appetite framework. It is the Group's
policy to regularly conduct multiple stress
testing scenarios (including reverse
stress testing) which, in theory, test
extreme but plausible events and from
that, assess and plan what can be done
to mitigate the potential outcome.
I n addition to the principal risks, emerging
risks continue to be reviewed and
assessed. These emerging risks are
evaluated for their inherent risk level and
potential impact on the Group's
operations, financial performance,
viability, and prospects. Mitigation
measures are considered to address
these risks, taking into account their
potential influence on the principal risks.
A number of these risks are beyond the
Group’s control and are considered in our
capital plans, stress testing analyses and
budget processes, where applicable.
The Group’s stress testing framework is
well embedded in its operations and is
designed to identify and regularly test the
Group’s key vulnerabilities under stress.
A fundamental part of the stress testing
process is a full and comprehensive
analysis of the Group’s material business
activities, incorporating views from risk,
the business units and the executive –
a process called the ‘bottom-up’ analysis.
Resulting from the ‘bottom-up’ analysis,
the Investec-specific stress scenarios are
designed to specifically test the unique
attributes of the Group’s portfolio.
The key is to understand the potential
threats to our sustainability and
profitability and thus a number of risk
scenarios are developed and assessed.
These Investec-specific stress scenarios
form an integral part of our capital
planning process and IFRS 9 reporting.
The stress testing process also informs
the risk appetite review process and the
management of risk appetite limits and is
a key risk management tool of the Group.
Reverse stress tests are conducted to
stress the Group’s business plan to failure
and consider a broad variety of extreme
and remote events. These processes
allow the Group to proactively identify
underlying risks and manage them
accordingly.
The Group has a strong and embedded
risk and capital management culture with
policies, processes and systems in place
to address these principal risks. Risk
awareness, governance, controls and
compliance are embedded in all our day-
to-day activities through a levels of
defence model.
The levels of defence model is applied as
follows:
• Level 1 – Business unit management:
responsible for identifying and
managing risks inherent in the
products, activities, processes and
systems for which it is accountable
and escalating risk events where
necessary
• Level 2 – Independent risk and
compliance functions: responsible for
building and embedding risk
frameworks, challenging the business
lines’ inputs to, and outputs from, the
Group’s risk management, risk
measurement and reporting activities
• Level 3 – Independent internal audit:
responsible for reviewing and testing
the application and effectiveness of
risk management procedures and
practices.
Overall Group risk appetite
The Group has a number of Board-
approved risk appetite statements and
policy documents covering our risk
appetite and approach to our principal
aspects of risk. The risk appetite
statements and frameworks for Investec
plc and Investec Limited set out the
Board’s mandated risk appetite.The risk
appetite statements ensure that limits/
targets are applied and monitored across
all key operating jurisdictions and legal
entities. The risk appetite frameworks act
as a guide to determine the acceptable
risk profile of the Group.
The risk appetite frameworks are a
function of business strategy, budget and
capital processes, our stress testing
reviews and the regulatory and economic
environment in which the Group is
operating. The risk appetite frameworks
are reviewed (in light of the above
aspects) and approved by the Board at
least annually or as business needs
dictate.
A documented process exists where our
risk profile is measured against our risk
appetite and this positioning is presented
to the Board. In the section that follows,
the Group's high-level summary of overall
risk appetite and positioning has been
detailed against the respective principal
risks.

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31

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Credit and counterparty risk |  |  | Credit and counterparty risk is defined as the risk arising from an obligor’s (typically a client or counterparty) failure to meet the terms of any agreement thereby resulting in a loss to the Group, arising when funds are extended, committed, invested, or otherwise exposed through contractual agreements, whether reflected on- or off-balance sheet |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Independent credit committees exist in the UK which also have oversight of regions where we assume credit risk. These committees operate under Board-approved delegated limits, policies and procedures • There is a high level of executive involvement in decision-making with non-executive review and oversight • The Group’s credit exposures are to a select target market comprising high-income and high net worth individuals, established corporates, small and medium-sized enterprises, financial institutions and sovereigns • Our risk appetite continues to favour lower risk, income-based lending with exposures well collateralised and credit risk taken over a short to medium term • Investec has a limited appetite for unsecured debt, thus the credit risk mitigation technique most commonly used is the taking of collateral, with a strong preference for tangible assets • Portfolio reviews (including stress testing analyses) are undertaken on all material businesses, where the portfolios are analysed to assess any migration in portfolio quality, highlight any vulnerabilities, identify portfolio concentrations and make appropriate recommendations, such as a reduction in risk appetite limits or specific exposures. |
| Further information
|  | Read more on pages 164 to 180.
|  |  |  |  | Risk appetite and tolerance metric We target a credit loss ratio of less than 1.5% under a weak economic environment/stressed scenario (under normal conditions, less than 0.5%). We target Stage 3 net of ECL as a % of net core loans subject to ECL to be less than 4% under a weak economic environment/stressed scenario (excluding the Legacy portfolio*; under normal conditions, less than 2%). We target Stage 3 net of ECL as a % of CET1 less than 25%. |  |  | Positioning a 31 March 2024 The Group currently remains within all tolerance levels given the current weakened economic environment. The Group credit loss ratio was calculated at 0.58% for 31 March 2024 (31 March 2023:0.37%). Stage 3 net of ECL as a % of net core loans subject to ECL was 2.5% excluding the Legacy portfolio*). Stage 3 net of ECL as a % of CET1 is 17.4%. |

*Refer to definitions on page 217.

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Concentration risk |  |  | Concentration risk refers to the risk that could arise from a single client or counterparty, group of connected counterparties, or from a particular geography, asset class, supplier or industry. Concentration risk may occur when counterparties are mutually affected by similar economic, legal, regulatory or other factors which could hinder their ability to meet contractual obligations |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • As a matter of course, concentration risk is well managed and exposures are well spread across geographies, asset classes and industries • We target a diversified funding base, avoiding undue concentrations by investor type, maturity, market source, instrument and currency • Consideration is given to concentration risk when assessing outsourcing and third parties, both within the business and across the financial sector systemically • We target a diversified loan portfolio, lending to clients we know and understand. Credit and counterparty risk is always assessed with reference to the aggregate exposure to a single counterparty or group of related parties to manage concentration risk. In order to manage concentration, we will consider a sell-down of exposures to market participants • Concentration risk can also exist where loan maturities are clustered to single periods in time. Loan maturities are monitored on a portfolio and a transaction level. |
| More information |  |  |
|  | Read more on page 164 . |  |  |
|  |  |  | Risk appetite and tolerance metric We limit our core loan exposure to a single/connected individual or company to £120 million for Investec plc. We also have a number of risk tolerance limits and targets for specific asset classes. Third party and outsourcing concentrations are permitted in relation to regulated, systemically important entities, external auditors or specialist global network infrastructures. Where strategic decisions result in concentration risk in third parties outside of these classifications, these decisions are based on considered analysis where the benefits outweigh the risks and appropriate controls have been deployed for managing and monitoring the associated risks. |  |  | Positioning at 31 March 2024 We maintained this risk tolerance level throughout the year. |

| Country risk |  |  | Country risk refers to the risk of lending to a counterparty operating in a particular country or the risk inherent in a sovereign exposure, i.e. the risk of exposure to loss caused by events in that country. Country risk covers all forms of lending or investment activity whether to/with individuals, corporates, banks or governments |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Exposures are only to politically stable jurisdictions that we understand and have preferably operated in before • The legal environment should be tested, have legal precedent in line with the Organisation for Economic Co-operation and Development (OECD) standards and have good corporate governance • In certain cases, we may make use of political risk insurance to mitigate exposure where deemed necessary. |
| Further information |
|  | Read more on page 165 . |
|  | Risk appetite and tolerance metric We have a preference for primary exposure in the Group’s main operating geography (i.e. the UK). We will accept exposures where we have a branch or local banking subsidiary and tolerate exposures to other countries where we have developed a local understanding and capability or we are facilitating a transaction for a client. |  |  | Positioning at 31 March 2024 We maintained this risk tolerance level in place throughout the year. |

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33

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Sustainability risk (including climate and ESG) |  |  | The risk that our lending and investment activities give rise to unintended climate, environmental, social and economic consequences |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Investec has a holistic approach to sustainability, and supports the precautionary approach to sustainability management, guided by international best practices regarding the responsibilities of the financial sector in financing and investing transactions • This approach runs beyond recognising the Group’s own footprint on the environment and is based on a broader responsibility to the environment and society • We recognise the complexity and urgency of climate change. We are committed to supporting the transition to a clean and energy efficient world while preserving our planet and the wellbeing of our people • The Group ESG Executive Committee, mandated by the Group’s Executive Directors, reports relevant sustainability-related matters to the DLC SEC and Group ERC. The main objectives of the committee are to coordinate sustainability-related efforts across geographies and businesses • Accordingly, sustainability risk considerations are considered by the relevant credit committee or investment committee when making lending or investment decisions • Investec’s climate change position statement stems from the belief that one of the greatest socio- economic impacts we can have is to partner with our clients and stakeholders to accelerate a cleaner, more resilient and inclusive world • Our environmental policy considers the risks and opportunities that climate change and nature degradation present to the global economy • We have linked sustainability-related metrics and KPIs to Executive Director compensation. |
| More information |  |  |
|  | Read more on pages 165, 184 and 185 and pages 122 to 140 of the Investec Group's 2024 integrated and strategic annual report and the Investec Group’s 2024 sustainability report which is published and available on our website: www.investec.com |  |  |
|  |  | Risk appetite and tolerance metric It is important to consider potential financial risk that could result from unmanaged sustainability-related risks. We are continually monitoring best practice in this area and will continue to develop and enhance our approach over time. We take a cautious approach with respect to industries falling in our high-risk ESG categories that are known to have negative environmental (including climate) and societal consequences. Our targets around fossil fuel activities can be found in our published fossil fuel policy on our website. Further detail around our zero tolerance activities can be found in the Investec Group’s 2024 sustainability report. |  |  | Positioning as of 31 March 2024 We maintained this risk tolerance level in place throughout the year. |

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34

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Investment risk |  |  | Investment risk arises where the Group invests in unlisted companies and select property investments, as well as certain listed investments (predominantly relating to Ninety One) with risk taken directly on the Group’s balance sheet |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Independent credit and investment committees in the UK provide oversight of regions where we assume investment risk • Risk appetite limits and targets are set to limit our exposure to equity and investment risk • As a matter of course, concentration risk is avoided and investments are well spread across geographies and industries. |
| Further information |
|  | Read more on page 186 . |
|  | Risk appetite and tolerance metric We have moderate appetite for investment risk, and set a risk tolerance of less than 30% of CET1 capital for our unlisted principal investment portfolio. |  |  | Positioning at 31 March 2024 Our unlisted investment portfolio amounted to £246 million, representing 11.0% of CET1. |

| Market risk in the trading book |  |  | Traded market risk is the risk of potential value changes in the trading book as a result of changes in market factors such as interest rates, equity prices, commodity prices, exchange rates, credit spreads and the underlying volatilities where derivatives are traded. The trading book is defined as positions in financial instruments and commodities, including derivative products and other off-balance sheet instruments that are held within the trading businesses |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • To identify, measure, monitor and manage market risk, we have independent market risk management teams • The focus of our trading activities is primarily to support our clients. Our strategic intent is that proprietary trading should be limited and that trading should be conducted largely to facilitate client flow • Within our trading activities, we act as principal with clients or the market. Market risk exists where we have taken on principal positions resulting from market making, underwriting and facilitation of client business in the foreign exchange, interest rate, equity, credit and commodity markets • Measurement techniques used to quantify market risk arising from our trading activities include sensitivity analysis, Value at Risk (VaR), stressed VaR (sVaR), expected shortfall (ES) and extreme value theory (EVT). Stress and scenario analyses are used to add insight to possible outcomes under severe market disruptions. |
| Further information |
|  | Read more on pages 188 to 191 . |
|  |  |  | Risk appetite and tolerance metric Market risk arises through our trading activities which are primarily focused on supporting client activity. Appetite for proprietary trading is limited. We set an overall tolerance level of a one-day 95% VaR of less than £3.5 million. |  |  | Positioning at 31 March 2024 We met these internal limits; one- day 95% VaR was £0.2 million at 31 March 2024. |

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35

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Liquidity risk |  |  | Liquidity risk refers to the possibility that, despite being solvent, we have insufficient capacity to fund increases in assets or are unable to meet our payment obligations as they fall due, in normal and stressed conditions. This includes repaying depositors or maturing wholesale debt. This risk arises from mismatches in the timing of cash flows, and is inherent in all banking operations and can be impacted by a range of institution-specific and market-wide events |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Our banking entity in the UK is ring-fenced from the Investec Group's banking entity in South Africa and is required to meet the UK regulatory liquidity requirements • Each geographic entity must be self-sufficient from a funding and liquidity standpoint • Investec plc undertakes an annual Internal Liquidity Adequacy Assessment Process (ILAAP) which documents the approach to liquidity management across the firm, including IBP (solo basis). This document is reviewed and approved by IBP BRCC, DLC BRCC and by the IBP and DLC Boards • We maintain a liquidity buffer in the form of unencumbered cash, government or rated securities (typically eligible for repurchase with the central bank), and near cash well in excess of the regulatory requirements as protection against unexpected disruptions in cash flows. We maintain a prudent approach to the mix of instruments in the liquidity buffer to ensure it is available when and where required, taking into account regulatory, legal and other constraints • Daily liquidity stress tests are carried out in order to help accurately measure the liquidity profile and ensure that in the absence of market or funding liquidity during periods of stress, we would continue to meet our obligations • The maintenance of sustainable prudent liquidity resources takes precedence over profitability • We target a diversified funding base, avoiding undue concentrations by investor type, maturity, market source, instrument and currency • Our core loans must be fully funded by stable funding • The Group does not rely on committed funding lines for protection against unforeseen interruptions to cash flow • The balance sheet risk management teams independently monitor key daily funding metrics and liquidity ratios to assess potential risks to the liquidity position, which further act as early warning indicators of potential normal market disruptions • Investec plc maintains a contingency funding and recovery plan designed to protect depositors, creditors and shareholders and maintain market confidence during adverse liquidity conditions. This document is reviewed and approved by IBP BRCC, DLC BRCC and by the IBP and DLC Boards. |
| Further information |
|  | Read more on pages 192 to 196 . |
|  |  |  | Risk appetite and tolerance metric We carry a high level of liquidity in all our banking subsidiaries in order to be able to cope with shocks to the system, targeting a minimum cash and near cash to customer deposit ratio of 25%. |  |  | Positioning at 31 March 2024 Total cash and near cash balances amounted to £9.7 billion at year end representing 46.4% of customer deposits. |

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36

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Interest rate risk in the banking book (IRRBB) |  |  | IRRBB arises from the impact of adverse movements in interest rates on both net interest earnings and economic value of equity. IRRBB is an inherent consequence of conducting banking activities, and arises from the provision of retail and wholesale (non- trading) banking products and services |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The daily management of IRRBB is centralised within the Treasury of each banking entity and is subject to local independent risk and local Asset and Liability Committee (ALCO) review • Together with the business, the treasurer develops strategies regarding changes in the volume, composition, pricing and interest rate characteristics of assets and liabilities to mitigate the interest rate risk and ensure a high degree of net interest margin stability over an interest rate cycle. These are presented, debated and challenged in the Liability Product and Pricing Forum and the ALCO • Each banking entity has its own Board-approved IRRBB policy and risk appetite, which is clearly defined in relation to both income risk and economic value risk • The policy dictates that long-term (>one year) IRRBB is materially eliminated. Where natural hedges between banking book items do not suffice to reduce the exposure within defined limits, interest rate swaps are used to transform fixed rate assets and liabilities into variable rate items • IRRBB is measured and analysed by utilising standard tools of traditional interest rate repricing mismatch and net present value (NPV) sensitivity to changes in interest rate risk factors. |
| Further information |
|  | Read more on pages 195 to 196. |
|  |  |  | Risk appetite and tolerance metric A movement in rates can result in a negative impact on revenues across the banking industry. This risk is managed within the Group's risk appetite framework as a proportion of capital and net interest income in order to limit volatility. |  |  | Positioning at 31 March 2024 Investec plc is within these tolerance metrics. The UK regulatory framework requires banks to assess their Pillar II requirements, including those related to IRRBB, as part of systems and processes included in their ICAAP. |

| Capital risk |  |  | The risk that we do not have sufficient capital to meet regulatory requirements or that capital is inefficiently deployed across the Group |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Investec plc's approach to capital management utilises both regulatory capital as appropriate to the jurisdiction in which it operates and internal capital, which is an internal risk-based assessment of capital requirements • A detailed assessment of the regulatory and internal capital position is undertaken on an annual basis and is documented in the Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP is reviewed by PLC and DLC Capital Committees before being recommended for approval to DLC BRCC and the Board • The determination of target capital is driven by our risk profile, strategy and risk appetite, taking into account the regulatory and market factors applicable to the Group • At the most fundamental level, we seek to balance our capital consumption between prudent capitalisation in the context of the Group’s risk profile and optimisation of shareholder returns • Our internal capital framework is designed to manage and achieve this balance • The framework has been approved by the Board. The Investec plc Capital Committee is responsible for assisting the DLC Capital Committee (mandated by DLC BRCC) for the oversight and management of capital and leverage. • The leverage ratio is considered and monitored as part of the capital management framework. |
| Further information |
|  | Read more on pages 200 to 205 . |
|  |  |  | Risk appetite and tolerance metric We intend to maintain a sufficient level of capital to satisfy regulatory requirements and our internal target ratios. We target a Total Capital ratio range of between 14% and 17% on a consolidated basis for Investec plc and we target a minimum Tier 1 ratio of >11% and a CET1 ratio of >10%. We are a lowly leveraged firm and target a leverage ratio in excess of 6%. |  |  | Positioning at 31 March 2024 Investec plc met all these targets. The leverage ratio is 10.0%. |

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37

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Reputational risk |  |  | Reputational risk is damage to our reputation, name or brand. Reputational risk is often associated with strategic decisions made and also arises as a result of other risks manifesting and not being appropriately mitigated or managed |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • We have various policies and practices to mitigate and/or manage reputational risk, including strong values that are regularly and proactively reinforced • Reputational risk is mitigated and/or managed as much as possible through detailed processes and governance/escalation procedures from business units to the Board, and from regular, clear communication with shareholders, customers and all stakeholders • The Group has a disclosure and market communications policy which is reviewed and approved annually by Group ERC and DLC BRCC. |
| Further information |
|  | Read more on page 80 of the Investec Group's 2024 risk and governance report. |
|  | Risk appetite and tolerance metric We have a number of policies and practices in place to mitigate and/or manage reputational risks. |  |  | Positioning at 31 March 2024 We have continued to mitigate and/or manage these risks where possible throughout the year. |

| Business and strategic risk |  |  | Business and strategic risk relates to external market factors that can create income volatility |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The risk of loss caused by income volatility is mitigated through diversification of income sources, reducing concentration of income from any one type of business or geography and maintaining a flexible cost base • Group strategy is directed towards generating and sustaining a diversified income base for the Group • In the instance where income falls, we retain the flexibility to reduce costs (particularly variable remuneration), thereby maintaining a competitive cost to income ratio. |
| Further information |
|  | Read more on pages 8 to 100 of the Investec Group's 2024 integrated and strategic annual report and pages 82 to 85 of the Investec Group’s 2024 year-end results booklet. |
|  | Risk appetite and tolerance metric The Investec Group aims to build a sustainable business generating sufficient return to shareholders over the longer term and seeks to maintain strict control over fixed costs. The Investec Group announced new medium-term* targets in May 2024, resulting from the structural improvement of performance following the execution of the strategy announced at the February 2019 Capital Markets Day (CMD). The combination with Rathbones resulted in a c.2% reduction in return on equity (ROE) given the higher equity base, technically adjusting the previous 11% to 15% target range to 9% to 13%. With this in mind the Investec Group now has a revised medium-term* ROE target range for its UK and Other operations of 10% to 14%, and a new return on tangible equity (ROTE) target range of 13% to 17%. We have also revised the medium-term* cost to income ratio target to below 58%, partly reflecting the c.7% benefit from IW&I UK deconsolidation. |  |  | Positioning at 31 March 2024 The Investec Group’s UK and Other operations reported a ROE of 12.8%, a ROTE of 15.7% and a cost to income ratio of 54.4%^. Investec plc’s cost to income ratio was 54.5%^. |

• Revised medium-term targets to 31 March 2027.
^Calculated on a pro-forma basis. See page 10 and page 72 of the Investec Group's 2024 integrated and strategic annual report.

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk |  |  | Operational risk is defined as the potential or actual impact to the Group as a result of failures relating to internal processes, people, systems or from external events. The impact can be financial as well as non-financial such as customer detriment, reputational or regulatory consequences |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group manages operational risk through an embedded operational risk management framework • Operational risk sub-types which are significant in nature are managed by dedicated specialist teams within the Group. These operational risk sub-types are addressed in specific, detailed risk policies and procedures, but are included within the operational risk management framework and are reported and monitored within the operational risk appetite. These sub-types include: – Business disruption and operational resilience risk – Conduct risk (including Consumer Duty) – Data management risk – Financial crime risk – Fraud risk – Information security and cyber risk – Legal risk – Model risk – People risk – Physical safety and security risk – Processing and execution risk – Regulatory compliance risk – Tax risk – Technology risk – Third party risk. |
| Further information |
|  | Read more on pages 197 to 198 and pages 81 to 84 of the Investec Group’s 2024 risk and governance report. |
|  |  |  | Risk appetite and tolerance metric We monitor the level of acceptable operational risk exposure/loss through qualitative and quantitative measures. |  |  | Positioning at 31 March 2024 The Group continued to monitor operational risk exposures and losses against the tolerance levels with appropriate escalation and action where required. |

| Operational risk – Business disruption and operational resilience risk |  |  | The risk associated with disruptive incidents which may impact important business services and critical functions/resources including processes, premises, staff, equipment, third party services and systems |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group maintains continuity through appropriate resilience strategies that cater for disruptions, irrespective of the cause • These strategies include, but are not limited to, relocating the impacted business to alternate processing sites, enabling staff to work from home, the application of high availability technology solutions, obtaining third party dependency business continuity assurances and ensuring readiness of physical solutions for critical infrastructure components • Resilience testing is conducted annually to validate continuity strategies and ensure they remain effective and appropriate. This includes annual recovery testing for all key systems that support important/critical business services. |
| Further information |
|  | Read more on pages 197 to 198 . |

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39

Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Conduct risk |  |  | The risk associated with inappropriate behaviours or business activities that may lead to client, counterparty or market detriment, erosion of Investec values, culture and ethical standards expected of its staff, reputational and/or financial damage to the Group |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Our approach to conduct risk is driven by our values and philosophy, ensuring that the Group operates with integrity and puts the wellbeing of its customers at the heart of how the business is run • The conduct risk policy is designed to create an environment for consumer protection and market integrity within the business, supported with the right conduct risk management framework • Consumer Duty rules and guidance set higher and clearer standards of consumer protection across financial services and require institutions to put their customers’ needs first. These requirements have been incorporated into conduct risk policies, frameworks and governance arrangements • Risk and Conduct Forums have the objective of ensuring that the Group maintains a customer- focused and fair outcomes-based culture • There is regular conduct risk reporting to relevant ERC, BRCC and Board committees. |
| Further information |
|  | Read more on pages 197 , 198 and pages 81 and 82 of the Investec Group's 2024 risk and governance report. |

| Operational risk – Data management risk |  |  | The risk associated with poor governance in acquiring, processing, storing and protecting data. Issues with data quality, reliability or corruption can adversely impact business decisions, client services and financial reporting |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group drives robust data management practices and ownership of data across the business, including modelling and architecture, reference data, master data, meta data and reporting of data quality incidents to ensure data integration and interoperability • Adoption of necessary data management tooling is in place for data consolidation, storage and reporting • Data flows and reconciliations are automated as far as possible and integration between systems is streamlined to reduce the need for manual tasks, minimise data processing delays and limit single points of failure • Data quality is monitored, reported and enhanced in line with business needs and regulatory principles • Predictive analytics and data insights are utilised to support proactive risk management • Data retention and destruction processes are designed to meet business needs and comply with applicable legal obligations. |
| Further information |
|  | Read more on pages 197 to 198 . |

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Financial crime risk |  |  | The risk associated with the possibility of handling proceeds of crime, financing of terrorism, proliferation financing, sanctions breaches and bribery or corruption, as well as any related regulatory breaches |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Established policies, procedures and controls are in place to promote business with clients in such a manner that minimises exposure to money laundering and terrorist or proliferation financing, sanction breaches, bribery or corruption • Regular training is provided to staff members to create awareness to identify and report suspicion of money laundering and terrorist or proliferation financing • A risk-based approach supports these objectives, while complying with the Group’s regulatory compliance obligations. At a high level the control framework ensures that: – Sufficient information about clients is obtained – All clients and prospective clients are risk rated and verification commensurate with their risk profile is conducted – All prospective and existing clients and relevant related parties are screened against relevant lists (including applicable sanctions list) to identify increased financial crime risk – Suspicious transactions and terrorist or proliferation financing are identified and reported – Existing and prospective clients that are not within the Group’s financial crime risk appetite are exited or declined – An independent integrity (whistleblowing) line is in place to ensure that staff can report regulatory breaches, allegations of fraud, bribery and corruption, and non-compliance with policies • There is regular reporting to the DLC Audit Committee, DLC BRCC as well as Group ERC. |
| Further information |
|  | Read more on pages 197 , 198 and page 83 of the Investec Group's 2024 risk and governance report. |

| Operational risk – Fraud risk |  |  | The risk associated with any kind of criminal conduct arising from fraud, corruption, theft, forgery and misconduct by staff, clients, suppliers or any other internal or external stakeholder |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group manages internal and external fraud risk through an integrated framework which includes global policies, standards and methodologies • Detection and prevention systems are utilised to help identify potential fraud, reaching out to clients where appropriate to validate or discuss concerns • Fraud risk assessments are conducted to proactively identify and map existing preventative and detective controls to the relevant fraud risks to ensure effective mitigation • Fraud prevention and detection controls are enhanced on an ongoing basis in response to regulatory requirements and increased fraud losses across the industry due to existing and new fraud modus operandi • Industry collaboration assists with fraud prevention efforts and the recovery of funds that have been paid away • Adherence to fraud prevention policies is proactively monitored • Practices which comply with updated regulations, industry guidance and best practice are embedded within the Group • Awareness of existing and horizon fraud threats is created through internal training and education of clients and intermediaries on fraud prevention and detection. |
| Further information |
|  | Read more on pages 197 and 198 . |

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Information security and cyber risk |  |  | The risk associated with unauthorised access, use, disclosure, modification or destruction of information assets, including cyber threats to the Group’s operations and data |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • In light of the broad range of risks to which information resources are exposed, this risk is managed by addressing both internal and external threat exposures • Internal threats relate to data theft, inappropriate access or confidentiality breaches by staff – These are mitigated by implementing risk-appropriate data protection controls to safeguard information assets in line with data sensitivity and business criticality – Access to systems and data is closely controlled, regularly reviewed, and adapted to changing roles across the business – Privileged IT access is restricted and administrative accounts are protected by robust authentication technologies – A dedicated insider threat team drives proactive discovery of confidential data and leverages targeted monitoring to identify and respond to potential data loss events – Ongoing security training to all staff ensures high level of awareness and vigilance, augmented by tailored training for specific audiences and risks • External threats relate to cyberattacks such as ransomware, denial of service and cyber fraud – These are mitigated by an adaptive cyber strategy that evolves with the changing cyber threat landscape and integrates prediction, prevention, detection and response capabilities – Robust security controls and advanced technologies are deployed to provide multiple layers of protection against sophisticated attacks – Cyber risk is actively monitored by a 24/7 global cyber team and threat intelligence services, and security incident response processes are continuously tested and improved – Cyber controls are stress-tested through security assessments, attack simulations and executive cyber exercises, run both internally and in conjunction with independent specialists – To support continuous improvement, we engage in maturity benchmarking against industry peers and monitoring through leading cyber rating platforms – Periodic updates to the Board keep them abreast of the threat landscape and informed on the Group’s security position • In response to the potential impact of artificial intelligence and its use for criminal purposes, the Group is actively engaged in deep fake research and proactive mitigation efforts, including threat simulations to test our ability to detect and prevent deepfake attacks, and targeted awareness for staff and clients • Information security and cyber risk are reported to the DLC IT and Risk and Governance Committee with material issues escalated to IBP and DLC BRCCs. |
| Further information |
|  | Read more on pages 197 and 198 . |

| Operational risk – Legal risk |  |  | The risk associated with losses resulting from any of our rights not being fully enforceable or from our obligations not being properly performed. This includes our rights and obligations under contracts entered into with counterparties. Such risk is especially applicable where the counterparty defaults and the relevant documentation may not support the anticipated rights and remedies in the transaction |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Members of the legal risk function are mandated to ensure we keep abreast of developments and changes in the nature and extent of our activities, and to benchmark our processes against best practice • There is a central independent in-house legal team with embedded business unit legal officers where business volumes or needs dictate • The legal risk function is supplemented by a pre-approved panel of third party legal firms to be utilised where necessary • The key principles of the legal risk policy describe the overall responsibility of the legal risk function, outline how legal risks are to be assessed and how material legal risks should be reported and escalated where necessary • The Group maintains adequate insurance to cover key insurable risks • The Group may, a its discretion, constitute dedicated committees to deal with specific legal matters. |
| More information |  |  |
|  | Read more on page 80 of the Investec Group's 2024 risk and governance report. |  |  |

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Model risk |  |  | The risk associated with the adverse consequences that arise from decisions based on incorrect or misused model outputs (including reports). Material sources of model risk include: credit model risk, liquidity model risk, trading book model risk and IRRBB model risk |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group manages model risk through embedded, risk specific frameworks and policies • Model governance forums employ a set of mechanisms such as monitoring packs, regular reviews (depending on risk), model validations and overlays to manage this risk • The frameworks address roles and responsibilities, governance processes and committees and approaches to managing and monitoring model risk • All models are recorded in a model inventory, which tracks approval status, most recent validation date, ongoing issues, caveats/recommendations in relation to model use, as well as the model validation reports • Models are subject to independent initial and then regular validation by specialist risk teams; the frequency and scale of which is determined by their assessed risk • The relevant committees are mandated to oversee model risk and have delegated further oversight and approval to appropriate sub-committees. |
| Further information |
|  | Read more on pages 197 and 198 . |

| Operational risk – People risk |  |  | The risk associated with the inability to recruit, develop, retain and engage diverse talent across the organisation and remain aligned to the Investec culture and values |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • Our people and organisation team plays a critical role in assisting the business to achieve its strategic objectives, which are matched to learning strategies and market trends • The people and organisation team also works with leadership to strengthen the culture of the business, ensure its values are lived, build capability and contribute to the long-term sustainability of the organisation • The people and organisation team is mandated to enable the attraction, recruitment, development and retention of talent who can perform in a manner consistent with our culture and values • We focus on building a strong, diverse and capable workforce by providing a workplace that stimulates and rewards distinctive performance • Investec invests significantly in opportunities for the development of all employees, and in leadership programmes to enable current and future leaders of the Group • Internal mobility is a key element for our people strategy, it drives succession, supports our One Investec Group strategy and is a valuable retention mechanism. |
| Further information |
|  | Read more on pages 132 and 133 of the Investec Group's 2024 integrated and strategic annual report and the Investec Group’s 2024 sustainability report which is published and available on our website: www.investec.com |

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Processing and execution risk |  |  | The risk associated with the failure to process, manage and execute transactions and/or other processes (such as change) completely, accurately and timeously due to human error or inadequate process design or implementation |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group seeks to minimise process failures or human error which can disrupt operations or impact delivery of services to clients • Policies, processes, procedures and key monitoring controls which mitigate against control failures are implemented to protect clients, markets and the Group from detriment • We manage operational capacity to meet client and industry needs and continue to explore automation to improve efficiency and reduce human error • Key business processes are regularly reviewed and the relevant risks assessed through the risk and control self-assessment process • Material change is managed through dedicated projects with formalised project governance. |
| Further information |
|  | Read more on pages 197 and 198 . |

| Operational risk – Regulatory compliance risk |  |  | The risk associated with changing legislation, regulation, policies, voluntary codes of practice and their interpretation in the markets in which we operate |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group remains focused on achieving the highest levels of compliance with applicable legislation and/or regulation, professional standards and integrity in each of our jurisdictions • Our culture is a major component of our compliance framework and is supported by robust frameworks, policies, processes and talented professionals who ensure that the interests of our stakeholders remain at the forefront of everything we do • An independent integrity (whistleblowing) line is in place to ensure that staff can report regulatory breaches, allegations of fraud, bribery and corruption, and non-compliance with policies • There are independent compliance, legal and risk management functions in each of our core operating jurisdictions, which ensure that the Group implements the required processes, practices and policies to adhere to applicable regulations and legislation. |
| Further information |
|  | Read more on pages 197 , 198 and page 81 of the Investec Group’s 2024 risk and governance report. |

| Operational risk – Tax risk |  |  | The risk associated with inadequate tax planning, transaction execution, tax compliance and reporting failures |
| Link to strategy and opportunities |  |  | Monitoring and mitigation activities • The Group’s control environment for the management and mitigation of tax risk includes a formalised tax strategy, framework, policy and processes • The Group ensures that all transactions and financial products and services are commercially motivated • All advisory and tax planning work is conducted in accordance with the relevant tax laws, regulations and intentions of legislators of the country in which the Group operates. |
| Further information |
|  | Read more on pages 197 , 198 and pages 83 and 84 of the Investec Group's 2024 risk and governance report. |

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Link to strategy – key
| Connected client ecosystems |  |  | Growth initiatives |  |  | Optimisation of returns |  |  | Entrepreneurial culture |  |  | Digitalisation |  |  | Strategic use of data

| Operational risk – Technology risk |  |  | The risk associated with disruption to or malfunction of critical IT infrastructure, systems or applications that support key business processes and client services |
| Link to strategy and opportunities |  |  | Risk management and key mitigating actions • The technology environment is proactively monitored for continuous visibility of operational performance and availability • Mature incident management processes and continuity plans support a resilient technology environment that is able to respond to disruption and minimise interruption to business services • A defined and business-aligned strategy directs implementation of new technologies to enhance resilience, scalability and modernise legacy systems • Internal controls are automated where possible and augmented with monitoring to reduce human error and enhance efficiency • Technology governance structures provide oversight of IT projects and new investments in infrastructure and software. |
| Further information |
|  | Read more on page 197 and 198 . |

| Operational risk – Third party risk |  |  | The risk associated with the reliance on and use of external providers of services to the Group |
| Link to strategy and opportunities |  |  | Risk management and key mitigating actions • Third party policies and practices govern the assessment, selection, approval and oversight of third party services • A third party management team has been established to coordinate, streamline and enhance consistency of third party processes across the Group, supported by a centralised vendor management platform • Robust due diligence processes are in place to evaluate third party suitability, resilience and controls with the appropriate level of rigour based on the scale, complexity and service materiality • Service disruption or security risks that third parties may introduce are identified and managed • Ongoing monitoring ensures that contractual obligations are met and required service levels are maintained • Appropriate supplier business contingency plans, including exit strategies for key/critical vendors, are established and managed to minimise client impact following any disruption in service • Investec places significant importance in adhering to the relevant laws and regulations related to third parties, including third parties' policies on modern slavery. These are carefully reviewed by specialist teams and any potential concerns escalated where appropriate • Regular monitoring is conducted to maintain an understanding of our strategic partnerships with technology service providers and that of any fourth party providers. |
| Further information |
|  | Read more on pages 197 and 198 . |

Emerging and other risks
Emerging risks have been identified are highlighted on pages 25 and 26 of the Investec Group's 2024 risk and governance report
and should be read in the context of our approach to risk management and our overall Investec Group risk appetite framework

| Additional risks and uncertainties not presently known to us or that we currently deem immaterial may in the future also negatively impact our business operations. Emerging and other risks are factored into the Board’s viability assessment. Read more on page 60.

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|  |  | High quality audit and assurance services are essential for trusted financial information.
|  | Zarina Bassa Chair of the Investec plc Audit Committee

Introduction
I am pleased to present the Investec plc
Audit Committee (the Committee) report
for the financial year ended
31 March 2024 which provides details on
how we accomplished our statutory
obligations, as well as the Key Audit and
Other Matters we considered.
The Committee has further discharged its
responsibilities and provided assurance
on the integrity of the 2024 annual report
and financial statements.
Role of the Committee
We provide independent challenge and
oversight across the Group’s financial
reporting and internal control practices.
The Board has delegated the following
key functions to the Committee:
• Overseeing and ensuring the integrity
of the Group’s financial reporting
process. This includes additional
scrutiny of the accounting for significant
transactions and assessing the impact
and cause of restatements of prior year
financial statements
• Satisfying itself that significant
judgements made by management
during the Group’s financial reporting
process are sound and reasonable
• Dealing with concerns, if any, from
outside the Group regarding the
application of accounting principles and
external reporting
• Review the effectiveness of the Group’s
internal control environment and
assurance processes
• Managing and overseeing the
performance, conduct, quality and
effectiveness of the Group’s internal
audit functions
• Reviewing the annual work plan,
capacity, scope and staffing and
independence of internal audit
• Overseeing Group compliance functions
• Overseeing the Group’s subsidiary audit
committees, including in remote locations
• Appointing, managing and overseeing
the relationship with the Group’s
external auditor, including the audit
scope, fees, quality control,
effectiveness and independence of the
external audit function
• Managing the policy, fees and the
nature of non-audit services provided
by the external auditor
• Managing the appropriateness of the
design and effectiveness of the
combined assurance model which
incorporates the various disciplines of
Risk Management, Operational Risk,
Legal, Regulatory, Compliance, internal
audit, external audit and other
assurance providers
• Oversight of the processes in the
Group that culminate in the Group Chief
Executive (Group CE) and Group
Financial Director (Group FD) control
attestation to the JSE at an Investec
DLC level.

| The Committee’s terms of reference can be found at www.investec.com.

Committee composition, skills,
experience and operation
The Committee is comprised entirely
of independent Non-Executive Directors
who meet predetermined skills, competency
and experience requirements as
determined by the DLC Nomdac.
The members continuing independence,
as well as their required skill,
competencies and experience is
assessed annually.
Philisiwe Sibiya has not made herself
available for re-election to the Board at
the August 2024 AGM, in order to focus
on her own businesses.
In March 2024, Diane Radley was
appointed to the Committee following her
appointment as a Non-Executive Director
to the Investec plc Board. Following my
retirement at the August 2024 AGM,
D iane will assume the role of Chair of the
Committee.

| Further details of the experience of the members can be found in their biographies on pages 146 to 149 of the Investec Group’s 2024 integrated and strategic report.

The Group CE, Group FD, Group Chief
Operating Officer (Group COO), Group
Chief Risk Officer (Group CRO), Head of
Internal Audit, Chief Compliance O fficer
and representatives from the external
auditor are invited to attend all meetings.
Other members of management, including
Tax and business unit heads, are invited to
attend meetings to provide the Committee
with greater insights into specific issues or
areas of the Group.

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The Chair has regular contact with the
Group Executive Team to discuss and gain
broader insight on relevant matters directly.
The internal and external auditors have
direct access to the Chair, including
closed sessions with the Committee
without management present, on any
matter that they regard as relevant to the
fulfilment of the Committee’s
responsibilities.

| Members | Meetings attended/Eligible to attend |
| Zarina Bassa (Chair) | 11/11 |
| Vanessa Olver | 11/11 |
| Diane Radley 1 | 1/1 |
| Philisiwe Sibiya | 11/11 |

1. Diane Radley was appointed as a member of the
Committee effective 06 March 2024
Structure of the Investec
Group Audit Committees
In terms of the DLC structure, the DLC
Board has mandated authority to the DLC
Audit Committee to be the Audit
Committee of the Group. The DLC Audit
Committee oversees and considers
Group audit-related matters. It has
responsibility for audit-related matters
that are common to Investec plc and
Investec Limited and works in
conjunction with these two committees
to address all Group reporting.
The Investec plc Board, Investec Limited
Board, Investec Wealth & Investment
International Board, Investec Bank plc
Board and Investec Bank Limited Board
have mandated authority to their
respective audit committees to be the
audit committees for the respective
companies and their subsidiaries.
The Committee receives regular reports
from the Group’s subsidiary audit
committees as part of the oversight of
subsidiary audit committees.
The Chair is also the Chair of the
following audit committees:
• Investec DLC
• Investec Limited
• Investec Bank Limited
• Investec Bank Mauritius (IBM)
• Investec Wealth and Investment
International.
The Chair is also a member of the
following audit committees:
• Investec Bank plc
• Investec Life
• Investec Wealth and Investment UK
(up to the date of the Rathbones
transaction).
The Chair attends the following
committee meetings:
• Operational Risk Committee, as a
white card holder
• DLC IT Risk and Governance
Committee.
The DLC IT Risk and
Governance Committee
The DLC IT Risk and Governance
Committee is responsible for ensuring
that technology risk management
processes, investments, operations and
governance, including control
enhancement matters, support the
purpose, values and strategic goals of
the Group. The DLC IT Risk and
Governance Committee reports to both
the DLC Board Risk and Capital
Committee (BRCC) and the DLC Audit
Committee and is attended by the DLC
Audit Committee and DLC BRCC Chairs.

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Areas covered by the Investec plc Audit Committee
Key audit matters (KAM)
KAM are those matters that in the view of the Committee:
• Required significant focus from the Committee
• Were considered to be significant or material in nature, requiring exercise of judgement; or
• Matters which were otherwise considered to be subjective or complex from an accounting or auditing perspective.
Common membership of the DLC, Investec plc and Investec Limited Audit Committees ensures that KAM and matters of mutual
interest are communicated and addressed, where applicable. The members of the Committee may also attend other Audit
Committee meetings, as appropriate.
The following key audit matters were deliberated by the Committee during the year:

| Key audit matters |  | What we did |
| Expected credit losses (ECL) assessment • The appropriateness of the allowance for ECL is highly subjective and judgemental. |  | • Challenged the level of ECL, model methodology and assumptions applied to calculate the ECL provisions held by the Group • Reviewed the appropriateness of the ECL models and approved the forward-looking macro-economic scenarios applied in the UK • Reviewed and monitored the Group’s calculation of ECLs, trends in staging changes, model changes, scenario updates, post-model adjustments, Significant Increase in Credit Risk (SICR), and volatility • Reviewed and satisfied ourselves on in-model adjustments • Reviewed and satisfied ourselves on staging of key exposures • Reviewed for reasonableness the benchmarking of macro-economic scenarios, ECLs, Credit Loss Ratio (CLR) and coverage ratios against relevant UK peers • Assessed the appropriateness of the ECL model overlays maintained for emerging risks for which there was insufficient data available to model the existing credit risk. Specific consideration was given to the methodology and assumptions applied to calculate the overlay. We further evaluated the appropriateness of the releases of the ECL model overlays • Assessed ECL experienced against forecasts and considered whether the level of ECL was appropriate • Assessed the appropriateness of the ECL provision raised by the Group for large exposures in entities publicly perceived to be in financial distress, in conjunction with BRCC • Evaluated the International Financial Reporting Standard (IFRS® Accounting Standards), as issued by the International Accounting Standards Board (IASB) 9 disclosures for relevance and compliance with IFRS® Accounting Standards • Evaluated the impact of ECL on the interim and annual results. |
| Fair value of level 3 instruments and the resulting IFRS® Accounting Standards 13 fair value measurement (IFRS 13) disclosure • For level 3 instruments such as unlisted investments in private equity businesses, investment properties, fair value loans and large bespoke derivative structures, there is a large degree of subjectivity surrounding the inputs to the valuations and valuations methodology. With the lack of observable liquid market inputs, determining appropriate valuations continues to be highly judgemental. |  | • Received presentations on the material investments across the Group, including an analysis of the key judgements, assumptions and valuation methodology applied and approved the valuation adjustments proposed by management for the year ended 31 March 2024 • Challenged and debated significant subjective exposures and assumptions including: – The valuation principles applied for the valuation of level 3 investments (unlisted and private equity investments) and fair value loans – The appropriateness of the IFRS 13 disclosures regarding fair value. |

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| Key audit matters |  | What we did |
| Uncertain tax provisions and other legal matters |  | • Considered potential legal and uncertain tax matters with a view to ensuring appropriate accounting treatment in the financial statements • Evaluated the appropriateness of the accounting and disclosures regarding the investigation by the Office of the Public Prosecutor in Cologne. This was done by having closed Committee meetings with executive management and external audit. Considered guidance from external and internal legal counsel regarding the recognition, measurement and disclosure of a provision for this matter. Refer to note 49 of the Investec Group’s 2024 annual financial statements for further information • Received regular updates from the Group Executive, Group Tax, Group Finance and Group Legal Counsel on uncertain tax and legal matters to enable the Committee to probe and consider the matters and evaluate the basis and appropriateness of the accounting treatment • Analysed the judgements and estimates made and discussed the potential range of outcomes that might arise to determine the liability, if any, for uncertain tax positions as required by the International Financial Reporting Interpretations Committee (IFRIC) 23 • Reviewed a technical memorandum prepared by management regarding the recognition, measurement and disclosure of the motor vehicle finance industry-wide investigation in the UK. Considered guidance provided by external and internal legal counsel regarding the recognition, measurement and disclosure of the provision. Refer to note 49 of the Investec Group’s 2024 annual financial statements for further information • Concluded on the appropriateness of the International Accounting Standards (IAS) 37 accounting treatment, the scenarios and sensitivities, and any overall disclosure in the financial statements. Refer to note 49 in the Investec Group’s 2024 annual financial statements. |
| Restatements of prior year comparative information |  | • The Committee concluded that the restatements predominantly related to reclassifications of income statement line items or where management elected to restate to achieve better disclosure • Evaluated the causes of the restatements and considered their impact on the effectiveness of the Group’s control environment • Reviewed the appropriateness of the disclosure provided for the restatements. Refer to note 58 in the Investec Group’s 2024 annual financial statements for further information. |

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| Key audit matters |  | What we did |
| Significant transactions |  | • Reviewed the technical memorandum prepared by Group Finance regarding the accounting treatment and required disclosure for the Rathbones transaction that resulted in the deconsolidation of Investec Wealth and Investment UK (100% held subsidiary) and the recognition of a 41.25% investment in Rathbones plc. Considered and concluded on the appropriateness of the accounting treatment as a discontinued item in terms of IFRS Accounting Standards. Evaluated the appropriateness of the accounting treatment as an associate and valuation of the investment in Rathbones plc at a DLC level and Investec plc level. Considered the impact and addressed the implications of non- coterminous year-ends • Reviewed the disclosure provided for the discontinued operation of Investec Wealth and Investment UK which was deconsolidated. Reviewed the technical memorandum prepared by Group Finance on the application of IFRS 5 regarding discontinued operations • Evaluated the appropriateness of the accounting and disclosure relating to significant judgements and estimates, impairment, valuation methods and assumptions applied. |
| Audit firm rotation |  | • Following conclusion of a competitive tender process conducted in 2023, recommended to the Board the appointment of Deloitte LLP as the External Auditors of Investec plc and Investec Bank plc for the financial year ending 31 March 2025 • Managed the process and oversaw the commencement of the shadow audit process by Deloitte LLP of the Investec plc 2024 financial year audit • Monitored the non-audit services performed by Deloitte LLP during the shadow audit process • Oversaw the allocation of non-audit work to the respective audit firm to ensure that there were no breaches of independence. |

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Other matters considered by the Investec plc Audit Committee
The Committee considered the following matters during the year:

| Other matters |  | What we did |
| Going concern and the viability statement |  | • Considered reports on the Group’s budgets, forecasts, profitability, capital, liquidity and solvency and the impact of legal proceedings, if any, on both going concern and the three-year Viability Statement • Considered the results of various stress testing analyses based on different economic scenarios and the possible impact on the ability of the Group to continue as a going concern • Considered the impact of strategic corporate actions on the capital plans and the three year Viability Statement • Noted the Investec Bank plc Viability Statement as recommended for approval by the Investec Bank plc Audit Committee to the Investec Bank plc Board • Recommended the approval of the going concern assumption and the Group Viability Statement underlying the annual financial statements to the Investec plc Board. |
| Information technology systems, cyber security and controls impacting financial reporting |  | • Received and reviewed reports in respect of IT systems, cyber security and controls impacting financial reporting • Received regular reports from internal audit on the effectiveness of IT controls tested as part of the internal audit process • Considered broader IT and Governance matters, including security, control improvements, IT strategy and operations through attendance by the Committee and BRCC Chairs at the DLC IT Risk and Governance Committee • Since 2015, Investec has been using Targeted Attack Simulations (TAS) to understand our cyber risk exposure and evaluate the adequacy of our security controls • Met with IT external auditors to discuss the results of the audit of IT systems and controls. |
| External audit and audit quality |  | • Managed the relationship with the external auditor, Ernst & Young LLP • Considered the external audit report on the review performed on the interim results and the audit performed on the annual results • Met with key partners of Ernst & Young LLP prior to every Committee meeting to discuss the 2023/24 audit plan, key areas of focus, findings, scope and conclusions • Pre-approved all non-audit services provided by external audit and confirmed the services to be within the approved non-audit services policy • Discussed external audit feedback on the Group’s critical accounting estimates and judgements, restatements and the control environment • Approved the external audit plan, audit fee and the main areas of focus • Assessed the independence and objectivity of the external auditors • Received updates from the external auditors on the audit of the Annual Financial Statements (AFS) of the Group including the Summary of Audit Differences for the year ended 31 March 2024. The Committee ensured that it was comfortable that the level of unadjusted audit differences were within tolerable error for both actual and judgemental differences and that there was no bias towards over or understatement • Noted and reviewed the unqualified independent audit report in relation to the Group • Met separately with the leadership of Ernst & Young LLP to discuss the reviews by audit regulators ratings and accreditations, independence, firm quality control and the results of internal inspections of the firm and individual partners • The Committee confirms its satisfaction with the performance and quality of external audit, the external auditors and lead partners. |

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51

| Other matters |  | What we did |
| Regulatory compliance and reporting |  | • Received regular reports from the Regulatory Compliance functions and reviewed the adequacy of the scope and the effectiveness of the regulatory compliance processes applied. This included the evaluation of the quality of regulatory reporting, the scope and the integrity of the regulatory compliance process, the adequacy of internal regulatory compliance systems and processes, and the consideration and remediation of any findings of the internal and external auditors or regulators • Requested specific updates or presentations from management on areas considered high risk or where exceptions had been identified • Received regular updates from the compliance function in respect of Regulatory Interactions, Risk Ratings and High-Risk exposures, Conduct, Financial Crime, Compliance Monitoring, Training, Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) reviews conducted in respect of Group subsidiaries • Monitored regulatory developments and the potential impact on South Africa and the UK, following the addition of South Africa to the Financial Action Task Force (FATF) greylist in February 2023 • Reviewed the reporting obligations in respect of significant transactions completed during the financial year • Reviewed the reporting obligations of Investec Limited’s acquisition of Investec plc shares. |
| Post balance sheet disclosure |  | • Considered any post balance sheet events that may require the AFS to be adjusted or require additional disclosure. Refer to note 57 in the Investec Group’s 2024 annual financial statements. |
| Climate, nature and biodiversity and environmental, social and governance (ESG) |  | • Reviewed ESG reporting and disclosures • Considered the changing regulatory landscape for all jurisdictions that the Group operates in, including undertaking specific training for the Committee. |
| Internal controls • The effectiveness of the overall control environment, the status of any material control issues with emphasis on the progress of specific remediation plans. |  | • Attended regular meetings of the DLC BRCC. Based on reports presented at those meetings, evaluated the impact of an evolving risk environment, including operational risk, on the internal control environment • Evaluated and tracked the status of the most material control issues identified by internal and external audit and tracked the progress of the associated remediation plans against agreed time frames • Reviewed reports from the independent audit committees of the Group’s subsidiaries • Evaluated the impact of working from home on the overall control environment and operational risk • Evaluated reports on the internal control environment from the internal and external auditors with specific emphasis on culture and conduct elements in the internal audit reports • Attended and received regular reports from the DLC IT Risk and Governance Committee regarding the monitoring and effectiveness of the Group’s IT controls. Considered updates on key internal and external audit findings with respect to the IT control environment • Reviewed and approved the combined assurance model, ensuring completeness of risks and adequacy and effectiveness of assurance coverage • Evaluated reports on cyber security within the Group and received a presentation on the outcome of the 2023/24 TAS • Noted internal audit reports and conclusions on internal controls, internal financial controls and the risk management framework for the year under review • Reviewed the year-end conclusions from internal audit on internal controls, the risk management framework and internal financial controls based on their planned and actual audit coverage for the year. |

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| Other matters |  | What we did |
| Combined assurance matrix |  | • Confirmed our satisfaction with the appropriateness of the design and effectiveness of the combined assurance model applied, which incorporates the various disciplines of Risk Management, Operational Risk, Legal, Regulatory Compliance, internal audit, external audit and other assurance providers • Confirmed our satisfaction with the levels of assurance and mitigants so that, taken as a whole, there is sufficient and appropriate assurance regarding mitigants for the key risks • Reviewed the results of the Combined Assurance Matrix (CAM) coverage plan at the year-end to assess the results of actual coverage and conclusions relative to planned coverage for the year. Concluded that the CAM formed an appropriate basis for assurance coverage and outcomes. |
| Fair, balanced and understandable reporting • The Group is required by the UK Corporate Governance Code to assess and confirm that its external reporting is fair, balanced and understandable, and consider whether it provides the information necessary for stakeholders to assess the Group’s position and performance, business model and strategy. |  | • Undertook an assessment on behalf of the Board, to provide the Board with assurance that it can make the statement • Met with senior management to gain assurance that the processes underlying the compilation of the annual financial statements were appropriate • Conducted an in-depth critical review of the annual financial statements and, where necessary, requested amendments to disclosure • Reviewed the accounting treatment of key judgements and the quality of earnings assessment • Considered the appropriateness and the cause of the restatement of the annual financial statements. Reviewed the appropriateness of the remedial plans implemented by management to ensure the cause has been appropriately addressed • Reviewed the appropriateness of the disclosure provided regarding restatements and significant transactions completed during the financial year • Assessed disclosure controls and procedures • Confirmed that management had reported on and evidenced the basis on which representations to the external auditor were made • Obtained input and assurance from the external auditors and considered the level of and conclusion on the summary of audit differences • Reviewed feedback from Group Finance in respect of a project launched to refine the annual financial statements in order to improve disclosures, improve financial control and reporting processes • Concluded that the processes underlying the preparation of the annual report and financial statements for the financial year ended 31 March 2024 were appropriate in ensuring that those statements were fair, balanced and understandable • Reviewed feedback received from analysts in respect of the annual report as provided by Investor Relations and incorporated the feedback into the annual report • Reviewed the outcomes of the combined assurance coverage model as discussed above • Reviewed the annual reports of Investec plc and all significant subsidiaries. |

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| Other matters |  | What we did |
| Business control environment • The effectiveness of the control environment in each individual business, including the status of any material control issues and the progress of specific remediation plans. |  | • Received regular reports from the subsidiary audit committees, including entities that the Group’s management is operationally responsible for • Attended the audit committee meetings of all significant subsidiaries • Assessed reports on individual businesses and their control environments, scrutinised any identified control failures and closely monitored the status of remediation plans • Received updates from senior management and scrutinised action plans following internal audit findings • Reviewed the process for reporting to the Committee by key subsidiaries and associates and considered regular reports from such entities. |
| Finance function |  | • Considered the financial reporting as prepared by Group Finance regarding the interim results for the period ended 30 September 2023 and final results for the 31 March 2024 year end • In a closed session, discussed and concluded that the finance functions of Investec plc and its subsidiaries were adequately skilled, resourced and experienced to perform the financial reporting for the Group and that appropriate succession was in place for key roles • Concluded that the Group FD, Nishlan Samujh, had the appropriate expertise and experience to meet the responsibilities of the position. |
| Compliance with applicable accounting standards |  | • Reviewed various accounting papers prepared by Group Finance addressing subjective accounting treatments and significant accounting judgements • The Committee chair discussed the key judgements and complex accounting treatments with both external audit and management in the weekly meetings leading up to the year-end sign off • Concluded on the reasonableness of the significant accounting judgements. |
| Related party disclosures |  | • Considered and reviewed related party disclosures for the Group • Considered and reviewed the process followed by Group Finance to ensure the completeness of related party disclosure • DLC Nomdac reviewed key related party transactions during the year and ensured compliance with Investec related party policies. |
| Internal audit • The performance of Internal Audit and delivery of the Internal Audit plan, including scope of work performed, the level of resources, the risk assessment methodology and coverage of the internal audit plan • The Committee is responsible for assessing audit quality and the effectiveness of the internal audit function. |  | • Scrutinised and reviewed internal audit plans, risk assessments, methodology and staffing, and approved the annual plan • Reviewed and approved the Group internal audit charter • Provided input into and considered the annual performance and objectives of the Head of Internal Audit • Monitored delivery of the agreed audit plans, including assessing Internal Audit resources, Continued Professional Development (CPD), succession, core skills development and automation of audit processes • Monitored and followed up internal audit control findings, including IT, and ensured appropriate mitigation and timeous close-out by management • Tracked high and moderate risk findings, and monitored related remediation plans • Met with the Head of Internal Audit prior to each Committee meeting, without management being present, to discuss the remit of and reports of internal audit and any issues arising from the internal audits conducted • Monitored audit quality in relation to internal audit. The methodology, process and skills were presented to a separately convened Audit Committee to consider audit quality |

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| Other matters |  | What we did |
| Internal audit (continued) |  | • Discussed and considered the internal audit quality assurance programme. The internal audit quality assurance programme is designed in line with the Institute of Internal Auditors (IIA) International Professional Practices Framework (which includes the International Standards for the Professional Practice of Internal Auditing and the Code of Professional Conduct, including the Code of Ethics). The quality assurance programme is multi-faceted, and includes the attraction, development and retention of adequately skilled staff that exercise proficiency and due professional care, adherence to the Global internal audit governance framework and audit methodology, oversight and detailed review of every audit engagement and a quarterly post- engagement quality assurance programme • Assessed and confirmed our satisfaction with the independence of the Head of Internal Audit for Investec plc, E Broughton • Reviewed the results of the post-engagement quality assurance programme which informs any training interventions required within the team. The results are consolidated and presented to the Audit Committee on an annual basis • IT Audit and Data Analysis – Internal audit developed automated test scripts, allowing for more comprehensive testing of controls covering the full population. This full population testing provides greater coverage than the traditional audit methodology which calls for a sample testing approach. Reviewed and considered the implications of the approach on the audit for the Group • Reviewed the Investec plc written assessment of the overall effectiveness of the organisation’s governance, risk, and control framework, including an assessment of internal financial controls, the risk management framework, adherence to the risk appetite and the effectiveness of the overall assurance achieved relative to that planned for the year through the CAM • Confirmed our satisfaction with the independence and performance of the internal audit function • Assessed and confirmed our satisfaction with the independence of the Head of Internal Audit for Investec plc, E Broughton • Held a closed session regarding internal audit where the capacity, appropriate skills, independence and quality of the internal audit function was assessed • Considered succession and the skills matrix for internal audit • Assessed the effectiveness of the internal audit function through completion of a questionnaire which is based on the Internal Audit Financial Code of Practice. The results of the exercise were shared with the Committee, together with action plans to address any concerns raised, which will be tracked to completion. |

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INVESTEC PLC AUDIT COMMITTEE REPORT CONTINUED

55
External audit
Non-audit services
Our policy regarding the engagement of
the external auditor to provide non-audit
services was developed by the
Committee to safeguard auditor
objectivity and independence. The policy
includes guidelines on permitted and
non-permitted services and the approval
process required by the Committee.
Total fees paid for the year ended
31 March 2024 amounted to £8.0 million
(2023: £8.6 million), of which £1.6 million
(2023: £2.4 million) related to the
provision of non-audit services. The non-
audit services related to services
required to be provided by the external
auditor, such as, regulatory audits and
work to be performed as reporting
accountant. Non-audit fees were pre-
approved by the Chair of the Committee
prior to every assignment.
The Committee also required the policy
to be applied to any external services
provided by Deloitte LLP to ensure the
independence of the firm prior to its
appointment as external auditor for the
financial year ending 31 March 2025.

Total Fees (£m)

Based on the above-mentioned policy,
approval process and reviews performed,
the Committee was satisfied that the
level and type of non-audit work
undertaken throughout the year did not
impair the independence of Ernst &
Young LLP and Deloitte LLP.
Auditor independence and objectivity
and audit quality
Critically evaluated audit quality at an
engagement and firm level, audit
effectiveness, independence and audit
rotation requirements applicable to all
jurisdictions in which the Group operates.
Audit Regulator reviews were considered
at a firm and individual partner level.
Continuity, quality control on assignment
as well as the independence of staff on the
assignment were considered.
The Committee was satisfied that in
reviewing audit quality and independence,
it had followed a comprehensive process
during which detailed feedback was
received and evaluated.
As part of the process:
• The Committee considers the
independence of the external auditors
on an ongoing basis
• The external auditor confirmed their
independence and were requested to
review and confirm the level of staff
transactions with Investec, if any, to
ensure that all auditors on the Group
audit meet the independence criteria
• The key audit partners are required to
rotate every five years. The tenure of
each of the partners was reviewed and
concluded to be aligned with this policy.
Following due consideration, the
Committee believes the safeguards as
implemented by the Committee are
adequate to ensure the objectivity and
effectiveness of the audit process, based
on the following:
• The cross-reviews by the Investec plc
auditors across the Group
• Restrictive policy for non-audit
services, including pre-approval of
non-audit work
• The confirmation of the independence
of the firms and auditors involved
• Formal audit quality process
undertaken by the Committee.
Audit firm rotation
The Company has complied with the
requirements of the Statutory Audit
Services for Large Companies Market
Investigation (Mandatory Use of
Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014
(the Order), which relates to the
frequency and governance of tenders for
the appointment of the external auditors.
The external auditors of Investec plc
have been Ernst & Young LLP since 2000
and will rotate off following completion of
the audit of the 2024 financial year.
Deloitte LLP have been nominated as the
new external auditors for the financial
year ending 31 March 2025, subject to
approval by ordinary shareholders at the
AGM to be held in August 2024.
Transition process
A formal transition process commenced
during 2023, whereby Deloitte LLP
shadowed the full 2024 audit cycle
performed by the incumbent external
auditor. The purpose of the shadow
period was for Deloitte LLP to obtain
sufficient information about the Group,
the financial control environment and the
audit process to ensure a smooth
transition as lead external auditor in the
following financial year.

Year | Auditor | Shadow Auditor
2023/24 | EY LLP (UK) | Deloitte LLP (UK)
2024/25 | Deloitte LLP (UK) |

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INVESTEC PLC AUDIT COMMITTEE REPORT CONTINUED

56
Re-election and appointment of
auditors
The Committee has considered the
following in selecting external auditors:
• The level of specialisation, footprint,
capacity and experience required by a
firm in performing a joint audit of a
Bank or financial services group which
is of systemic importance
• Transformation
• Technology
• Credentials and Partners
• Legal cases and reputational matters
• The level of quality control within the
audit firms as evidenced by the results
of internal and external regulatory
reviews performed on audit firms and
engagement partners
• The level of inherent risk in auditing a
financial services group and the
consequent audit risks
• The independence of the external
auditor
• The fundamental demands on audit
quality, the level of audit risk given the
turmoil in the audit profession,
balanced against shareholder views on
firm rotation
• Regulatory requirements
• Understanding of the Investec
business, culture and financial
statement risks.
Considering the guidance provided in the
FRC guide on audit committees, the
Committee confirms its satisfaction with
the performance and quality of the
external audit function, the external audit
firms and the engagement partners.
The Board and the Committee is
recommending the appointment of
Deloitte LLP as auditors of Investec plc at
its AGM in August 2024 for the financial
year ending 31 March 2025.
Looking ahead
The role of the Committee will remain
focused on:
• Ensuring the improvement and the
effective functioning of the Group’s
financial systems and processes,
financial control environment,
monitored by an effective combined
assurance model
• Audit quality and independence
• Management’s response in respect of
future changes to IFRS® Accounting
Standards, legislation and other
regulations impacting disclosure
requirements
• Ensuring a smooth transition of the
external audit to the new audit firms
• The implications of ESG risk in
measuring the sustainability and
societal impact of loans or an
investment in a company of business
together with ESG accounting
disclosures and assurance processes
• Continuing to exercise oversight over
subsidiary audit committees, including
in remote locations
• Monitoring the implementation of the
JSE Listings Requirements, including
the effectiveness of internal financial
controls.
Vote of thanks
The Committee and I would like to thank
Ernst & Young LLP for their robust
challenge, support and quality audits
performed during their years of service.
Ernst & Young LLP fulfilled the role as
lead auditor for Investec DLC and played
a pivotal role in the transition of the
external audit function over the past two
years. I have personally appreciated the
manner in which this has been
conducted.
I would like to extend my gratitude and
thanks to Philisiwe Sibiya, who will step
down at the August 2024 AGM, for her
exemplary and valued contribution to the
Committee over the last five years.
I would further like to welcome Diane in
her new role as Chair designate of the
Committee. It is a role I’m sure she will
enjoy and I believe that the Group will
benefit from her insights and experience.
I will be retiring from the Investec plc
Board at the August 2024 AGM having
served close to ten years on the Board.
I would like to acknowledge and thank
the various assurance providers I have
worked closely with over the last eight
years, ie Finance, Compliance, Internal
and External audit, amongst others.
I would further like to thank management
and the leadership for the ongoing
commitment to a constantly evolving and
improving control environment. Lastly, as
Chair, I would like to thank my fellow
Audit Committee members for their
diligence and support over the years.
Zarina Bassa
Chair, Investec plc Audit Committee
24 June 2024

02 |  | Risk management and governance |  |  | Investec plc Annual Financial Statements 2024
INVESTEC PLC AUDIT COMMITTEE REPORT CONTINUED

57
The Directors' report for the year ended
31 March 2024 comprises pages 58 to 65
of this report, together with the sections
of the annual report incorporated by
reference.
The Directors’ report deals with the
requirements of Investec plc.
As permitted by Section 414C(11) of the
UK Companies Act, some of the matters
required to be included in the directors'
report have instead been included in the
strategic report on pages 8 to 140 of the
Investec Group’s 2024 integrated and
strategic report, as the Board considers
them to be of strategic importance.
Specifically, these are:
• Future business developments
(throughout the strategic report)
• Risk management on page 103
• Information on how the directors have
had regard to the Group's
stakeholders, and the effect of that
regard, o n pages 24 to 34 of the
Investec Group’s 2024 integ rated and
strategic report.
The strategic report (as contained in the
Investec Group’s 2024 integrated and
strategic report) and the Directors’ report
together form the management report for
the purposes of Disclosure Guidance and
Transparency Rules (DTR) 4.1.8R.
For information on the corporate
governance of the Investec Group, refer
to the corporate governance sections of
the Investec Group’s 2024 integrated and
strategic report and the Investec Group’s
2024 risk and governance report.
Information relating to the use of financial
instrumen ts by the Company can be
found on pages 122 to 124 and is
incorporated by reference.
Additional information for shareholders
of Inve stec plc is detailed in schedule A
to the Directors’ report on pages 66
and 68.
Other information to be disclosed in the
Directors' report is given in this section.
The Directors' report fulfils the
requirements of the corporate
governance statement for the purposes
of DTR 7.2.3R.
Directors

| The membership of the Board and biographical details of the Directors are provided on pages 146 to 149 of the Investec Group’s 2024 integrated and strategic report.

Changes to the composition of the Board
during the year and up to the date of this
report are shown in the table below:

| Role | Effective date of departure/ appointment
Departures |  |
Khumo Shuenyane | Non-Executive Director | 3 August 2023
Richard Wainwright | Executive Director | 3 August 2023
Ciaran Whelan | Executive Director | 3 August 2023
Appointments |  |
Diane Radley | Non-Executive Director | 6 March 2024

In accordance with the UK Corporate
Governance Code, all of the directors
will retire and those willing to serve again
will submit themselves for re-election at
the AGM.
Zarina Bassa, who reached nine years of
service with the Group, and Philisiwe
Sibiya who wishes to focus on her own
business and other boards, will not stand
for re-election at the 2024 AGM.
Company Secretary
The Company Secretary of Investec plc is
David Miller.
The Company Secretary is professionally
qualified and has gained experience over
many years. His performance is
evaluated by Board members during the
annual Board evaluation process. He is
responsible for the flow of information to
the Board and its Committees and for
ensuring compliance with Board
procedures. All directors have access to
the advice and services of the Company
Secretary, whose appointment and
removal is a Board matter.
In compliance with the UK Corporate
Governance Code and the UK Companies
Act, the Board has considered and is
satisfied that the Company Secretary is
competent, and has the relevant
qualifications and experience.
Induction, training and
development
The Chair leads the training and
development of directors and the
Board generally.
A comprehensive development
programme operates throughout the
year, and comprises both formal and
informal training and information
sessions.
On appointment to the Board, all
directors benefit from a comprehensive
induction, which is tailored to the new
director’s individual requirements. The
induction schedule is designed to provide
the new director with an understanding
of how the Group works and the key
issues that it faces. The Company
Secretary consults the Chair when
designing an induction schedule, giving
consideration to the particular needs of
the new director. When a director joins a
Board Committee, the schedule includes
an induction to the operations of that
Committee.
Directors and their
interests

| Details of the directors’ shareholdings and options to acquire shares are detailed in the Investec Group’s 2024 remuneration report.

Directors' conflicts
of interest
The Group has procedures in place for
managing conflicts of interest. Should a
director become aware that they, or any
of their connected parties, have an
interest or a potential interest in an
existing or proposed transaction with the
Group, they are required to notify the
Board or at the next Board meeting.
Internal controls are in place to ensure
that any related party transactions
involving directors, or their connected
parties, are conducted on an arm's length
basis. Directors have a continuing duty to
update any changes to their declarations.
Directors' and officers’
liability insurance
The Group maintains directors' and
officers' liability insurance which provides
appropriate cover for any potential legal
action brought against its directors.

02 |  | Risk management and governance | CORPORATE GOVERNANCE |  | Investec plc Annual Financial Statements 2024
DIRECTORS’ REPORT

58
Change of control
The Articles of Association of
Investec plc and the Memorandum of
Incorporation of Investec Limited ensure
that a person cannot make an offer for
one company without having made an
equivalent offer to the shareholders of
both companies on equivalent terms.
Pursuant to the terms of the agreements
establishing the DLC structure, if either
Investec plc or Investec Limited serves
written notice on the other at any time
after either party becomes a subsidiary of
a third party, or after both Investec plc
and Investec Limited become
subsidiaries of a third party, the
agreements establishing the DLC
structure will terminate.
All of the Investec Group's share plans
contain provisions relating to a change of
control. Outstanding awards and options
would normally vest and become
exercisable on a change of control and,
where applicable, subject to the
satisfaction of any performance
conditions at that time.
Powers of directors
The Board manages the business of the
Group under the powers set out in the
Articles of Association of Investec plc,
which include the ability of directors to
issue or buy back shares. Directors were
granted authority to issue and allot
shares and to buy back shares at the
2023 AGM. Shareholders will be asked
to renew these authorities at the 2024
AGM and further details will be provided
in the AGM notice.
Contracts

| Details of contracts with directors can be found o n pages 22 and 23 of the Investec Group's 2024 remuneration report.

Authorised and issued
share capital
Details of the share capital are set out on
page s 141 to 142 in note 40 t o the annual
financial statements.
Investec plc did not issue any ordinary
shares during the financial year ended
31 March 2024.
Investec plc did not repurchase any of its
ordinary shares during the financial year
ended 31 March 2024.
Investec Limited purchased 8 434 679 of
Investec plc’s ordinary shares during the
financial year ended 31 March 2024
representing 1.2% of the issued share
capital. These shares are being held
exclusive of voting and dividend rights as
treasury shares.
At 31 March 2024, Investec plc held
53 401 625 shares in treasury
(2023: 49 720 148), for allotment under
share plans. The maximum number of
shares held in treasury by Investec plc
during the period under review was
53 623 501 shares.
Ordinary dividends
An interim dividend of 15.5p per ordinary
share (2022: 13.5p) was paid on
22 December 2023, as follows:
• 15.5p per ordinary share to
non-South African resident shareholders
registered on 22 December 2023, and
• South African resident shareholders
registered on 22 December 2023,
through a dividend paid by Investec
Limited on the SA DAS share,
equivalent to 15.5p per ordinary share.
The directors have proposed a final
dividend to shareholders registered on
23 August 2024, of 19p (2023: 17.5p) per
ordinary share, which is subject to the
approval by the members of Investec plc
at the AGM that is scheduled to take
place on 8 August 2024. If approved, this
will be paid on 6 September 2024, as
follows:
• 19p per ordinary share to
non-South African resident shareholders
registered on 23 August 2024, and
• South African resident shareholders
registered on 23 August 2024, through
a dividend paid by Investec Limited on
the SA DAS share, equivalent to 19p per
ordinary share.
Preference dividends
Non-redeemable, non-
cumulative, non-participating
preference shares
Preference dividend number 35
for the period 1 April 2023 to
30 September 2023, amounting to
29.08904p per share, was declared to
members holding preference shares
registered on 1 December 2023 and was
paid on 12 December 2023.
Preference dividend number 36 for the
period 1 October 2023 to 31 March 2024,
amounting to 31.33562p per share, was
declared to members holding preference
shares registered on 14 June 2024
payable on 28 June 2024.
Rand-denominated non-
redeemable, non-cumulative,
non-participating preference
shares
Preference dividend number 25
for the period 1 April 2023 to
30 September 2023, amounting to
552.49657 cents per share, was declared
to members holding Rand-denominated
non-redeemable, non-cumulative,
non-participating preference shares
registered on 1 December 2023 and
was paid on 12 December 2023.
Preference dividend number 26 for the
period 1 October 2023 to 31 March 2024,
amounting to 559.65411 cents per share,
was declared to members holding Rand-
denominated non-redeemable, non-
cumulative, non-participating preference
shares registered on 14 June 2024 and
payable on 28 June 2024.
Going concern
In adopting the going concern basis
for preparing the consolidated financial
statements, the directors have
considered the Group’s business
activities, objectives and strategy,
principal risks and uncertainties in
achieving its objectives, and performance
that are set out on pages 8 to 13, pages
54 to 57 and pages 108 to 119 of the
Investec Group’s 2024 integrated and
strategic annual report. The directors
have performed a robust assessment of
the Group’s financial forecasts across a
range of scenarios over a 12-month
period from the date the financial
statements are authorised for issue.
Based on these, the directors confirm
that they have a reasonable expectation
that the Company and the Group, as a
whole, has adequate resources to
continue in operational existence for the
12 months from the date the financial
statements are authorised for issue. The
directors therefore consider it
appropriate to adopt the going concern
basis of accounting in preparing the
accompanying consolidated financial
statements.

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59
Viability statement
In accordance with the UK Corporate
Governance Code, in addition to
providing a going concern statement
(disclosed on page 59), the Board is
required to make a statement with
respect to the Group’s viability (i.e. its
ability to continue in operation and meet
its liabilities). This is required to take into
account the Board’s assessment of the
current position of the Group, its
prospects and the principal risks it faces,
including the period of time for which the
Board has made the assessment and why
that period is considered appropriate.
The Board has used a three-year
assessment period as this is aligned to
the Group’s medium-term capital plans
which incorporate profitability, leverage
and capital adequacy projections and
include impact assessments from a
number of stress scenarios. Detailed
management information therefore exists
to provide senior management and the
Board sufficient and realistic visibility of
the Group’s viability over the three years
to 31 March 2027.
Following confirmation by the DLC BRCC
(comprising a majority of Non-Executive
Directors, which includes certain
members of the Audit Committees), the
Audit Committee recommended the
viability statement for Board approval.
The Board has identified the principal and
emerging risks facing the Group and
these are highlighted on pages 31 to 45.
Through its various committees, notably
the Audit Committees and the DLC BRCC
and its sub-committee, the DLC Capital
Committee, the Board regularly carries
out a robust assessment of these
principal risks and their potential impact
on the performance, liquidity, solvency,
capital and operational resilience of the
Group. The activities of these Board sub-
committees and the issues considered by
them are described in the Group’s 2024
risk and governance report.
Taking these risks into account, together
with the Group’s strategic objectives and
the prevailing market environment, the
Board approved the overall mandated
risk appetite frameworks for Investec plc.
The risk appetite frameworks set
parameters relating to the Board’s
expectations around performance,
business stability and risk management.
The Board considers that prudential risk
management is paramount in all it does.
Protection of depositors, customers’
interests, capital adequacy and
shareholder returns are key drivers. The
Bank, in keeping with sound governance
practices, has defined roles and
responsibilities for the management of
risk in accordance with the three lines of
defence model, i.e. business line
management, an independent operational
risk function and an independent internal
audit function. In addition, to manage the
Group’s risk appetite, there are a number
of detailed statements, frameworks,
policies and governance structures in
place. The Board ensures that there are
appropriate resources in place to manage
the risks arising from running the
business by having independent Risk
Management, Compliance, and Financial
Control functions. These are
supplemented by an Internal Audit
function that reports independently to
the non-executive Audit Committee
Chair.
The Board believes that the risk
management systems and processes,
supported by the conclusions of the
Internal Audit function and the results of
their combined assurance coverage
through each assurance function, are
adequate to support the Group’s strategy
and allow the Group to operate within its
risk appetite framework. A review of the
Group’s performance/measurement
against its risk appetite framework is
provided at each DLC BRCC meeting and
at the main Board meetings.
In terms of the FCA and PRA
requirements, the Group is also required
to meet regulatory standards with
respect to capital and liquidity. In terms
of these requirements, the Group is
required to stress its capital and liquidity
positions under a number of severe
stress conditions. Investec’s stress
testing framework is well embedded in its
operations and is designed to identify
and regularly test the Group’s key
‘vulnerabilities under stress’.
In order to manage liquidity risk, liquidity
stress testing is performed for a range of
scenarios, each representing a different
set of assumptions. These include
market-wide, firm specific, and combined
scenarios (combination of the market-
wide and firm specific stresses). The
Group manages its liquidity risk appetite
in relation to combined stress parameters
which represent extreme but plausible
circumstances. The objective is to have
sufficient liquidity under a combined
stress scenario to continue to operate for
a minimum period as detailed in the
Board-approved risk appetite framework.
In addition to these stress scenarios, the
Group’s risk appetite also requires it to
maintain specified minimum levels for
both the liquidity coverage ratio and net
stable funding ratio, which are well in
excess of the regulatory minimums of
100% respectively; a minimum cash and
near cash to customer deposit ratio of
25%; and to maintain low reliance on
wholesale funding to fund core asset
growth. Investec plc undertakes an
annual Internal Liquidity Adequacy
Assessment Process (ILAAP) which
documents the approach to liquidity
management across the firm. This
document is reviewed and approved by
IBP Board Risk and Capital Committee
(IBP BRCC), DLC BRCC and by the IBP,
plc and DLC Boards. Each banking entity
within the Group is required to be fully
self-funded. The Group currently has
£9.7 billion in cash and near cash assets,
representing 46.4% of customer
deposits.
The Group develops annual capital plans
(refreshed after six months), that look
forward over a three-year period. The
capital plans are refreshed on an ad hoc
basis if a material event occurs or is likely
to occur. These plans are designed to
assess the capital adequacy of the
Group’s respective banking entities under
a range of economic and internal
conditions, with the impact on earnings,
asset growth, risk appetite and liquidity
considered. The output of capital
planning allows senior management and
the Board to make decisions to ensure
that the Group continues to hold
sufficient capital to meet internal and
regulatory capital targets over the
medium term (i.e. three years). The
Group targets a CET1 ratio in excess of
10%,a tier 1 ratio greater than 11%,a
minimum capital adequacy ratio of
between 14% to 17% and a leverage ratio
in excess of 6% for each of its banking
entities.

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The parameters used in the capital and
liquidity stresses are reviewed regularly,
taking into account the principal and
emerging risks facing the Group, changes
in the business environments and inputs
from business units. Scenarios are
designed considering macro-economic
downside risks, portfolio-specific risk
factors and business model
vulnerabilities. Multiple scenarios are
considered to account for the uncertain
forward-looking macro-economic
environment.
• Base case: Following a technical
recession over H2 of 2023 calendar
year, a recovery is expected over the
course of 2024, firmly taking hold over
the second half of the year. This
recovery in 2024 and beyond is
supported by a strengthening in
household real incomes, an easing in
monetary policy and looser fiscal policy
too. The baseline view anticipates the
Bank rate to fall to 4.50% by the end of
2024, driven by a continued easing in
inflation pressures, with CPI expected
to reach 1.6% in Q3 2024. Over the
three-year horizon Bank rate is
assumed to fall to 3.00%. More
broadly, areas of the economy which
have felt the pressure of high interest
rates most intensely, such as the
housing market, are also expected to
recover, with the recent fall in prices
expected to be recovered by the end
of 2025. Commercial real estate is also
expected to recover, although
structural issues are expected to
remain a headwind. The global
economic backdrop can be
characterised in a similar vein to the
UK with growth strengthening, inflation
moderating and central banks
loosening policy from the current
restrictive stance.
In assessing stress scenarios for the
2024 capital planning exercise,
consideration was given to the outlook
for interest rates given the baseline view
that policy rates had peaked in 2023 and
were expected to fall in 2024. As such it
was proposed and approved that
Investec would run two global economic
downturn scenarios, both being triggered
by the same hypothetical economic
shock, but the path and severity of the
scenarios differ due to the assumed
differences in central bank policy
reactions.
These are defined below:
• Aggressive Easing, Moderate
Recession: As is the typical case with a
macroeconomic shock the Bank of
England is assumed to react
aggressively and expediently to a
downturn in the economy driven by a
global tail event. This sees the Bank
rate cut 500bps, hitting the low of
0.25% in Q3 2025. This helps alleviate
the downside pressures on the
economy and whilst a recession still
ensues, the depth and longevity is
limited to a 2.2% fall in GDP and a
recession lasting three quarters. Under
such a scenario inflation falls below 1%,
whilst asset values, both residential
real estate and commercial fall by 9%
and 14% peak to trough. However,
given the monetary policy response an
economic recovery is assumed to take
hold from Q2 2025 onwards. In the
medium-term, policy rates are
assumed to begin rising again as
economic growth returns to trend.
Given the global nature of the shock,
the same aggressive easing and GDP
trends are seen amongst the major
advanced market economies. For
example, US and Euro area GDP is
assumed to fall 2.2% and 2.3%
respectively. The respective policy
rates are cut to 0.50% and 0.25%.
• Cautious Easing, Severe Recession: In
contrast to the ‘Aggressive Easing,
Moderate Recession’ stress, this
scenario envisages a more cautious
approach to monetary policy easing
given residual inflation worries and still
present upside risks to price pressures.
As such, whilst the Bank of England
does loosen policy in response to the
economic shock it does so at a more
moderate pace, with rates only falling
225bps to 2.00% by Q1 2026. The
consequence is a recession which is
deeper and longer, the peak to trough
fall in GDP totalling 4.3%. Amidst the
downturn in the economy and tighter
financing conditions, the real estate
market faces a deeper contraction with
residential prices falling 15% and
commercial prices falling 18%. A
recovery is seen through the latter half
of the scenario, beginning in Q2 2026,
but this is insufficient to see GDP
return to its pre-stress peak. In terms
of the global picture these same
macroeconomic characteristics are
assumed to apply.
The Group implements regulatory
scenarios when they are published by
regulators (UK BoE Annual Cyclical
Scenario). For 2024 the BoE will not be
publishing a new ACS given it launched
its System-wide exploratory scenario
(SWES) in June 2023. Hence, at this point
Investec Plc will not be running a
regulatory scenario in its stress testing
programme.
The Board has assessed the Group’s
viability in its ‘base case’ and stress
scenarios. In assessing the Group’s
viability, a number of assumptions are
built into its capital and liquidity plans. In
the stress scenarios these include, for
example, foregoing or reducing dividend
payments and asset growth being
curtailed.
We also carry out ‘reverse stress tests’,
i.e. scenarios that cause the business
model to fail. Reverse stress testing
scenarios are developed thematically and
their impact is assessed in qualitative and
quantitative terms with respect to
regulatory capital and liquidity threshold
conditions, taking into account the loss
absorbing effects of the bank’s capital
stack. Escalating losses may expose the
business model to unacceptable levels of
risk well before regulatory threshold
conditions are breached, and mitigation
actions are identified with the aim to
prevent the failure of the Group. Reverse
scenarios are extreme tail events and are
considered remote, and mainly serve the
purpose of identifying and addressing
potential weaknesses that may not be
identified through the ongoing risk
management and stress testing
processes.
In addition, Investec plc performs climate
scenario analysis and risk assessments in
line with the requirements stipulated by
Supervisory Statement SS3/19
‘Enhancing banks’ and insurers’
approaches to managing the financial
risks from climate change’, on a
proportionate basis for the size and
complexity of the firm. To date, findings
indicate that transition and physical risk is
low and Investec plc has sufficient capital
and liquidity to continue as a going
concern and meet regulatory capital and
liquidity requirements.
Furthermore, the Group is required to
have a contingency funding and recovery
plan as well as a resolution pack. The
recovery plans document how the Board
and senior management will ensure that
the Group recovers from extreme
financial stress to avoid liquidity and
capital difficulties in its separately
regulated companies.

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On 28 June 2023, the BoE formally
notified Investec plc that the preferred
resolution strategy will be changed from
bank insolvency procedure to bail-in and
as such a revised, increased minimum
requirement for own funds and eligible
liabilities (MREL) requirement will be
imposed on Investec plc and IBP as a
material subsidiary. The MREL transition
will commence from 1 January 2026 with
end state MREL applying from 1 January
2032.
The Group maintains an operational
resilience framework that defines
important business services, impact
tolerances and plans to respond
effectively to a disruption. This not only
ensures continuity of business operations
but also safeguards the interests of key
stakeholders including clients and
regulators, as well as maintaining our
reputation, brand and value‐creating
activities.
The capital and liquidity plans, stress
scenarios, contingency funding and
recovery plans, resolution pack and the
risk appetite statements are reviewed at
least annually by the respective Capital,
Risk, and Board Committees. In times of
severe economic distress and if
applicable, stress scenarios are reviewed
more regularly; for example, as was the
case with the COVID‐19 pandemic. In
addition, senior management hosts an
annual risk appetite process at which the
Group’s risk appetite frameworks are
reviewed and modified to take into
account risk experience and changes in
the environment. Furthermore, strategic
budget processes take place within each
business division at least annually. These
focus on, amongst other things: the
business and competitive landscape;
opportunities and challenges including
the use of new and emerging
technologies and operational risks
relating to technology, resilience, and
cyber security; and financial projections.
A summary of these divisional budgets,
together with a consolidated Group
budget, is presented to the Board during
its strategic review process annually.
In assessing the Group’s viability, the
Board has taken all of the above-
mentioned factors, documents and
processes into consideration. The
directors can confirm that they have a
reasonable expectation that the Group
will continue to operate and meet its
liabilities as they fall due over the next
three years.
The viability statement should be read in
conjunction with the following sections in
the annual reports, all of which have
informed the Board’s assessment of the
Group’s viability:
• Pages 4 to 25 which show a strategic
and financial overview of the business
• Pages 31 to 45 which provide detail on
the principal and emerging risks the
Group faces and the processes in
place to assist the Group in mitigating
its principal risks
• Page 31 which provides information on
the overall Group’s risk appetite
• Page 28 which provides an overview of
the Group’s approach to risk
management
• Pages 31, 165, 188 and 202 which
highlight information on the Group’s
various stress testing processes
• Pages 192 to 196 which specifically
focus on the Group’s philosophy and
approach to liquidity management
• Page 199 which provides detail on the
recovery and resolution plan
• Pages 200 to 205 which explain the
Group’s capital management
framework.
This forward‐looking viability statement
made by the Board is based on
information and knowledge of the Group
at 24 June 2024. There could be a
number of risks and uncertainties arising
from (but not limited to) domestic and
global economic and business conditions,
including the development of new
technologies, beyond the Group’s control
that could cause the Group’s actual
results, performance or achievements in
the markets in which it operates to differ
from those anticipated.
Social and Ethics
Committee (SEC)
The Board of Investec plc has delegated
the duties of the Social and Ethics
Committee, as set out in the South
African Companies Act, to the DLC SEC.

| Further details of the role, responsibilities, membership and activities of the DLC SEC are set out on pages 101 to 105 of the Investec Group’s 2024 risk and governance report.

Sustainability report

| For information on our approach to social, environmental and ethical matters, please refer to the Investec Group’s 2024 sustainability report which is published and made available on our website www.investec.com

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DIRECTORS’ REPORT CONTINUED

62
Investec plc carbon footprint
Streamlined energy and carbon reporting (SECR)

|  | 2023/24 | 2022/23
Metric | Unit | UK and offshore 1 | Global (excluding UK and offshore) | Total Investec plc | UK and offshore | Global (excluding UK and offshore) | Total Investec plc
Emissions from activities for which the company own or control including combustion of fuel & operation of facilities (Scope 1) | tC0 2 e | 349 | 1 | 350 | 44 | — | 44
Emissions from purchase of electricity (Scope 2 location based) | tC0 2 e | 701 | 236 | 937 | 807 | 164 | 971
Total gross Scope 1 & Scope 2 emissions (location based) | tC0 2 e | 1 050 | 237 | 1 287 | 851 | 164 | 1 015
Energy consumption used to calculate above emissions 2 | kWh | 3 841 026 | 533 285 | 4 374 311 | 4 420 786 | 441 222 | 4 862 008
Intensity ratio: Location based gross Scope 1 + 2 emissions per employee 3 | tC0 2 e/ Headcount | 0.41 | 0.71 | 0.44 | 0.25 | 0.92 | 0.29
Total gross Scope 3 operational emissions | tC0 2 e | 6 955 | 41 | 6 996 | 4 873 | 30 | 4 903
Total gross Scope 1, Scope 2 & Scope 3 operational emissions (location based) | tC0 2 e | 8 005 | 278 | 8 283 | 5 724 | 194 | 5 918
Intensity ratio: Location based gross Scope 1, 2 + 3 operational emissions per employee 3 | tC0 2 e/ Headcount | 3.09 | 0.84 | 2.82 | 1.71 | 1.09 | 1.69
Scope 2 market based 4 | tC0 2 e | — | — | — | — | — | —
Carbon offsets 5 | tC0 2 e | 7 303 | 43 | 7 346 | 4 917 | 30 | 4 947
Total annual net emissions (market based) | tC0 2 e | — | — | — | — | — | —

Boundary, methodology, and exclusions
An ‘operational control’6 approach has been used to define the Greenhouse Gas emissions boundary.
This approach captures emissions associated with the operation of Investec plc office buildings as outlined in the Basis of
Reporting coverage on our website, company travel in private vehicles, and travel on public transportation for instance. This report
covers all countries where Investec plc has operational control over their emissions. This information was collected and reported in
line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2019. The emissions have been
calculated using the latest conversion factors provided by the UK Government (2023). The reporting period is April 2023 to March
2024, as per the financial accounts. Investec plc’s Scope 1 emissions refer to natural gas, LPG, refrigerants, and vehicle fleet, its
Scope 2 emissions refer to electricity used in its premises, and its Scope 3 emissions refer to category 1: paper, category 5: waste,
category 6: business travel, and category 7: employees working from home.
Energy efficiency and carbon reduction initiatives
During the 2023/2024 period, Investec maintained and improved the integrated ISO 50001/14001 standards, which enables
optimisation of energy-related performance and ongoing efficiency improvements.
Disclaimer
1. The offshore area as defined in the Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon) Regulations 2018 includes Guernsey, Jersey,
and Isle of Man. However, our overseas sites in America, Europe, and Asia are not included in the offshore area. These sites are included in the global total, excluding
the UK and offshore.
2. Consumption data for refrigerants (scope 1) and scope 3 emissions is not available in kWh so the total energy usage has been calculated for mandatory emissions only
(scope 1 (excluding refrigerants) and scope 2).
3. For the purposes of this report, an employee is an individual who performs services for the Company for compensation and is under the Company’s control with
respect to the performance of those services. This includes full-time, part-time, and temporary employees, as well as independent contractors.
4. We have offset our Scope 2 emissions by purchasing 100% of our power from renewable sources through green tariffs and renewable energy certificates.
5. The remaining unavoidable emissions were offset through the purchase of VCS certified carbon credits. These carbon credits were sourced from Wonderbag and
AgriCarbon.
6. An operational control approach to GHG emissions boundary is defined as: “Your organisation has operational control over an operation if it, or one of its subsidiaries,
has the full authority to introduce and implement its operating policies at the operation”.

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63
Climate-related financial
disclosures report

| Refer to the Investec Group’s 2024 climate and nature-related financial disclosures report for our progress on the Task Force on Climate- related Financial Disclosures (TFCD) recommendations.

Nominations and Directors’
Affairs Committee
(Nomdac)
The Board of Investec plc has delegated
the duties of the Directors’ Affairs
Committee to the DLC Nomdac.

| Further details of the role, responsibilities, membership and activities of the DLC Nomdac are set out on pag es 97 to 100 of the Investec Group’s 2024 risk and governance report.

Remuneration Committee
The Board of Investec plc has delegated
the duties of the Remuneration
Committee to the DLC Remuneration
Committee.

| Further details of the role, responsibilities, membership and activities of the DLC Remuneration Committee are set out on page 14 of the Investec Group’s 2024 remuneration report.

Audit Committee
The Audit Committee comprising
independent Non-Executive Directors
meets regularly with senior management,
the external auditors, operational risk,
internal audit, compliance and the finance
division to consider the integrity of
financial reporting, nature and scope of
the internal and external audit reviews
and the effectiveness of our risk and
control systems, taking note of the key
deliberations of the subsidiary Audit
Committees as part of the process.

| Further details on the role and responsibility of the Audit Com mittee are set out on pages 46 to 57.

Independent auditor and
audit information
Each director, at the date of approval of
this report, confirms that, so far as the
director is aware, there is no relevant
audit information of which the Company’s
auditor is unaware and that each director
has taken all steps that he or she ought
to have taken as a director to make
himself or herself aware of any relevant
audit information and to establish that
the Company’s auditor is aware of that
information. This confirmation is given
pursuant to Section 418 of the UK
Companies Act and should be interpreted
in accordance with and subject to those
provisions.
The appointment of Deloitte LLP in a
shadow capacity, for the financial year
starting 1 April 2023, was recommended
and approved by ordinary shareholders
at the AGM held in August 2023. A formal
transition process commenced during
2023, whereby Deloitte LLP shadowed
the full 2024 audit cycle performed by
the incumbent external auditor. The
purpose of the shadow period was for
Deloitte LLP to obtain sufficient
information about the Group, the financial
control environment and the audit
process to ensure a smooth transition as
external auditor in the following financial
year i.e. ending 31 March 2025. Non-
audit services provided by Deloitte LLP
were reviewed and considered in
advance of their appointment as external
auditors to ens ure their continued
independence. The appointment of
Deloitte LLP for the 2024 financial year,
will be recommended for approval at the
AGM to be held in August 2024.
Major shareholders

| The largest shareholders of Investec plc are shown on page 187 of the Investec Group’s 2024 integrated and strategic annual report.

Special resolutions
At the AGM held on 3 August 2023,
special resolutions were passed in terms
of which:
• A renewable authority was granted to
Investec plc to acquire its own ordinary
shares in accordance with the terms of
Section 701 of the UK Companies Act
• A renewable authority was granted to
Investec plc to acquire its own
preference shares in accordance with
the terms of Section 701 of the
UK Companies Act.
AGM update statement
At the AGM on 3 August 2023,
resolution 34 (political donations), passed
with a less than 80% majority.
As stated in the notices to the AGMs,
Investec plc does not give any money
for political purposes in the UK nor does
it make any donations to UK political
organisations or incur UK political
expenditure. However, the definitions
of political donations and political
expenditure used in the UK Companies
Act are very wide. In line with UK market
practice, the authority is therefore
requested only as a precautionary
measure to ensure that Investec plc and
any company which is or becomes
a subsidiary of Investec plc does not
inadvertently breach the relevant
provisions of the UK Companies Act.
Diversity and inclusion
Our diversity and inclusion framework has
a sense of belonging for all our people,
irrespective of difference, as its goal. We
aim to make Investec a place where it is
easy to be yourself. It is a responsibility
we all share and is integral to our purpose
and values as an organisation. We
recognise that a diverse and inclusive
workforce is essential to our ability to be
an innovative organisation that can adapt
and prosper in a fast-changing world.
Investec’s approach is to recruit and
develop based on aptitude and attitude,
with the deliberate intention to build a
diverse workforce, which represents the
population of the relevant jurisdiction and
reflects its clients. Our recruitment
strategies actively seek difference,
engaging with minority groups, females
and people with disabilities. Investec is
committed to being an equal opportunity
employer. In accordance with our policies
and practices, and relevant International
Labour Organisation (ILO) conventions
and legislation, we do not tolerate any
form of discrimination based on gender,
gender reassignment, race, ethnicity,
religion, belief, age, disability, nationality,
political opinion, sensitive medical
conditions, pregnancy, maternity, civil
partnership and sexual orientation. People
with different abilities are an essential
part of a diverse talent pool and every
effort is made to facilitate an accessible
environment for all.

| Further information is provided in the Investec Group’s 2024 sustainability report.

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64
Research and development
In the ordinary course of business, the
Group develops new products and
services in each of its business divisions.
Political donations and
expenditure
The Group did not make any political
donations in the financial year ended
31 March 2024 (2023: Nil).
Subsidiary and associated
companies

| Details of principal subsidiary and associated companies are reflected on pages 157 to 159

Contingent liabilities, legal
matters and provisions
The Board considered contingent
liabilities legal matters and provisions
with a view to ensuring appropriate
accou nting treatment in the financial
statements. Refer to note 49 on page
146.
Events after the reporting
date

| Refer t o Note 57 of the Annual Financial statements.

Signed on behalf of the Board
of Investec plc
Philip Hourquebie
Group Chair
24 June 2024

Fani Titi
Group Chief Executive
24 June 2024

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Additional information for
shareholders
Set out below is a summary of certain
provisions of Investec plc’s current
Articles of Association (the Articles)
and applicable English law concerning
companies (the UK Companies Act).
This is a summary only and the relevant
provisions of the Articles or the UK
Companies Act should be consulted
if further information is required.
Share capital
The issued share capital of Investec plc
at 31 March 2024 consists of 696 082 618
ordinary shares of £0.0002 each,
2 754 587 non-redeemable, non-
cumulative, non-participating preference
shares of £0.01 each, 131 447 ZAR non-
redeemable, non-cumulative, non-
participating preference shares of R0.001
each, 295 278 453 special converting
shares of £0.0002 each, the special voting
share of £0.001, the UK DAN share of
£0.001 and the UK DAS share of £0.001
(each class as defined in the Articles).
Purchase of own shares
Subject to the provisions of the Articles,
the UK Companies Act, the UK
Uncertificated Securities Regulations
2001 and every other statute for the time
being in force concerning companies and
affecting Investec plc, the approval of
shareholders as provided in the Articles,
and without prejudice to any relevant
special rights attached to any class of
shares, Investec plc may purchase, or
may enter into a contract under which
it will or may purchase any of its own
shares of any class, including without
limitation any redeemable shares, in any
way and at any price (whether at par or
above or below par).
Dividends and distributions
Subject to the provisions of the UK
Companies Act, Investec plc may by
ordinary resolution from time to time
declare dividends not exceeding the
amount recommended by the Board. The
Board may pay interim dividends
whenever the financial position of
Investec plc, in the opinion of the Board,
justifies such payment.
The Board may withhold payment of all
or any part of any dividends or other
monies payable in respect of Investec
plc’s shares from a person with a 0.25%
or more interest in the nominal value of
the issued shares if such a person has
been served with a notice after failure
to provide Investec plc with information
concerning interests in those shares
required to be provided under the
UK Companies Act.
Voting rights
Subject to any special rights or
restrictions attaching to any class of
shares, at a general meeting, every
member present in person has, upon a
show of hands, one vote and, on a poll,
every member who is present in person
or by proxy has one vote for each share.
In the case of joint holders of a share, the
vote of the senior who tenders a vote,
whether in person or by proxy, shall be
accepted to the exclusion of the votes
of the other joint holders and for this
purpose seniority shall be determined by
the order in which the names stand in the
register of members in respect of the
share. Under the UK Companies Act,
members are entitled to appoint a proxy,
who need not be a member of Investec
plc, to exercise all or any of their rights
to attend and vote on their behalf at
a general meeting or class meeting.
A member may appoint more than one
proxy in relation to a general meeting
or class meeting, provided that each
proxy is appointed to exercise the rights
attached to a different share or shares
held by that member. A member that is
a corporation may appoint an individual
to act on its behalf at a general meeting
or class meeting as a corporate
representative. The person so authorised
shall be entitled to exercise the same
powers on behalf of such corporation as
the corporation could exercise if it were
an individual member of Investec plc.
Restrictions on voting
No member shall be entitled to vote
either in person or by proxy at any
general meeting or class meeting in
respect of any shares held by them if any
call or other sum then payable by them in
respect of that share remains unpaid. In
addition, no member shall be entitled to
vote if they have been served with a
notice after failure to provide Investec plc
with information concerning interests in
those shares required to be provided
under the UK Companies Act.
Deadlines for exercising
voting rights
Votes are exercisable at a general
meeting of Investec plc in respect of
which the business being voted upon
is being heard. Votes may be exercised
in person, by proxy, or in relation to
corporate members, by corporate
representatives. The Articles provide a
deadline for submission of proxy forms
of not less than 48 hours before the time
appointed for the holding of the meeting
or adjourned meeting.
Variation of rights
Subject to the UK Companies Act, the
Articles specify that rights attached to
any class of shares may be varied with
the written consent of the holders of not
less than three-fourths in nominal value
of the issued shares of that class, or with
the sanction of an extraordinary
resolution passed at a separate general
meeting of the holders of those shares.
The rights conferred upon the holders
of any shares shall not, unless otherwise
expressly provided in the rights attaching
to those shares, be deemed to be varied
by the creation or issue of further shares
ranking pari passu with t hem. Where,
under the Company’s share incentive
plan, participants receiving forfeitable
award type are the beneficial owners of
the shares, however not the registered
owners. The participants are entitled to
exercise their voting rights prior to the
shares being released to the participants.
Participants receiving conditional awards
do not receive any voting rights until the
release date.
Transfer of shares
All transfers of shares may be effected
by transfer in writing in any usual or
common form or in any other form
acceptable to the directors. The
instrument of transfer shall be signed by
or on behalf of the transferor and (except
in the case of fully paid shares) by or on
behalf of the transferee. Transfers of
shares which are in uncertificated form
are effected by means of the CREST
system.
The directors may, in the case of shares
in certificated form, in their absolute
discretion and without assigning any
reason, refuse to register any transfer of
shares (not being fully paid shares),
provided that such discretion may not be
exercised in such a way as to prevent
dealings in the shares of that class from
taking place on an open and proper basis.
The directors may also refuse to register
an allotment or transfer of shares
(whether fully paid or not) in favour of
more than four persons jointly. The
directors may decline to recognise any
instrument of transfer unless the
instrument of transfer is in respect of only
one class of share and, when submitted
for registration, is accompanied by the
relevant share certificates and such other
evidence as the directors may reasonably
require.

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SCHEDULE A TO THE DIRECTORS’ REPORT

66
Subject to the UK Companies Act and
regulations and applicable CREST rules,
the directors may determine that any
class of shares may be held in
uncertificated form and that title to such
shares may be transferred by means of
the CREST system or that shares of any
class should cease to be so held and
transferred.
All the Company’s employee share plans
include restrictions on transfer of shares
while the shares are subject to the plans.
Investec plc preference
shares
The following are the rights and
privileges which attach to the Investec
plc preference shares:
• On a return of capital, whether or not
on a winding up (but not on a
redemption or purchase of any shares
by Investec plc) or otherwise, the plc
preference shares will rank, pari passu
inter se and with the most senior
ranking preference shares of Investec
plc in issue (if any) from time to time
and with any other shares of Investec
plc that are expressed to rank pari
passu herewith as regards to
participation in the capital, and
otherwise in priority to any other class
of shares of Investec plc
• Investec plc may, at its option, redeem
all or any of the plc preference shares
for the time being issued and
outstanding on the first call date or any
dividend payment date thereafter
• Holders of plc preference shares will
not be entitled to attend and vote at
general meetings of Investec plc.
Holders will be entitled to attend and
vote at a class meeting of holders of
plc preference shares.
Non-redeemable, non-
cumulative, non-
participating preference
shares
The following are the rights and
privileges which attach to the perpetual
preference shares:
• Each perpetual preference share will
rank as regards to dividends and a
repayment of capital on the winding
up of Investec plc prior to the ordinary
shares, the plc special converting
shares, the UK DAN share, the UK DAS
share, but pari passu with the plc
preference shares. The perpetual
preference shares shall confer on the
holders, on a per perpetual preference
share and equal basis, the right to a
return of capital on the winding up of
Investec plc of an amount equal to the
aggregate of the nominal value and
premiums in respect of perpetual
preference shares issued, divided by
the number of perpetual preference
shares in issue
• Each perpetual preference share may
confer upon the holder thereof the
right to receive out of the profits of
Investec plc which it shall determine
to distribute, in priority to the ordinary
shares, the plc special converting
shares, the UK DAN share and the UK
DAS share, but pari passu with the plc
preference shares, the preference
dividend calculated in accordance with
the Articles
• The holders of the perpetual
preference shares shall be entitled to
receive notice of and be present but
not to vote, either in person or by
proxy, at any meeting of Investec plc,
by virtue of or in respect of the
perpetual preference shares, unless
either or both of the following
circumstances prevail at the date
of the meeting:
– The preference dividend or any part
thereof remains in arrears and
unpaid as determined in accordance
with the Articles after six months
from the due date thereof; and/or
– A resolution of Investec plc is
proposed which directly affects the
rights attached to the perpetual
preference shares or the interests
of the holders thereof, or a resolution
of Investec plc is proposed to wind
up or in relation to the winding up
of Investec plc or for the reduction
of its capital,
in which event the preference
shareholders shall be entitled to vote only
on such resolution.
Rand-denominated non-
redeemable, non-
cumulative, non-
participating perpetual
preference shares (the
ZAR perpetual preference
shares)
The ZAR perpetual preference shares are
subject to substantially similar terms and
conditions as the existing Pounds Sterling
non-redeemable, non-cumulative, non-
participating preference shares, as
outlined above, save that they are
denominated in South African Rands.
Shares required for the
DLC structure
Investec SSC (UK) Limited, a UK trust
company, specially formed for the
purpose of the DLC structure, holds the
plc special voting share, the plc special
converting shares, the UK DAN share and
the UK DAS share. These shares can only
be transferred to another UK trust
company, in limited circumstances.
The plc special voting shares are
specially created shares so that
shareholders of both Investec plc and
Investec Limited effectively vote together
as a single decision-making body on
matters affecting shareholders of both
companies in similar ways, as set out in
the Articles.
Prior to a change of control, approval of
termination of the sharing agreement
(which regulates the DLC), liquidation or
insolvency of Investec plc, the plc special
converting shares have no voting rights,
except in relation to a resolution
proposing the:
i. Variation of the rights attaching to the
shares or
ii. Winding up, and they have no rights
to dividends. The special converting
shares are held on trust for the
Investec Limited ordinary shareholders.
Investec plc and Investec Limited have
established dividend access trust
arrangements as part of the DLC.
Investec plc has issued two dividend
access shares, the UK DAS share and UK
DAN share which enables Investec plc
to pay dividends to the shareholders of
Investec Limited. This facility may be
used by the Board to address imbalances
in the distributable reserves of Investec
plc and Investec Limited and/or to
address the effects of South African
exchange controls and/or if they
otherwise consider it necessary
or desirable.

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SCHEDULE A TO THE DIRECTORS’ REPORT CONTINUED

67
Annual
financial
statements

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68
Our performance is a testament to
the continued execution of our
strategy. This section contains
Investec plc’s annual financial
statements.
IN THIS SECTION

70 | Directors’ responsibilities
72 | Independent auditor’s report to the members of Investec plc
74 | Consolidated income statement
75 | Consolidated statement of comprehensive income
76 | Consolidated balance sheet
77 | Consolidated cash flow statement
78 | Consolidated statement of changes in equity
80 | Accounting policies
92 | Notes to the financial statements
164 | Notes to risk management (including capital management)
206 | Parent company annual financial statements

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69
Directors’ responsibilities
The following statement, which should be
read in conjunction with the auditor’s
report set out on pages 72 to 74, is made
with a view to distinguishing for
shareholders the respective
responsibilities of the directors and of the
auditors in relation to the accounts.
The directors are responsible for
preparing the annual report and
the Group financial statements in
accordance with applicable UK law and
regulations.
The directors are required by the
UK Companies Act to prepare financial
statements for each financial year.
Under those laws the directors have
elected to prepare the Group financial
statements in accordance with UK
adopted international accounting
standards and with International Financial
Reporting Standards (IFRS Accounting
Standards) which comply with IFRS
Accounting Standards as issued by the
International Accounting Standards Board
(IASB). At 31 March 2024, UK adopted
IAS are identical in all material respects to
current IFRS applicable to the Group, with
differences only in the effective dates of
certain standards. The parent company
financial statements have been prepared
in accordance with Section 408 of the UK
Companies Act 2006. Under company
law the directors must not approve the
Group financial statements unless they
are satisfied that they give a true and fair
view of the state of affairs of the Group
and the Company and of the profit or
loss of the Group and the Company for
that period.
Under the Financial Conduct Authority’s
(FCA’s) Disclosure Guidance and
Transparency Rules (DTR), Group
financial statements are required to be
prepared in accordance with UK adopted
international accounting standards and
with IFRS as issued by the IASB.
In preparing the financial statements the
directors are required to:
• Select suitable accounting policies
in accordance with IAS 8 Accounting
Policies, Changes in Accounting
Estimates and Errors and then apply
them consistently
• Make judgements and accounting
estimates that are reasonable and
prudent
• Present information, including
accounting policies, in a manner that
provides relevant, reliable, comparable
and understandable information
• Provide additional disclosures when
compliance with the specific
requirements in IFRS or in respect
of the parent company financial
statements (FRS 101) is insufficient
to enable users to understand the
impact of particular transactions, other
events and conditions on the Group’s
financial position and financial
performance
• In respect of the Group financial
statements, state whether the
accounting standards have been
followed, subject to any material
departures disclosed and explained
in the financial statements
• In respect of the parent company
financial statements, state whether
applicable UK Accounting Standards,
including FRS 101, have been followed,
subject to any material departures
disclosed and explained in the financial
statements
• Prepare the financial statements on the
going concern basis unless it is
appropriate to presume that the
Company and/or the Group will not
continue in business.
The directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the
Company’s and Group’s transactions and
disclose with reasonable accuracy at any
time the financial position of the
Company and the Group, and enable
them to ensure that the Company and
the Group financial statements comply
with the UK Companies Act. They are
also responsible for safeguarding the
assets of the parent company and Group
and hence for taking reasonable steps for
the prevention and detection of fraud
and other irregularities.
U nder applicable law and regulations, the
directors are also responsible for
preparing a strategic report, directors’
report, directors’ remuneration report and
corporate governance statement that
comply with that law and those
regulations.
The directors are accountable for the
maintenance and integrity of the certain
corporate and financial information on
the Company’s website.
Investor Relations, Company Secretarial
and Group Sustainability are respectively
responsible for the maintenance and
integrity of the general corporate,
financial, governance, and sustainability-
related information as well as any
obligations to the various exchanges of
Investec Group and its principal
subsidiaries on the Investec website.
With regards to specific corporate
information, processes are in place within
the business units and at a Group level to
ensure that all information published on
the website is substantively correct,
accurate and in line with corporate
governance and compliance
requirements. Group Marketing and
various divisions are responsible for the
above.

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DIRECTORS’ RESPONSIBILITIES

70
Directors’ responsibility
statement
The directors, whose names and
functions are set out on pages 146 to 149
of Investec Group’s 2024 integrated and
strategic annual report, confirm to the
best of their knowledge:
• That the consolidated financial
statements, prepared in accordance
with UK adopted international
accounting standards and with IFRS as
issued by the IASB, give a true and fair
view of the assets, liabilities, financial
position and profit or loss of the
Company, Group and the undertakings
included in the consolidation taken as
a whole
• That the annual report, including the
strategic report (as contained in the
Investec Group’s 2024 integrated and
strategic report), includes a fair review
of the development and performance
of the business and the position of the
Company, Group and undertakings
included in the consolidation taken as
a whole, together with a description
of the principal risks and uncertainties
that they face
• That they consider that the annual
report, taken as a whole, is fair,
balanced and understandable and
provides the information necessary for
shareholders to assess the Company’s
position, performance, business model
and strategy.
Financial results
The financial results of Investec plc
are set out in the annual financial
statements and accompanying notes
for the year ended 31 March 2024.
The preparation of these results was
supervised by the Investec Group
Finance Director, Nishlan Samujh.
Approval of annual
financial statements
The directors’ report and the annual
financial statements of the Group, and
the Company, which appear on pages
58 to 65 and pages 74 to 218, were
approved by the Board of directors on
24 June 2024.
Signed on behalf of the Board
Philip Hourquebie
Group Chair
24 June 2024
Fani Titi
Group Chief Executive
24 June 2024

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
DIRECTORS’ RESPONSIBILITIES CONTINUED

71
Opinion
We have audited the special purpose financial statements of
Investec Plc (the Parent Company) and its subsdiaries (the Group)
for the year ended 31 March 2024, which comprise the consolidated
balance sheet, consolidated income statement, consolidated
statement of total comprehensive income, consolidated statement
of changes in equity, consolidated cash flow statement and the
related notes 1 to 58 and 59, 60 and 64 excluding information
marked as ‘‘unaudited’’ and the Parent Company balance
sheet,statement of changes in shareholders’ equity an related notes
a to k. The financial reporting framework that has been applied in
their preparation is a special purpose framework comprising the
accounting policies set out on pages 80 to 91.
These annual financial statements have been prepared to
present the financial position and results of Investec plc and its
subsidiaries as if the contractual arrangements which create the
Dual Listed Company (DLC) structure did not exist and, with this
exception and the exclusion of certain other remuneration and
related party disclosures, are prepared in accordance with UK
adopted international accounting standards. For an
understanding of the financial position, results and cash flows
of the Investec DLC Group, the user is referred to the Investec
annual report 2024 – Investec annual financial statements.
Investec DLC Group consists of two separate legal entities,
being Investec plc and Investec Limited, that operate under a
DLC structure. The effect of the DLC structure is that Investec
plc and its subsidiaries and Investec Limited and its subsidiaries
operate together as a single economic entity, with neither
assuming a dominant role, and accordingly are reported as a
single reporting entity under International Financial Reporting
Standards (IFRS). These Group annual financial statements are
prepared in accordance with UK adopted international
accounting standards and IFRS as issued by the International
Accounting Standards Board (IASB).
As explained in the accounting policies set out on pages 80 to
91, these special purpose financial statements have been
prepared to present the financial position, results and cash
flows of Investec plc and its subsidiaries. For the avoidance of
doubt, they exclude Investec Limited and its subsidiaries.
In our opinion,
• the accompanying financial statements of the Group for the
year ended 31 March 2024 are prepared, in all material
respects, in accordance with the accounting policies set out
on pages 80 to 91, and
• The Parent Company financial statements have been properly
prepared in accordance with the United Kingdom Generally
Accepted Accounting Practice and the requirements of the
Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) including ‘ISA (UK) 800
(Revised) Special Considerations – Audits of Financial Statements
Prepared in Accordance with Special Purpose Frameworks’. Our
responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Group and Parent
Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including
the Financial Reporting Council (FRC) Ethical Standard, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation
of the directors’ assessment of the Group’s ability to continue to adopt
the going concern basis of accounting has included:
• understanding management’s going concern assessment
process, including obtaining an understanding of the business
planning process, assessing the Board approved budgets and
the reasonableness and completeness of assumptions
applied. In assessing these assumptions, we considered the
impact of the current macro-economic environment in which
the Group operates on future operating performance and the
principal risks affecting the Group;
• involving specialists to assess the results of management’s
stress testing, including consideration of principal and
emerging risks on funding, liquidity and regulatory capital. We
performed independent reverse stress testing by evaluating
the plausibility of the outcome under which regulatory
minimum requirements would be breached. In addition, we
evaluated the viability of management actions available to
mitigate erosion of capital and liquidity;
• assessed the Group’s compliance with external debt covenants;
• inspecting correspondence with the Prudential Regulatory
Authority (PRA) and Financial Conduct Authority (FCA) for
matters that may impact the going concern assessment; and
• evaluating the appropriateness and conformity of the going
concern disclosure included in the annual report with the
reporting standards and management’s going concern
assessment.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Group and Parent Company’s ability to continue as a going
concern for a 12-month period from the date the financial
statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report. However, because not all future events or
conditions can be predicted, this statement is not a guarantee
as to the Group’s ability to continue as a going concern.
Emphasis of Matter – Basis of Accounting
and Restriction on Distribution and Use
We draw attention to the accounting policies set out on pages
80 to 91 of the financial statements, which describe the basis of
accounting. The financial statements are prepared to assist the
Board of Investec plc in complying with the financial reporting
provisions of the contractual agreements referred to above. As
a result, the financial statements may not be suitable for
another purpose. Our report is intended solely for the members
of Investec plc in accordance with our engagement letter dated
17 June 2024. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Parent
Company and the Parent Company's directors as a body, for
our audit work, for this report, or for the opinions we have
formed. Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the
annual report in sections 1 (pages 2 to 25), section 2 (pages 26
to 67), and pages marked as unaudited in section 3 (pages 69
to 217), ot her than the financial statements and our auditor’s

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INVESTEC PLC

72
report thereon. The directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to
determine whether there is a material misstatement in the
financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of
the other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of directors
Management is responsible for the preparation of the special
purpose financial statements in accordance with the financial
reporting provisions under the contractual arrangements
implementing the DLC structure, and for such internal control as
management determines is necessary to enable the preparation
of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is
responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters relating to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so..
Those charged with governance are responsible for overseeing
the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of
the Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
Explanation as to what extent the audit was
considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with
governance of the entity and management.
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Group and determined
that the most significant are those that relate to the reporting
framework (UK-adopted international accounting standards
and IFRS as issued by the IASB), the Companies Act 2006 and
the UK Corporate Governance Code, the FCA Listing Rules,
regulations and supervisory requirements of the PRA, FRC and
FCA regulatory requirements, and the relevant tax compliance
regulations in the jurisdictions in which the Group operates.
• We understood how the Group and the Parent Company are
complying with these legal and regulatory frameworks by
making enquiries of management, internal audit, and those
responsible for legal and compliance matters. We also
reviewed correspondence between the Group and the Parent
Company and regulatory bodies; reviewed minutes of the
Board, Audit Committee and Risk and Capital Committee; and
gained an understanding of the Group’s and the Parent
Company’s approach to governance.
• We assessed the susceptibility of the Groups financial
statements to material misstatement, including how fraud
might occur by considering the controls that the Group and
Parent Company have established to address risk identified
by the Group and the Parent Company, or that otherwise
seek to prevent, deter, or detect fraud. We also considered
performance incentives and their potential to influence
management to manage earnings.
• Based on this understanding, we designed our audit
procedures to identify non-compliance with such laws and
regulations. Our procedures involved making enquiries of
those charged with governance and senior management of
their awareness of any non-compliance with laws or
regulations, inquiring about the policies that have been
established to prevent non-compliance with laws and
regulations by officers and employees and inspecting key
correspondence with the PRA and FCA.
• Our procedures also involved testing journal entries using a
risk based approach analysing the general ledger data, with
the focus on nonstandard journals.
• The Group and the Parent Company operate in the banking
industry which is a highly regulated environment. As such the
Senior Statutory Auditor considered the experience and
expertise of the engagement team to ensure that the team
had the appropriate competence and capabilities, which
included the use of specialists where appropriate.
A further description of our responsibilities for the audit of
the financial statements is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/
auditorsresponsibilities. This description forms part of
our auditor’s report.
Other matter
Investec plc has prepared a separate set of combined
consolidated statutory financial statements for the year ended
31 March 2024 in accordance with UK adopted international
accounting standards and IFRS as issued by the IASB, on which
we issued a separate auditor’s report to the shareholders
of Investec plc dated 24 June 2024.
Manprit Dosanjh
(Senior statutory auditor)
for and on behalf of
Ernst & Young LLP
London
24 June 2024

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73

For the year to 31 March |  |  |  |  |  |
£’000 | Notes |  | 2024 |  | 2023^ |
Interest income | 2 |  | 1 914 473 |  | 1 215 245 |
Interest income calculated using effective interest rate method |  |  | 1 821 079 |  | 1 128 777 |
Other interest income |  |  | 93 394 |  | 86 468 |
Interest expense | 2 |  | (1 103 546) |  | (501 025) |
Net interest income |  |  | 810 927 |  | 714 220 |
Fee and commission income | 3 |  | 173 213 |  | 131 795 |
Fee and commission expense | 3 |  | (16 451) |  | (15 442) |
Investment income | 4 |  | 14 322 |  | 18 223 |
Share of post-taxation profit of associates and joint venture holdings | 28 |  | 55 793 |  | 4 950 |
Trading income/(loss) arising from |  |  |  |  |  |
– customer flow* |  |  | 103 158 |  | 87 366 |
– balance sheet management and other trading activities |  |  | 27 099 |  | 13 134 |
Other operating income | 5 |  | 2 150 |  | 6 879 |
Operating income |  |  | 1 170 211 |  | 961 125 |
Expected credit loss impairment charges | 6 |  | (85 995) |  | (66 752) |
Operating income after expected credit loss impairment charges |  |  | 1 084 216 |  | 894 373 |
Operating costs | 7 |  | (656 599) |  | (598 966) |
Operating profit before goodwill, acquired intangibles and strategic actions |  |  | 427 617 |  | 295 407 |
Impairment of goodwill | 32 |  | — |  | (805) |
Amortisation of acquired intangibles | 33 |  | (940) |  | — |
Amortisation of acquired intangibles of associate | 28 |  | (5 679) |  | — |
Closure and rundown of the Hong Kong direct investments business |  |  | (784) |  | (480) |
Operating profit |  |  | 420 214 |  | 294 122 |
Financial impact of strategic actions |  |  | (16 576) |  | (402) |
Profit before taxation |  |  | 403 638 |  | 293 720 |
Taxation on operating profit before goodwill and strategic actions | 10 |  | (86 502) |  | (59 623) |
Taxation on goodwill, acquired intangibles and strategic actions | 10 |  | 727 |  | — |
Profit after taxation from continuing operations |  |  | 317 863 |  | 234 097 |
Profit after taxation from discontinued operations | 34 |  | 389 551 |  | 59 034 |
Profit after taxation |  |  | 707 414 |  | 293 131 |
Profit attributable to non-controlling interests |  |  | (1 204) |  | — |
Earnings attributable to shareholders |  |  | 706 210 |  | 293 131 |

^Restated to reflect continuing operations and reversal of interest rate swaps gross-up as detailed in note 58.
*Included within Trading income/(loss) arising from customer flow, as required by IAS 1, is income of £105.1 million (31 March 2023: £90.6 million) and a net funding
cost of £1.9 million (31 March 2023: £3.2 million).

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED INCOME STATEMENT

74

For the year to 31 March |  |  |  |  |  |
£’000 | Notes |  | 2024 |  | 2023^ |
Profit after taxation from continuing operations |  |  | 317 863 |  | 234 097 |
Other comprehensive income/(loss) from continuing operations: |  |  |  |  |  |
Items that may be reclassified to the income statement: |  |  |  |  |  |
Fair value movements on cash flow hedges taken directly to other comprehensive income* |  |  | (9 971) |  | 27 635 |
Gains on realisation of debt instruments at FVOCI recycled through the income statement* |  |  | (981) |  | (314) |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income* |  |  | 6 243 |  | 218 |
Foreign currency adjustments on translating foreign operations |  |  | (3 652) |  | 5 738 |
Effect rate change on deferred taxation relating to adjustment for IFRS 9 |  |  | — |  | (7) |
Items that will not be reclassified to the income statement: |  |  |  |  | — |
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income |  |  | (13 396) |  | (76 400) |
Share of other comprehensive income of associates and joint venture holdings |  |  | 257 |  | — |
Total comprehensive income from continuing operations |  |  | 296 363 |  | 190 967 |
Total comprehensive (loss)/income attributable to non-controlling interests from continuing operations |  |  | 1 183 |  | — |
Total comprehensive income attributable to ordinary shareholders from continuing operations |  |  | 274 538 |  | 174 087 |
Total comprehensive income attributable to perpetual preferred securities and Other Additional Tier 1 securities |  |  | 20 642 |  | 16 880 |
Total comprehensive income from continuing operations |  |  | 296 363 |  | 190 967 |
Profit after taxation from discontinued operations |  |  | 389 551 |  | 59 034 |
Other comprehensive income/(loss) from discontinued operations: |  |  |  |  |  |
Items that will not be reclassified to the income statement: |  |  |  |  |  |
Movement in post-retirement benefit liabilities |  |  | — |  | 75 |
Total comprehensive income from discontinued operations |  |  | 389 551 |  | 59 109 |
Total comprehensive income attributable to non-controlling interests from discontinued operations |  |  | — |  | — |
Total comprehensive income attributable to ordinary shareholders from discontinued operations |  |  | 389 551 |  | 59 109 |
Total comprehensive income from discontinued operations |  |  | 389 551 |  | 59 109 |
Profit after taxation |  |  | 707 414 |  | 293 131 |
Other comprehensive income/(loss): |  |  |  |  |  |
Items that may be reclassified to the income statement: |  |  |  |  |  |
Fair value movements on cash flow hedges taken directly to other comprehensive income* |  |  | (9 971) |  | 27 635 |
Gains on realisation of debt instruments at FVOCI recycled through the income statement* | 10 |  | (981) |  | (314) |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income* | 10 |  | 6 243 |  | 218 |
Foreign currency adjustments on translating foreign operations |  |  | (3 652) |  | 5 738 |
Effect of rate change on deferred taxation relating to adjustment for IFRS 9 | 10 |  | — |  | (7) |
Items that will not be reclassified to the income statement: |  |  |  |  |  |
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income | 10 |  | (13 396) |  | (76 400) |
Share of other comprehensive income of associates and joint venture holdings |  |  | 257 |  | — |
Movement in post-retirement benefit liabilities |  |  | — |  | 75 |
Total comprehensive income |  |  | 685 914 |  | 250 076 |
Total comprehensive loss attributable to non-controlling interests |  |  | 1 183 |  | — |
Total comprehensive income attributable to ordinary shareholders |  |  | 664 089 |  | 233 196 |
Total comprehensive income attributable to perpetual preference securities and Other Additional Tier 1 securities |  |  | 20 642 |  | 16 880 |
Total comprehensive income |  |  | 685 914 |  | 250 076 |

*Net of £8.8 million tax charge ( 31 March 2023: £0.2 million tax credit), except for the impact of rate changes on deferred tax ation relating to adjustment for IFRS 9 as
shown separately above.
^Restated to reflect continuing operations as detailed in note 58.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

75

At 31 March |  |  |  |  |  |
£’000 | Notes |  | 2024 |  | 2023 |
Assets |  |  |  |  |  |
Cash and balances at central banks | 17 |  | 5 661 623 |  | 5 400 401 |
Loans and advances to banks | 18 |  | 676 464 |  | 893 297 |
Reverse repurchase agreements and cash collateral on securities borrowed | 19 |  | 1 140 115 |  | 1 338 699 |
Sovereign debt securities | 20 |  | 1 928 134 |  | 1 221 744 |
Bank debt securities | 21 |  | 297 255 |  | 204 691 |
Other debt securities | 22 |  | 708 285 |  | 697 275 |
Derivative financial instruments | 23 |  | 437 255 |  | 634 123 |
Securities arising from trading activities | 24 |  | 157 332 |  | 127 537 |
Loans and advances to customers | 26 |  | 16 570 313 |  | 15 567 809 |
Other loans and advances | 26 |  | 117 514 |  | 142 626 |
Other securitised assets | 27 |  | 66 702 |  | 78 231 |
Investment portfolio | 25 |  | 405 410 |  | 489 204 |
Interests in associated undertakings and joint venture holdings | 28 |  | 857 247 |  | 52 320 |
Current taxation assets |  |  | 31 200 |  | 34 324 |
Deferred taxation assets | 29 |  | 119 730 |  | 112 347 |
Other assets | 30 |  | 740 121 |  | 965 449 |
Property and equipment | 31 |  | 72 947 |  | 121 014 |
Goodwill | 32 |  | 68 669 |  | 255 267 |
Software | 33 |  | 4 571 |  | 9 415 |
Other acquired intangible assets | 33 |  | — |  | 40 550 |
|  |  | 30 060 887 |  | 28 386 323 |
Liabilities |  |  |  |  |  |
Deposits by banks |  |  | 2 174 305 |  | 2 172 171 |
Derivative financial instruments | 23 |  | 472 662 |  | 704 816 |
Other trading liabilities | 35 |  | 18 449 |  | 28 184 |
Repurchase agreements and cash collateral on securities lent | 19 |  | 85 091 |  | 139 529 |
Customer accounts (deposits) | 36 |  | 20 790 611 |  | 19 121 921 |
Debt securities in issue | 37 |  | 1 273 106 |  | 1 449 545 |
Liabilities arising on securitisation of other assets | 27 |  | 71 751 |  | 81 609 |
Current taxation liabilities |  |  | 8 672 |  | 5 370 |
Other liabilities | 38 |  | 1 025 813 |  | 1 232 729 |
|  |  | 25 920 460 |  | 24 935 874 |
Subordinated liabilities | 39 |  | 668 810 |  | 731 483 |
|  |  | 26 589 270 |  | 25 667 357 |
Equity |  |  |  |  |  |
Ordinary share capital | 40 |  | 202 |  | 202 |
Ordinary share premium | 42 |  | 555 812 |  | 555 812 |
Treasury shares | 43 |  | (192 783) |  | (181 797) |
Other reserves |  |  | (311 415) |  | (109 679) |
Retained income |  |  | 2 934 048 |  | 2 178 683 |
Ordinary shareholders’ equity |  |  | 2 985 864 |  | 2 443 221 |
Perpetual preference share capital and premium | 41 |  | 24 794 |  | 24 794 |
Shareholders’ equity excluding non-controlling interests |  |  | 3 010 658 |  | 2 468 015 |
Other Additional Tier 1 securities in issue | 44 |  | 458 108 |  | 250 000 |
Non-controlling interests in partially held subsidiaries | 45 |  | 2 851 |  | 951 |
Total equity |  |  | 3 471 617 |  | 2 718 966 |
Total liabilities and equity |  |  | 30 060 887 |  | 28 386 323 |

Fani Titi
Group Chief Executive
24 June 2024

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED BALANCE SHEET

76

For the year to 31 March £’000 | Notes |  | 2024 |  | 2023 |
Profit before taxation adjusted for non-cash items | 47 |  | 533 915 |  | 511 667 |
Taxation paid |  |  | (93 266) |  | (75 068) |
Increase in operating assets | 47 |  | (1 485 569) |  | (1 229 997) |
Increase in operating liabilities | 47 |  | 1 364 461 |  | 425 009 |
Net cash inflow/(outflow) from operating activities |  |  | 319 541 |  | (368 389) |
Cash flow on acquisition of Group operations, net of cash acquired |  |  | (28 559) |  | (9 720) |
Cash flow on disposal of Group operations and subsidiaries |  |  | — |  | 12 |
Derecognition of cash on deconsolidation and disposal of subsidiaries* |  |  | (172 615) |  | — |
Cash flow on net disposal of non-controlling interests |  |  | — |  | 118 |
Cash flow on net disposal/(acquisition) of associates and joint venture holdings |  |  | — |  | 565 |
Cash flow on acquisition of property, equipment, software and other intangible assets |  |  | (3 848) |  | (11 712) |
Cash flow on disposal of property, equipment, software and other intangible assets |  |  | 157 |  | 23 975 |
Net cash (outflow)/inflow from investing activities |  |  | (204 865) |  | 3 238 |
Dividends paid to ordinary shareholders |  |  | (94 405) |  | (88 463) |
Dividends paid to other equity holders |  |  | (18 230) |  | (17 420) |
Proceeds on issue of Other Additional Tier 1 instruments |  |  | 350 000 |  | — |
Redemption of Other Additional Tier 1 instruments |  |  | (140 472) |  | — |
Cash flow on acquisition of treasury shares, net of related costs |  |  | (54 008) |  | (36 832) |
Proceeds from issue of subordinated debt |  |  | — |  | 345 590 |
Redemption of subordinated debt |  |  | (70 000) |  | (347 926) |
Lease liabilities paid |  |  | (42 444) |  | (44 089) |
Net cash outflow from financing activities |  |  | (69 559) |  | (189 140) |
Effects of exchange rates on cash and cash equivalents |  |  | (498) |  | 773 |
Net increase/(decrease) in cash and cash equivalents |  |  | 44 619 |  | (553 518) |
Cash and cash equivalents at the beginning of the year |  |  | 6 288 252 |  | 6 841 770 |
Cash and cash equivalents at the end of the year |  |  | 6 332 871 |  | 6 288 252 |
Cash and cash equivalents is defined as including: |  |  |  |  |  |
Cash and balances at central banks |  |  | 5 661 623 |  | 5 400 401 |
On demand loans and advances to banks |  |  | 671 248 |  | 887 851 |
Cash and cash equivalents at the end of the year |  |  | 6 332 871 |  | 6 288 252 |

*Includes cash and cash equivalents derecognised from Investec Wealth & Investment Limited balance sheet as a result of the all-share combination with Rathbones
Group PLC. There are no other cash flow impacts as a result of this transaction.
Cash and cash equivalents have a maturity profile of less than three months. Loans and advances to banks with a maturity profile
of greater than three months are £5.2 million ( 31 March 2023 : £5.4 million).
In the prior year, the Group was required to maintain reserve deposits with central banks and other regulatory authorities and these
amounted to £50.5 million. For the current year, this was replaced by a Bank of England Levy effective from 1 March 2024.
Included within net cash inflow/(outflow) from operating activities is Interest received of £1 848 million (2023: £1 184 million),
interest paid of £928 million (2023: £437 million) and dividends received of £13.2 million (2023: £19.8 million).
Cash flow from discontinued operations
Cash inflows from operating activities of £13.0 million (31 March 2023: cash inflows of £92.8 million), cash outflows from investing
activities of £0.6 million (31 March 2023: cash outflows of £15.3 million) and cash outflows from financing activities of £56.4 million
(31 March 2023: cash outflows of £40.4 million) were incurred in the year relating to discontinued operations. Cash flows from
discontinued operations have been included in the consolidated statement of cash flow above.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED CASH FLOW STATEMENT

77

£’000 | Ordinary share capital | Ordinary share premium | Treasury shares |
At 1 April 2022 | 202 | 806 812 | (161 522) |
Movement in reserves 1 April 2022 – 31 March 2023 |  |  |  |
Profit after taxation | — | — | — |
Effect of rate change on deferred taxation relating to adjustment for IFRS 9 | — | — | — |
Gains on realisation of debt instruments at FVOCI recycled through the income statement | — | — | — |
Fair value movements on cash flow hedges taken directly to other comprehensive income | — | — | — |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income | — | — | — |
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income | — | — | — |
Fair value movements on equity instruments transferred to retained earnings | — | — | — |
Foreign currency adjustments on translating foreign operations | — | — | — |
Movement in post-retirement benefit liabilities | — | — | — |
Total comprehensive income for the year | — | — | — |
Share-based payments adjustments | — | — | — |
Employee benefit liability recognised | — | — | — |
Dividends paid to ordinary shareholders | — | — | — |
Dividends declared to perpetual preference shareholders | — | — | — |
Dividends paid to perpetual preference shareholders | — | — | — |
Dividends declared to Other Additional Tier 1 security holders | — | — | — |
Dividends paid to Other Additional Tier 1 security holders | — | — | — |
Transfer from share premium to retained income | — | (251 000) | — |
Distribution to shareholders | — | — | — |
Net equity impact of non-controlling interest movements | — | — | — |
Movement of treasury shares | — | — | (20 275) |
At 31 March 2023 | 202 | 555 812 | (181 797) |
Movement in reserves 1 April 2023 – 31 March 2024 |  |  |  |
Profit after taxation | — | — | — |
Gains on realisation of debt instruments at FVOCI recycled through the income statement | — | — | — |
Fair value movements on cash flow hedges taken directly to other comprehensive income | — | — | — |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income | — | — | — |
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income | — | — | — |
Foreign currency adjustments on translating foreign operations | — | — | — |
Share of other comprehensive income of associates and joint venture holdings | — | — | — |
Total comprehensive income for the year | — | — | — |
Share-based payments adjustments | — | — | — |
Transaction with equity holders | — | — | — |
Issue of Other Additional Tier 1 security instruments | — | — | — |
Redemption of Other Additional Tier 1 security instruments | — | — | — |
Dividends paid to ordinary shareholders | — | — | — |
Dividends declared to perpetual preference shareholders | — | — | — |
Dividends paid to perpetual preference shareholders | — | — | — |
Dividends declared to Other Additional Tier 1 security holders | — | — | — |
Dividends paid to Other Additional Tier 1 security holders | — | — | — |
Gain on Other Additional Tier 1 security instruments callback | — | — | — |
Net equity impact of non-controlling interest movements | — | — | — |
Movement of treasury shares | — | — | (10 986) |
Release of capital reserve to retained income | — | — | — |
At 31 March 2024 | 202 | 555 812 | (192 783) |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

78

Other reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Capital reserve account | Fair value reserve | Cash flow hedge reserve | Foreign currency reserves | Retained income |  | Ordinary shareholders' equity |  | Perpetual preference share capital and premium |  | Shareholders' equity excluding non-controlling interests |  | Other Additional Tier 1 securities in issue | Non- controlling interests |  | Total equity |
(191 018) | 160 075 | — | 7 029 | 1 782 961 |  | 2 404 539 |  | 24 794 |  | 2 429 333 |  | 250 000 | 833 |  | 2 680 166 |
— | — | — | — | 293 131 |  | 293 131 |  | — |  | 293 131 |  | — | — |  | 293 131 |
— | (7) | — | — | — |  | (7) |  | — |  | (7) |  | — | — |  | (7) |
— | (314) | — | — | — |  | (314) |  | — |  | (314) |  | — | — |  | (314) |
— | — | 27 635 | — | — |  | 27 635 |  | — |  | 27 635 |  | — | — |  | 27 635 |
— | 218 | — | — | — |  | 218 |  | — |  | 218 |  | — | — |  | 218 |
— | (76 400) | — | — | — |  | (76 400) |  | — |  | (76 400) |  | — | — |  | (76 400) |
— | (48 318) | — | — | 48 318 |  | — |  | — |  | — |  | — | — |  | — |
— | — | — | 5 738 | — |  | 5 738 |  | — |  | 5 738 |  | — | — |  | 5 738 |
— | — | — | — | 75 |  | 75 |  | — |  | 75 |  | — | — |  | 75 |
— | (124 821) | 27 635 | 5 738 | 341 524 |  | 250 076 |  | — |  | 250 076 |  | — | — |  | 250 076 |
— | — | — | — | 5 095 |  | 5 095 |  | — |  | 5 095 |  | — | — |  | 5 095 |
— | — | — | — | (4 540) |  | (4 540) |  | — |  | (4 540) |  | — | — |  | (4 540) |
— | — | — | — | (88 463) |  | (88 463) |  | — |  | (88 463) |  | — | — |  | (88 463) |
— | — | — | — | (540) |  | (540) |  | 540 |  | — |  | — | — |  | — |
— | — | — | — | — |  | — |  | (540) |  | (540) |  | — | — |  | (540) |
— | — | — | — | (16 880) |  | (16 880) |  | — |  | (16 880) |  | 16 880 | — |  | — |
— | — | — | — | — |  | — |  | — |  | — |  | (16 880) | — |  | (16 880) |
— | — | — | — | 251 000 |  | — |  | — |  | — |  | — | — |  | — |
— | — | — | — | (91 474) |  | (91 474) |  | — |  | (91 474) |  | — | — |  | (91 474) |
— | — | — | — | — |  | — |  | — |  | — |  | — | 118 |  | 118 |
5 683 | — | — | — | — |  | (14 592) |  | — |  | (14 592) |  | — | — |  | (14 592) |
(185 335) | 35 254 | 27 635 | 12 767 | 2 178 683 |  | 2 443 221 |  | 24 794 |  | 2 468 015 |  | 250 000 | 951 |  | 2 718 966 |
— | — | — | — | 706 210 |  | 706 210 |  | — |  | 706 210 |  | — | 1 204 |  | 707 414 |
— | (981) | — | — | — |  | (981) |  | — |  | (981) |  | — | — |  | (981) |
— | — | (9 971) | — | — |  | (9 971) |  | — |  | (9 971) |  | — | — |  | (9 971) |
— | 6 243 | — | — | — |  | 6 243 |  | — |  | 6 243 |  | — | — |  | 6 243 |
— | (13 396) | — | — | — |  | (13 396) |  | — |  | (13 396) |  | — | — |  | (13 396) |
— | — | — | (3 631) | — |  | (3 631) |  | — |  | (3 631) |  | — | (21) |  | (3 652) |
— | — | — | — | 257 |  | 257 |  | — |  | 257 |  | — | — |  | 257 |
— | (8 134) | (9 971) | (3 631) | 706 467 |  | 684 731 |  | — |  | 684 731 |  | — | 1 183 |  | 685 914 |
— | — | — | — | (13 736) |  | (13 736) |  | — |  | (13 736) |  | — | — |  | (13 736) |
— | — | — | — | (2 971) |  | (2 971) |  | — |  | (2 971) |  | — | — |  | (2 971) |
— | — | — | — | — |  | — |  | — |  | — |  | 350 000 | — |  | 350 000 |
— | — | — | — | — |  | — |  | — |  | — |  | (141 892) | — |  | (141 892) |
— | — | — | — | (94 405) |  | (94 405) |  | — |  | (94 405) |  | — | — |  | (94 405) |
— | — | — | — | (1 455) |  | (1 455) |  | 1 455 |  | — |  | — | — |  | — |
— | — | — | — | — |  | — |  | (1 455) |  | (1 455) |  | — | — |  | (1 455) |
— | — | — | — | (20 642) |  | (20 642) |  | — |  | (20 642) |  | 20 642 | — |  | — |
— | — | — | — | — |  | — |  | — |  | — |  | (20 642) | — |  | (20 642) |
— | — | — | — | 1 420 |  | 1 420 |  | — |  | 1 420 |  | — | — |  | 1 420 |
— | — | — | — | — |  | — |  | — |  | — |  | — | 717 |  | 717 |
687 | — | — | — | — |  | (10 299) |  | — |  | (10 299) |  | — | — |  | (10 299) |
(180 687) | — | — | — | 180 687 |  | — |  | — |  | — |  | — | — |  | — |
(365 335) | 27 120 | 17 664 | 9 136 | 2 934 048 |  | 2 985 864 |  | 24 794 |  | 3 010 658 |  | 458 108 | 2 851 |  | 3 471 617 |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONTINUED

79
Basis of presentation
These annual financial statements have been prepared to
present the financial position and results of Investec plc and its
subsidiaries as if the contractual arrangements which create the
dual listed company (DLC) structure did not exist and, with the
exception of certain other remuneration and related party
disclosures, which are prepared in accordance with UK adopted
international accounting standards. For an understanding of the
financial position, results and cash flows of the Investec DLC
Group, the user is referred to Investec’s integrated annual report.
Investec DLC Group consists of two separate legal entities,
being Investec plc and Investec Limited, that operate under
a DLC structure. The effect of the DLC structure is that Investec
plc and its subsidiaries and Investec Limited and its subsidiaries
operate together as a single economic entity, with neither
assuming a dominant role, and accordingly are reported as a
single reporting entity under International Financial Reporting
Standards (IFRS).
These Group annual financial statements have been prepared
in accordance with UK adopted international accounting
standards and with IFRS as issued by the International
Accounting Standards Board (IASB).
The Group annual financial statements have been prepared on
historical cost basis, except for debt instruments at FVOCI,
derivative financial instruments, financial assets and financial
liabilities held at fair value through profit or loss or subject
to hedge accounting.
As stated on page 60, the directors consider that it is
appropriate to continue to adopt the going concern basis
in preparing the financial statements.
The accounting policies adopted by the Group are consistent
with the prior year.
The Group has adopted International Tax Reform - Pillar Two
Model Rules (Amendments to lAS 12) upon their release on 23
May 2023. The amendments provide a temporary mandatory
exception from deferred tax accounting for the top-up tax,
which is effective immediately, and require new disclosures
about the Pillar Two exposure. The mandatory exception
applies retrospectively.
IFRS 17 – Insurance contracts
IFRS 17 was effective for accounting periods beginning on or
after 1 January 2023 but the impact to the Group is not material.
Presentation of information
Disclosure under IFRS 7 Financial Instruments: Disclosures
and IAS 1 Presentation of Financial Statements: relating
to the nature and extent of risks have been included in the
notes to risk and capital management on pages 164 to 205.
Certain disclosures required under IAS 24 Related Party
Disclosures have been included in the section marked as
audited in the remuneration report which forms part of the
Investec Group's integrated annual report.
Basis of consolidation
As discussed above, these annual financial statements have
been prepared to present the financial position and results
of Investec plc and its subsidiaries as if the contractual
arrangements which create the DLC structure did not exist.
All subsidiaries or structured entities are consolidated when the
Group controls an investee. The Group controls an investee if it
is exposed to, or has rights to variable returns from its
involvement with the investee and has the ability to affect those
returns through its power over the investee. The financial
results of subsidiaries are included in the consolidated annual
financial statements of the Group from the date on which
control is obtained until the date the Group can no longer
demonstrate control.
The Group performs a reassessment of control whenever there
is a change in the substance of the relationship between the
Group and an investee. A change in the ownership interest
of a subsidiary, without a loss of control, is accounted for as
an equity transaction.
If the Group loses control over a subsidiary, it derecognises the
related assets (including goodwill), liabilities, non-controlling
interest and other components of equity, while any resultant
gain or loss is recognised in profit or loss. Any investment
retained is recognised at fair value.
The Group also holds investments, for example, in private equity
investments, which give rise to significant, but not majority,
voting rights. Assessing these voting rights and whether the
Group controls these entities requires judgement that affects
the date at which subsidiaries are consolidated
or deconsolidated.
Entities, other than subsidiary undertakings, in which the Group
exercises significant influence or joint control over operating
and financial policies, are treated as interests in associated
undertakings and joint venture holdings. Interests in associated
undertakings and joint venture holdings are accounted for using
the equity method from the date that significant influence or
joint control commences until the date that significant influence
or joint control ceases. In circumstances where interests in
associated undertakings and joint venture holdings arise in
which the Group has no strategic intention, these investments
are classified as ‘venture capital’ holdings and are elected as
held at fair value through profit or loss.
For equity accounted associates and joint venture holdings, the
consolidated annual financial statements include the
attributable share of the results and reserves of associated
undertakings and joint venture holdings. The Group’s interests
in associated undertakings and joint venture holdings are
included in the consolidated balance sheet at cost plus the
post-acquisition changes in the Group’s share of the net assets
of the associated undertakings and joint venture holdings.
The consolidated balance sheet reflects the associated
undertakings and joint venture holdings net of accumulated
impairment losses.
All intergroup balances, transactions and unrealised gains or
losses within the Group that do not reflect an impairment to the
asset are eliminated in full regarding subsidiaries and to the
extent of the interest in associated undertakings and joint
venture holdings.

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Segmental reporting
An operating segment is a component of the Group that
engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that
relate to transactions with any of the Group’s other
components, where operating results are reviewed regularly
by chief operating decision-makers who are considered to be
executive members of the Board and for which discrete
financial information is available.
The Group’s segmental reporting is presented in the form of a
business analysis. The business analysis is presented in terms
of the Group’s four principal business divisions namely, Wealth &
Investment, Private Banking, Corporate, Investment Banking,
and Other and Group Investments.
Group costs that are disclosed separately largely relate to
Group brand and marketing costs and a portion of executive
and support functions which are associated with Group-level
activities. These costs are not incurred by the operating
divisions and are necessary to support the operational
functioning of the Group.
Business combinations and goodwill
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the
aggregate of the consideration transferred at the acquisition
date fair value and the amount of any prior non-controlling
interest in the acquiree. For each business combination, the
Group measures the non-controlling interest in the acquiree
either at fair value or at the proportionate share of the
acquiree’s identifiable net assets. Acquisition costs incurred are
expensed immediately in the income statement.
When the Group acquires a business, it assesses the financial
assets and liabilities assumed for appropriate classification and
the designation in accordance with the contractual terms,
economic circumstances and pertinent conditions at the
acquisition date. This includes the separation of embedded
derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the
acquisition date fair value of the Group’s previously held equity
interest in the acquiree is remeasured to fair value at the
acquisition date through the income statement.
Any contingent consideration to be transferred by the Group
will be recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent
consideration, which is deemed to be an asset or liability, will be
recognised in accordance with IFRS 9, either in the income
statement or as a change to other comprehensive income. If the
contingent consideration is classified as equity, it will not be
remeasured until it is finally settled within equity.
Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interest over the net identifiable
assets acquired and liabilities assumed. If this consideration and
amount recognised for non-controlling interest is less than the
fair values of the identifiable net assets acquired, the discount
on acquisition is recognised directly in the income statement as
a gain in the year of acquisition.
After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. The Group tests goodwill
acquired in a business combination for impairment annually,
irrespective of whether an indication of impairment exists and in
accordance with IAS 36.
For the purpose of impairment testing, goodwill acquired in a
business combination is, from the acquisition date, allocated to
each of the Group’s cash-generating units that are expected to
benefit from the combination.
Where goodwill forms part of a cash-generating unit, and part of
the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the
carrying amount of the operation when determining the gain or
loss on disposal of the operation.
Goodwill disposed of in these circumstances is measured based
on the relative values of the operation disposed of and the
portion of the cash-generating units retained.
Discontinued operations
A disposal group qualifies as a discontinued operation if it is a
component of an entity that has either been disposed of or is
classified as held for sale and represents a separate major line
of business or geographical area of operations.
Discontinued operations are excluded from the results of
continuing operations and are presented as a single amount as
profit or loss after tax from discontinued operations in the
income statement.
All other notes to the financial statements include amounts for
continuing operations, unless indicated otherwise. Additional
disclosures are provided in note 34.
Share-based payments to employees
The Group engages in equity-settled share-based payments in
respect of services received from employees.
The fair value of the services received in respect of equity-
settled share-based payments is determined by reference to
the fair value of the shares or share options on the date of grant
to the employee. The cost of the share-based payment,
together with a corresponding increase in equity, is recognised
in the income statement over the period the service conditions
of the grant are met, with the amount changing according to the
number of awards expected to vest. The cumulative expense
recognised for equity-settled transactions at each reporting
date until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the
number of equity instruments that will ultimately vest.
Fair value measurements are based on option pricing models,
taking into account the risk-free interest rate, volatility of the
underlying equity instrument, expected dividends and share
prices at grant date.
Where the terms of an equity-settled award are modified, the
minimum expense recognised in staff costs is the expense as if
the terms had not been modified. An additional expense is
recognised for any modification which increases the total fair
value of the share-based payment arrangement, or is otherwise
beneficial to the employee as measured at the date of
modification.
The loss of control of an employing subsidiary of the Group
gives rise to an acceleration of the equity-settled share-based
payments charge for the related employees and, on loss of
control, the Group recognises the amount that would have been
recognised for the award if it remained in place on its original
terms.

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Employee benefits
The Group operates various defined contribution schemes.
In respect of the defined contribution schemes, all employer
contributions are charged to the income statement as incurred,
in accordance with the rules of the scheme, and included under
staff costs.
Short-term employee benefits are expensed as the related
service is provided. A liability is recognised for the amount
expected to be paid if the Group has a present legal or
constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be
estimated reliably.
The long-term employment benefits liability relates to the
obligation of the Investec Group to deliver ordinary shares
of Ninety One plc to employees over a predetermined vesting
period. The fair value of this liability is calculated by applying
the Black-Scholes option pricing model at each reporting date.
The changes in fair value will be recognised as an employee
benefit expense. The liability is included in other liabilities on the
balance sheet.
The Group has no liabilities for other post-retirement benefits.
Foreign currency transactions and foreign
operations
The presentation currency of the Group is Pound Sterling, being
the functional currency of Investec plc.
Foreign operations are subsidiaries, interests in associated
undertakings and joint venture holdings or branches of the
Group, the activities of which are based in a functional currency
other than that of the reporting entity. The functional currency
of Group entities is determined based on the primary economic
environment in which the entity operates.
Foreign currency transactions are translated into the functional
currency of the entity in which the transactions arise based on
rates of exchange ruling at the date of the transactions.
At each balance sheet date foreign currency items are
translated as follows:
• Monetary items (other than monetary items that form part of
the net investment in a foreign operation) are translated using
closing rates, with gains or losses recognised in the income
statement
• Exchange differences arising on monetary items that form
part of the net investment in a foreign operation are
determined using closing rates and recognised as a separate
component of equity (foreign currency translation reserve)
upon consolidation and are reclassified to the income
statement upon disposal of the net investment
• Non-monetary items that are measured at historical cost are
translated using the exchange rates ruling at the date of the
transaction.
On consolidation, the results and financial position of foreign
operations are translated into the presentation currency of the
Group, as follows:
• Assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of the balance sheet
• Income and expense items are translated at exchange rates
ruling at the date of the transaction
• All resulting exchange differences are recognised in other
comprehensive income (foreign currency translation reserve),
which is recognised in the income statement on disposal of
the foreign operation
• Cash flow items are translated at the exchange rates ruling at
the date of the transactions.
On loss of control or disposal of a foreign operation, the
cumulative amount of the exchange differences relating to that
foreign operation recognised in other comprehensive income is
reclassified from equity to profit or loss.
Revenue recognition
Revenue consists of interest income, fee and commission income,
investment income, trading income arising from customer flow,
trading income arising from balance sheet management and other
trading activities, share of post-taxation profit of associates and
joint venture holdings and other operating income.
Interest income on debt instruments at amortised cost or FVOCI
is recognised in the income statement using the effective
interest method. Calculation of the effective interest rate takes
into account fees payable or receivable that are an integral part
of the instrument's yield, premiums or discounts on acquisition
or issue, early redemption fees and transaction costs.
The effective interest method is based on the estimated life of
the underlying instrument and, where this estimate is not readily
available, the contractual life. Interest on instruments at fair
value through profit or loss is recognised based on the
contractual rates.
Fee and commission income includes revenue from contracts
with customers earned from providing advisory services as well
as portfolio management.
Revenue from contracts with customers is recognised in
accordance with five steps to: identify the contract; identify the
performance obligations; determine the transaction price;
allocate the transaction price to the performance obligations;
and recognise revenue when the performance obligations are
satisfied.
Investment advisory and management fees are earned over the
period in which the services are provided. Performance fees
can be variable and recognition is constrained until such time as
it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur and the services
related to the transactions have been completed under the
terms of the contract.
Investment income includes income, other than margin from
securities held for the purpose of generating interest yield,
dividends and capital appreciation.
Customer flow trading income includes income from trading
activities arising from making and facilitating client activities.
Trading income arising from balance sheet management and
other trading activities consists of proprietary trading income and
other gains or losses arising from balance sheet management.
Trading profit includes the unrealised profit on trading
portfolios, which are marked-to-market daily. Equity
investments received in lieu of corporate finance fees are
included in investment portfolio and valued accordingly.
Dividend income is recognised when the Group’s right to
receive payment is established and the cash is received.
Included in other operating income is incidental rental income,
gains on realisation of properties, operating lease income, income
from interests in associated undertakings and revenue from other
investments. Operating costs associated with these investments
are included in operating costs in the income statement.

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Fair value measurement
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date in the principal
or, in its absence, the most advantageous market to which
the Group has access at that date. The fair value of an asset
or a liability reflects its non-performance risk.
When available, the Group measures the fair value of an
instrument using the quoted price in an active market for that
instrument.
If there is no quoted price in an active market, then the Group
uses valuation techniques that maximise the use of relevant
observable inputs and minimise the use of unobservable inputs.
The chosen valuation technique incorporates all of the factors
that market participants would take into account in pricing
a transaction.
If an asset or a liability measured at fair value has a bid price and
an ask price, then the Group measures assets and long positions
at a bid price and liabilities and short positions at an ask price.
The Group classifies disclosed fair values according to a hierarchy
that reflects the significance of observable market inputs.
A transfer is made between the hierarchy levels when the inputs
have changed or there has been a change in the valuation
method. Transfers are deemed to occur at the end of each semi-
annual reporting period.
Financial instruments
Financial instruments are initially recognised at their fair value.
For financial assets or financial liabilities not held at fair value
through profit or loss, transaction costs that are directly
attributable to the acquisition or issue of the financial assets
or financial liabilities are included in the initial measurement.
All other transaction costs are recorded in the income
statement immediately. Regular way purchase and sales
transactions in respect of financial assets that require delivery
of a financial instrument within the time frame established by
market convention are recorded at trade date.
Business model assessment
For financial assets, IFRS 9 requires that a business model
assessment is carried out which reflects how the Group
manages the assets in order to generate cash flows. The
assessment is at a portfolio level, being the level at which the
portfolio is managed. Factors considered by the Group in
determining the business model for a Group of assets include
past experience on how the cash flows for these assets were
collected, how the assets’ performance is evaluated and
reported and how risks are assessed and managed.
The standard sets out different types of business models:
▪ Hold to collect: it is intended to hold the asset to maturity to
earn interest, collecting repayments of principal and interest
from the customer. These assets are accounted for at
amortised cost
▪ Hold to collect and sell: this model is similar to the hold to
collect model, except that the entity may elect to sell some
or all of the assets before maturity to achieve the objectives
of the business model. These assets are accounted for at
FVOCI
▪ Hold to sell/managed on a fair value basis: the entity
originates or purchases an asset with the intention of
disposing of it in the short or medium term to benefit from
capital appreciation or the portfolio is managed on a fair value
basis. These assets are accounted for at FVPL.
However, the Group may make the following irrevocable
election/designation at initial recognition of a financial asset
on an asset-by-asset basis:
▪ Elect to present subsequent changes in fair value of an equity
investment that is neither held for trading nor contingent
consideration recognised by an acquirer in a business
combination to which IFRS 3 applies, in OCI
▪ A debt instrument that meets the amortised cost or FVOCI
criteria as measured at FVPL if doing so eliminates or
significantly reduces an accounting mismatch (referred
to as the fair value option).
The classification into one of these categories is based on the
Group’s business model for managing the assets and the
contractual cash flow characteristics of the assets.
Solely payments of principal and interest (SPPI)
Where the business model is to hold assets to collect
contractual cash flows or to collect contractual cash flows
and sell, the Group assesses whether the assets’ cash flows
represent solely payments of principal and interest (the
SPPI test). In making this assessment, the Group considers
whether the contractual cash flows are consistent with a basic
lending arrangement (i.e. interest includes only consideration
for the time value of money, credit risk, other basic lending risks
and a profit margin that is consistent with a basic lending
arrangement). Where the contractual terms introduce exposure
to risk or volatility that are inconsistent with a basic lending
arrangement, the related asset is classified and measured
at FVPL.
Financial assets with embedded derivatives are considered
in their entirety when determining whether their cash flows
are solely payments of principal and interest.
Financial instruments measured at amortised cost
Financial assets that are held to collect the contractual cash
flows and that contain contractual terms that give rise to cash
flows that are solely payments of principal and interest, such
as most loans and advances to banks and customers and some
debt securities, are measured at amortised cost. In addition,
most financial liabilities are measured at amortised cost.
The Group may commit to provide a loan which has not yet
been drawn. When the loan that arises from the lending
commitment is expected to meet the criteria to be measured
at amortised cost, the undrawn commitment is also considered
to be and is included in the impairment calculation.
The carrying value of these financial assets at initial recognition
includes any directly attributable transaction costs. If the initial
fair value is lower than the cash amount advanced, such as in
the case of some leveraged finance and syndicated lending
activities, the difference is deferred and recognised over the
life of the loan through the recognition of interest income,
unless the loan is credit impaired.
Financial assets measured at fair value through
other comprehensive income (FVOCI)
Financial assets held for a business model that is achieved
by both collecting contractual cash flows and selling and that
contain contractual terms that give rise on specified dates
to cash flows that are solely payments of principal and interest
are measured at FVOCI. They are recognised on the trade date
when the Group enters into contractual arrangements to
purchase and are normally derecognised when they are either
sold or redeemed.
They are subsequently remeasured at fair value and changes
therein (except for those relating to impairment, interest

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income and foreign currency exchange gains and losses)
are recognised in other comprehensive income until the assets
are sold. Upon disposal, the cumulative gains or losses in other
comprehensive income are recognised in the income statement
as ‘Gains less losses arising from derecognition of debt
instruments measured at fair value through other
comprehensive income’.
Financial assets measured at FVOCI are included in the
impairment calculations set out below and impairment
is recognised in profit or loss.
Equity instruments measured at FVOCI
The Group measures equity instruments at FVOCI when it
considers the investments to be strategic or held for long-term
dividend yield. The equity instruments are not held for trading.
Gains or losses on the derecognition of these equity securities
are not transferred to profit or loss.
Otherwise, equity instruments are measured at fair value
through profit or loss (except for dividend income, which is
recognised in profit or loss).
Impairment of financial assets held at amortised
cost or FVOCI
At each balance sheet date, each financial asset or portfolio
of advances categorised at amortised cost or at FVOCI, issued
financial guarantee and loan commitment is measured for
ECL impairment.
The costs of loss allowances on assets held at amortised cost
and at FVOCI are presented as impairments in the income
statement. Allowances in respect of financial guarantees and
loan commitments are presented as other liabilities and charges
recorded within income statement impairments. Financial assets
held at amortised cost are presented net of allowances, except
where the asset has been wholly or partially written off.
Stage 1
Financial assets that are considered performing and have not
had a significant increase in credit risk are reported as Stage 1
assets. Stage 1 financial assets have loss allowances measured
at an amount equal to a 12-month ECL.
Stage 2
Financial assets are considered to be in Stage 2 when their
credit risk has increased significantly since initial recognition.
A loss allowance equivalent to a lifetime ECL is required
to be held.
The Group’s primary indicator for Stage 2 assets are distressed
loans, potential problem loans and exposures in arrears that
require additional attention and supervision from watchlist
committees and are under management review.
Assets in forbearance are considered to be, at a minimum,
Stage 2. Forbearance measures refer to concessions such
as modification of the terms and conditions or refinancing
that has been granted to a debtor in financial difficulty.
These exposures are assessed on a case-by-case basis
to determine whether the proposed modifications will be
considered as forbearance. Where the Credit Committee
considers it likely that the client will be able to return to perform
against the original contractual obligations within a reasonable
time frame these assets will be considered performing and
in Stage 2. Forbearance is distinguished from commercial
renegotiations which take place as part of normal business
activity and standard banking practice.
In addition to loans under management review, an asset may
also move from Stage 1 to Stage 2 if the model calculated
probability of default (PD) has significantly increased since
origination. This is tested on both a relative and absolute basis
to assess whether a significant deterioration in lifetime risk of
default has occurred. There is a common definition across the
Bank’s exposures regarding what constitutes a significant PD
movement. The test involves both an absolute and relative
movement threshold. An asset is considered to have been
subjected to a significant increase in credit risk if the
appropriate PD has doubled relative to the value at origination
and on an absolute basis has increased by more than 1%. Any
asset with an original rating that is classified as investment
grade will be judged to have had a significant movement if the
new PD would classify it as sub-investment grade and the
equivalent rating has moved by more than three notches.
The Group adopts the view that all financial assets that are
more than 30 days past due have experienced a significant
increase in credit risk.
Exposures move back to Stage 1 once they no longer meet the
criteria above for a significant increase in credit risk and as cure
periods (specifically relating to forborne exposures) are met.
Stage 3
Financial assets are included in Stage 3 when there is objective
evidence of credit impairment. The Group assesses a loan as
Stage 3 when contractual payments of either principal or
interest are past due for more than 90 days, the debtor is
assessed as unlikely to pay and credit impaired, or the loan is
otherwise considered to be in default, for example, due to the
appointment of an administrator or the client is in receivership.
Forborne loans that are considered non-performing, for
example, if a loan is not expected to meet the original
contractual obligations in a reasonable time frame, the loan will
be classified as Stage 3. Loans which are 90 days or more past
due are considered to be in default.
The Group calculates the credit adjusted effective interest rate
on Stage 3 assets, which is calculated based on the amortised
cost of the financial asset (i.e. gross carrying amount less ECL
allowance) instead of its gross carrying amount and
incorporates the impact of the ECLs in estimated future cash
flows.
Definition of default
The Group has aligned the IFRS 9 and regulatory definitions of
default, credit impaired and non-performing exposure. Assets
that are more than 90 days past due, or considered by
management as unlikely to pay their obligations in full without
realisation of collateral are considered as exposures in default.
ECL
The assessment of credit risk and the estimation of ECL are
required to be unbiased, probability-weighted and should
incorporate all available information relevant to the assessment,
including information about past events, current conditions and
reasonable and supportable forecasts of economic conditions
at the reporting date. In addition, the estimation of ECL should
take into account the time value of money. As a result, the
recognition and measurement of impairment is intended to be
forward‑looking and therefore, potentially volatile.
Write-offs
The Group has developed specific guidelines on write-off aimed
at granting full compliance with IFRS 9 and the document
'Guidance to banks on non-performing loans' issued by the
European Central Bank.
A loan or advance is normally written off in full against the
related ECL impairment allowance when the proceeds from
realising any available security have been received or there is a

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reasonable amount of certainty that the exposure will not be
recovered. This is assessed on a case-by-case basis with
considerations to indicators such as whether the exposure has
been restructured or the given financial position of the borrower
and guarantors. Any recoveries of amounts previously written
off decrease the amount of impairment losses.
Cured assets
Loans and advances are regularly assessed to determine
whether conditions which led to a significant increase in credit
risk or impairment still exist. Where applicable, the cured asset
will move to the appropriate performing stage which reflects the
re-assessed credit risk in line with our Arrears, default and
recovery (ADR) policy which is aligned to the applicable
Regulatory requirements.
Process to determine ECL
ECLs are calculated using three main components:
• A probability of default (PD)
• A loss given default (LGD)
• The exposure at default (EAD).
The 12-month and lifetime PDs represent the probability of a
default occurring over the next 12 months or the lifetime of the
financial exposures, respectively, based on conditions existing
at the balance sheet date and future forecast macro-economic
conditions that affect credit risk.
The LGD represents losses expected on default, taking into
account the mitigating effect of collateral, its expected value
when realised and the time value of money.The forecast value
for the collateral is also affected by the range of forward-
looking probability-weighted macro-economic scenarios.
The EAD represents the expected balance at default, taking into
account the repayment of principal and interest from the
balance sheet date to the default event together with any
expected drawdown of a committed facility.
The calculation of the 12-month ECL is based on the 12-month
PD and LGD along with the EAD and EIR for the asset. Lifetime
ECL is calculated using the lifetime PD curve, and the
appropriate LGDs and EADs and discount rates derived from
the EIR based on the remaining life of the financial asset.
Expert judgement models or appropriate proxies for PD’s are
also utilised for certain portfolios where the ECL is found to be
minimal, either due to the portfolio’s small relative size or the
low default nature of these portfolios, such as cash and
balances held at central banks.
Management adjustments are made to modelled output to
account for situations where additional information and known
or expected risk factors have not been captured in the
modelling process.
Financial instruments held at fair value through
profit or loss (FVPL)
Financial instruments held at fair value through profit or loss
include all instruments classified as held for trading, those
instruments designated as held at fair value through profit
or loss and those financial assets which do not meet the criteria
for amortised cost or FVOCI.
Financial instruments classified as FVPL are initially recorded
at fair value on the balance sheet with changes in fair value
subsequently recognised in the income statement. Financial
instruments are classified as held for trading when they are
held with the intention of short-term disposal, held with the
intention of generating short-term profit, or are derivatives
which are not designated as part of effective hedges. Financial
instruments designated as held at fair value through profit
or loss are designated as such on initial recognition of the
instrument and remain in this classification until derecognition.
Financial assets and liabilities are designated as held at fair
value through profit or loss only if:
• They eliminate or significantly reduce a measurement or
recognition inconsistency that would otherwise arise from
measuring assets or liabilities or recognising the gains and
losses on them on different bases; or
• A group of financial liabilities or both financial assets and
financial liabilities is managed and their performances
evaluated on a fair value basis in accordance with a
documented risk management or investment strategy and
information about the Group is provided internally on that
basis to the Group’s key management personnel; or
• A financial liability contract contains one or more embedded
derivatives (which significantly modifies the cash flows that
would be required by the contract and is not clearly
prohibited from separation from the host contract) and the
Group has designated the entire hybrid contract as a financial
instrument at fair value through profit or loss.
Changes in own credit risk on financial liabilities designated
at fair value are recognised in other comprehensive income.
Any other changes are recognised in the income statement.

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Securitisation/credit investment and trading
activities exposures
The Group makes use of securitisation vehicles as a source
of finance, as a means of risk transfer and to leverage returns
through the retention of equity tranches in low default rate
portfolios. The Group predominantly focuses on the
securitisation of residential and commercial mortgages and
lease receivables. The Group also trades in structured credit
investments.
The structured entities are consolidated under IFRS 10
Consolidated Financial Statements when the Group has
exposure to, or rights to, variable returns from its involvement
with the investee and has the ability to affect those returns
through its power over the investee.
Loans and advances that are originated are transferred to
structured entities, and the structured entities issue debt
securities to external investors to fund the purchase of the
securitised assets. When the Group consolidates the structured
entity, the Group recognises the assets and liabilities on a gross
basis. When the Group does not consolidate the structured
entity, the securitised assets are derecognised and only any
position still held by the Group in the structured entity is
reflected.
Day-one profit or loss
When the transaction price differs from the fair value of other
observable current market transactions in the same instrument
or based on the valuation technique whose variables include
only data from observable markets, the difference between the
transaction price and fair value is recognised immediately in the
income statement.
In cases where fair value is determined using data which is not
observable, the difference between the transaction price and
model value is only recognised in the income statement when
the inputs become observable, or when the instrument is
derecognised or over the life of the transaction.
Derecognition of financial assets and liabilities
A financial asset, or a portion thereof, is derecognised when the
Group’s rights to cash flows have expired or when the Group
has transferred its rights to cash flows relating to the financial
assets and either (a) the Group has transferred substantially all
the risks and rewards associated with the financial assets or (b)
the Group has neither transferred nor retained substantially all
the risks and rewards associated with the financial assets but
has transferred control of the assets.
The treatment of a renegotiation or modification of the
contractual cash flows of a financial asset depends upon
whether the modification is done for commercial reasons,
in which case if they are significant the old asset is
derecognised and a new asset recognised, or because
of financial difficulties of the borrower.
A financial liability is derecognised when it is extinguished,
that is when the obligation is discharged, cancelled or expired.
When an existing financial liability is replaced or modified with
substantially different terms, such a replacement or
modification is treated as a derecognition of the original liability
and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the income
statement.
Reclassification of financial instruments
Financial assets are only reclassified where there has been
a change in business model. Financial liabilities can be
reclassified to equity.
Derivative instruments
All derivative instruments of the Group are recorded on the
balance sheet at fair value positive and negative fair values are
reported as assets and liabilities, respectively.
Derivative positions are entered into either for trading purposes
or as part of the Group’s asset and liability management
activities to manage exposures to interest rate and foreign
currency risks. Both realised and unrealised profit or losses
arising on derivatives are recognised in the income statement
as part of trading income (other than circumstances in which
cash flow hedging is applied as detailed in the hedge
accounting section below).
Derivative instruments entered into as economic hedges which
do not qualify for hedge accounting and derivatives that are
entered into for trading purposes are treated in the same way
as instruments that are held for trading.
Credit derivatives are entered into for trading purposes. Credit
derivatives are initially recognised at their fair values, being the
transaction price of the derivative. Subsequently the derivatives
are carried at fair value, with movements in fair value through
the income statement, based on the current market price or
remeasured price. The counterparty risk from derivative
transactions is taken into account when reporting the fair value
of derivative positions. The adjustment to the fair value is
known as the credit value adjustment (CVA).
Hedge accounting
When the Group first implemented IFRS 9, it made an election
to continue to apply the hedge accounting requirements of
IAS 39 as an accounting policy.
The Group applies either fair value or cash flow hedge or hedge
accounting of net investments in foreign operations accounting
when the transactions meet the specified hedge accounting
criteria.
To qualify for hedge accounting treatment, the Group ensures
that all of the following conditions are met:
• At inception of the hedge, the Group formally documents the
relationship between the hedging instrument(s) and hedged
item(s) including the risk management objectives and the
strategy in undertaking the hedge transaction. Also at the
inception of the hedge relationship, a formal assessment
is undertaken to ensure the hedging instrument is expected
to be highly effective in offsetting the designated risk in the
hedged item. A hedge is expected to be highly effective if the
changes in fair value or cash flows attributable to the hedged
risk during the period for which the hedge is designated are
expected to offset in a range of 80% to 125%
• For cash flow hedges, a forecasted transaction that is the
subject of the hedge must be highly probable and must
present an exposure to variations in cash flows that could
ultimately affect the income statement
• The effectiveness of the hedge can be reliably measured,
i.e. the fair value or cash flows of the hedged item that are
attributable to the hedged risk and the fair value of the
hedging instrument can be reliably measured
• The hedge effectiveness is assessed on an ongoing basis
and determined actually to have been highly effective
throughout the financial reporting periods for which the
hedge was designated.
For qualifying fair value hedges, the change in fair value of the
hedging instrument is recognised in the income statement.
Changes in fair value of the hedged item that is attributable to
the hedged risk are also recognised in the income statement.

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For qualifying cash flow hedges in respect of non-financial assets
and liabilities, the change in fair value of the hedging instrument
relating to the effective portion is initially recognised directly in
other comprehensive income in the cash flow hedge reserve and
is included in the initial cost of any asset/liability recognised or in
all other cases released to the income statement when the
hedged firm commitment or forecasted transaction affects net
profit. If the forecast transaction or firm commitment is no longer
expected to occur, the balance included in other comprehensive
income is reclassified to the income statement immediately and
recognised in trading income from balance sheet management
and other trading activities.
For qualifying cash flow hedges in respect of financial assets
and liabilities, the change in fair value of the hedging
instrument, which represents an effective hedge, is initially
recognised in other comprehensive income and is reclassified
to the income statement in the same period during which the
relevant financial asset or liability affects the income statement.
Any ineffective portion of the hedge is immediately recognised
in the income statement.
For qualifying hedges of a net investment in a foreign operation,
including a hedge of a monetary item that is accounted for as
part of the net investment, changes in the fair value of the
hedging instrument relating to the effective portion of the
hedge are recognised in other comprehensive income while any
gains or losses relating to the ineffective portion are recognised
in the income statement. On disposal of the foreign operation,
the cumulative value of any such gain or loss recorded in other
comprehensive income is reclassified to the income statement.
Hedge accounting is discontinued when it is determined that
the instrument ceases to be highly effective as a hedge; when
the derivative expires, or is sold, terminated or exercised; when
the hedged item matures or is sold or repaid; when a forecasted
transaction is no longer deemed highly probable or when the
designation as a hedge is revoked.
Sources of hedge ineffectiveness may arise from basis risk,
including but not limited to the discount rates used for calculating
the fair value of derivatives, hedges using instruments with a non-
fair value, and notional and timing differences between the
hedged items and hedging instruments.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset when there is both an
intention to settle on a net basis (or simultaneously) and a
currently enforceable legal right to offset exists.
Issued debt and equity financial instruments
Financial instruments issued by the Group are classified as
liabilities if they contain a contractual obligation to deliver cash
or another financial asset.
Financial instruments issued by the Group are classified as
equity where they confer on the holder a residual interest in the
Group, and the Group has no obligation to deliver either cash or
another financial asset to the holder. The components of
compound issued financial instruments are accounted for
separately with the liability component separated first and any
residual amount being allocated to the equity component.
Equity instruments issued by subsidiaries of Investec plc are
recorded as non-controlling interests on the balance sheet.
Equity instruments are initially measured net of directly
attributable issue costs.
Treasury shares represent Investec plc shares repurchased by
the Group which have not been cancelled. Treasury shares are
deducted from shareholders’ equity and represent the purchase
consideration, including directly attributable costs. Where
treasury shares are subsequently sold or reissued, net proceeds
received are included in shareholders’ equity.
Dividends on ordinary shares are recognised as a deduction
from equity at the earlier of payment date or the date that it is
approved by Investec plc shareholders.
Sale and repurchase agreements
(including securities borrowing and
lending)
Securities sold subject to a commitment to repurchase, at a
fixed price or a selling price plus a lender’s return, remain
on-balance sheet. Proceeds received are recorded as a liability
on the balance sheet under ‘repurchase agreements and cash
collateral on securities lent’. Securities that are purchased under
a commitment to resell the securities at a future date are not
recognised on the balance sheet. The consideration paid is
recognised as an asset under ‘reverse repurchase agreements
and cash collateral on securities borrowed’.
Where sovereign debt securities have been purchased at the
same time as derivatives with the same counterparty, such that
the combined position has the economic substance similar to
secured lending, an asset is recognised under ‘reverse repurchase
agreements and cash collateral on securities borrowed’.
The difference between the sale and repurchase prices is
treated as interest expense and is accrued over the life of the
agreement using the effective interest method.
Securities borrowing transactions that are not cash collateralised
are not included on the balance sheet. Securities lending and
borrowing transactions which are cash collateralised are
accounted for in the same manner as securities sold or purchased
subject to repurchase commitments.
Financial guarantees
Financial guarantee contracts issued by the Group are those
contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to
make a payment when due, in accordance with the terms of a
debt instrument. Financial guarantees, which are not classified
as insurance contracts, are initially recognised at fair value,
adjusted for the transaction costs that are directly attributable
to the issuance of the guarantee.
Subsequent to initial recognition, the liability under each
guarantee is measured at the higher of the amount recognised
less cumulative amount of income recognised in accordance
with IFRS 15 and the best estimate of expected credit loss
calculated for the financial guarantee. Subsequent to initial
measurement, all changes in the balance sheet carrying value
are recognised in the income statement.
Property and equipment
Property and equipment are recorded at cost less accumulated
depreciation and impairments.
Cost is the cash equivalent paid or the fair value of the
consideration given to acquire an asset and includes other
expenditures that are directly attributable to the acquisition of
the asset.
Depreciation is provided on the depreciable amount of each
component on a straight-line basis over the expected useful life
of the asset.
The depreciable amount related to each asset is determined as
the difference between the cost and the residual value of the
asset. The residual value is the estimated amount, net of disposal

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costs that the Group would currently obtain from the disposal of
an asset in similar age and condition as expected at the end of its
useful life. The current and comparative annual depreciation rates
for each class of property and equipment are as follows:
• Computer and related equipment 20% to 33%
• Motor vehicles 20% to 25%
• Furniture and fittings 10% to 20%
• Freehold buildings 2%
• Right-of-use assets*
• Leasehold property and improvements*
*Leasehold improvements depreciation rates are determined by reference to
the appropriate useful life of its separate components, limited to the period of
the lease. Leasehold property and right-of-use asset depreciation rates are
determined by reference to the period of the lease.
Routine maintenance and service costs for Group assets are
expensed as incurred. Subsequent expenditure is only
capitalised if it is probable that future economic benefits
associated with the item will flow to the Group.
Leases
At inception of a contract the Group assesses whether a contract
is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an
identified asset, the Group assesses whether:
• The Group has the right to obtain substantially all of the
economic benefits from use of the asset throughout the period
of use, and
• The Group has the right to direct the use of the asset.
As a lessee, the Group recognises a right-of-use (ROU) asset and
a lease liability at the lease commencement date.
The lease liability is initially measured at the present value of the
lease payments that are not paid at the commencement date,
discounted at the rate implicit in the lease, or, where that is not
available, at the Group’s incremental borrowing rate.
The lease liability will increase for the accrual of interest, and will
result in a constant rate of return throughout the life of the lease,
and reduce when payments are made.
The ROU asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any
indirect costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease incentives
received.
The ROU asset is subsequently depreciated using the straight-
line method from the commencement date to the end of the
lease term. In addition, the ROU asset is periodically reduced by
impairment losses, if any, and adjusted for certain re-
measurements of the lease liability.
The lease liability is subsequently remeasured when there is a
change in future lease payments arising from a change in index
or rate, if there is a change in the Group’s estimate of the
amount expected to be payable under a residual value
guarantee, or if the Group changes its assessment of whether it
will exercise a purchase, extension or termination option.
Where the lease liability is remeasured, a corresponding
adjustment is made to the carrying amount of the ROU asset, or
is recorded in the income statement if the carrying amount of
the ROU asset has been reduced to zero.
The Group has elected not to recognise ROU assets and lease
liabilities for low value assets and short-term leases that have a
lease term of 12 months or less. The Group recognises the lease
payments associated with these leases as an expense on a
straight-line basis over the lease term.
When the Group is the lessor, the lease must be classified as
either a finance lease or an operating lease. A finance lease is a
lease which confers substantially all the risks and rewards of
the leased assets on the lessee. An operating lease is a lease
where substantially all of the risks and rewards of the leased
asset remain with the lessor.
When the lease is deemed a finance lease, the leased asset
is not held on the balance sheet; instead a finance lease
receivable is recognised representing the minimum lease
payments receivable under the terms of the lease, discounted
at the rate of interest implicit in the lease.
When the lease is deemed an operating lease, the lease income
is recognised on a straight-line basis over the period of the
lease unless another systematic basis is more appropriate.
For the balance sheet, the ROU assets are included within
property and equipment, finance lease receivables are included
within loans and advances to customers and other assets and
the lease liabilities are included within other liabilities.
Where the Group has a head lease and sublease arrangement
with external partners, the finance lease receivable is
recognised in other assets on the balance sheet.

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Trading properties
Trading properties are carried at the lower of cost and net
realisable value.
Software and intangible assets
Software and intangible assets are recorded at cost less
accumulated amortisation and impairments. Software and
intangible assets with a finite life are amortised over the useful
economic life on a straight-line basis. Amortisation of each
asset starts when it becomes available for use. The depreciable
amount related to each asset is determined as the difference
between the cost and the residual value of the asset.
The current and comparative annual amortisation rates for each
class of intangible assets are as follows:
• Client relationships 12 to 20 years
• Acquired software 3 to 7 years
• Internally generated software 5 years
Impairment of non-financial assets
At each balance sheet date, the Group reviews the carrying
value of non-financial assets. The recoverable amount, being
the higher of fair value less cost of disposal and value-in-use, is
determined for any assets for which an indication of impairment
is identified. If the recoverable amount of an asset is less than
its carrying value, the carrying value of the asset is reduced to
its recoverable amount.
Impairment losses are recognised as an expense in the income
statement in the period in which they are identified. Reversals
of impairment losses are recognised in income in the period in
which the reversals are identified, to the extent that the
carrying value of the asset does not exceed the amount that
would have been calculated without impairment.
Trust and fiduciary activities
The Group acts as a trustee or in other fiduciary capacities that
result in the holding, placing or managing of assets for the
account of and at the risk of clients. As these are not assets of
the Group, they are not recognised on the balance sheet but
are included at market value as part of third party assets under
management.
Taxation and deferred taxation
Current taxation payable is provided for based on the amount
expected to be payable on taxable profit at rates that are
enacted or substantively enacted and applicable to the relevant
period.
Deferred taxation is provided on temporary differences
between the carrying amount of an asset or liability in the
balance sheet and its tax base, except where such temporary
differences arise from:
• The initial recognition of goodwill
• The initial recognition of an asset or liability in a transaction
which is not a business combination and at the time of the
transaction has no effect on the income statement or taxable
profit
• Temporary differences associated with the investments in
subsidiaries and interests in associated undertakings and
joint venture holdings, where the timing of the reversal of the
temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the
foreseeable future.
Deferred taxation assets or liabilities are measured using the
taxation rates that have been enacted or substantively enacted
at the balance sheet date.
Deferred taxation assets are recognised to the extent that it is
probable that future taxable profit will be available against
which the deferred taxation assets can be utilised.
Items recognised directly in other comprehensive income are
net of related current and deferred taxation.
Borrowing costs
Borrowing costs that are directly attributable to property
developments which take a substantial period of time to
develop are capitalised to qualifying properties.
Provisions, contingent liabilities and
contingent assets
Provisions are recognised when the Group has a present legal
or constructive obligation as a result of a past event; it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The
expense relating to a provision is presented in the income
statement net of any reimbursement. Contingent assets and
contingent liabilities are not recognised on the balance sheet.

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Standards and interpretations issued but
not yet effective
The following significant standards and interpretations, which
have been issued but are not yet effective, are applicable to the
Group. These standards and interpretations have not been
applied in these annual financial statements. The Group intends
to comply with these standards from the effective dates.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 introduces new requirements on presentation within the
statement of profit or loss, including specified totals and
subtotals. It also requires disclosure of management-defined
performance measures and includes new requirements for
aggregation and disaggregation of financial information based
on the identified 'roles' of the primary financial statements (PFS)
and the notes. These new requirements are expected to impact
all reporting entities.
IFRS 18 and the consequential amendments to other standards
is effective for reporting periods beginning on or after
1 January 2027 and the Group is considering its impact.
Amendments to IFRS 9 Amendments to Classification and
Measurement of Financial Instruments and IFRS 7
disclosures
The amendments clarify that a financial liability is derecognised
on the 'settlement date' and introduce an accounting policy
choice to derecognise financial liabilities settled using an
electronic payment system before the settlement date.
The classification of financial assets with ESG linked features
has been clarified via additional guidance on the assessment of
contingent features.
Clarifications have been made on non-recourse loans and
contractually linked instruments.
Additional disclosures are introduced for financial instruments
with contingent features and equity instruments classified at fair
value through OCl. The amendments are effective for annual
periods starting on or after 1 January 2026 and the Group is
considering the impact.
All other standards and interpretations issued but not yet
effective are not expected to have a material impact on the
Group.
Key management assumptions
In preparation of the annual financial statements, the Group makes
estimations and applies judgement that could affect the reported
amount of assets and liabilities within the next financial year.
Key areas in which estimates are made include:
• In accordance with IFRS 13 Fair Value Measurement, the
Group categorises financial instruments carried on the
balance sheet at fair value using a three level hierarchy.
Financial instruments categorised as level 1 are valued using
quoted market prices and therefore there is minimal
judgement applied in determining fair value. However, the fair
value of financial instruments categorised as level 2 and, in
particular, level 3 are determined using valuation techniques
including discounted cash flow analysis, price-earnings
multiples, net asset value and complex valuation models. The
valuation techniques for level 3 financial instruments involve
management judgement and estimates, the extent of which,
depends on the complexity of the instrument, counterparty
and own credit risk, funding cost, low levels of market
liquidity, and the availability of market observable information.
In particular, significant uncertainty exists in the valuation of
unlisted investments and fair value loans in the private equity
and direct investments portfolios.The estimation of fair value
is subject to an uncertain economic outlook. Key valuation
inputs are based on the most relevant observable market
information and can include expected cash flows, yield
curves, discount rates, growth rates, earnings multiples and
the underlying assets and liabilities within a business,
adjusted where necessary for factors that specifically apply
to the individual investments, sector specific factors and
recognising market volatility and liquidity. Further details of
the Group’s level 3 financial instruments, valuation
techniques, key valuation inputs applied and the sensitivity of
the valuation including the effect of applying reasonably
possible alternative assumptions in determining their fair
value are set out in note 14.
Details of unlisted investments can be found in note 25 with
further analysis contained in the notes to risk and capital
management on page 186.
• In accordance with IFRS 10 Consolidated Financial
statements, the Group controls and consolidates an investee
where the Group has power over the entity’s relevant
activities, is exposed to variable returns from its involvement
with the investee and has the ability to affect the returns
through its power over the entity. Determining whether the
group controls another entity requires judgement by
identifying an entity’s relevant activities, being those activities
that significantly affect the investee’s returns, and whether
the Group controls those relevant activities by considering
the rights attached to both current and potential voting rights,
de facto control and other contractual rights including
whether such rights are substantive. Details of subsidiaries
can be found in note K of the Parent Company annual
financial statements.
• The determination of ECL against assets that are carried at
amortised cost and ECL relating to debt instruments at FVOCI
involves a high degree of uncertainty as it involves using
assumptions that are highly subjective and sensitive to risk
factors. The most significant judgements relate to defining
what is considered to be a significant increase in credit risk;
determining the probability of default (PD), exposure at
default (EAD) and loss given default (LGD) and future cash
flows; incorporating information about forecast economic
conditions and the weightings to be applied to economic
scenarios. More detail relating to the methodology,

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judgements and estimates and results of the Group’s
assessment of ECLs can be found on pages 181 to 183.
• The measurement of ECL has reliance on expert credit
judgement. Key judgmental areas are highlighted below and
are subject to robust governance processes. Key drivers of
measurement uncertainty include:
– The assessment of staging due to a significant increase in
credit risk
– Adequacy of post model adjustments;
– Assessment of ECL on Stage 3 exposures, including the
valuation of collateral, expected timing of cash flows, client
industry considerations and recovery strategies
– The determination of write-off points
– A range of forward-looking probability weighted macro-
economic scenarios
– Estimations of probabilities of default, loss given default
and exposures at default using models.
• In addition to these drivers, some initial judgements and
assumptions were required in the design and build of the
Group’s ECL methodology, which are not considered to have
a material impact. These include the use of income
recognition effective interest rates (EIRs), in accordance with
accounting standards, as the discount factor in the ECL
calculation as well as the use of contractual maturity to
assess behavioural lives. In addition, where we have
experienced limitations on the availability of probability of
default origination data for the historic book, a portfolio
average has been used in some instances.
Following a detailed review of the outcome of the ECL
models, management continue to hold an additional overlay
provision in the UK of £3.7 million (31 March 2023: £4.9
million). Detail of the approach followed and management's
assumptions are set out on page 181 of section 3.
• The Group’s income tax charge and balance sheet provision
are judgemental in nature. This arises from certain transactions
for which the ultimate tax treatment can only be determined by
final resolution with the relevant local tax authorities. The
Group has recognised in its current tax provision certain
amounts in respect of taxation that involve a degree of
estimation and uncertainty where the tax treatment cannot
finally be determined until a resolution has been reached by
the relevant tax authority and whether the proposed tax
treatment will be accepted by the authorities. The carrying
amount of this provision is sensitive to the resolution of issues,
which is often dependent on the timetable and progress of
discussion and negotiations with the relevant tax authorities,
arbitration process and legal proceedings in the relevant tax
jurisdictions in which the Group operates. Issues can take
many years to resolve and assumptions on the likely outcome
would therefore have to be made by the Group in order to
determine if an exposure should be measured based on the
most likely amount or expected value. In making any estimates,
management’s judgement has been based on various factors,
including:
• The current status of tax audits and enquiries;
• The current status of discussions and negotiations with the
relevant tax authorities;
• The results of any previous claims; and
• Any changes to the relevant tax environments.
• The Group operates in a legal and regulatory environment
that exposes it to litigation risks. As a result, the Group is
involved in disputes and legal proceedings which arise in the
ordinary course of business. The Group evaluates all facts,
the probability of the outcome of legal proceedings,
commercial outcomes and advice from internal and external
legal counsel when considering the accounting implications
as set out in note 49.
• The Group makes use of reasonable and supportable
information to make accounting judgements and estimates
related to climate change. This includes information about the
observable impact of climate change on the current credit
risk of clients and the valuation of assets. Many of the effects
arising from climate change will be longer term in nature, with
an inherent level of uncertainty and have limited effect on
accounting judgements and estimates for the current period.
The following items represent the most significant effects that
climate change can have on the shorter term:
– The measurement of ECL considers the ability of borrowers
to make contractual payments as and when they become
due. Investec performed an assessment of specific sectors
that could be most impacted by climate risk in all jurisdictions,
specifically focusing on the ability of the clients in these
sectors to meet their financing needs. The assessment
further included a review of Investec’s appetite to fund clients
in the respective sectors. While these have not resulted in
material impact to ECL, the determination of the impact of
these risks into PD, LGD and other inputs into the ECL
calculation is ongoing.
– The assessment of asset impairment, based on value in
use, and the ability to recognise deferred tax assets are
based on future expected cash flows. The expected cash
flows are based on management’s best estimate of the
operational results, including the near-term impact of climate
risk. The Group did not consider any additional adjustments
to the cash flows to account for this risk given the time frame
of the cash flows that were considered – The use of market
indicators as inputs to fair value is assumed to include current
information and knowledge regarding the effect of climate
risk.
Key areas in which judgement is applied include:
• On the basis of current financial projections and having made
appropriate enquiries, the directors have a reasonable
expectation that the Group has adequate resources to
continue in operational existence up to 24 June 2025, which
is a period greater than twelve months from the date of issue
of the financial statements that aligns with internal budgeting
processes. Accordingly, the going concern basis is adopted in
the preparation of the financial statements.

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1 . Segmental business analysis – income statement

|  | Specialist Banking |  |  |  |
| Private Client | Corporate, Investment Banking and Other | Group Investments | Group Costs |  |
For the year to 31 March 2024 | Wealth & Investment | Private Banking | Total Group |
£’000 |
Net interest income | 8 340 | 132 302 | 670 285 | — | — | 810 927 |
Fee and commission income | 9 170 | 874 | 163 169 | — | — | 173 213 |
Fee and commission expense | (992) | (41) | (15 418) | — | — | (16 451) |
Investment income | 2 | 1 138 | 1 461 | 11 721 | — | 14 322 |
Share of post-taxation profit of associates and joint venture holdings | 31 013 | — | 24 780 | — | — | 55 793 |
Trading income/(loss) arising from |  |  |  |  |  |  |
– customer flow | 2 099 | 4 869 | 96 190 | — | — | 103 158 |
– balance sheet management and other trading activities | (662) | (99) | 27 860 | — | — | 27 099 |
Other operating income | — | — | 2 150 | — | — | 2 150 |
Operating income | 48 970 | 139 043 | 970 477 | 11 721 | — | 1 170 211 |
Expected credit loss impairment charges | 4 | (13 557) | (72 442) | — | — | (85 995) |
Operating income after expected credit loss impairment charges | 48 974 | 125 486 | 898 035 | 11 721 | — | 1 084 216 |
Operating costs | (14 178) | (57 090) | (558 981) | — | (26 350) | (656 599) |
Operating profit/(loss) before goodwill, acquired intangibles and strategic actions from continuing operations | 34 796 | 68 396 | 339 054 | 11 721 | (26 350) | 427 617 |
Profit attributable to non-controlling interests | — | — | (1 204) | — | — | (1 204) |
Adjusted operating profit/(loss) from continuing operations | 34 796 | 68 396 | 337 850 | 11 721 | (26 350) | 426 413 |
Operating profit before acquired intangibles and strategic actions from discontinued operations |  |  |  |  |  | 47 828 |
Operating profit before goodwill, acquired intangibles, strategic actions and after non-controlling interests |  |  |  |  |  |  |  | 474 241 |
Selected returns and key statistics |  |  |  |  |  |  |  |
Cost to income ratio | 29.0% | 41.1% | 57.7% | n/a |  | n/a |  | 56.2% |
Total assets (£’mn) | 1 028 | 5 327 | 23 547 | 159 | n/a |  | 30 061 |

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92
1 . Segmental business analysis – income statement (continued)

|  | Specialist Banking |  |  |  |  |
| Private Client |  | Group Investments | Group Costs |  |  |
For the year to 31 March 2023 ^ | Wealth & Investment | Private Banking | Corporate, Investment Banking and Other |  | Total Group |
£’000 |  |
Net interest income | 5 382 | 128 945 | 579 893 | — | — | 714 220 |
Fee and commission income | 8 284 | 2 120 | 121 391 | — | — | 131 795 |
Fee and commission expense | (691) | (174) | (14 577) | — | — | (15 442) |
Investment income | 7 | 141 | 4 865 | 13 210 | — | 18 223 |
Share of post-taxation profit of associates and joint venture holdings | — | — | 4 950 | — | — | 4 950 |
Trading income/(loss) arising from |  |  |  |  |  |  |
– customer flow | 1 252 | 4 449 | 81 665 | — | — | 87 366 |
– balance sheet management and other trading activities | 10 | 13 | 13 111 | — | — | 13 134 |
Other operating income | — | — | 6 879 | — | — | 6 879 |
Operating income | 14 244 | 135 494 | 798 177 | 13 210 | — | 961 125 |
Expected credit loss impairment charges | 2 | (6 344) | (60 410) | — | — | (66 752) |
Operating income after expected credit loss impairment charges | 14 246 | 129 150 | 737 767 | 13 210 | — | 894 373 |
Operating costs | (14 286) | (58 996) | (504 576) | — | (21 108) | (598 966) |
Operating profit/(loss) before goodwill and strategic actions from continuing operations | (40) | 70 154 | 233 191 | 13 210 | (21 108) | 295 407 |
Profit attributable to non-controlling interests | — | — | — | — | — | — |
Adjusted operating profit/(loss) from continuing operations | (40) | 70 154 | 233 191 | 13 210 | (21 108) | 295 407 |
Operating profit before acquired intangibles and strategic actions from discontinued operations |  |  |  |  |  |  |  | 91 767 |
Operating profit before goodwill, acquired intangibles, strategic actions and after non-controlling interests |  |  |  |  |  | 387 174 |
Selected returns and key statistics |  |  |  |  |  |  |  |
Cost to income ratio | 100.3% | 43.5% | 63.2% | n/a |  | n/a |  | 62.3% |
Total assets (£’mn) | 1 061 | 5 202 | 21 951 | 172 | n/a |  | 28 386 |

^Restated to reflect continuing operations and reversal of interest rate swaps gross-up as detailed in note 58.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

93
2 . Net interest income
This note analyses net interest income from the Group's continuing operations.

|  |  | 2024 | 2023^
For the year to 31 March | Notes |  | Average balance sheet value | Interest income | Average yield | Average balance sheet value | Interest income | Average yield
£’000 |
Cash, near cash and bank debt and sovereign debt securities | 1 |  | 8 872 354 | 427 558 | 4.82% | 9 148 676 | 210 026 | 2.30%
Loans and advances | 2 |  | 16 247 191 | 1 304 525 | 8.03% | 15 268 383 | 915 987 | 6.00%
Private client |  |  | 5 295 948 | 272 640 | 5.15% | 5 085 272 | 214 368 | 4.22%
Corporate, institutional and other clients |  |  | 10 951 243 | 1 031 885 | 9.42% | 10 183 111 | 701 619 | 6.89%
Other debt securities and other loans and advances |  |  | 891 414 | 66 290 | 7.44% | 731 317 | 38 862 | 5.31%
Other# | 3 |  | 190 123 | 116 100 | n/a |  | 225 900 | 50 370 | n/a |
Total interest-earning assets |  | 26 201 082 | 1 914 473 | 7.31% | 25 374 276 | 1 215 245 | 4.79%

|  |  | 2024 | 2023^
For the year to 31 March | Notes |  | Average balance sheet value | Interest expense | Average yield | Average balance sheet value | Interest expense | Average yield
£’000 |
Deposits by banks and other debt-related securities | 4 |  | 3 702 896 | 74 690 | 2.02% | 3 788 578 | 50 675 | 1.34%
Customer accounts (deposits) |  |  | 19 743 560 | 886 358 | 4.49% | 19 010 904 | 383 198 | 2.02%
Subordinated liabilities |  |  | 692 448 | 51 961 | 7.50% | 737 888 | 33 615 | 4.56%
Other# | 5 |  | 259 387 | 90 537 | n/a |  | 309 623 | 33 537 | n/a |
Total interest-bearing liabilities |  | 24 398 291 | 1 103 546 | 4.52% | 23 846 993 | 501 025 | 2.10%
Net interest income |  |  |  | 810 927 |  |  |  | 714 220 |  |
Net interest margin |  |  |  | 3.10% |  |  |  | 2.81% |  |

Notes:
1 Comprises (as per the balance sheet) cash and balances at central banks; loans and advances to banks; reverse repurchase agreements and cash collateral on
securities borrowed; sovereign debt securities; and bank debt securities.
2 Comprises (as per the balance sheet) loans and advances to customers.
3 Comprises (as per the balance sheet) lease receivables (housed in other assets on the balance sheet) as well as interest income from derivative financial instruments
and off-balance sheet assets where there is no associated balance sheet value.
4 Comprises (as per the balance sheet) deposits by banks; debt securities in issue; repurchase agreements and cash collateral on securities lent.
5 Comprises (as per the balance sheet) liabilities arising from lease liabilities (housed in other liabilities on the balance sheet) as well as interest expense from derivative
financial instruments where there is no associated balance sheet value.
#Includes interest income and interest expense on derivative assets and liabilities used for hedging purposes. This results in interest income and interest expense being
recognised with no associated balance sheet value.
^Restated to reflect continuing operations and reversal of interest rate swaps gross-up as detailed in note 58.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

94
3 . Net fee and commission income
This note analyses net fee and commission income from the Group's continuing operations.

For the year to 31 March | 2024 |  | 2023^ |
£’000 |  |
Wealth & Investment businesses net fee and commission income | 8 178 |  | 7 593 |
Fund management fees/fees for assets under management | 6 862 |  | 6 688 |
Private client transactional fees | 2 308 |  | 1 596 |
Fee and commission expense | (992) |  | (691) |
Specialist Banking net fee and commission income | 148 584 |  | 108 760 |
Specialist Banking fee and commission income | 164 043 |  | 123 511 |
Specialist Banking fee and commission expense | (15 459) |  | (14 751) |
Net fee and commission income | 156 762 |  | 116 353 |
Fee and commission income | 173 213 |  | 131 795 |
Fee and commission expense | (16 451) |  | (15 442) |
Net fee and commission income | 156 762 |  | 116 353 |
Annuity fees (net of fees payable) | 18 238 |  | 22 396 |
Deal fees | 138 524 |  | 93 957 |

*Wealth & Investment businesses relates to Investec Bank (Switzerland) AG.
^Restated to reflect continuing operations as detailed in note 58.
4. Investment income

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Realised | 28 655 |  | 13 159 |
Unrealised* | (27 516) |  | (15 557) |
Dividend income | 13 183 |  | 19 756 |
Funding and other net related income | — |  | 865 |
| 14 322 |  | 18 223 |

For the year to 31 March | Listed equities | Unlisted equities | Warrants and profit shares |  | Total investment portfolio |  | Debt securities (sovereign, bank and other) | Investment and trading properties | Other asset categories |  | Total |
£’000 |  |  |  |
2024 |  |  |  |  |  |  |  |  |  |  |  |
Realised | (2 742) | 38 647 | 287 |  | 36 192 |  | 831 | — | (8 368) |  | 28 655 |
Unrealised* | 2 798 | (30 381) | 450 |  | (27 133) |  | (253) | (12 500) | 12 370 |  | (27 516) |
Dividend income | 11 722 | 1 261 | — |  | 12 983 |  | — | — | 200 |  | 13 183 |
Funding and other net related income | — | — | — |  | — |  | — | — | — |  | — |
| 11 778 | 9 527 | 737 |  | 22 042 |  | 578 | (12 500) | 4 202 |  | 14 322 |
2023 |  |  |  |  |  |  |  |  |  |  |  |
Realised | (994) | 53 495 | 1 062 |  | 53 563 |  | (528) | (1 118) | (38 758) |  | 13 159 |
Unrealised* | 1 147 | (51 323) | (1 281) |  | (51 457) |  | (5 649) | (2 325) | 43 874 |  | (15 557) |
Dividend income | 13 210 | 6 313 | — |  | 19 523 |  | — | — | 233 |  | 19 756 |
Funding and other net related income | — | — | — |  | — |  | — | 865 | — |  | 865 |
| 13 363 | 8 485 | (219) |  | 21 629 |  | (6 177) | (2 578) | 5 349 |  | 18 223 |

*In a year of realisation, any prior period mark-to-market gains/(losses) recognised are reversed in the unrealised line item and recognised in the realised line item .

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

95
5. Other operating income

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Unrealised (losses)/gains on other investments | (765) |  | (3 773) |
Income from operating leases | 1 554 |  | 4 468 |
Income from government grants* | 1 361 |  | 6 184 |
| 2 150 |  | 6 879 |

*Government grants income includes Research and Development Expenditure Credits and income from the Capability and Innovation Fund from the Banking
Competition Remedies Limited.
6 . Expected credit loss impairment charges

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Expected credit losses have arisen on the following items: |  |  |  |
Loans and advances to customers | 90 448 |  | 54 396 |
Other loans and advances | (64) |  | 69 |
Other balance sheet assets | (160) |  | 3 648 |
Undrawn commitments and guarantees | (4 229) |  | 8 639 |
| 85 995 |  | 66 752 |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

96
7 . Operating costs
This note analyses operating costs from the Group's continuing operations.

For the year to 31 March | 2024 |  | 2023^ |
£’000 |  |
Staff compensation costs | 436 100 |  | 422 566 |
Salaries and wages (including directors’ remuneration)** | 352 067 |  | 340 344 |
Share-based payment expense | 22 989 |  | 21 193 |
Social security costs | 40 891 |  | 41 812 |
Pensions and provident fund contributions | 20 153 |  | 19 217 |
Training and other costs | 5 924 |  | 6 425 |
Staff costs | 442 024 |  | 428 991 |
Premises expenses | 29 373 |  | 26 603 |
Premises expenses (excluding depreciation and impairments) | 14 500 |  | 12 558 |
Premises depreciation and impairments | 14 873 |  | 14 045 |
Equipment expenses (excluding depreciation) | 52 031 |  | 45 564 |
Business expenses* | 120 050 |  | 84 772 |
Marketing expenses | 9 995 |  | 9 210 |
Depreciation, amortisation and impairment on equipment, software and intangibles | 3 126 |  | 3 826 |
| 656 599 |  | 598 966 |

*Business expenses mainly comprise insurance costs, consulting and professional fees, travel expenses and subscriptions. Also, in the current year a provision relating
to motor vehicle financing.
**Details of the directors’ emoluments, pensions and their interests are disclosed in the Investec remuneration report 2024 .
^Restated to reflect continuing operations as detailed in note 58.
Segmental breakdown of operating costs

|  | Specialist Banking |  |
| Private Client | Corporate, Investment Banking and Other | Group Costs |
For the year to 31 March 2024 | Wealth & Investment | Private Banking | Total Group
£’000
Staff costs | 8 520 | 24 803 | 395 411 | 13 290 | 442 024
Premises expenses | 512 | 1 418 | 26 630 | 813 | 29 373
Equipment expenses (excluding depreciation) | 2 650 | 6 568 | 41 595 | 1 218 | 52 031
Business expenses | 2 347 | 20 881 | 86 436 | 10 386 | 120 050
Marketing expenses | 29 | 3 420 | 5 903 | 643 | 9 995
Depreciation, amortisation and impairment on equipment, software and intangibles | 120 | — | 3 006 | — | 3 126
| 14 178 | 57 090 | 558 981 | 26 350 | 656 599

|  | Specialist Banking |  |
| Private Client | Corporate, Investment Banking and Other | Group Costs |
For the year to 31 March 2023 | Wealth & Investment | Private Banking | Total Group
£’000
Staff costs | 9 379 | 26 973 | 383 309 | 9 330 | 428 991
Premises expenses | 413 | 1 303 | 24 618 | 269 | 26 603
Equipment expenses (excluding depreciation) | 2 218 | 9 090 | 33 829 | 427 | 45 564
Business expenses | 1 941 | 17 173 | 54 759 | 10 899 | 84 772
Marketing expenses | 16 | 4 457 | 4 554 | 183 | 9 210
Depreciation, amortisation and impairment on equipment, software and intangibles | 319 | — | 3 507 | — | 3 826
| 14 286 | 58 996 | 504 576 | 21 108 | 598 966

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

97
7. Operating costs (continued)
The following amounts were paid by the Group to the auditors in respect of the audit of the financial statements and for other
services provided to the Group:

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Ernst & Young fees^ |  |  |  |
Total audit fees | 6 320 |  | 6 188 |
Audit of the Group’s accounts | 468 |  | 438 |
Audit of the Group’s subsidiaries | 5 852 |  | 5 750 |
Total non-audit fees | 1 692 |  | 2 419 |
Audit related assurance services 1 | 820 |  | 1 326 |
Other assurance services 2 | 346 |  | 640 |
Services related to corporate finance transactions 3 | 75 |  | 87 |
Other non-audit services | 451 |  | 366 |
Total auditor’s remuneration | 8 012 |  | 8 607 |

1.Audit related assurance fees consist of reviews of interim financial information and reporting accountant services.
2.Other assurance services relate to services required by law or regulation (including reporting on regulatory returns, agreed-upon-procedures relating to statutory and
regulatory filings and reporting to regulators on client assets).
3.Corporate finance transaction services relate to comfort letters on debt issuances.
^ In addition, audit fees of £1.8 million (2023: £1.6 million) and non audit fees of £300 000 (2023: £300 000) are borne by the Company and which relate to the Investec
DLC Group.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

98
8 . Share-based payments
The Group operates share option and long-term share incentive plans for employees, the majority of which are on an equity-settled
basis. The purpose of the staff share schemes is to promote an esprit de corps within the organisation, create an awareness of
Investec Group’s performance and provide an incentive to maximise individual business unit and Investec Group performance by
allowing all staff to share in the risks and rewards of the Investec Group.
Awards made under the UK share schemes are settled in Investec Plc shares (INVP).
These awards are contingent on the continued employment of employees up to the date of vesting.
The share incentive plans are granted in the following award types, each of which vest in line with the specified parameters.
Equity-settled awards granted under Investec share plans
Forfeitable share awards are shares held in the name of or for the benefit of an employee, for which the employee has dividend and
voting rights.
Conditional awards are the right to receive a share at a future date once the service conditions have been met. Employees do not
have a right to dividends or voting rights on these grants until vesting.
Nil-cost options are share options in respect of which no option price is payable and where the employee has no dividends or
voting rights.
Forfeitable and conditional awards and nil-cost options are awarded to employees for no consideration. These are settled by grants
from the Investec Group’s share scheme trusts, which acquire shares through purchase of shares on market.

For the year to 31 March | 2024 |  | 2023^ |
£’000 |  |
Share-based payment expense |  |  |  |
Equity-settled | 22 989 |  | 21 193 |

^Restated to reflect continuing operations as detailed in note 58.

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Weighted average fair value of awards granted in the year |  |  |  |
UK schemes | 19 600 |  | 25 576 |

| UK schemes
| 2024 | 2023
Details of awards outstanding during the year | Number of share awards | Weighted average exercise price £ |  | Number of share awards | Weighted average exercise price £ |
Outstanding at the beginning of the year | 28 785 417 | — |  | 29 590 241 | — |
Deconsolidation of subsidiaries | (748 335) | — |  | — | — |
Granted during the year | 5 525 265 | — |  | 5 542 176 | — |
Exercised during the year^ | (5 182 871) | — |  | (4 788 744) | 0.01 |
Awards forfeited during the year | (658 715) | — |  | (1 558 256) | — |
Outstanding at the end of the year | 27 720 761 | — |  | 28 785 417 | — |
Exercisable at the end of the year | 861 064 | — |  | 932 470 | — |

^The weighted average share price of options exercised during the year w as £4.58 (2023: £4.57).
The weighted average share price during the year was £4.81 (2023: £4.59).

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

99
8. Share-based payments (continued)

Additional information relating to awards: | 2024 |  | 2023 |
Options with strike prices |  |  |  |
Exercise price range | n/a |  | n/a |
Weighted average remaining contractual life | n/a |  | n/a |
Long-term incentive grants with no strike price |  |  |  |
Exercise price range | £nil |  | £nil |
Weighted average remaining contractual life | 1.69 years |  | 1.99 years |
Weighted average fair value of awards and long-term grants at measurement date | £3.55 |  | £4.61 |
The fair values of awards granted were calculated using a Black-Scholes option pricing model and shares granted were calculated at market price. For awards granted during the year, the inputs into the model were as follows: |  |  |  |
– Share price at date of grant | £4.25–£5.13 |  | £4.70–£4.81 |
– Exercise price | £nil |  | £nil |
– Expected volatility | n/a |  | n/a |
– Award life | 2.00–7.01 years |  | 3.66–7.01 years |
– Expected dividend yields | n/a |  | n/a |
– Risk-free rate | n/a |  | n/a |

Expected volatility was determined based on the implied volatility levels quoted by the derivatives trading desk. The expected
volatility is based on the respective share price movement over the last six months, but also includes an element of forward
expectation.
The expected attrition rates used were determined based on historical Group data with an adjustment to actual attrition on final
vesting.

| UK schemes
| 2024 | 2023
Summary by share plan and award type | Number of share awards outstanding | Year of vesting |  | Number of share awards outstanding | Year of vesting |
Investec 1 Limited Share Incentive Plan |  |  |  |  |  |
– Conditional awards | 70 571 | 3,4,5 |  | 137 473 | 3,4,5 |
– Forfeitable shares | 11 446 438 | 3,4,5 |  | 15 598 193 | 3,4,5 |
– Nil-cost options | 5 000 | 4,5 |  | 5 000 | 4,5 |
Investec plc Executive Incentive Plan 2013 |  |  |  |  |  |
– Executive conditional awards | 6 436 810 | 1,2,3 & 3,4,5 & 3,4,5,6,7 |  | 7 531 227 | 1,2,3 & 3,4,5 & 3,4,5,6,7 |
– Nil-cost options | 10 000 | 4,5 |  | 10 000 | 4,5 |
Investec plc Share Incentive Plan 2021 |  |  |  |  |  |
– Conditional awards | 314 045 | 3,4,5 |  | 76 349 | 3,4,5 |
– Executive conditional awards | 2 222 905 | 1,2,3 & 3,4,5 & 3,4,5,6,7 |  | 1 428 850 | 1,2,3 & 3,4,5 & 3,4,5,6,7 |
– Forfeitable shares | 7 214 992 | 3,4,5 |  | 3 998 325 | 3,4,5 |
Outstanding at the end of the year | 27 720 761 |  |  | 28 785 417 |  |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

100
8. Share-based payments (continued)

| UK schemes
| 2024 | 2023
Summary by share plan | Number of share awards outstanding | Maximum limit per individual |  | Number of share awards | Maximum limit per individual |
Investec 1 Limited Share Incentive Plan | 11 522 009 | 10 000 000 |  | 15 740 666 | 10 000 000 |
Investec plc Executive Incentive Plan 2013 | 6 446 810 | 2 500 000 |  | 7 541 227 | 2 500 000 |
Investec plc Share Incentive Plan 2021 | 9 751 942 | 15 000 000 |  | 5 503 524 | 15 000 000 |
Outstanding at the end of the year | 27 720 761 |  |  | 28 785 417 |  |

Awards granted but not exercised by option vesting period | 2024 |  | 2023 |
Year to 31 March 2023 | — |  | 932 470 |
Year to 31 March 2024 | 861 064 |  | 5 363 823 |
Year to 31 March 2025 | 7 643 931 |  | 7 642 215 |
Year to 31 March 2026 | 9 201 369 |  | 9 398 810 |
Year to 31 March 2027 | 5 226 958 |  | 3 846 730 |
Year to 31 March 2028 | 3 743 032 |  | 995 814 |
Year to 31 March 2029 | 625 093 |  | 444 531 |
Year to 31 March 2030 | 290 162 |  | 161 024 |
Year to 31 March 2031 | 129 152 |  | — |
Outstanding at the end of the year | 27 720 761 |  | 28 785 417 |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

101
9 . Long-term employment benefits
In March 2020, as part of the Investec Asset Management Limited (IAM) demerger, each participant of the Investec Group share
option and long-term share incentive plans received the right to receive one Ninety One plc share award for every two Investec plc
share awards they held. The Ninety One plc share awards were granted on the same terms and vesting period as the Investec plc
awards they related to.
Investec DLC has an obligation to deliver Ninety One plc shares to the holders of Investec plc share awards. Accordingly, this
obligation was classified and measured as an other long-term liability in terms of IAS 19 Employee Benefits (IAS 19). The initial
liability of £7 263 000 was calculated as the fair value of the liability at the date of demerger for the portion of the awards already
vested. The total value of the liability represented past service cost and as a result was accounted for in retained income. The
liability was subsequently measured at fair value through profit and loss.
In the prior year, on 30 May 2022, DLC’s 15% shareholding in Ninety One DLC was distributed to ordinary shareholders. Each
participant of the Investec share option and long-term share incentive plans for employees, received the right to receive 0.13751
Ninety One shares for each Investec share option they had.
In addition, management approved the acceleration of certain remaining Ninety One awards. Participants had 90 days to exercise
the acceleration. The acceleration excluded awards made to senior management.
IAS 19 long-term employment benefit liability fair value movement recognised in the income statement for the year ended
31 March 2024 was £0.6 million (31 March 2023: £1.9 million).

| 2024 | 2023
Details of awards outstanding during the year | Number of Ninety One awards | Weighted average exercise price £ |  | Number of Ninety One awards | Weighted average exercise price £ |
Outstanding at the beginning of the year | 2 735 148 | — |  | 4 312 508 | 0.01 |
Sale of business | — | — |  | — | — |
Grant linked to Ninety One Distribution | — | — |  | 4 316 708 | — |
Granted during the year^ | 103 046 | — |  | 1 120 | — |
Exercised during the year | (1 201 482) | — |  | (5 706 136) | — |
Lapsed during the year | (21 369) | — |  | (189 052) | 0.17 |
Outstanding at the end of the year | 1 615 343 | — |  | 2 735 148 | — |
Exercisable at the end of the year | 421 724 | — |  | 1 054 811 | — |

^The Ninety One shares granted are due to the Investec Group reaching predetermined performance conditions. These awards are aligned with the uptick in Investec
shares in the ratio of 1 Ninety One share for every 2 Investec shares.
The exercise price range and weighted average remaining contractual life for market strike options and long-term awards
outstanding at 31 March 2024 were as follows:

Additional information relating to awards: | 2024 |  | 2023 |
Options with strike price |  |  |  |
Exercise price range | n/a |  | n/a |
Weighted average remaining contractual life | n/a |  | n/a |
Long-term awards with no strike price |  |  |  |
Exercise price range | £nil |  | £nil |
Weighted average remaining contractual life | 1.19 years |  | 1.51 years |

For the liability calculated, the inputs into the model were as follows:

Additional information relating to awards: | 2024 |  | 2023 |
The fair value of the liability was calculated by using the Black-Scholes option pricing model. |  |  |  |
– Listed share price at 31 March | £1.71 |  | £1.85 |
– Exercise price | £nil |  | £nil |
– Expected volatility | 30.96%–31.37% |  | 37.7% |
– Award life | 0–4.42 years |  | 0–5.41 years |
– Expected dividend yields | 0%–5.54% |  | 0%–9.82% |
– Risk-free rate | 3.78%–5.07% |  | 3.67%–4.45% |

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

102
10 . Taxation
This note analyses taxation from the Group's continuing operations.

For the year to 31 March £’000 | 2024 |  | 2023^ |
Income statement taxation charge |  |  |  |
Current taxation |  |  |  |
UK |  |  |  |
Current taxation on income for the year | 84 102 |  | 68 298 |
Adjustments in respect of prior years | 3 110 |  | (7 359) |
Corporation tax before double tax relief | 87 212 |  | 60 939 |
Double tax relief | (566) |  | (335) |
| 86 646 |  | 60 604 |
Europe | 7 383 |  | 5 478 |
Australia | 333 |  | 438 |
Other* | 1 337 |  | 638 |
| 9 053 |  | 6 554 |
Total current taxation | 95 699 |  | 67 158 |
Deferred taxation |  |  |  |
UK | (9 689) |  | (7 632) |
Europe | (199) |  | 102 |
Australia | — |  | — |
Other | (36) |  | (5) |
Total deferred taxation | (9 924) |  | (7 535) |
Total taxation charge for the year | 85 775 |  | 59 623 |
Total taxation charge for the year comprises: |  |  |  |
Taxation on operating profit before goodwill | 86 502 |  | 59 623 |
Taxation on acquired intangibles, goodwill and disposal of subsidiaries | (727) |  | — |
| 85 775 |  | 59 623 |
Deferred taxation comprises: |  |  |  |
Origination and reversal of temporary differences | (8 560) |  | (54) |
Changes in taxation rates | (616) |  | (6 710) |
Adjustment in respect of prior years | (748) |  | (771) |
| (9 924) |  | (7 535) |
The deferred taxation credit in the income statement arose from: |  |  |  |
Deferred capital allowances | (3 125) |  | (11 303) |
Income and expenditure accruals | 25 |  | (423) |
Asset in respect of unexpired options | (6 349) |  | (2 258) |
Unrealised fair value adjustment on financial instruments | (283) |  | 220 |
Movement in deferred tax assets related to assessed losses | 33 |  | 6 087 |
Liability/(asset) in respect of pension surplus | 10 |  | 11 |
Deferred tax on acquired intangibles | (235) |  | — |
Other temporary differences | — |  | 131 |
| (9 924) |  | (7 535) |
The deferred taxation charge in OCI/equity arose from: |  |  |  |
Asset in respect of unexpired options | (6 433) |  | (612) |
Unrealised fair value adjustment on financial instruments | 14 119 |  | 5 229 |
| 7 686 |  | 4 617 |

*Where Other largely includes India and North America.
^Restated to reflect continuing operations as detailed in note 58.

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103
10. Taxation (continued)

For the year to 31 March | 2024 |  | 2023^ |
£’000 |  |
The rates of corporation tax for the relevant years are: | % |  | % |
UK | 25 |  | 19 |
Europe (average) | 10 |  | 10 |
Australia | 30 |  | 30 |
Profit before taxation | 403 638 |  | 293 720 |
Taxation on profit before taxation | 85 775 |  | 59 623 |
Effective tax rate | 21.3% |  | 20.3% |
The taxation charge on activities for the year is different from the standard rate as detailed below: |  |  |  |
Taxation on profit on ordinary activities before taxation at UK rate o f 25 % ( 2023 : 19%) | 100 909 |  | 54 868 |
Taxation adjustments relating to foreign earnings | (17 282) |  | (3 409) |
Taxation relating to prior years | 2 362 |  | (8 129) |
Impairment of goodwill and non-operating items | (298) |  | 1 199 |
Share options accounting expense/(income) | (212) |  | 739 |
Non-taxable income | (4 885) |  | (1 956) |
Net other permanent differences | 268 |  | (742) |
Bank surcharge | 6 910 |  | 17 068 |
Capital gains – non-taxable/covered by losses | 417 |  | 1 361 |
Movement in unrecognised trading losses | (1 798) |  | 5 335 |
Change in tax rate | (616) |  | (6 711) |
Total taxation charge as per income statement | 85 775 |  | 59 623 |
Other comprehensive income taxation effects |  |  |  |
Gains on realisation of debt instruments at FVOCI recycled through the income statement | (982) |  | (314) |
Pre-taxation | (1 131) |  | (431) |
Taxation effect | 149 |  | 117 |
Fair value movements on debt and equity instruments at FVOCI taken directly to other comprehensive income | (7 153) |  | (76 182) |
Pre-taxation | (5 043) |  | (75 913) |
Taxation effect | (2 110) |  | (269) |
Cash flow hedges reserves | 17 684 |  | — |
Pre-taxation | 24 553 |  | — |
Taxation effect | (6 869) |  | — |
Statement of changes in equity taxation effects |  |  |  |
Additional Tier 1 capital | (20 634) |  | (16 880) |
Pre-taxation | (20 634) |  | (16 880) |
Taxation effect | — |  | — |
Share-based payment adjustment | 6 984 |  | 491 |
Pre-taxation | — |  | — |
Taxation effect | 6 984 |  | 491 |
IFRS 9 transitional adjustments | — |  | (7) |
Pre-taxation | — |  | — |
Taxation effect | — |  | (7) |

^Restated to reflect continuing operations as detailed in note 58.
Global Minimum Tax
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates in. The legislation will be
effective for the Group’s financial year beginning 1 April 2024. The Group is in scope of the enacted or substantively enacted
legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes.
The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country
reporting and financial statements for the constituent entities in the Group. Based on the assessment, the Pillar Two effective tax
rates in most of the jurisdictions in which the Group operates are above 15%. However, there are a limited number of jurisdictions
(Guernsey, Jersey and Isle of Man) where the transitional safe harbour relief does not apply and the Pillar Two effective tax rate is
below 15%. The Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions. The Group has applied
a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax
when it is incurred.
We will continue to review the impact of the Pillar Two rules as further guidance is released by the OECD and additional
governments implement this tax regime.

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104
11 . Dividends

| 2024 | 2023
For the year to 31 March £’000 | Pence per share | Total |  | Pence per share | Total |
Ordinary dividend |  |  |  |  |  |
Final dividend for prior year | 17.5 | 50 252 |  | 14.0 | 44 049 |
Interim dividend for current year | 15.5 | 44 153 |  | 13.5 | 44 414 |
Total dividend attributable to ordinary shareholders | 33.0 | 94 405 |  | 27.5 | 88 463 |

The directors have proposed a final dividend in respect of the financial year ended 31 March 2024 of 19.0 pence per ordinary share
( 31 March 2023: 17.5 pence).
This will be paid as follows:
• For Investec plc non-South African shareholders, through a dividend paid by Investec plc of 19.0 pence per ordinary share
• For Investec plc South African shareholders, through a dividend payment on the SA DAS share of 19.0 pence per ordinary share.
The final dividend to shareholders on the register at the close of business on 23 August 2024 is subject to the approval of the
members of Investec plc at the annual general meeting which is scheduled to take place on 8 August 2024 and, if approved,will
be paid on 6 September 2024.

| 2024 | 2023
For the year to 31 March £’000 | Pence per share | Cents per share | Total |  | Pence per share | Cents per share | Total |
Perpetual preference dividend |  |  |  |  |  |  |  |
Final dividend for prior year | 21.59 | 490.94 | 623 |  | 21.58 | 490.94 | 200 |
Interim dividend for current year | 29.09 | 552.50 | 832 |  | 11.44 | 329.08 | 340 |
Total dividend attributable to perpetual preference shareholders recognised in current financial year | 50.68 | 1 043.44 | 1 455 |  | 33.02 | 820.02 | 540 |

The directors have declared a final dividend in respect of the financial year ended 31 March 2024 of 31.33562 pence (Investec plc
shares traded on the JSE Limited) and 31.33562 pence (Investec plc shares traded on the Channel Island Stock Exchange), and
559.65411 cents per Rand-denominated perpetual preference share. The final Sterling dividend will be payable on 28 June 2024
to shareholders on the register at the close of business on 14 June 2024. The final Rand dividend will be payable on 28 June 2024
to shareholders on the register at the close of business on 14 June 2024.

For the year to 31 March | 2024 |  | 2023 |
£’000 |  |
Dividend attributable to Other Additional Tier 1 securities | 20 642 |  | 16 880 |

The £250 000 000 Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities (AT1 securities), issued
on 5 October 2017, pay a distribution rate of 6.75% per annum quarterly.
£141 892 000 of the AT1 securities were bought back on 1 March 2024.
On 28 February 2024, a new £350 000 000 issuance was made paying a distribution rate of 10.5% per annum semi-annually.
The dividend is shown gross of UK corporation tax.

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105
12 . Analysis of income and impairments by category of financial instrument
This note analyses income and impairments from the Group's continuing operations.

| At fair value through profit or loss
| IFRS 9 mandatory |  |
For the year to 31 March | Trading** | Non-trading** | Designated at inception |
£’000 |
2024 |  |  |  |
Net interest income | 8 477 | 81 632 | — |
Fee and commission income | 13 685 | 1 054 | — |
Fee and commission expense | — | — | — |
Investment income | (1 365) | 16 365 | (3 550) |
Share of post-taxation profit of associates and joint venture holdings | — | — | — |
Trading income/(loss) arising from |  |  |  |
– customer flow | 105 349 | (736) | 451 |
– balance sheet management and other trading activities | 372 | 27 100 | — |
Other operating income | — | — | — |
Total operating income/(expense) before expected credit loss | 126 518 | 125 415 | (3 099) |
Expected credit loss impairments charges* | — | — | — |
Operating income/(expense) | 126 518 | 125 415 | (3 099) |

For the year to 31 March | Trading** | Non-trading** | Designated at inception |
£’000 |
2023^ |  |  |  |
Net interest income | 19 858 | 70 562 | — |
Fee and commission income | 15 457 | 1 054 | — |
Fee and commission expense | — | — | — |
Investment income | (8 096) | 18 575 | (396) |
Share of post-taxation profit of associates and joint venture holdings | — | — | — |
Trading income/(loss) arising from |  |  |  |
– customer flow | 90 917 | (1 573) | 1 218 |
– balance sheet management and other trading activities | 624 | 20 981 | (6 116) |
Other operating income | — | — | — |
Total operating income/(expense) before expected credit loss | 118 760 | 109 599 | (5 294) |
Expected credit loss impairments charges* | — | — | — |
Operating income/(expense) | 118 760 | 109 599 | (5 294) |

*Includes off-balance sheet items.
**Fair value through profit and loss income statement items have been split as trading and non-trading, as defined by regulatory rules for the trading book and banking
book requirements respectively. Trading consists of income and expenses from positions held for trading intent or to hedge elements of the trading book. Non-trading
consists of income and expenses from positions that are expected to be held to maturity.
^Restated to reflect continuing operations and reversal of interest rate swaps gross-up as detailed in note 58.

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106

At fair value through comprehensive income |  |  |  |  |  |
Debt instruments with a dual business model | Equity instruments | Amortised cost | Non-financial instruments | Other fee income and expenses |  | Total |
175 370 | — | 545 910 | (462) | — |  | 810 927 |
— | — | 69 720 | — | 88 754 |  | 173 213 |
— | — | (2 736) | — | (13 715) |  | (16 451) |
1 131 | 11 721 | 700 | (10 680) | — |  | 14 322 |
— | — | — | 55 793 | — |  | 55 793 |
— | — | (1 906) | — | — |  | 103 158 |
— | — | (373) | — | — |  | 27 099 |
— | — | 1 553 | — | 597 |  | 2 150 |
176 501 | 11 721 | 612 868 | 44 651 | 75 636 |  | 1 170 211 |
— | — | (85 995) | — | — |  | (85 995) |
176 501 | 11 721 | 526 873 | 44 651 | 75 636 |  | 1 084 216 |

Debt instruments with a dual business model | Equity instruments | Amortised cost | Non-financial instruments | Other fee income and expenses |  | Total |
83 370 | — | 539 675 | 755 | — |  | 714 220 |
— | — | 68 381 | — | 46 903 |  | 131 795 |
— | — | (2 594) | — | (12 848) |  | (15 442) |
1 001 | 13 210 | 484 | (6 555) | — |  | 18 223 |
— | — | — | 4 950 | — |  | 4 950 |
— | — | (3 196) | — | — |  | 87 366 |
— | — | (2 355) | — | — |  | 13 134 |
— | — | 4 468 | — | 2 411 |  | 6 879 |
84 371 | 13 210 | 604 863 | (850) | 36 466 |  | 961 125 |
— | — | (66 752) | — | — |  | (66 752) |
84 371 | 13 210 | 538 111 | (850) | 36 466 |  | 894 373 |

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107
13 . Analysis of financial assets and liabilities by category of financial instruments

| At fair value through profit or loss
| IFRS 9 mandatory |  |
At 31 March 2024 | Trading* | Non-trading* | Designated at initial recognition |
£’000 |
Assets |  |  |  |
Cash and balances at central banks | — | — | — |
Loans and advances to banks | — | — | — |
Reverse repurchase agreements and cash collateral on securities borrowed | — | 164 319 | — |
Sovereign debt securities | — | — | — |
Bank debt securities | — | — | — |
Other debt securities | — | 59 678 | — |
Derivative financial instruments | 437 255 | — | — |
Securities arising from trading activities | 145 200 | 1 433 | 10 699 |
Loans and advances to customers | — | 641 197 | — |
Other loans and advances | — | — | — |
Other securitised assets | — | — | 66 702 |
Investment portfolio | — | 246 521 | — |
Interests in associated undertakings and joint venture holdings | — | — | — |
Current taxation assets | — | — | — |
Deferred taxation assets | — | — | — |
Other assets | 4 732 | 5 153 | — |
Property and equipment | — | — | — |
Goodwill | — | — | — |
Software | — | — | — |
Other acquired intangible assets | — | — |  |
| 587 187 | 1 118 301 | 77 401 |
Liabilities |  |  |  |
Deposits by banks | — | — | — |
Derivative financial instruments | 472 662 | — | — |
Other trading liabilities | 18 449 | — | — |
Repurchase agreements and cash collateral on securities lent | — | — | — |
Customer accounts (deposits) | — | — | — |
Debt securities in issue | — | — | 9 823 |
Liabilities arising on securitisation of other assets | — | — | 71 751 |
Current taxation liabilities | — | — | — |
Other liabilities | — | — | — |
| 491 111 | — | 81 574 |
Subordinated liabilities | — | — | — |
| 491 111 | — | 81 574 |

*Fair value through profit and loss balance sheet positions have been split as trading and non-trading, as defined by regulatory rules for the trading book and banking
book requirements respectively. Trading consists of positions held for trading intent or to hedge elements of the trading book. Non-trading consists of positions that
are expected to be held to maturity.
For more information on hedges, please refer to note 51 on pages 150 to 152.

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108

At fair value through comprehensive income |  |  |  |  |
Debt instrument with dual business model | Equity instruments |  | Total instruments at fair value | Amortised cost | Non-financial instruments or scoped out of IFRS 9 | Total |
— | — |  | — | 5 661 623 | — | 5 661 623 |
— | — |  | — | 676 464 | — | 676 464 |
— | — |  | 164 319 | 975 796 | — | 1 140 115 |
993 289 | — |  | 993 289 | 934 845 | — | 1 928 134 |
247 263 | — |  | 247 263 | 49 992 | — | 297 255 |
8 552 | — |  | 68 230 | 640 055 | — | 708 285 |
— | — |  | 437 255 | — | — | 437 255 |
— | — |  | 157 332 | — | — | 157 332 |
1 471 371 | — |  | 2 112 568 | 14 457 745 | — | 16 570 313 |
— | — |  | — | 117 514 | — | 117 514 |
— | — |  | 66 702 | — | — | 66 702 |
— | 158 889 |  | 405 410 | — | — | 405 410 |
— | — |  | — | — | 857 247 | 857 247 |
— | — |  | — | — | 31 200 | 31 200 |
— | — |  | — | — | 119 730 | 119 730 |
— | — |  | 9 885 | 417 758 | 312 478 | 740 121 |
— | — |  | — | — | 72 947 | 72 947 |
— | — |  | — | — | 68 669 | 68 669 |
— | — |  | — | — | 4 571 | 4 571 |
— | — |  | — | — | — | — |
2 720 475 | 158 889 |  | 4 662 253 | 23 931 792 | 1 466 842 | 30 060 887 |
— | — |  | — | 2 174 305 | — | 2 174 305 |
— | — |  | 472 662 | — | — | 472 662 |
— | — |  | 18 449 | — | — | 18 449 |
— | — |  | — | 85 091 | — | 85 091 |
— | — |  | — | 20 790 611 | — | 20 790 611 |
— | — |  | 9 823 | 1 263 283 | — | 1 273 106 |
— | — |  | 71 751 | — | — | 71 751 |
— | — |  | — | — | 8 672 | 8 672 |
— | — |  | — | 594 305 | 431 508 | 1 025 813 |
— | — |  | 572 685 | 24 907 595 | 440 180 | 25 920 460 |
— | — |  | — | 668 810 | — | 668 810 |
— | — |  | 572 685 | 25 576 405 | 440 180 | 26 589 270 |

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109
13 . Analysis of financial assets and liabilities by category of financial instruments
(continued)

| At fair value through profit or loss
| IFRS 9 mandatory |  |
At 31 March 2023 | Trading* | Non-trading* | Designated at initial recognition |
£’000 |
Assets |  |  |  |
Cash and balances at central banks | — | — | — |
Loans and advances to banks | — | — | — |
Reverse repurchase agreements and cash collateral on securities borrowed | — | 345 869 | — |
Sovereign debt securities | — | 24 077 | — |
Bank debt securities | — | — | — |
Other debt securities | — | 93 992 | — |
Derivative financial instruments | 634 123 | — | — |
Securities arising from trading activities | 110 619 | 4 002 | 12 916 |
Loans and advances to customers | — | 550 515 | — |
Other loans and advances | — | — | — |
Other securitised assets | — | — | 78 231 |
Investment portfolio | — | 316 919 | — |
Interests in associated undertakings and joint venture holdings | — | — | — |
Current taxation assets | — | — | — |
Deferred taxation assets | — | — | — |
Other assets | 10 327 | 9 213 | — |
Property and equipment | — | — | — |
Goodwill | — | — | — |
Software | — | — | — |
Other acquired intangible assets | — | — |  |
| 755 069 | 1 344 587 | 91 147 |
Liabilities |  |  |  |
Deposits by banks | — | — | — |
Derivative financial instruments | 704 816 | — | — |
Other trading liabilities | 28 184 | — | — |
Repurchase agreements and cash collateral on securities lent | — | — | — |
Customer accounts (deposits) | — | — | — |
Debt securities in issue | — | — | 21 554 |
Liabilities arising on securitisation of other assets | — | — | 81 609 |
Current taxation liabilities | — | — | — |
Other liabilities | — | 6 324 | — |
| 733 000 | 6 324 | 103 163 |
Subordinated liabilities | — | — | — |
| 733 000 | 6 324 | 103 163 |

*Fair value through profit and loss balance sheet positions have been split as trading and non-trading, as defined by regulatory rules for the trading book and banking
book requirements respectively. Trading consists of positions held for trading intent or to hedge elements of the trading book. Non-trading consists of positions that
are expected to be held to maturity.
For more information on hedges, please refer to note 51 on pages 150 to 152.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
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110

At fair value through comprehensive income |  |  |  |  |
Debt instrument with dual business model | Equity instruments |  | Total instruments at fair value | Amortised cost | Non-financial instruments or scoped out of IFRS 9 | Total |
— | — |  | — | 5 400 401 | — | 5 400 401 |
— | — |  | — | 893 297 | — | 893 297 |
— | — |  | 345 869 | 992 830 | — | 1 338 699 |
1 141 745 | — |  | 1 165 822 | 55 922 | — | 1 221 744 |
199 737 | — |  | 199 737 | 4 954 | — | 204 691 |
— | — |  | 93 992 | 603 283 | — | 697 275 |
— | — |  | 634 123 | — | — | 634 123 |
— | — |  | 127 537 | — | — | 127 537 |
843 428 | — |  | 1 393 943 | 14 173 866 | — | 15 567 809 |
— | — |  | — | 142 626 | — | 142 626 |
— | — |  | 78 231 | — | — | 78 231 |
— | 172 285 |  | 489 204 | — | — | 489 204 |
— | — |  | — | — | 52 320 | 52 320 |
— | — |  | — | — | 34 324 | 34 324 |
— | — |  | — | — | 112 347 | 112 347 |
— | — |  | 19 540 | 612 778 | 333 131 | 965 449 |
— | — |  | — | — | 121 014 | 121 014 |
— | — |  | — | — | 255 267 | 255 267 |
— | — |  | — | — | 9 415 | 9 415 |
— | — |  | — | — | 40 550 | 40 550 |
2 184 910 | 172 285 |  | 4 547 998 | 22 879 957 | 958 368 | 28 386 323 |
— | — |  | — | 2 172 171 | — | 2 172 171 |
— | — |  | 704 816 | — | — | 704 816 |
— | — |  | 28 184 | — | — | 28 184 |
— | — |  | — | 139 529 | — | 139 529 |
— | — |  | — | 19 121 921 | — | 19 121 921 |
— | — |  | 21 554 | 1 427 991 | — | 1 449 545 |
— | — |  | 81 609 | — | — | 81 609 |
— | — |  | — | — | 5 370 | 5 370 |
— | — |  | 6 324 | 645 612 | 580 793 | 1 232 729 |
— | — |  | 842 487 | 23 507 224 | 586 163 | 24 935 874 |
— | — |  | — | 731 483 | — | 731 483 |
— | — |  | 842 487 | 24 238 707 | 586 163 | 25 667 357 |

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111
14 . Fair value hierarchy
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value
measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation technique used.
The different levels are identified as follows:
Level 1 – quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

|  |  | Fair value category
At 31 March 2024 | Total instruments at fair value |  | Level 1 | Level 2 | Level 3 |
£’000 |  |
Assets |  |  |  |  |  |
Reverse repurchase agreements and cash collateral on securities borrowed | 164 319 |  | — | 164 319 | — |
Sovereign debt securities | 993 289 |  | 993 289 | — | — |
Bank debt securities | 247 263 |  | 247 263 | — | — |
Other debt securities | 68 230 |  | 8 552 | 65 | 59 613 |
Derivative financial instruments | 437 255 |  | — | 384 245 | 53 010 |
Securities arising from trading activities | 157 332 |  | 157 332 | — | — |
Loans and advances to customers* | 2 112 568 |  | — | 70 418 | 2 042 150 |
Other securitised assets | 66 702 |  | — | — | 66 702 |
Investment portfolio | 405 410 |  | 159 681 | 754 | 244 975 |
Other assets | 9 885 |  | 9 885 | — | — |
| 4 662 253 |  | 1 576 002 | 619 801 | 2 466 450 |
Liabilities |  |  |  |  |  |
Derivative financial instruments | 472 662 |  | — | 408 321 | 64 341 |
Other trading liabilities | 18 449 |  | 18 449 | — | — |
Debt securities in issue | 9 823 |  | — | 9 823 | — |
Liabilities arising on securitisation of other assets | 71 751 |  | — | — | 71 751 |
| 572 685 |  | 18 449 | 418 144 | 136 092 |
Net assets at fair value | 4 089 568 |  | 1 557 553 | 201 657 | 2 330 358 |

*Loans and advances to customers at fair value include instruments where the business model is either to sell the loan or where the business model is to hold to collect
the contractual cash flows but the loan has failed the SPPI test.
Transfers between level 1 and level 2
During the current and prior year there were no transfers between level 1 and level 2.

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112
14. Fair value hierarchy (continued)

|  |  | Fair value category
At 31 March 2023 | Total instruments at fair value |  | Level 1 | Level 2 | Level 3 |
£’000 |  |
Assets |  |  |  |  |  |
Reverse repurchase agreements and cash collateral on securities borrowed | 345 869 |  | — | 345 869 | — |
Sovereign debt securities | 1 165 822 |  | 1 165 822 | — | — |
Bank debt securities | 199 737 |  | 199 737 | — | — |
Other debt securities | 93 992 |  | — | 60 | 93 932 |
Derivative financial instruments | 634 123 |  | — | 580 939 | 53 184 |
Securities arising from trading activities | 127 537 |  | 123 475 | 60 | 4 002 |
Loans and advances to customers* | 1 393 943 |  | — | 90 297 | 1 303 646 |
Other securitised assets | 78 231 |  | — | — | 78 231 |
Investment portfolio | 489 204 |  | 173 952 | 884 | 314 368 |
Other assets | 19 540 |  | 19 540 | — | — |
| 4 547 998 |  | 1 682 526 | 1 018 109 | 1 847 363 |
Liabilities |  |  |  |  |  |
Derivative financial instruments | 704 816 |  | — | 645 358 | 59 458 |
Other trading liabilities | 28 184 |  | 28 184 | — | — |
Debt securities in issue | 21 554 |  | — | 21 554 | — |
Liabilities arising on securitisation of other assets | 81 609 |  | — | — | 81 609 |
Other liabilities | 6 324 |  | — | — | 6 324 |
| 842 487 |  | 28 184 | 666 912 | 147 391 |
Net assets at fair value | 3 705 511 |  | 1 654 342 | 351 197 | 1 699 972 |

*Loans and advances to customers at fair value include instruments where the business model is either to sell the loan or where the business model is to hold to collect
the contractual cash flows but the loan has failed the SPPI test.
Transfers between level 1 and level 2
During the current and prior year there were no transfers between level 1 and level 2.

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113
14. Fair value hierarchy (continued)
Level 3 instruments
The following table is a reconciliation of the opening balances to the closing balances for the fair value measurements in level 3 of
the fair value hierarchy:

For the year to | Investment portfolio | Loans and advances to customers | Other securitised assets | Other balance sheet assets 1 |  |  |
£’000 |  | Total |
Assets |  |  |
Balance as at 1 April 2022 | 329 936 | 1 211 848 | 93 087 | 153 761 |  | 1 788 632 |
Total gains or (losses) | 6 228 | 100 832 | 1 000 | 5 252 |  | 113 312 |
In the income statement | 6 228 | 101 088 | 1 000 | 5 252 |  | 113 568 |
In the statement of comprehensive income | — | (256) | — | — |  | (256) |
Purchases | 23 416 | 1 692 584 | — | 26 056 |  | 1 742 056 |
Sales | (43 653) | (762 668) | — | (12 565) |  | (818 886) |
Settlements | (13 648) | (981 996) | (15 856) | (31 148) |  | (1 042 648) |
Transfers into level 3 | 6 304 | — | — | 4 746 |  | 11 050 |
Foreign exchange adjustments | 5 785 | 43 046 | — | 5 016 |  | 53 847 |
Balance as at 31 March 2023 | 314 368 | 1 303 646 | 78 231 | 151 118 |  | 1 847 363 |
Total gains or (losses) | 1 149 | 175 394 | (1 495) | 5 307 |  | 180 355 |
In the income statement | 1 149 | 177 180 | (1 495) | 5 307 |  | 182 141 |
In the statement of comprehensive income | — | (1 786) | — | — |  | (1 786) |
Purchases | 31 704 | 2 551 558 | — | 39 709 |  | 2 622 971 |
Sales | (80 268) | (1 058 680) | — | (14 481) |  | (1 153 429) |
Settlements | (18 352) | (898 422) | (10 034) | (74 870) |  | (1 001 678) |
Foreign exchange adjustments | (3 626) | (31 346) | — | 5 840 |  | (29 132) |
Balance as at 31 March 2024 | 244 975 | 2 042 150 | 66 702 | 112 623 |  | 2 466 450 |

1.Comprises of other debt securities, derivative financial instruments and securities arising from trading.
The Group transfers between levels within the fair value hierarchy when the observability of inputs change, or if the valuation
methods change. Transfers are deemed to occur at the end of each semi-annual reporting period.
For the year to 31 March 2024, there were no transfers into or from level 3. In the prior year, investment portfolio of £6.3 million and
derivative financial instruments assets of £4.7 million were transferred from level 2 to level 3, and derivative financial instruments
liabilities of £8 000 were transferred from level 3 to level 2. The valuation methodologies were reviewed and unobservable inputs
were used to determine the fair value.

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114
14. Fair value hierarchy (continued)

For the year to | Liabilities arising on securitisation of other assets | Other balance sheet liabilities 2 |  | Total |
£’000 |  |
Liabilities |  |  |
Balance as at 1 April 2022 | 95 885 | 45 769 |  | 141 654 |
Total losses | 1 384 | 11 770 |  | 13 154 |
In the income statement | 1 384 | 11 770 |  | 13 154 |
Purchases | — | 6 324 |  | 6 324 |
Settlements | (15 660) | — |  | (15 660) |
Transfers out of level 3 | — | (8) |  | (8) |
Foreign exchange adjustments | — | 1 927 |  | 1 927 |
Balance as at 31 March 2023 | 81 609 | 65 782 |  | 147 391 |
Total losses | 1 190 | 6 183 |  | 7 373 |
In the income statement | 1 190 | 6 183 |  | 7 373 |
Deconsolidation of subsidiaries | — | (3 933) |  | (3 933) |
Settlements | (11 048) | (2 391) |  | (13 439) |
Foreign exchange adjustments | — | (1 300) |  | (1 300) |
Balance as at 31 March 2024 | 71 751 | 64 341 |  | 136 092 |

2.Comprises level 3 derivative financial instruments and other liabilities.
The following table quantifies the gains or (losses) included in the income statement and other comprehensive income recognised
on level 3 financial instruments:

For the year to 31 March | Total |  | Realised | Unrealised |
£’000 |  |
2024 |  |  |  |  |
Total gains or (losses) included in the income statement for the year |  |  |  |  |
Net interest income | 174 393 |  | 156 766 | 17 627 |
Investment income* | 2 520 |  | 33 266 | (30 746) |
Trading income arising from customer flow | (2 145) |  | — | (2 145) |
| 174 768 |  | 190 032 | (15 264) |
Total gains or (losses) included in other comprehensive income for the year |  |  |  |  |
Gains on realisation on debt instruments at FVOCI recycled through the income statement | 534 |  | 534 | — |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income | (1 786) |  | — | (1 786) |
| (1 252) |  | 534 | (1 786) |
2023 |  |  |  |  |
Total gains or (losses) included in the income statement for the year |  |  |  |  |
Net interest income | 98 169 |  | 86 175 | 11 994 |
Investment income* | 2 085 |  | 2 502 | (417) |
Trading loss arising from customer flow | 160 |  | 1 | 159 |
| 100 414 |  | 88 678 | 11 736 |
Total gains or (losses) included in other comprehensive income for the year |  |  |  |  |
Gains on realisation on debt instruments at FVOCI recycled through the income statement | 433 |  | 433 | — |
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income | (256) |  | — | (256) |
| 177 |  | 433 | (256) |

*Included within the investment income statement balance are fair value losses of £5.1 million (31 March 2023: £nil) presented within operational items in the income
statement.

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115
14. Fair value hierarchy (continued)
Level 2 financial assets and financial liabilities
The following table sets out the Group’s principal valuation techniques as at 31 March 2024 used in determining the fair value
of its financial assets and financial liabilities that are classified within level 2 of the fair value hierarchy:

| VALUATION BASIS/TECHNIQUES | MAIN INPUTS
Assets
Reverse repurchase agreements and cash collateral on securities borrowed |  | Discounted cash flow model |  | Discount rates
Other debt securities |  | Discounted cash flow model |  | Discount rates, swap curves and negotiable certificate of deposit curves, external prices and broker quotes
Derivative financial instruments |  | Discounted cash flow model, Hermite interpolation and industry standard derivative pricing models including Black- Scholes and Local Volatility |  | Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Securities arising from trading activities |  | Discounted cash flow model, Hermite interpolation and industry standard derivative pricing models including Local Volatility |  | Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Investment portfolio |  | Discounted cash flow model and net asset value model |  | Discount rate and net assets
|  | Comparable quoted inputs |  | Discount rate and fund unit price
Loans and advances to customers |  | Discounted cash flow model |  | Yield curves
Liabilities
Derivative financial instruments |  | Discounted cash flow model, Hermite interpolation and industry standard derivative pricing models including Black- Scholes and Local Volatility |  | Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Other trading liabilities |  | Discounted cash flow model, Hermite interpolation and industry standard derivative pricing models including Local Volatility |  | Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves
Debt securities in issue |  | Discounted cash flow model, Hermite interpolation and industry standard derivative pricing models including Local Volatility |  | Discount rate, risk-free rate, volatilities, forex forward points and spot rates, interest rate swap curves and credit curves

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116
14. Fair value hierarchy (continued)
Sensitivity of fair values to reasonably possible alternative assumptions by level 3 instrument type
The fair value of financial instruments in level 3 are measured using valuation techniques that incorporate assumptions that are not
evidenced by prices from observable market data. The table below shows the sensitivity of these fair values to reasonably possible
alternative assumptions, determined at a transactional level:

At 31 March 2024 | Balance sheet value £’000 | Significant unobservable input | Range of unobservable input used |  | Favourable changes £’000 | Unfavourable changes £’000 |
Assets |  |  |  |  |  |  |
Other debt securities | 59 613 | Potential impact on income statement |  |  | 2 192 | (3 713) |
|  | Credit spreads | 0.75%–0.86% |  | 40 | (68) |
|  | Cash flow adjustments | CPR 7.62%– 11.08% |  | 214 | (160) |
|  | Other | ^ |  | 1 938 | (3 485) |
Derivative financial instruments | 53 010 | Potential impact on income statement |  |  | 5 329 | (5 420) |
|  | Volatilities | 7.5%–19.1% |  | 1 | (3) |
|  | Cash flow adjustments | CPR 7.62%– 11.08% |  | 2 | (2) |
|  | Underlying asset value | ^^ |  | 4 574 | (4 619) |
|  | Other | ^ |  | 752 | (796) |
Investment portfolio | 244 975 | Potential impact on income statement |  |  | 24 877 | (48 953) |
|  | Price earnings multiple | 3.8x–9x |  | 6 485 | (13 200) |
|  | Cash flow adjustments | 10% |  | 225 | (449) |
|  | Underlying asset value | ^^ |  | 9 798 | (18 625) |
|  | Other | ^ |  | 8 369 | (16 679) |
Loans and advances to customers | 2 042 150 | Potential impact on income statement |  |  | 16 027 | (35 018) |
| Credit spreads | 0.16%–37.8% |  | 10 840 | (24 697) |
|  | Price earnings multiple | 3.8x |  | 2 762 | (6 893) |
|  | Underlying asset value | ^^ |  | 1 435 | (1 631) |
|  | Other | ^ |  | 990 | (1 797) |
|  | Potential impact on other comprehensive income |  |  |  |  |
|  | Credit spreads | 0.14%–5.0% |  | 12 783 | (24 177) |
Other securitised assets | 66 702 | Potential impact on income statement |  |  |  |  |
|  | Cash flow adjustments | CPR 7.62% |  | 770 | (1 291) |
Total level 3 assets | 2 466 450 |  |  |  | 61 978 | (118 572) |
Liabilities |  |  |  |  |  |  |
Derivative financial instruments | 64 341 | Potential impact on income statement |  |  | (5 552) | 3 507 |
|  | Volatilities | 9%–23.3% |  | (1) | 2 |
|  | Underlying asset value | ^^ |  | (5 550) | 3 505 |
|  | Other | ^ |  | (1) | — |
Liabilities arising on securitisation of other assets* | 71 751 | Potential impact on income statement |  |  |  |  |
| Cash flow adjustments | CPR 7.62% |  | (805) | 440 |
Total level 3 liabilities | 136 092 |  |  |  | (6 357) | 3 947 |
Net level 3 assets | 2 330 358 |  |  |  |  |  |

*The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other securitised assets.
^Other – The valuation sensitivity has been assessed by adjusting various inputs such as expected cash flows and earnings multiples rather than a single input. It is
deemed appropriate to reflect the outcome on a portfolio basis for the purposes of this analysis as the sensitivity of the assets cannot be determined through the
adjustment of a single input.
^^Underlying asset values are calculated by reference to a tangible asset, for example, property, aircraft or shares.

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117
14. Fair value hierarchy (continued)

At 31 March 2023 | Balance sheet value £’000 | Significant unobservable input | Range of unobservable input used |  | Favourable changes £’000 |  | Unfavourable changes £’000 |
Assets |  |  |  |  |  |  |  |
Other debt securities | 93 932 | Potential impact on income statement |  |  | 2 702 |  | (5 253) |
|  | Credit spreads | 1.05%-1.87% |  | 108 |  | (254) |
|  | Cash flow adjustments | CPR 14.81% |  | 10 |  | (10) |
|  | Other | ^ |  | 2 584 |  | (4 989) |
Derivative financial instruments | 53 184 | Potential impact on income statement |  |  | 5 260 |  | (5 136) |
|  | Volatilities | 7.5%-8.9% |  | 13 |  | (25) |
|  | Cash flow adjustments | CPR 14.81% |  | 6 |  | (5) |
|  | Underlying asset value | ^^ |  | 3 999 |  | (4 100) |
|  | Other | ^ |  | 1 242 |  | (1 006) |
Securities arising from trading activities | 4 002 | Potential impact on income statement |  |  |  |  |  |
| Cash flow adjustments | CPR 14.17% |  | 206 |  | (235) |
Investment portfolio | 314 368 | Potential impact on income statement |  |  | 33 129 |  | (66 354) |
|  | Price earnings multiple | 5.5x-11.2x |  | 11 718 |  | (21 695) |
|  | Underlying asset value | ^^ |  | 9 378 |  | (20 883) |
|  | Other | ^ |  | 12 033 |  | (23 776) |
Loans and advances to customers | 1 303 646 | Potential impact on income statement |  |  | 21 222 |  | (40 572) |
| Credit spreads | 0.28%-5.2% |  | 10 994 |  | (22 971) |
|  | Price earnings multiple | 3.5x-4x |  | 4 276 |  | (7 083) |
|  | Underlying asset value | ^^ |  | 1 564 |  | (1 742) |
|  | Other | ^ |  | 4 388 |  | (8 776) |
|  | Potential impact on other comprehensive income |  |  | 15 756 |  | (31 758) |
|  | Credit spreads | 0.29%-5.5% |  | 15 753 |  | (31 751) |
|  | Other | ^ |  | 3 |  | (7) |
Other securitised assets | 78 231 | Potential impact on income statement |  |  |  |  |  |
| Cash flow adjustments | CPR 14.81% |  | 701 |  | (669) |
Total level 3 assets | 1 847 363 |  |  |  | 78 976 |  | (149 977) |
Liabilities |  |  |  |  |  |  |  |
Derivative financial instruments | 59 458 | Potential impact on income statement |  |  | (4 098) |  | 4 099 |
|  | Volatilities | 9%-18.9% |  | (1) |  | 2 |
|  | Underlying asset value | ^^ |  | (4 097) |  | 4 097 |
Liabilities arising on securitisation of other assets* | 81 609 | Potential impact on income statement |  |  |  |  |  |
Cash flow adjustments | CPR 14.81% |  | (351) |  | 363 |
Other Liabilities | 6 324 | Potential impact on income statement |  |  |  |  |  |
Other | ^ |  | (632) |  | 632 |
Total level 3 liabilities | 147 391 |  |  |  | (5 081) |  | 5 094 |
Net level 3 assets | 1 699 972 |  |  |  |  |  |  |

*The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other securitised assets.
^Other – The valuation sensitivity has been assessed by adjusting various inputs such as expected cash flows and earnings multiples rather than a single input. It is
deemed appropriate to reflect the outcome on a portfolio basis for the purposes of this analysis as the sensitivity of the assets cannot be determined through the
adjustment of a single input.
^^Underlying asset values are calculated by reference to a tangible asset, for example, property, aircraft or shares.

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118
14. Fair value hierarchy (continued)
In determining the value of level 3 financial instruments, the following are the principal inputs that can require judgement:
Credit spreads
Credit spreads reflect the additional yield that a market participant would demand for taking exposure to the credit risk of an
instrument. The credit spread for an instrument forms part of the yield used in a discounted cash flow calculation. In general,
a significant increase in a credit spread in isolation will result in a movement in fair value that is unfavourable for the holder
of a financial instrument. It is an unobservable input into a discounted cash flow valuation.
Discount rates
Discount rates are used to adjust for the time value of money when using a discounted cash flow valuation method. Where
relevant, the discount rate also accounts for illiquidity, market conditions and uncertainty of future cash flows.
Volatilities
Volatility is a key input in the valuation of derivative products containing optionality. Volatility is a measure of the variability or
uncertainty in returns for a given derivative underlying. It represents an estimate of how much a particular underlying instrument,
parameter or index will change in value over time.
Cash flows
Cash flows relate to the future cash flows that can be expected from the instrument and requires judgement. Cash flows are input
into a discounted cash flow valuation.
Price earnings multiple
The price-to-earnings ratio is an equity valuation multiple used in the adjustment of underlying market prices. It is a key driver in the
valuation of unlisted investments.
Underlying asset value
In instances where cash flows have links to referenced assets, the underlying asset value is used to determine the fair value.
The underlying asset valuation is derived using observable market prices sourced from broker quotes, specialist valuers or other
reliable pricing sources.

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119
15 . Fair value of financial instruments at amortised cost

|  |  |  |  |  | Level within the fair value hierarchy
At 31 March 2024 | Carrying amount | Fair value approximates carrying amount | Balances where fair values do not approximate carrying amounts | Fair value of balances that do not approximate carrying amounts |  | Level 1 | Level 2 | Level 3 |
£’000 |  |
Assets |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 5 661 623 | 5 661 623 | — | — |  | — | — | — |
Loans and advances to banks | 676 464 | 676 464 | — | — |  | — | — | — |
Reverse repurchase agreements and cash collateral on securities borrowed | 975 796 | 904 973 | 70 823 | 70 775 |  | — | 70 775 | — |
Sovereign debt securities | 934 845 | 4 253 | 930 592 | 930 937 |  | 930 937 | — | — |
Bank debt securities | 49 992 | — | 49 992 | 50 432 |  | 50 432 | — | — |
Other debt securities | 640 055 | 26 958 | 613 097 | 614 800 |  | — | 614 800 | — |
Loans and advances to customers | 14 457 745 | 542 986 | 13 914 759 | 13 715 487 |  | — | 982 824 | 12 732 663 |
Other loans and advances | 117 514 | 71 467 | 46 047 | 46 167 |  | — | 46 167 | — |
Other assets | 417 758 | 417 758 | — | — |  | — | — | — |
| 23 931 792 | 8 306 482 | 15 625 310 | 15 428 598 |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Deposits by banks | 2 174 305 | 271 520 | 1 902 785 | 1 917 265 |  | — | 1 917 265 | — |
Repurchase agreements and cash collateral on securities lent | 85 091 | 85 091 | — | — |  | — | — | — |
Customer accounts (deposits) | 20 790 611 | 9 957 937 | 10 832 674 | 10 810 561 |  | — | 10 810 561 | — |
Debt securities in issue | 1 263 283 | 1 194 | 1 262 089 | 1 261 504 |  | 975 292 | 286 212 | — |
Other liabilities | 594 305 | 592 679 | 1 626 | 536 |  | — | — | 536 |
Subordinated liabilities | 668 810 | — | 668 810 | 661 143 |  | 661 143 | — | — |
| 25 576 405 | 10 908 421 | 14 667 984 | 14 651 009 |  |  |  |  |

For the year ended 31 March 2024 , there were insignificant disposals of financial instruments measured at amortised cost.
For financial assets and financial liabilities that are liquid or have a short-term maturity (less than three months) it is assumed that
the carrying amounts approximate their fair value. These assets and liabilities include demand deposits, savings accounts without
a specific maturity, which are included in customer accounts (deposits), and variable rate instruments.
Financial instruments for which fair value does not approximate carrying value
Differences in amortised cost and fair value occur in fixed rate instruments. The fair value of fixed rate financial assets and financial
liabilities carried at amortised cost are estimated by comparing spreads earned on the transactions with spreads earned on similar
new transactions entered into by the Group. The estimated fair value of fixed interest-bearing deposits is based on discounted
cash flows, using prevailing money market interest rates for debts with similar credit risk and maturity. For quoted subordinated
debt issued, the fair values are calculated based on quoted market prices. For those notes issued where quoted market prices are
not available, a discounted cash flow model is used based on a current interest rate yield curve appropriate for the remaining term
to maturity.

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120
15. Fair value of financial instruments at amortised cost (continued)

|  |  |  |  |  | Level within the fair value hierarchy
At 31 March 2023 | Carrying amount | Fair value approximates carrying amount | Balances where fair values do not approximate carrying amounts | Fair value of balances that do not approximate carrying amounts |  | Level 1 | Level 2 | Level 3 |
£’000 |  |
Assets |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 5 400 401 | 5 400 401 | — | — |  | — | — | — |
Loans and advances to banks | 893 297 | 893 297 | — | — |  | — | — | — |
Reverse repurchase agreements and cash collateral on securities borrowed | 992 830 | 807 046 | 185 784 | 185 503 |  | — | 185 503 | — |
Sovereign debt securities | 55 922 | 4 370 | 51 552 | 51 494 |  | 51 494 | — | — |
Bank debt securities | 4 954 | — | 4 954 | 4 952 |  | 4 952 | — | — |
Other debt securities | 603 283 | 42 611 | 560 672 | 554 892 |  | — | 554 892 | — |
Loans and advances to customers | 14 173 866 | 611 611 | 13 562 255 | 13 426 192 |  | — | 1 016 299 | 12 409 893 |
Other loans and advances | 142 626 | 69 727 | 72 899 | 72 976 |  | — | 72 976 | — |
Other assets | 612 778 | 612 778 | — | — |  | — | — | — |
| 22 879 957 | 8 441 841 | 14 438 116 | 14 296 009 |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Deposits by banks | 2 172 171 | 373 944 | 1 798 227 | 1 804 116 |  | — | 1 804 116 | — |
Repurchase agreements and cash collateral on securities lent | 139 529 | 85 070 | 54 459 | 52 486 |  | — | 52 486 | — |
Customer accounts (deposits) | 19 121 921 | 10 426 685 | 8 695 236 | 8 654 686 |  | — | 8 654 686 | — |
Debt securities in issue | 1 427 991 | 1 183 | 1 426 808 | 1 383 613 |  | 911 763 | 471 850 | — |
Other liabilities | 645 612 | 642 983 | 2 629 | 1 572 |  | — | — | 1 572 |
Subordinated liabilities | 731 483 | — | 731 483 | 713 119 |  | 713 119 | — | — |
| 24 238 707 | 11 529 865 | 12 708 842 | 12 609 592 |  |  |  |  |

For the year ended 31 March 2023, there were insignificant disposals of financial instruments measured at amortised cost.

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121
15. Fair value of financial instruments at amortised cost (continued)
Fixed rate financial instruments
The fair value of fixed rate financial assets and financial liabilities carried at amortised cost are estimated by comparing spreads
earned on the transactions with spreads earned on similar new transactions entered into by the Group. The estimated fair value
of fixed interest-bearing deposits is based on discounted cash flows, using prevailing money market interest rates for debts
with similar credit risk and maturity.
For quoted subordinated debt issued, the fair values are calculated based on quoted market prices. For those notes issued where
quoted market prices are not available, a discounted cash flow model is used based on a current interest rate yield curve
appropriate for the remaining term to maturity.
Certain financial instruments that would normally be carried at fair value continue to be recognised at transaction price. This occurs
when the fair value would normally be determined using valuation techniques which cannot be relied on due to insufficient external
inputs. This results in gains or losses which have not been recognised on-balance sheet.
The following table sets out the Group’s principal level 2 and 3 valuation techniques used in determining the fair value of its
financial assets and financial liabilities:

Loans and advances to banks |  | Calculation of the present value of future cash flows, discounted as appropriate.
Other debt securities |  | Priced with reference to similar trades in an observable market.
Reverse repurchase agreements and cash collateral on securities borrowed |  | Calculation of the present value of future cash flows, discounted as appropriate.
Loans and advances to customers |  | Calculation of the present value of future cash flows, discounted as appropriate.
Other loans and advances |  | Calculation of the present value of future cash flows, discounted as appropriate.
Other assets |  | Calculation of the present value of future cash flows, discounted as appropriate.
Deposits by banks |  | Calculation of fair value using appropriate funding rates.
Repurchase agreements and cash collateral on securities lent |  | Calculation of the present value of future cash flows, discounted as appropriate.
Customer accounts (deposits) |  | Where the deposits are short-term in nature, carrying amounts are assumed to approximate fair value. Where deposits are of longer-term maturities, they are valued using a cash flow model discounted as appropriate.
Debt securities in issue |  | Where the debt securities are fully collateralised, fair value is equal to the carrying value. Other debt securities are valued using a cash flow model discounted as appropriate to the securities for funding and interest rates.
Other liabilities |  | Where the other liabilities are short term in nature, carrying amounts are assumed to approximate fair value.

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122
16 . Designated at fair value

|  | Fair value adjustment | Change in fair value attributable to credit risk * |  |
At 31 March | Carrying value | Current | Cumulative | Current | Cumulative | Maximum exposure to credit risk |
£’000 |
Assets |  |  |  |  |  |  |
2024 |  |  |  |  |  |  |
Securities arising from trading activities | 10 699 | 529 | 1 753 | (98) | (161) | 10 699 |
Other securitised assets | 66 702 | (2 747) | (12 648) | (2 747) | (12 648) | 66 702 |
| 77 401 | (2 218) | (10 895) | (2 845) | (12 809) | 77 401 |
2023 |  |  |  |  |  |  |
Securities arising from trading activities | 12 916 | 930 | (638) | (120) | (57) | 12 916 |
Other securitised assets | 78 231 | (2 352) | (7 459) | (2 352) | (7 459) | 78 927 |
| 91 147 | (1 422) | (8 097) | (2 472) | (7 516) | 91 843 |

|  |  | Fair value adjustment | Change in fair value attributable to credit risk *
At 31 March | Carrying value | Remaining contractual amount to be repaid at maturity | Current | Cumulative | Current | Cumulative |
£’000 |
Liabilities |  |  |  |  |  |  |
2024 |  |  |  |  |  |  |
Debt securities in issue | 9 823 | 9 969 | 79 | 2 217 | (106) | (160) |
Liabilities arising on securitisation of other assets | 71 751 | 77 152 | 567 | (4 350) | 567 | (4 350) |
| 81 574 | 87 121 | 646 | (2 133) | 461 | (4 510) |
2023 |  |  |  |  |  |  |
Debt securities in issue | 21 554 | 20 097 | (274) | 5 146 | (85) | (67) |
Liabilities arising on securitisation of other assets | 81 609 | 86 985 | 250 | (5 441) | 250 | (5 441) |
| 103 163 | 107 082 | (24) | (295) | 165 | (5 508) |

*Changes in fair value due to credit risk are determined as the change in the fair value of the financial instrument that is not attributable to changes in other market
inputs.

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123
17 . Cash and balances at central banks

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross cash and balances at central banks | 5 661 623 |  | 5 400 401 |
Expected credit loss | — |  | — |
Net cash and balances at central banks | 5 661 623 |  | 5 400 401 |
The country risk of cash and bank balances at central banks lies in the following geographies: |  |  |  |
United Kingdom | 5 650 258 |  | 5 380 357 |
Europe (excluding UK) | 11 365 |  | 20 044 |
| 5 661 623 |  | 5 400 401 |

18 . Loans and advances to banks

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross loans and advances to banks | 676 487 |  | 893 368 |
Expected credit loss | (23) |  | (71) |
Net loans and advances to banks | 676 464 |  | 893 297 |
The country risk of loans and advances to banks lies in the following geographies: |  |  |  |
South Africa | 2 534 |  | 7 265 |
United Kingdom | 309 774 |  | 511 777 |
Europe (excluding UK) | 266 418 |  | 287 673 |
Australia | 9 617 |  | 14 313 |
North America | 77 740 |  | 62 609 |
Asia | 10 108 |  | 8 446 |
Other | 273 |  | 1 214 |
| 676 464 |  | 893 297 |

19 . Reverse repurchase agreements and cash collateral on securities borrowed and
repurchase agreements and cash collateral on securities lent

At 31 March | 2024 |  | 2023 |
£’000 |  |
Assets |  |  |  |
Gross reverse repurchase agreements and cash collateral on securities borrowed | 1 140 129 |  | 1 338 711 |
Expected credit loss | (14) |  | (12) |
Net reverse repurchase agreements and cash collateral on securities borrowed | 1 140 115 |  | 1 338 699 |
Reverse repurchase agreements | 1 131 175 |  | 1 328 235 |
Cash collateral on securities borrowed | 8 940 |  | 10 464 |
| 1 140 115 |  | 1 338 699 |
As part of the reverse repurchase and securities borrowing agreements the Group has received securities that it is allowed to sell or repledge. £59 million ( 2023: £90 million) has been resold or repledged to third parties in connection with financing activities or to comply with commitments under short sale transactions. |  |  |  |
Liabilities |  |  |  |
Repurchase agreements | 67 520 |  | 118 373 |
Cash collateral on securities lent | 17 571 |  | 21 156 |
| 85 091 |  | 139 529 |

The assets transferred and not derecognised in the above repurchase agreements are fair valued at £86 million ( 2023 : £61 million).
They are pledged as security for the term of the underlying repurchase agreement.

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124
20 . Sovereign debt securities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross sovereign debt securities | 1 928 134 |  | 1 221 744 |
Expected credit loss | — |  | — |
Net sovereign debt securities | 1 928 134 |  | 1 221 744 |
The country risk of sovereign debt securities lies in the following geographies: |  |  |  |
United Kingdom | 1 108 907 |  | 348 827 |
Europe (excluding UK)* | 136 269 |  | 190 232 |
North America | 682 958 |  | 682 685 |
| 1 928 134 |  | 1 221 744 |

*Where Europe (excluding UK) largely includes securities held in Germany and Switzerland.
21 . Bank debt securities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross bank debt securities | 297 257 |  | 204 691 |
Expected credit loss | (2) |  | — |
Net bank debt securities | 297 255 |  | 204 691 |
Bonds | 297 255 |  | 200 590 |
Floating rate notes | — |  | 4 101 |
| 297 255 |  | 204 691 |
The country risk of bank debt securities lies in the following geographies: |  |  |  |
United Kingdom | 188 179 |  | 122 690 |
Europe (excluding UK) | 43 935 |  | 71 873 |
Australia | 33 476 |  | 10 128 |
North America | 31 665 |  | — |
| 297 255 |  | 204 691 |

22 . Other debt securities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross other debt securities | 708 689 |  | 697 837 |
Expected credit loss | (404) |  | (562) |
Net other debt securities | 708 285 |  | 697 275 |
Bonds | 88 189 |  | 120 510 |
Asset-backed securities | 620 096 |  | 576 765 |
| 708 285 |  | 697 275 |
The country risk of other debt securities lies in the following geographies: |  |  |  |
United Kingdom | 73 161 |  | 108 175 |
Europe (excluding UK) | 95 957 |  | 140 937 |
North America | 515 335 |  | 400 496 |
Asia | 23 832 |  | 47 667 |
| 708 285 |  | 697 275 |

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125
23 . Derivative financial instruments
The Group enters into various contracts for derivatives, both as principal for trading purposes and as a customer for hedging
foreign exchange and interest rate exposures. These include financial futures, options, swaps and forward rate agreements.
The risks associated with derivative instruments are monitored in the same manner as for the underlying instruments. Risks are
also measured across the product range in order to take into account possible correlations.
In the tables that follow, notional principal amounts indicate the volume of business outstanding at the balance sheet date and
do not represent amounts at risk. The fair value of a derivative financial instrument represents the positive or negative cash flows
which would have occurred had the rights and obligations arising from that instrument been closed out by the Group in an orderly
market transaction at the balance sheet date.

| 2024 | 2023
At 31 March | Notional principal amounts | Positive fair value | Negative fair value | Notional principal amounts | Positive fair value | Negative fair value |
£’000 |
Foreign exchange derivatives |  |  |  |  |  |  |
Forward foreign exchange contracts | 17 274 128 | 121 509 | 76 185 | 15 680 009 | 186 867 | 142 523 |
Currency swaps | 536 757 | 5 497 | 4 685 | 678 329 | 9 484 | 8 724 |
OTC options bought and sold | 1 931 247 | 9 710 | 10 794 | 1 877 070 | 24 153 | 22 865 |
| 19 742 132 | 136 716 | 91 664 | 18 235 408 | 220 504 | 174 112 |
Interest rate derivatives |  |  |  |  |  |  |
Caps and floors | 11 881 599 | 99 163 | 95 676 | 10 576 158 | 155 330 | 150 118 |
Swaps | 40 087 486 | 43 321 | 126 493 | 46 254 022 | 28 842 | 160 283 |
OTC options bought and sold | 31 723 | — | 505 | — | — | — |
OTC derivatives | 52 000 808 | 142 484 | 222 674 | 56 830 180 | 184 172 | 310 401 |
Exchange traded futures | — | — | — | — | — | — |
| 52 000 808 | 142 484 | 222 674 | 56 830 180 | 184 172 | 310 401 |
Equity and stock index derivatives |  |  |  |  |  |  |
OTC options bought and sold | 711 169 | 39 170 | 69 483 | 1 604 247 | 63 258 | 120 243 |
Equity swaps and forwards | — | — | — | 6 343 | 173 | — |
OTC derivatives | 711 169 | 39 170 | 69 483 | 1 610 590 | 63 431 | 120 243 |
Exchange traded futures | 109 117 | — | — | 225 212 | — | — |
Exchange traded options | 4 319 032 | 53 073 | 79 | 11 453 984 | 55 231 | 45 |
| 5 139 318 | 92 243 | 69 562 | 13 289 786 | 118 662 | 120 288 |
Commodity derivatives |  |  |  |  |  |  |
OTC options bought and sold | 347 969 | 42 504 | 63 436 | 251 899 | 39 853 | 59 145 |
Commodity swaps and forwards | 497 975 | 17 071 | 23 424 | 721 125 | 45 219 | 38 152 |
| 845 944 | 59 575 | 86 860 | 973 024 | 85 072 | 97 297 |
Exchange traded futures | 171 727 | — | — | — | — | — |
| 1 017 671 | 59 575 | 86 860 | 973 024 | 85 072 | 97 297 |
Credit derivatives | 67 756 | 1 796 | 1 902 | 138 862 | 20 670 | 2 718 |
Other derivatives |  | 4 441 |  |  | 5 043 |  |
Derivatives per balance sheet |  | 437 255 | 472 662 | 634 123 | 704 816 |

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126
24 . Securities arising from trading activities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Asset-backed securities | — |  | 4 002 |
Bonds | 12 050 |  | 24 106 |
Government securities | 171 |  | — |
Listed equities | 145 111 |  | 99 429 |
| 157 332 |  | 127 537 |

25 . Investment portfolio

At 31 March | 2024 |  | 2023 |
£’000 |  |
Listed equities | 159 678 |  | 173 949 |
Unlisted equities* | 245 732 |  | 315 255 |
| 405 410 |  | 489 204 |

*Unlisted equities include loan instruments that are convertible into equity.
26 . Loans and advances to customers and other loans and advances

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross loans and advances to customers at amortised cost | 14 631 845 |  | 14 314 591 |
Gross loans and advances to customers at FVOCI ^ | 1 471 371 |  | 843 428 |
Suspended interest | 5 066 |  | 4 822 |
Gross loans and advances to customers subject to expected credit losses | 16 108 282 |  | 15 162 841 |
Expected credit losses on loans and advances to customers at amortised cost and FVOCI ^ | (174 100) |  | (140 725) |
Suspended interest | (5 066) |  | (4 822) |
Net loans and advances to customers at amortised cost and FVOCI ^ | 15 929 116 |  | 15 017 294 |
Loans and advances to customers at fair value through profit and loss | 641 197 |  | 550 515 |
Net loans and advances to customers | 16 570 313 |  | 15 567 809 |
Gross other loans and advances | 117 526 |  | 142 702 |
Expected credit losses on other loans and advances | (12) |  | (76) |
Net other loans and advances | 117 514 |  | 142 626 |

^Expected credit losses above do not include £13.3 million (31 March 2023 : £5.3 million) ECL held against financial assets held at FVOCI.
In accordance with IFRS 9, interest should only be recognised on the net position (i.e. gross loans and advances less ECL) on
positions in default. Suspended interest relates to interest not recognised, relating to the ECL on the loans and advances in default.
For further analysis on loans and advances for the Group, refer to pages 175 to 179 in the notes to risk and capital
management.

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127
26 . Loans and advances to customers and other loans and advances (continued)

At 31 March | 2024 |
£’000 |
Expected credit losses on loans and advances to customers at amortised cost and FVOCI^ |  |
Balance as at 1 April 2022 | 130 805 |
Charge to the income statement | 53 592 |
Reversals and recoveries recognised in the income statement | (1 094) |
Write-offs | (45 684) |
Exchange adjustments | 3 106 |
Balance as at 31 March 2023 | 140 725 |
Charge to the income statement | 82 358 |
Reversals and recoveries recognised in the income statement | (83) |
Write-offs | (48 018) |
Exchange adjustments | (882) |
Balance as at 31 March 2024 | 174 100 |
Expected credit loss on other loans and advances |  |
Balance as at 1 April 2022 | 19 |
Charge to the income statement | 69 |
Exchange adjustments | (12) |
Balance as at 31 March 2023 | 76 |
Release to the income statement | (64) |
Balance as at 31 March 2024 | 12 |

^Expected credit losses above do not include £13.3 million (31 March 2023 : £5.3 million) ECL held against financial assets held at FVOCI.
27 . Other securitised assets and liabilities arising on securitisation

At 31 March | 2024 |  | 2023 |
£’000 |  |
Other securitised assets are made up of the following categories of assets: |  |  |  |
Loans and advances to customers | 66 233 |  | 74 226 |
Other debt securities | 469 |  | 4 005 |
Total other securitised assets | 66 702 |  | 78 231 |
The associated liabilities are recorded on-balance sheet in the following line items: |  |  |  |
Liabilities arising on securitisation of other assets | 71 751 |  | 81 609 |

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128
28 . Interests in associated undertakings and joint venture holdings

At 31 March | 2024 |  | 2023 |
£’000 |  |
Interests in associated undertakings and joint venture holdings consist of: |  |  |  |
Net asset value | 202 735 |  | 46 480 |
Goodwill and intangibles within the carrying value | 654 512 |  | 5 840 |
Investment in associated undertakings and joint venture holdings | 857 247 |  | 52 320 |
Associated undertakings and joint venture holdings comprise listed and unlisted investments |  |  |  |
Analysis of the movement in our share of net assets: |  |  |  |
At the beginning of the year | 46 480 |  | 61 140 |
Exchange adjustments | (98) |  | 228 |
Acquisitions* | 119 230 |  | — |
Derecognition from stepped acquisition/disposals | (2 123) |  | (565) |
Impairment | — |  | (282) |
Share of post-taxation profits of associates and joint venture holdings^ | 39 217 |  | 5 371 |
Share of other comprehensive income of associates and joint venture holdings | 257 |  | — |
Dividends received | (228) |  | (19 412) |
At the end of the year | 202 735 |  | 46 480 |
Analysis of the movement in goodwill and intangibles: |  |  |  |
At the beginning of the year | 5 840 |  | 5 755 |
Exchange adjustments | (126) |  | 224 |
Acquisitions* | 660 191 |  | — |
Derecognition from stepped acquisition | (5 714) |  | — |
Amortisation of acquired intangibles of associates | (5 679) |  | — |
Impairment | — |  | (139) |
At the end of the year | 654 512 |  | 5 840 |

^Included within the share of post-taxation profit from associates and joint venture holdings is an expense of £16.6 million in Rathbones presented within operational
items in the income statement. In the prior year, included within the share of post-taxation profit from associates and joint venture holdings in the income statement is
an impairment of £421 000.
*Refer to note 34 for more details.

| Rathbones Group plc
| 2024
Details of material associated undertakings |
Summarised financial information (£’000): |
For the year to 31 March |
Operating income* | 436 272
Profit after taxation* | 35 000
At 31 March |
Total assets | 4 853 534
Total liabilities | 3 472 425
Effective interest in issued share capital | 41.25%
Net asset value | 119 230
Goodwill and intangibles^^ | 660 191
Fair value of 41.25% interest in Rathbones Group | 779 421
Carrying value of interest – equity method ^ | 788 437

*Income statement and other comprehensive income items are only shown for the period for which they are equity accounted.
^ The investment in Rathbones was initially recognised on 21 September 2023 at a fair value of £779.4 million with subsequent equity accounted earnings and
amortisation of the intangible asset increasing the value to £788.4 million.
^^The Group elected to apply the 12-month measurement exemption to finalise the purchase price allocation, with a provisional allocation of £523.9 million to goodwill
and £136.3 million to intangible assets arising from client relationships. The allocation is incomplete at year-end as additional analysis is required to finalise the nature
and value of intangible assets.

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129
29 . Deferred taxation

At 31 March | 2024 |  | 2023 |
£’000 |  |
Deferred taxation assets | 119 730 |  | 112 347 |
Deferred taxation liabilities | — |  | — |
Net deferred taxation assets | 119 730 |  | 112 347 |
The net deferred taxation assets arise from: |  |  |  |
Deferred capital allowances | 62 042 |  | 60 249 |
Income and expenditure accruals | 1 096 |  | 3 404 |
Asset in respect of unexpired options | 42 436 |  | 30 859 |
Unrealised fair value adjustments on financial instruments | 11 748 |  | 25 584 |
Losses carried forward | 2 046 |  | 2 079 |
Asset in respect of pension deficit | 362 |  | 372 |
Deferred taxation on acquired intangibles | — |  | (10 200) |
Net deferred taxation assets | 119 730 |  | 112 347 |
Reconciliation of net deferred taxation assets |  |  |  |
At the beginning of the year | 112 347 |  | 110 377 |
Release to income statement – current year taxation | 9 924 |  | 9 577 |
Movement directly in other comprehensive income | (7 686) |  | (4 738) |
Arising on acquisitions/disposals | 5 201 |  | (2 998) |
Exchange adjustments | (56) |  | 129 |
At the end of the year | 119 730 |  | 112 347 |

Deferred tax assets are recognised to the extent it is likely that profits will arise in future periods. The assessment of the likelihood
of future profits is based on past performance and current projections. Deferred taxation assets are not recognised in respect of
capital losses and excess management expenses as crystallisation of capital gains and the eligibility of potential losses is uncertain.
There are trading losses carried forward of £89.9 million (2023 : £99.5 million), capital losses carried forward of £190 million ( 2023:
£199.5 million) and excess management expenses of £2.5 million ( 2023: £2.5 million) on which deferred tax assets have not been
recognised due to uncertainty regarding future profits against which these losses can be utilised. Of the £89.9 million trading
losses, £8.5 million will expire in the next four years.
30 . Other assets

At 31 March | 2024 |  | 2023 |
£’000 |  |
Gross other assets | 740 121 |  | 965 449 |
Expected credit loss | — |  | — |
Net other assets | 740 121 |  | 965 449 |
Financial assets |  |  |  |
Settlement debtors | 336 901 |  | 500 959 |
Trading initial margin | 4 732 |  | 10 327 |
Prepayments and accruals | 5 017 |  | 25 656 |
Other | 80 993 |  | 95 376 |
| 427 643 |  | 632 318 |
Non-financial assets |  |  |  |
Trading properties | 62 500 |  | 75 000 |
Prepayments and accruals | 23 051 |  | 29 109 |
Finance lease receivables | 174 754 |  | 207 203 |
Indirect taxation assets receivable | 80 |  | 1 043 |
Other | 52 093 |  | 20 776 |
| 312 478 |  | 333 131 |
| 740 121 |  | 965 449 |

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130
31 . Property and equipment

At 31 March | Freehold properties | Right-of-use assets^ | Leasehold improvements | Furniture and vehicles | Equipment | Operating leases* |  | Total |
£’000 |  |
2024 |  |  |  |  |  |  |  |  |
Cost |  |  |  |  |  |  |  |  |
At the beginning of the year | 36 | 141 830 | 58 368 | 7 156 | 26 791 | 1 431 |  | 235 612 |
Exchange adjustments | — | (268) | (41) | 45 | (22) | — |  | (286) |
Acquisition of subsidiaries | — | — | — | 506 | — | — |  | 506 |
Additions | — | 8 063 | 892 | 221 | 1 972 | 53 |  | 11 201 |
Disposals | — | (292) | (2) | (110) | (86) | (188) |  | (678) |
Deconsolidation of subsidiaries | — | (52 403) | (12 118) | — | (14 262) | — |  | (78 783) |
Write-off | — | — | — | — | (5 928) | — |  | (5 928) |
At the end of the year | 36 | 96 930 | 47 099 | 7 818 | 8 465 | 1 296 |  | 161 644 |
Accumulated depreciation |  |  |  |  |  |  |  |  |
At the beginning of the year | (36) | (55 861) | (32 164) | (4 197) | (21 055) | (1 285) |  | (114 598) |
Exchange adjustments | — | 134 | 25 | 42 | 19 | — |  | 220 |
Acquisition of subsidiaries | — | — | — | (256) | — | — |  | (256) |
Disposals | — | 242 | 2 | 110 | 84 | 174 |  | 612 |
Deconsolidation of subsidiaries | — | 20 568 | 9 684 | — | 11 662 | — |  | 41 914 |
Depreciation and impairment charge for the year** | — | (12 504) | (5 211) | (703) | (1 872) | (28) |  | (20 318) |
Write-off | — | — | — | — | 3 729 | — |  | 3 729 |
At the end of the year | (36) | (47 421) | (27 664) | (5 004) | (7 433) | (1 139) |  | (88 697) |
Net carrying value | — | 49 509 | 19 435 | 2 814 | 1 032 | 157 |  | 72 947 |
2023 |  |  |  |  |  |  |  |  |
Cost |  |  |  |  |  |  |  |  |
At the beginning of the year | 36 | 139 730 | 77 402 | 7 062 | 23 507 | 3 466 |  | 251 203 |
Exchange adjustments | — | 557 | 2 789 | 22 | 35 | — |  | 3 403 |
Acquisition of subsidiaries | — | — | — | — | 183 | — |  | 183 |
Additions | — | 7 165 | 2 222 | 72 | 3 318 | — |  | 12 777 |
Disposals | — | (5 622) | (24 045) | — | (252) | (2 035) |  | (31 954) |
At the end of the year | 36 | 141 830 | 58 368 | 7 156 | 26 791 | 1 431 |  | 235 612 |
Accumulated depreciation |  |  |  |  |  |  |  |  |
At the beginning of the year | (36) | (45 209) | (26 287) | (3 639) | (17 756) | (3 221) |  | (96 148) |
Exchange adjustments | — | (228) | (50) | (18) | (29) | — |  | (325) |
Acquisition of subsidiaries | — | — | — | — | (167) | — |  | (167) |
Disposals | — | 4 076 | 119 | — | 246 | 1 992 |  | 6 433 |
Depreciation and impairment charge for the year** | — | (14 500) | (5 946) | (540) | (3 349) | (56) |  | (24 391) |
At the end of the year | (36) | (55 861) | (32 164) | (4 197) | (21 055) | (1 285) |  | (114 598) |
Net carrying value | — | 85 969 | 26 204 | 2 959 | 5 736 | 146 |  | 121 014 |

*These are assets held by the Group, in circumstances where the Group is lessor..
**Included within the depreciation and impairment charge for the year above is £4 million (2023: £9 million) of depreciation expense relating to discontinued operations,
which is presented as part of the profit after taxation from discontinued operations in the income statement.
^ Right-of-use assets primarily comprise property leases under IFRS 16

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131
32 . Goodwill

At 31 March | 2024 |  | 2023 |
£’000 |  |
Cost |  |  |  |
At the beginning of the year | 286 430 |  | 280 194 |
Acquisition of subsidiaries | 56 268 |  | 6 236 |
Adjustment to goodwill on acquisition within the measurement period | (200) |  | — |
Deconsolidation of subsidiaries | (242 355) |  | — |
Exchange adjustments | (311) |  | — |
At the end of the year | 99 832 |  | 286 430 |
Accumulated impairments |  |  |  |
At the beginning of the year | (31 163) |  | (30 358) |
Impairments | — |  | (805) |
At the end of the year | (31 163) |  | (31 163) |
Net carrying value | 68 669 |  | 255 267 |
Analysis of goodwill by line of business: |  |  |  |
Wealth & Investment | — |  | 242 555 |
Specialist Banking | 68 669 |  | 12 712 |
Total Group | 68 669 |  | 255 267 |

Goodwill is tested annually for impairment, or more frequently if evidence exists that goodwill might be impaired, by comparing the
carrying value to its recoverable amount.
The recoverable amount of goodwill is determined based on expected cash flows within the cash-generating units of the Group
to which the goodwill is allocated. Key assumptions within the calculation include discount rates, growth rates in revenue, and
related expenditure and loan impairment rates.
Discount rates are based on pre-tax rates that reflect current market conditions, adjusted for the specific risks associated with the
cash-generating unit. Growth rates are based on industry growth forecasts. Cash flow forecasts are based on the most recent
financial budgets for the next financial year and are extrapolated for a period of three to five years, adjusted for expected future
events.
The most significant cash-generating unit giving rise to goodwill is Capitalmind with goodwill of £56.3 million. A detailed impairment
assessment, including sensitivity test of the cash generating unit (CGU) has been carried out which shows a headroom of £6.52
million. As part of the assessment, a break-even point scenario has been considered. This highlights the CGU would have zero
headroom were revenues to be reduced by 10% over the forecast period.
Key assessment input:
1. Forecast revenue based on 31 March 2024 actual
2. Growth rate 2%
3. Discount rate 11.6%
Movement in goodwill
During the year ended 31 March 2024, goodwill decreased by £242.4 million as a result of the deconsolidation of Investec Wealth &
Investment following the all-share combination with Rathbones Group. For more details refer to note 34.
The increase of £56.3 million is due to the acquisition of Capitalmind in a stepped acquisition during the year.

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132
33 . Software and other acquired intangible assets

| Software | Other acquired intangible assets |  |
At 31 March | Acquired software | Internally generated software | Total | Client relationships* | Total |  | Total |
£’000 |  |
2024 |  |  |  |  |  |  |  |
Cost |  |  |  |  |  |  |  |
At the beginning of the year | 33 671 | 3 298 | 36 969 | 199 070 | 199 070 |  | 236 039 |
Exchange adjustments | (42) | — | (42) | (5) | (5) |  | (47) |
Acquisition of subsidiaries | — | — | — | 945 | 945 |  | 945 |
Additions | 710 | — | 710 | — | — |  | 710 |
Disposals | (381) | — | (381) | — | — |  | (381) |
Deconsolidation of subsidiaries | (8 591) | (3 298) | (11 889) | (194 771) | (194 771) |  | (206 660) |
At the end of the year | 25 367 | — | 25 367 | 5 239 | 5 239 |  | 30 606 |
Accumulated amortisation and impairments |  |  |  |  |  |  |  |
At the beginning of the year | (26 300) | (1 254) | (27 554) | (158 520) | (158 520) |  | (186 074) |
Exchange adjustments | 39 | — | 39 | — | — |  | 39 |
Disposals | 240 | — | 240 | — | — |  | 240 |
Deconsolidation of subsidiaries | 6 542 | 1 643 | 8 185 | 160 646 | 160 646 |  | 168 831 |
Amortisation** | (1 317) | (389) | (1 706) | (7 365) | (7 365) |  | (9 071) |
At the end of the year | (20 796) | — | (20 796) | (5 239) | (5 239) |  | (26 035) |
Net carrying value | 4 571 | — | 4 571 | — | — |  | 4 571 |
2023 |  |  |  |  |  |  |  |
Cost |  |  |  |  |  |  |  |
At the beginning of the year | 28 800 | 3 104 | 31 904 | 186 729 | 186 729 |  | 218 633 |
Exchange adjustments | 230 | — | 230 | — | — |  | 230 |
Acquisition of subsidiaries | — | 194 | 194 | 10 882 | 10 882 |  | 11 076 |
Additions | 4 659 | — | 4 659 | 1 459 | 1 459 |  | 6 118 |
Disposals | (18) | — | (18) | — | — |  | (18) |
At the end of the year | 33 671 | 3 298 | 36 969 | 199 070 | 199 070 |  | 236 039 |
Accumulated amortisation and impairments |  |  |  |  |  |  |  |
At the beginning of the year | (24 321) | (517) | (24 838) | (145 922) | (145 922) |  | (170 760) |
Exchange adjustments | (195) | — | (195) | — | — |  | (195) |
Acquisition of subsidiaries | — | (105) | (105) | 27 | 27 |  | (78) |
Disposals | 18 | — | 18 | — | — |  | 18 |
Amortisation** | (1 802) | (632) | (2 434) | (12 625) | (12 625) |  | (15 059) |
At the end of the year | (26 300) | (1 254) | (27 554) | (158 520) | (158 520) |  | (186 074) |
Net carrying value | 7 371 | 2 044 | 9 415 | 40 550 | 40 550 |  | 49 965 |

*Client relationships are acquired intangibles.
**Included within the amortisation charge above is £7 million (2023: £13.6 million) of amortisation expense relating to discontinued operations, which is presented as
part of the profit after taxation from discontinued operations in the income statement.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

133
34. Acquisitions and disposals
During the reporting period the Group completed a stepped acquisition increasing its shareholding in the Capitalmind associate
from 30% to 60% for a total consideration attributable to the increase in shareholding of £29.4 million and therefore as at
31 March 2024 has consolidated these entities as subsidiaries. The non-controlling interest has been measured as the
proportionate share of the identifiable net assets. Goodwill of £56.3 million, including a deferred taxation liability of £0.2 million and
an intangible asset of £0.9 million have been recognised as a consequence of this increased shareholding.
The goodwill recognised is the difference between the purchase price for the additional 30% acquired, the fair value of the
previously held 30%, the non-controlling interest measured at its proportionate share of 40% of net asset, and the fair value of the
identifiable assets and liabilities on transaction date. Goodwill represents the value of acquired intangible assets as of the
acquisition date that did not meet the criteria for separate recognition, such as the assembled workforce of partners and potential
contracts subject to negotiation.
Goodwill on acquisition is calculated as follows:

£’000 |
Consideration* | 29 352
Fair value of previously held 30% holding^ | 27 505
| 56 857
Fair value of identifiable net assets | 452
Intangible assets | 945
Less, deferred taxation liability on intangible assets | (236)
Less, non-controlling interests as proportionate share of acquired net assets | (572)
| 589
Goodwill | 56 268

*Consideration attributable to the purchase of 30% was made up of £20.9 million cash and £8.5 million deferred consideration. Deferred consideration is not contingent
on any performance measures.
^Included within Investment income in the Income statement is a gain of £4.2 million from the remeasurement of the previously held 30% holding.

£’000 |
Fair value of identifiable net assets |
Loans and advances to banks | 2 332
Property and equipment | 250
Other assets | 3 533
Other liabilities | (5 663)
| 452

Post-acquisition operating income of £16.6 million and profit after taxation of £2.6 million have been included in the consolidated
income statement for the reporting period.
During the prior year, the Group acquired Murray Asset Management for a net cash consideration of £9.7 million.
In the current year, as a result of the all-share combination of Investec Wealth & Investment Limited and Rathbones Group Plc, as
detailed below, Investec Wealth and Investment Limited ceased to be a subsidiary. There were no significant disposals of
subsidiaries during the prior year.

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134
34. Acquisitions and disposals (continued)
Discontinued operations
Investec Wealth & Investment Limited
On 21 September 2023, the Investec Group successfully completed the all-share combination of Investec Wealth & Investment
Limited with Rathbones Group Plc (Rathbones). On completion Rathbones issued new Rathbones shares in exchange for 100% of
Investec Wealth & Investment Limited’s share capital. The Group now owns 41.25% of the economic interest in the enlarged
Rathbones Group, with the Group’s voting rights limited to 29.9%. The Group's holding in Rathbones Group Plc is equity accounted
for as an interest in associated undertakings and joint venture holdings in accordance with IAS 28.
Income statement of discontinued operations

For the year to 31 March | 2024 | 2023
£’000
Interest income | 17 755 | 23 627
Interest expense | (431) | (859)
Net interest income | 17 324 | 22 768
Fee and commission income | 161 610 | 324 908
Fee and commission expense | — | —
Investment income | — | —
Trading income arising from |  |
– customer flow | — | —
– balance sheet management and other trading activities | — | —
Other operating income | — | —
Operating income | 178 934 | 347 676
Expected credit loss impairment charges | — | —
Operating income after expected credit loss impairment charges | 178 934 | 347 676
Operating costs | (131 106) | (255 909)
Operating profit before acquired intangibles and strategic actions | 47 828 | 91 767
Amortisation of acquired intangibles | (6 424) | (12 625)
Operating profit | 41 404 | 79 142
Gain on all-share combination net of implementation costs | 359 339 | (4 938)
Profit before taxation | 400 743 | 74 204
Taxation on operating profit before acquired intangibles and strategic actions | (11 973) | (17 201)
Taxation on acquired intangibles and strategic actions | 781 | 2 031
Profit after taxation | 389 551 | 59 034
Profit attributable to non-controlling interests of discontinued operations | — | —
Earnings attributable to shareholders | 389 551 | 59 034

Gain on loss of control of Investec Wealth & Investment Limited
The gain is calculated as follows:

£’000 |
Fair value of 41.25% interest in Rathbones Group Plc | 779 421
Net asset value of Investec Wealth & Investment previously consolidated (including goodwill) | (405 755)
Gain on the combination of Rathbones Group (before tax) | 373 666
Implementation costs | (14 327)
Gain on combination of Rathbones Group (before tax) | 359 339
Taxation on gain | (834)
Gain on combination of Rathbones Group net of taxation and implementation costs | 358 505

Major classes of assets and liabilities

£’000 |
Loans and advances to banks | 172 595
Goodwill | 242 355
Other assets | 360 378
Other liabilities | (369 573)
| 405 755

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135
35 . Other trading liabilities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Short positions |  |  |  |
– Equities | 18 449 |  | 28 184 |
| 18 449 |  | 28 184 |

36. Customer accounts (deposits)

At 31 March | 2024 |  | 2023 |
£’000 |  |
Demand | 5 583 899 |  | 5 560 748 |
Transactional | 484 625 |  | 742 116 |
Fixed | 9 447 201 |  | 6 923 542 |
Notice | 5 274 886 |  | 5 895 515 |
| 20 790 611 |  | 19 121 921 |

37 . Debt securities in issue

At 31 March | 2024 |  | 2023 |
£’000 |  |
Repayable in: |  |  |  |
Less than three months | 16 660 |  | 28 447 |
Three months to one year | 96 842 |  | 138 265 |
One to five years | 1 148 929 |  | 962 545 |
Greater than five years | 10 675 |  | 320 288 |
| 1 273 106 |  | 1 449 545 |
Debt securities in issue shown above comprise: |  |  |  |
Senior unsecured notes | 976 336 |  | 951 125 |
Structured notes | 295 576 |  | 497 226 |
Redeemable preference shares | 1 194 |  | 1 194 |
| 1 273 106 |  | 1 449 545 |

38 . Other liabilities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Financial liabilities |  |  |  |
Settlement liabilities | 310 134 |  | 411 824 |
Other creditors and accruals^ | 165 112 |  | 128 273 |
Other non-interest-bearing liabilities | 107 801 |  | 96 180 |
Expected credit losses on undrawn commitments and guarantees | 11 258 |  | 15 659 |
| 594 305 |  | 651 936 |
Non financial liabilities |  |  |  |
Other creditors and accruals | 175 216 |  | 228 720 |
Lease liabilities | 243 951 |  | 322 767 |
Other non-interest-bearing liabilities | 10 608 |  | 18 894 |
Indirect taxation liabilities payable | 1 733 |  | 10 412 |
| 431 508 |  | 580 793 |
| 1 025 813 |  | 1 232 729 |

^Included in Other creditors and accruals in the current year is a provision relating to motor vehicle financing. Refer to note 49 for more details.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

136
38. Other liabilities (continued)
The maturity analysis of the lease liabilities is shown below:

| 2024 | 2023
At 31 March | Undiscounted lease payments | Present value |  | Undiscounted lease payments | Present value |
£’000 |  |
Lease liabilities included in other liabilities |  |  |  |  |  |
Lease liabilities payable in: |  |  |  |  |  |
Less than one year | 55 810 | 53 152 |  | 60 631 | 57 770 |
One to two years | 164 646 | 151 874 |  | 58 833 | 54 959 |
Two to three years | 14 981 | 14 104 |  | 172 391 | 153 591 |
Three to four years | 14 369 | 13 847 |  | 19 539 | 18 884 |
Four to five years | 5 319 | 5 114 |  | 19 026 | 17 852 |
Later than five years | 6 099 | 5 860 |  | 20 919 | 19 711 |
| 261 224 | 243 951 |  | 351 339 | 322 767 |

Reconciliation from opening balance to closing balance

At 31 March | 2024 |
£’000 |
Balance as at 1 April 2022 | 344 802 |
Interest on lease liabilities | 13 235 |
New leases | 3 009 |
Repayment of lease liabilities | (57 324) |
Remeasurement of lease liabilities | 4 114 |
Exchange adjustments | 14 931 |
Balance as at 31 March 2023 | 322 767 |
Interest on lease liabilities | 11 576 |
New leases | 7 973 |
Deconsolidation of subsidiaries | (39 752) |
Repayment of lease liabilities | (54 020) |
Exchange adjustments | (4 593) |
Balance as at 31 March 2024 | 243 951 |

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137
39 . Subordinated liabilities

At 31 March | 2024 |  | 2023 |
£’000 |  |
Issued by Investec Bank plc |  |  |  |
Subordinated fixed rate reset callable medium-term notes – amortised cost | — |  | 71 060 |
Issued by Investec plc |  |  |  |
Subordinated fixed rate reset callable medium-term notes – amortised cost | 668 810 |  | 660 423 |
| 668 810 |  | 731 483 |
Remaining maturities: |  |  |  |
In one year or less, or on demand | — |  | — |
In more than one year, but not more than two years | — |  | — |
In more than two years, but not more than five years | — |  | — |
In more than five years | 668 810 |  | 731 483 |
| 668 810 |  | 731 483 |
Reconciliation from opening balance to closing balance |  |  |  |
At the beginning of the year | 731 483 |  | 758 739 |
New issue | — |  | 345 590 |
Redemption | (70 000) |  | (347 925) |
Accrual of interest | 42 067 |  | 32 501 |
Repayment of interest | (44 100) |  | (40 455) |
Hedge accounting/amortisation of discount | 9 360 |  | (16 967) |
At the end of the year | 668 810 |  | 731 483 |

The only potential event of default in relation to the subordinated debt is the non-payment of principal or interest. The only remedy
available to the holders of the subordinated debt in the event of default would be to petition for the winding up of the issuing entity.
In a winding up no amount will be paid in respect of the subordinated debt until all other creditors have been paid in full.
Medium-term notes
Subordinated fixed rate reset callable medium-term notes (denominated in Pound Sterling) – accounted for at
amortised cost
On 24 July 2018, Investec Bank plc issued £420 000 000 of 4.25% subordinated notes due 2028 at a discount (2028 notes).
Interest is paid annually. The notes are listed on the London Stock Exchange. The notes are redeemable at par on 24 July 2028,
with a one-time redemption option on the early redemption date 24 July 2023 subject to conditions.
On 6 December 2022, Investec Bank plc completed a tender offer to purchase £350 000 000 aggregate nominal amount of the
notes at a cash purchase price of 99.446 pence plus an accrued interest payment. The total value of the debt redeemed was £353
605 000 (excluding interest £347 926 000).
On 24 July 2023, Investec Bank plc exercised the one-time option to early redeem the remaining £70 000 000 aggregate nominal
amount of the notes at par plus an accrued interest payment. Including the interest, the total value of the debt redeemed was
£72 975 000.
Subordinated callable fixed rate resettable medium-term notes (denominated in Pound Sterling) – accounted for at
amortised cost
On 4 October 2021, Investec plc issued £350 000 000 of 2.625% subordinated notes due 2032 at a discount (2032 notes).
Interest, after the initial short-period distribution paid on 4 January 2022, is paid annually commencing on 4 January 2023 and
ending on the maturity date. The notes are listed on the London Stock Exchange. The notes will be redeemed at par on
4 January 2032. The issuer may redeem the notes at par on any date in the period from 4 October 2026 to (and including)
4 January 2027 subject to conditions. If the option to redeem is not exercised, the notes will be redeemed at par on the maturity
date of 4 January 2032.
Subordinated callable fixed rate resettable medium-term notes (denominated in Pounds Sterling) – accounted for at
amortised cost
On 6 December 2022, Investec plc issued £350 000 000 of 9.125% subordinated notes due 2033 at a discount (2033 notes).
Interest, after the initial short-period distribution paid on 6 March 2023, is paid annually commencing on 6 March 2024 and ending
on the maturity date. The notes are listed on the London Stock Exchange. The issuer may redeem the notes at par on any date in
the period from 6 December 2027 to (and including) 6 March 2028 subject to conditions. If the option to redeem is not exercised,
the notes will be redeemed at par on the maturity date of 6 March 2033.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
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138
40 . Ordinary share capital

At 31 March | 2024 |  | 2023 |
£’000 |  |
Issued, allotted and fully paid |  |  |  |
Number of ordinary shares | Number |  | Number |
At the beginning of the year | 696 082 618 |  | 696 082 618 |
Issued during the year | — |  | — |
At the end of the year | 696 082 618 |  | 696 082 618 |
Nominal value of ordinary shares | £’000 |  | £’000 |
At the beginning of the year | 138 |  | 138 |
Issued during the year | — |  | — |
At the end of the year | 138 |  | 138 |
Number of special converting shares | Number |  | Number |
At the beginning of the year | 318 904 709 |  | 318 904 709 |
Buyback during the year | (23 778 903) |  | — |
At the end of the year | 295 125 806 |  | 318 904 709 |
Nominal value of special converting shares | £’000 |  | £’000 |
At the beginning of the year | 64 |  | 64 |
Issued during the year | — |  | — |
At the end of the year | 64 |  | 64 |
Number of UK DAN shares | Number |  | Number |
At the beginning and end of the year | 1 |  | 1 |
Nominal value of UK DAN share | £’000 |  | £’000 |
At the beginning and end of the year | * |  | * |
Number of UK DAS shares | Number |  | Number |
At the beginning and end of the year | 1 |  | 1 |
Nominal value of UK DAS share | £’000 |  | £’000 |
At the beginning and end of the year | * |  | * |
Number of special voting shares | Number |  | Number |
At the beginning and end of the year | 1 |  | 1 |
Nominal value of special voting shares | £’000 |  | £’000 |
At the beginning and end of the year | * |  | * |

*Less than £1 000.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

139
40 . Ordinary share capital (continued)
Staff share scheme
The Group operates a share option and a share purchase scheme for employees. The number of ordinary shares conditionally
allocated to employees are disclosed in note 8 .
Movements in the number of share options (each option is in respect of one share) issued to employees are as follows:

At 31 March | 2024 |  | 2023 |
Number of shares |  |
Opening balance | 28 785 417 |  | 29 590 241 |
Deconsolidation of subsidiaries | (748 335) |  | — |
Granted during the year | 5 525 265 |  | 5 542 176 |
Exercised | (5 182 871) |  | (4 788 744) |
Lapsed | (658 715) |  | (1 558 256) |
Closing balance | 27 720 761 |  | 28 785 417 |

The purpose of the staff share scheme is to promote an esprit de corps within the organisation, create an awareness of Investec
Group’s performance and provide an incentive to maximise individual and Group performance by allowing all staff to share in the
risks and rewards of the Group.
The Group makes awards available to staff members via the underlying share trusts. The particular instrument used varies from
time to time, depending on taxation legislation and factors affecting the Group structure. Nevertheless, whatever the instrument
chosen, its underlying value depends solely on the performance of the Group’s share price.
At present, the practice of the Group is to grant all permanent staff members a share allocation, based on their annual package,
after completing six months of employment. In line with the objective of providing a long-term incentive for staff, these share
awards vest over periods varying from three to five years.
After the initial allocation referred to above, additional allocations are made to staff members at the discretion of Group
management depending on the individual performance and contribution made by the respective staff members.

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140
41 . Perpetual preference shares

At 31 March | 2024 |  | 2023 |
£’000 |  |
Perpetual preference share capital | 29 |  | 29 |
Perpetual preference share premium | 24 765 |  | 24 765 |
| 24 794 |  | 24 794 |
Issued by Investec plc |  |  |  |
2 754 587 (2023 : 2 754 587) non-redeemable, non-cumulative, non-participating preference shares of £0.01 each, issued at a premium of £8.58 per share. |  |  |  |
– Perpetual preference share capital | 29 |  | 29 |
– Perpetual preference share premium | 23 607 |  | 23 607 |
Perpetual preference shareholders will receive an annual dividend if declared based on the coupon rate (being equivalent to the base rate plus 1%) multiplied by the deemed value on a daily basis and payable in two semi-annual instalments. |  |  |  |
An ordinary dividend will not be declared by Investec plc unless the perpetual preference dividend has been declared. |  |  |  |
If declared, perpetual preference dividends are payable semi-annually at least seven business days prior to the date on which Investec plc pays its ordinary dividends, if any, but shall be payable no later than 120 business days after 31 March and 30 September respectively. |  |  |  |
Issued by Investec plc – Rand-denominated |  |  |  |
131 447 (2023 : 131 447) non-redeemable, non-cumulative, non-participating perpetual preference shares of ZAR0.001 each, issued at an average premium of ZAR99.999 per share. |  |  |  |
– Perpetual preference share capital | * |  | * |
– Perpetual preference share premium | 1 158 |  | 1 158 |
Rand-denominated perpetual preference shareholders will receive a dividend if declared, based on the coupon rate (being equivalent to South African prime rate multiplied by 95%), multiplied by the deemed value on a daily basis and payable in two semi-annual instalments. |  |  |  |
An ordinary dividend will not be declared by Investec plc unless the Rand-denominated perpetual preference dividend has been declared. |  |  |  |
If declared, perpetual preference dividends are payable semi-annually at least seven business days prior to the date on which Investec plc pays its ordinary dividends, if any, but shall be payable no later than 120 business days after 31 March and 30 September respectively. |  |  |  |

*Less than £1 000.

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141
42 . Ordinary share premium

At 31 March | 2024 |  | 2023 |
£’000 |  |
Share premium account | 555 812 |  | 555 812 |

43 . Treasury shares

At 31 March | 2024 |  | 2023 |
£’000 |  |
Treasury shares held by subsidiaries of Investec plc | 192 783 |  | 181 797 |
| Number |  | Number |
Investec plc ordinary shares held by subsidiaries | 53 401 625 |  | 49 720 148 |
Reconciliation of treasury shares | Number |  | Number |
At the beginning of the year | 49 720 148 |  | 48 997 877 |
Purchase of own shares by subsidiary companies | 10 278 362 |  | 7 823 716 |
Shares disposed of by subsidiaries | (6 596 885) |  | (7 101 445) |
At the end of the year | 53 401 625 |  | 49 720 148 |
Market value of treasury shares | £'000 |  | £'000 |
Investec plc | 283 883 |  | 223 542 |
| 283 883 |  | 223 542 |

Subsidiary companies which hold treasury shares are the staff share trusts which facilitate share-based awards within the Group.
44 . Other Additional Tier 1 securities in issue

At 31 March | 2024 |  | 2023 |
£’000 |  |
Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities | 458 108 |  | 250 000 |

On 5 October 2017, Investec plc issued £250 million Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities at
par. On 1 March 2024, the Company bought back £142 million of these securities, leaving £108 million of the original securities
outstanding as of 31 March 2024. The securities are perpetual and pay a distribution rate on 5 March, June, September and
December, commencing from 5 December 2017. At each distribution payment day, the Company can decide whether to pay the
distribution rate, which is non-cumulative, in whole or in part. The distribution rate is 6.75% per annum until 5 December 2024;
thereafter, the distribution rate resets every five years to a rate of 5.749% per annum plus the benchmark gilts rate. The securities
will be automatically written down and the investors will lose their entire investment in the securities should the CET1 capital ratio of
the Investec plc Group, as defined in the PRA’s rules, fall below 7%. The securities are redeemable at the option of the Company on
5 December 2024 or on each distribution payment date thereafter. No such redemption may be made without the consent of the
PRA.
On 28 February 2024, Investec plc issued £350 million of Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital
Securities at par. These securities are perpetual and pay interest on a semi-annual basis on 28 February and 28 August each year,
commencing on 28 August 2024. At each interest payment date, Investec plc can decide whether to pay the coupon, which is non-
cumulative, in whole or in part. The interest rate is 10.50% per annum until 28 February 2030; thereafter it resets every subsequent
five years to a rate of 6.566% per annum plus the benchmark gilt rate. The securities will be automatically written down and the
investors will lose their entire investment in the securities should the CET1 capital ratio of the Investec plc Group, as defined in the
PRA’s rules, fall below 7%. The securities are redeemable at the option of the Company on any day falling in the period from (and
including) 28 August 2029 to (and including) 28 February 2030 or on any day falling in the period of six months prior to (and
including) any five-year reset date thereafter. No such redemption may be made without the consent of the PRA.
45 . Non-controlling interests

At 31 March | 2024 |  | 2023 |
£’000 |  |
Non-controlling interests in partially held subsidiaries | 2 851 |  | 951 |

The increase in non-controlling interests in the current year primarily relates to the stepped acquisition of Capitalmind measured at
its proportionate share of 40% net asset value.

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142
46 . Finance lease disclosures

| 2024 | 2023
At 31 March | Total future minimum payments | Present value |  | Total future minimum payments | Present value |
£’000 |  |
Finance lease receivables included in loans and advances to customers |  |  |  |  |  |
Lease receivables due in: |  |  |  |  |  |
Less than one year | 231 750 | 183 405 |  | 234 669 | 194 458 |
One to two years | 174 095 | 142 619 |  | 166 503 | 142 178 |
Two to three years | 122 889 | 104 657 |  | 104 705 | 91 470 |
Three to four years | 74 590 | 65 667 |  | 63 927 | 57 578 |
Four to five years | 32 985 | 29 837 |  | 27 849 | 25 781 |
Later than five years | 11 443 | 10 059 |  | 7 102 | 6 367 |
| 647 752 | 536 244 |  | 604 755 | 517 832 |
Unearned finance income | (111 508) |  |  | (86 923) |  |
Net investment in the lease | 536 244 |  |  | 517 832 |  |

At 31 March 2024 , unguaranteed residual values accruing to the benefit of the Group were £5.9 million ( 2023 : £4.1 million).
Finance leases in the Group mainly relate to leases on property, equipment and motor vehicles.

| 2024 | 2023
At 31 March | Total future minimum payments | Present value |  | Total future minimum payments | Present value |
£’000 |  |
Finance lease receivables included in other assets |  |  |  |  |  |
Lease receivables due in: |  |  |  |  |  |
Less than one year | 39 565 | 36 914 |  | 40 746 | 37 282 |
One to two years | 148 434 | 135 466 |  | 40 607 | 36 486 |
Two to three years | 1 298 | 1 291 |  | 151 674 | 130 897 |
Three to four years | 1 082 | 1 083 |  | 1 306 | 1 269 |
Four to five years | — | — |  | 1 306 | 1 269 |
Later than five years | — | — |  | — | — |
| 190 379 | 174 754 |  | 235 639 | 207 203 |
Unearned finance income | (15 625) |  |  | (28 436) |  |
Net investment in the lease | 174 754 |  |  | 207 203 |  |

Included in interest income on the income statement is £30.8 million (2023: £37.4 million) from finance lease receivables.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
NOTES TO THE FINANCIAL STATEMENTS CONTINUED

143
47 . Notes to the cash flow statement

At 31 March | 2024 |  | 2023 |
£’000 |  |
Profit before taxation adjusted for non-cash items and other required adjustments is derived as follows: |  |  |  |
Profit before taxation | 804 382 |  | 367 924 |
Adjustment for non-cash items included in net income before taxation: |  |  |  |
Impairment of goodwill | — |  | 805 |
Amortisation of acquired intangibles | 7 364 |  | 12 625 |
Net gain on step acquisition of subsidiaries | (4 063) |  | — |
Net gain on deconsolidation and disposal of subsidiaries | (373 666) |  | (30) |
Depreciation of operating lease assets | 28 |  | 56 |
Depreciation and impairment of property, equipment, software and other intangibles | 24 196 |  | 26 768 |
Expected credit loss impairment charges | 85 995 |  | 66 752 |
Share of post-taxation profit of associates and joint venture holdings | (55 793) |  | (4 950) |
Non-operating income from associates | 22 255 |  | — |
Dividends received from associates and joint venture holdings | 228 |  | 19 413 |
Share-based payments and employee benefit liability recognised | 22 989 |  | 22 304 |
Profit before taxation adjusted for non-cash items | 533 915 |  | 511 667 |
Increase in operating assets |  |  |  |
Loans and advances to banks | 277 |  | 530 |
Reverse repurchase agreements and cash collateral on securities borrowed | 198 582 |  | 108 774 |
Sovereign debt securities | (706 390) |  | (55 967) |
Bank debt securities | (92 601) |  | (143 007) |
Other debt securities | (10 860) |  | (273 114) |
Derivative financial instruments | 193 766 |  | 86 645 |
Securities arising from trading activities | (29 795) |  | 35 628 |
Investment portfolio | 73 699 |  | 37 007 |
Loans and advances to customers | (1 092 955) |  | (1 195 731) |
Other loans and advances | 25 176 |  | (19 978) |
Securitised assets | 11 529 |  | 14 856 |
Other assets | (56 197) |  | 174 360 |
Goodwill | 200 |  | — |
| (1 485 569) |  | (1 229 997) |
Increase in operating liabilities |  |  |  |
Deposits by banks | 2 111 |  | 145 570 |
Derivative financial instruments | (232 154) |  | (158 479) |
Other trading liabilities | (9 735) |  | (14 760) |
Repurchase agreements and cash collateral on securities lent | (54 438) |  | (15 299) |
Customer accounts | 1 668 690 |  | 828 030 |
Debt securities in issue | (176 439) |  | (198 632) |
Securitised liabilities | (9 858) |  | (14 276) |
Other liabilities | 176 284 |  | (147 145) |
| 1 364 461 |  | 425 009 |

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144
48 . Commitments

At 31 March | 2024 |  | 2023 |
£’000 |  |
Undrawn facilities | 2 327 114 |  | 2 345 034 |
Other commitments | 34 075 |  | 44 628 |
| 2 361 189 |  | 2 389 662 |

Commitments include expected credit losses (ECL) of £11 million ( 2023 : £16 million) reported in other liabilities.
The Group has entered into forward foreign exchange contracts and loan commitments in the normal course of its banking
business for which the fair value is recorded on-balance sheet.

| Carrying amount of pledged assets | Related liability
At 31 March | 2024 |  | 2023 |  | 2024 |  | 2023 |
£’000 |  |  |  |
Pledged assets |  |  |  |  |  |  |  |
Loans and advances to banks | 19 008 |  | 44 670 |  | 12 367 |  | 39 810 |
Reverse repurchase agreements and cash collateral on securities borrowed | — |  | 115 421 |  | — |  | 103 278 |
Sovereign debt securities | 28 362 |  | 224 019 |  | 16 852 |  | 164 287 |
Bank debt securities | 39 187 |  | 28 432 |  | 23 284 |  | 21 721 |
Securities arising from trading activities | 29 310 |  | 35 139 |  | 27 398 |  | 34 031 |
Loans and advances to customers | 1 255 309 |  | 708 860 |  | 745 873 |  | 494 892 |
Other loans and advances | 2 504 |  | 8 121 |  | 1 629 |  | 7 160 |
| 1 373 680 |  | 1 164 662 |  | 827 403 |  | 865 179 |

The assets pledged by the Group are strictly for the purpose of providing collateral for the counterparty. To the extent that the
counterparty is permitted to sell and/or repledge the assets, they are classified on the balance sheet as reverse repurchase
agreements and cash collateral on securities borrowed.

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145
49 . Contingent liabilities, legal matters and provisions

At 31 March | 2024 |  | 2023 |
£’000 |  |
Guarantees and assets pledged as collateral security: |  |  |  |
Guarantees and irrevocable letters of credit | 575 272 |  | 502 251 |
| 575 272 |  | 502 251 |

The amounts shown above are intended only to provide an indication of the volume of business outstanding at the balance sheet
date.
Guarantees are issued by Investec plc and Investec Bank plc and its subsidiaries on behalf of third parties and other Group
companies.
Support is provided by Investec plc to its subsidiaries where appropriate.
Financial Services Compensation Scheme
The Financial Services Compensation Scheme (FSCS), the UK’s statutory fund of last resort, provides compensation to customers
of UK authorised financial institutions in the event that an institution which is a participating member of the FSCS is unable, or is
likely to be unable, to pay claims against it.
The FSCS raises annual levies from participating members based on their level of participation (in the case of deposits, the
proportion that their protected deposits represent to total protected deposits) as at 31 December of the year preceding the
scheme year. Investec Bank plc is a participating member of the FSCS.
At the date of these financial statements, it is not possible to estimate whether there will ultimately be additional levies on the
industry, the level of Group’s market participation or other factors that may affect the amounts or timing of amounts that may
ultimately become payable, nor the effect that such levies may have upon operating results in any particular financial period.

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146
49. Contingent liabilities, legal matters and provisions (continued)
Legal and regulatory matters
The Group operates in a legal and regulatory environment that exposes it to legal, regulatory and litigation risks. As a result, the
Group is involved in disputes, legal proceedings and is subject to enquiries and examinations, requests for information, audits,
investigations and other proceedings by regulators and competition authorities which arise in the ordinary course of business. The
Group evaluates all facts, the probability of the outcome of the proceedings and advice from internal and external legal counsel
when considering accounting and regulatory implications. At the present time the Group does not expect the ultimate resolution of
any of these ongoing regulatory reviews and other matters to have a material adverse effect on its financial position.
Historical German dividend tax arbitrage transactions
Investec Bank plc has previously been notified by the Office of the Public Prosecutor in Cologne, Germany, that it and certain of its
current and former employees may be involved in possible charges relating to historical involvement in German dividend tax
arbitrage transactions (known as cum-ex transactions). Investigations are ongoing and no formal proceedings have been issued
against Investec Bank plc by the Office of the Public Prosecutor. In addition, Investec Bank plc received certain enquiries in respect
of client tax reclaims for the periods 2010-2011 relating to the historical German dividend arbitrage transactions from the German
Federal Tax Office (FTO) in Bonn. The FTO has provided more information in relation to their claims and Investec Bank plc has
sought further information and clarification.
Investec Bank plc is cooperating with the German authorities and continues to conduct its own internal investigation into the
matters in question. A provision is held to reflect the estimate of financial outflows that could arise as a result of this matter. There
are factual issues to be resolved which may have legal consequences, including financial penalties.
In relation to potential civil claims; whilst Investec Bank plc is not a claimant nor a defendant to any civil claims in respect of cum-ex
transactions, Investec Bank plc has received third party notices in relation to two civil proceedings in Germany and may elect to join
the proceedings as a third party participant. Investec Bank plc has itself served third party notices on various participants to these
historic transactions in order to preserve the statute of limitations on any potential future claims that Investec Bank plc may seek to
bring against those parties, should Investec Bank plc incur any liability in the future. Investec Bank plc has also entered into
standstill agreements with some third parties in order to suspend the limitation period in respect of the potential civil claims. While
Investec Bank plc is not a claimant nor a defendant to any civil claims at this stage, it cannot rule out the possibility of civil claims by
or against Investec Bank plc in future in relation to the relevant transactions.
The Group has not provided further disclosure with respect to these historical dividend arbitrage transactions because it has
concluded that such disclosure may be expected to seriously prejudice its outcome.
Motor finance commission review
Following a review into the motor vehicle financing market completed by the (Financial Conduct Authority) FCA in March 2019 and
subsequent policy statement issued in July 2020, the use of discretionary commission arrangements was prohibited with effect
from 28 January 2021 on the basis that such arrangements had the potential to cause consumer detriment. The Group fully
complied with this requirement.
On 11 January 2024, the FCA announced a further industry wide review of historical motor finance commission arrangements, in
order to assess whether such arrangements had in practice caused consumer detriment. The FCA currently plans to communicate
a decision on next steps towards the end of the third quarter of 2024 on the basis of the evidence collated as part of this review.
The FCA has indicated that such steps could include establishing an industry-wide consumer redress scheme.
The Group has to date received a small number of complaints in respect of motor finance commissions and is actively engaging
with the FOS (Financial Ombudsman Service) in its assessment of these complaints. The Group continues to believe that its
historical practices were compliant with the law and regulations in place at the time, and welcomes the FCA intervention through its
industry wide review. Nevertheless, the Group recognises that costs and awards could arise in the event that the FCA concludes
there has been industry wide misconduct and customer loss that requires remediation. Those costs and awards could arise as the
result of a redress scheme, or from adverse FOS/litigation decisions.
Accordingly, in response to the FCA announcement, the Group has recognised a provision of £30 million. This includes estimates
for operational and legal costs, including litigation costs, together with estimates for potential awards, based on various scenarios
using a range of assumptions. The time period applied in the calculations is between June 2015, the commencement of the
business, and 28 January 2021, the date that discretionary commission arrangements were prohibited.
While the FCA review is progressing there is significant uncertainty across the industry as to the extent of any misconduct and
customer loss that may be identified, and/or the nature, extent and timing of any remediation action that may subsequently be
required. The Group therefore notes that the ultimate financial impact of the FCA investigation could be either higher or lower than
the amount provided for, but is satisfied that the provision it has currently made is reasonable.

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147
50 . Related party transactions

At 31 March | 2024 |  | 2023 |
£’000 |  |
Compensation of key management personnel and directors |  |  |  |
Details of directors’ remuneration and interest in shares, including the disclosures required by IAS 24 |  |  |  |
Related party transactions for the compensation of key management personnel and directors have been included in the section marked as audited in the Investec remuneration report 2024 . |  |  |  |
Transactions, arrangements and agreements involving directors and others: |  |  |  |
Transactions, arrangements and agreements involving directors and with directors and connected persons and companies controlled by them, and with officers of the Company, were as follows: |  |  |  |
Directors, key management and connected persons and companies controlled by them |  |  |  |
Loans |  |  |  |
At the beginning of the year | 16 024 |  | 14 443 |
Increase in loans* | 3 156 |  | 6 217 |
Decrease in loans* | (4 343) |  | (4 636) |
Exchange adjustments | (1 341) |  | — |
At the end of the year | 13 496 |  | 16 024 |
Guarantees |  |  |  |
At the beginning of the year | 100 |  | 78 |
Additional guarantees granted | — |  | 32 |
Decrease in guarantees* | (94) |  | — |
Exchange adjustments | (6) |  | (10) |
At the end of the year | — |  | 100 |
Deposits |  |  |  |
At the beginning of the year | (10 917) |  | (12 902) |
Increase in deposits | (2 128) |  | (2 207) |
Decrease in deposits* | 4 076 |  | 4 192 |
Exchange adjustments | 894 |  | — |
At the end of the year | (8 075) |  | (10 917) |

*Movements primarily relate to normal course of business and changes in directorship during the current year.
The above transactions were made in the ordinary course of business and on substantially the same terms, including interest rates
and security, as for comparable arm’s length transactions with persons of a similar standing or, where applicable, with other
employees. The transactions did not involve more than the normal risk of repayment. None of these loans have been impaired.

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148
50 . Related party transactions (continued)

| Investec Limited and subsidiaries
At 31 March | 2024 |  | 2023 |
£’000 |  |
Balances with other related parties |  |  |  |
Assets |  |  |  |
Loans and advances to banks | 538 |  | 4 263 |
Derivative financial instruments | 1 |  | 473 |
Other assets | 3 538 |  | 6 086 |
Liabilities |  |  |  |
Deposits by banks | 24 053 |  | 3 375 |
Derivative financial instruments | 64 |  | 3 534 |
Customer accounts (deposits) | 6 857 |  | 6 366 |
Debt securities in issue | 51 515 |  | 33 395 |
Repurchase agreements and cash collateral on securities lent | — |  | 20 208 |
Other liabilities | 449 |  | 309 |

During the year to 31 March 2024, interest of £0.4 million ( 2023 : £0.6 million) was paid to entities in the Investec Limited Group.
Interest of £188 000 ( 2023 : £821 000) was received from Investec Limited Group.
In the normal course of business, services are rendered between Investec plc and Investec Limited entities. In the year to
31 March 2024, this resulted in a net payment to Investec Limited Group of £26 million ( 2023: £21.8 million).
The Group has an investment in Grovepoint (UK) Limited in which a previous Investec director has significant influence.
The Group’s investment has been revalued in the current year to £65.5 million (2023: £41.5 million) with no further committed
funding. The terms and conditions of the transaction were no more favourable than those available, or which might be expected to
be available, on similar transactions to non-related entities on an arm’s length basis.
At 31 March 2024, the Group held £63 000 ( 2023: £74 000) of customer accounts (deposits) from the Ninety One Group on-
balance sheet and a £18 000 debtor (2023: £36 000) for IFRS 2 recharges in relation to the share scheme. In addition, a lease
guarantee of £8 million (2023: £8 million) has been provided by Investec plc on behalf of Ninety One, with income of £443 000
received during the year (2023: £487 000).
During the year to 31 March 2024, the Group paid £767 000 (2023: £761 000) for services rendered in the ordinary course
of business and received £9.5 million ( 2023: £24 000) from associates and joint venture holdings.
Due to the nature of the Group’s business, there could be transactions with entities where some of the Group’s directors may
be mutual directors. These transactions are in the ordinary course of business and are on an arm’s length basis.

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149
51 . Hedges
The Group uses derivatives for the management of financial risks relating to its asset and liability portfolios, mainly associated
with non-trading interest rate risks and exposures to foreign currency risk. Most non-trading interest rate risk is transferred from
the originating business to the Central Treasury in the Specialist Bank. Once aggregated and netted, Central Treasury, as the sole
interface to the wholesale market for cash and derivative transactions, actively manages the liquidity mismatch and non-trading
interest rate risk from our asset and liability portfolios. In this regard, Treasury is required to exercise tight control of funding,
liquidity, concentration and non-trading interest rate risk within defined parameters.
The accounting treatment of accounting hedges is dependent on the requirement to identify a direct relationship between
a hedged item and hedging instrument. This relationship is established in limited circumstances based on the manner in which
the Group manages its risk exposure. Below is a description of each category of accounting hedges achieved by the Group.
In addition to fair value hedges and cash flow hedges, the Group maintains a structural hedging programme to reduce the
sensitivity of earnings to short-term interest rate movements. For more detail refer to page 195.
Fair value hedges
Fair value hedges are entered into mainly to hedge the exposure of changes in fair value of fixed rate financial instruments
attributable to interest rates.

At 31 March | Description of financial instrument designated as hedging instrument (All included within derivative financial instruments on the balance sheet) | Notional value of hedging instrument | Fair value of hedging instrument | Cumulative fair value gains or (losses) on hedging instrument | Current year fair value gains or (losses) on hedging instrument | Cumulative fair value gains or (losses) on hedged item* | Current year fair value gains or (losses) on hedged item |
£’000 |
2024 |  |  |  |  |  |  |  |
Assets | Interest rate swap | 2 371 336 | 126 798 | 132 974 | (54 334) | (127 854) | 30 439 |
Liabilities | Interest rate swap | 6 387 935 | (61 876) | (61 876) | 35 364 | 63 141 | (32 760) |
|  | 8 759 271 | 64 922 | 71 098 | (18 970) | (64 713) | (2 321) |
2023 |  |  |  |  |  |  |  |
Assets | Interest rate swap | 2 486 101 | 181 173 | 187 307 | 108 415 | (158 293) | (96 153) |
Liabilities | Interest rate swap | 5 591 029 | (97 127) | (97 240) | (57 321) | 95 899 | 56 206 |
|  | 8 077 130 | 84 046 | 90 067 | 51 094 | (62 394) | (39 947) |

*Change in fair value used as the basis for recognising hedge effectiveness for the period.
The hedging instruments share the same risk exposures as the hedged items. Hedge effectiveness is determined with reference
to retrospective and prospective testing, but to the extent hedging instruments are exposed to different risks than the hedged
items, this could result in hedge ineffectiveness or hedge accounting failures.
Sources of ineffectiveness include the following:
• Mismatches between the contractual terms of the hedged item and hedging instrument, including basis differences
• If a hedging relationship becomes over-hedged, for example, if the hedged item is partially redeemed but the original hedging
instrument remains in place.
Included within balance sheet management and other trading activities in the income statement is a £1.8 million gain (2023:
£ 10.9 million gain) arising from hedge ineffectiveness.
There are no accumulated fair value hedge adjustments for hedged items that have ceased to be adjusted for hedging gains
and losses.

| Carrying amount of hedged item
At 31 March | 2024 |  | 2023 |
£’000 |  |
Assets |  |  |  |
Sovereign debt securities | 77 888 |  | 61 468 |
Bank debt securities | 21 130 |  | — |
Other debt securities | 13 584 |  | 15 363 |
Loans and advances to customers | 2 038 635 |  | 2 152 411 |
Other assets * | 56 668 |  | 91 662 |
Liabilities |  |  |  |
Debt securities in issue | 757 282 |  | 679 656 |
Customer accounts (deposits) | 4 922 286 |  | 4 501 412 |
Subordinated liabilities | 700 000 |  | 312 872 |

*Other assets includes aviation leasing related hedges.

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150
51. Hedges (continued)

At 31 March | Up to one month | One month to three months | Three months to six months | Six months to one year | One to five years | Greater than five years | Total |
£’000 |
Maturity analysis of hedged items |  |  |  |  |  |  |  |
2024 |  |  |  |  |  |  |  |
Assets – notionals |  |  |  |  |  |  |  |
Sovereign debt securities | — | — | — | 8 000 | 64 000 | 10 000 | 82 000 |
Bank debt securities | — | — | — | — | 22 000 | — | 22 000 |
Other debt securities | — | — | — | — | 10 420 | 3 164 | 13 584 |
Loans and advances to customers | 8 901 | 47 443 | 74 758 | 135 433 | 1 333 782 | 438 317 | 2 038 634 |
Other assets* | 2 818 | 5 661 | 8 566 | 17 411 | 22 212 | — | 56 668 |
Liabilities – notionals |  |  |  |  |  |  |  |
Debt securities in issue | — | — | — | 30 | 783 366 | — | 783 396 |
Customer accounts (deposits) | — | 132 111 | 1 006 825 | 2 989 176 | 787 048 | 7 125 | 4 922 285 |
Subordinated liabilities | — | — | — | — | — | 700 000 | 700 000 |
2023 |  |  |  |  |  |  |  |
Assets – notionals |  |  |  |  |  |  |  |
Sovereign debt securities | — | — | — | — | 65 000 | — | 65 000 |
Other debt securities | — | — | — | — | 4 490 | 11 234 | 15 724 |
Loans and advances to customers | 165 | 9 469 | 25 555 | 52 874 | 839 971 | 1 382 532 | 2 310 566 |
Other assets* | 2 765 | 5 545 | 8 388 | 17 052 | 57 912 | — | 91 662 |
Liabilities – notionals |  |  |  |  |  |  |  |
Debt securities in issue | — | — | — | — | 526 883 | 200 000 | 726 883 |
Customer accounts (deposits) | 275 634 | 343 652 | 690 451 | 2 784 016 | 420 393 | — | 4 514 146 |
Subordinated liabilities | — | — | — | — | — | 350 000 | 350 000 |

*Other assets includes aviation leasing related hedges.

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151
51. Hedges (continued)
Cash flow hedges
The change in the benchmark interest rate exposes the Group to cash flow variability risk from both existing and highly probable
future transactions. During the year the Group entered into interest rate swap transactions to mitigate the cash flow variability risk.
The aggregate expected cash flows were hedged based on cash flow forecasts with reference to terms and conditions present
in the affected contractual arrangements. Changes in fair value were initially recognised in other comprehensive income and
reclassified to the income statement when the cash flows affected the income statement.
A reconciliation of the cash flow hedge reserve can be found in the statement of changes in equity.
Hedging instruments and ineffectiveness

| 2024
| Carrying Amount | Change in fair value used to calculate hedge ineffectiveness | Gain/(loss) recognised in OCI* | Ineffectiveness (loss) recognised in the income statement |
At 31 March | Notional | Asset | Liability |
£’000 |
Interest rate risk |  |  |  |  |  |  |
Interest rate swaps | 350 000 | 3 210 | — | 2 034 | 2 170 | (114) |
| 350 000 | 3 210 | — | 2 034 | 2 170 | (114) |

| 2023**
| Carrying Amount | Change in fair value used to calculate hedge ineffectiveness | Gain/(loss) recognised in OCI* | Ineffectiveness (loss) recognised in the income statement |
At 31 March | Notional | Asset | Liability |
£’000 |
Interest rate risk |  |  |  |  |  |  |
Interest rate swaps | — | — | — | 30 539 | 27 635 | — |
| — | — | — | 30 539 | 27 635 | — |

* Included within the gain/(loss) recognised in OCI are amounts amortised to the income statement where the hedged cash flows are still expected to occur.
Hedging items in cash flow hedges

| Change in fair value used for calculating hedge ineffectiveness |
At 31 March | 2024 | 2023** |
£’000 |
Loans and advances to customers | (3 781) | — |
Customer accounts (deposits) | 1 633 | — |
| (2 148) | — |

** No cash flow hedges were designated as at 31 March 2023 which were in a hedge relationship during the reporting period.
Impact of cash flow hedges on profit and loss and other comprehensive income

| Cash flow reserve
For the year to | 2024 | 2023 |
£’000s |
At the beginning of the year | 27 635 | — |
Gain recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments | 2 148 | 30 539 |
Loss reclassified to income statement when hedged item affected net profit | (5 250) | (2 904) |
Taxation charge relating to cash flow hedges | (6 869) | — |
At the end of the year | 17 664 | 27 635 |

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152
52 . Liquidity analysis of financial liabilities based on undiscounted cash flows

At 31 March | Demand | Up to one month | One month to three months | Three months to six months | Six months to one year | One year to five years | Greater than five years | Total |
£’000 |
2024 |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Deposits by banks | 226 716 | 19 659 | 16 494 | 36 318 | 50 188 | 1 981 853 | — | 2 331 228 |
Derivative financial instruments | 67 622 | 46 520 | 56 680 | 74 249 | 101 758 | 144 603 | 18 631 | 510 063 |
Derivative financial instruments – held for trading | 64 164 | — | — | — | — | — | — | 64 164 |
Derivative financial instruments – held for hedging risk | 3 458 | 46 520 | 56 680 | 74 249 | 101 758 | 144 603 | 18 631 | 445 899 |
Other trading liabilities | 18 449 | — | — | — | — | — | — | 18 449 |
Repurchase agreements and cash collateral on securities lent | 17 575 | 67 516 | — | — | — | — | — | 85 091 |
Customer accounts (deposits) | 6 192 434 | 2 153 954 | 3 529 848 | 3 347 685 | 4 314 921 | 1 600 860 | — | 21 139 702 |
Debt securities in issue | — | 6 188 | 24 873 | 49 224 | 66 217 | 1 285 849 | 1 194 | 1 433 545 |
Liabilities arising on securitisation of other assets | — | — | 7 154 | 3 462 | 6 540 | 40 251 | 34 570 | 91 977 |
Other liabilities | 96 395 | 314 277 | 49 982 | 6 031 | 95 375 | 29 082 | 3 163 | 594 305 |
Subordinated liabilities | — | — | — | — | 41 125 | 164 500 | 855 313 | 1 060 938 |
Total on-balance sheet liabilities | 6 619 191 | 2 608 114 | 3 685 031 | 3 516 969 | 4 676 124 | 5 246 998 | 912 871 | 27 265 298 |
Contingent liabilities | — | 39 441 | 88 693 | 3 772 | 28 152 | 364 928 | 50 286 | 575 272 |
Commitments | 139 830 | 108 511 | 32 337 | 196 253 | 294 082 | 1 282 947 | 384 953 | 2 438 913 |
Total liabilities | 6 759 021 | 2 756 066 | 3 806 061 | 3 716 994 | 4 998 358 | 6 894 873 | 1 348 110 | 30 279 483 |

The balances in the above table will not agree directly to the balances in the consolidated balance sheet, as the table incorporates
all cash flows on an undiscounted basis relating to both principal and those associated with all future coupon payments (except for
trading liabilities and trading derivatives). Furthermore, loan commitments are generally not recognised on the balance sheet. The
cash flow profile of debt securities in issue above considers modelled early redemptions.
Trading liabilities and trading derivatives have been included in the ‘Demand’ time bucket and not by contractual maturity because
trading liabilities are typically held for short periods of time.
For an unaudited analysis based on discounted cash flows, refer to page 194 .

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153
52. Liquidity analysis of financial liabilities based on undiscounted cash flows
(continued)

At 31 March | Demand | Up to one month | One month to three months | Three months to six months | Six months to one year | One year to five years | Greater than five years | Total |
£’000 |
2023 |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Deposits by banks | 348 445 | 14 387 | 6 414 | 26 652 | 44 507 | 1 918 353 | — | 2 358 758 |
Derivative financial instruments | 175 712 | 31 595 | 78 615 | 74 315 | 126 099 | 229 550 | 19 203 | 735 089 |
Derivative financial instruments – held for trading | 165 152 | — | — | — | — | — | — | 165 152 |
Derivative financial instruments – held for hedging risk | 10 560 | 31 595 | 78 615 | 74 315 | 126 099 | 229 550 | 19 203 | 569 937 |
Other trading liabilities | 28 184 | — | — | — | — | — | — | 28 184 |
Repurchase agreements and cash collateral on securities lent | 41 194 | 43 875 | — | 54 461 | — | — | — | 139 530 |
Customer accounts (deposits) | 6 463 001 | 837 966 | 4 417 730 | 3 044 016 | 3 301 016 | 1 246 483 | 34 | 19 310 246 |
Debt securities in issue | — | 3 348 | 35 179 | 88 916 | 83 172 | 909 991 | 557 979 | 1 678 585 |
Liabilities arising on securitisation of other assets | — | — | 5 920 | 159 | 9 607 | 49 555 | 34 532 | 99 773 |
Other liabilities | 40 059 | 488 904 | 14 198 | 34 926 | 37 347 | 29 531 | 6 971 | 651 936 |
Subordinated liabilities | — | — | 7 963 | 2 975 | 9 188 | 246 400 | 855 312 | 1 121 838 |
Total on-balance sheet liabilities | 7 096 595 | 1 420 075 | 4 566 019 | 3 326 420 | 3 610 936 | 4 629 863 | 1 474 031 | 26 123 939 |
Contingent liabilities | — | 91 | 90 777 | 2 794 | 10 024 | 320 301 | 78 264 | 502 251 |
Commitments | 167 414 | 72 597 | 55 524 | 167 819 | 218 945 | 1 382 284 | 400 955 | 2 465 538 |
Total liabilities | 7 264 009 | 1 492 763 | 4 712 320 | 3 497 033 | 3 839 905 | 6 332 448 | 1 953 250 | 29 091 728 |

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154
53 . Principal subsidiaries, associated companies and joint venture holdings –
Investec plc

|  |  | Interest
| Principal activity | Country of incorporation | 2024 |  | 2023 |
At 31 March |  |
Direct subsidiaries of Investec plc |  |  |  |  |  |
Investec 1 Limited | Investment holding | England and Wales | 100% |  | 100% |
Indirect subsidiaries of Investec plc |  |  |  |  |  |
Investec Asset Finance PLC | Leasing | England and Wales | 100% |  | 100% |
Investec Bank plc | Investment holding | England and Wales | 100% |  | 100% |
Investec Bank (Channel Islands) Limited | Banking institution | Guernsey | 100% |  | 100% |
Investec Bank (Switzerland) AG | Banking institution and wealth manager | Switzerland | 100% |  | 100% |
Investec Group Investments (UK) Limited | Investment holding | England and Wales | 100% |  | 100% |
Investec Holdings Australia Pty Limited | Holding company | Australia | 100% |  | 100% |
Investec Investments (UK) Limited | Investment holding | England and Wales | 100% |  | 100% |
Investec Europe Limited | MiFiD firm | Ireland | 100% |  | 100% |
Investec Securities (US) LLC | Financial services | USA | 100% |  | 100% |
Investec Wealth & Investment Limited | Investment management services | England and Wales | - |  | 100% |
Investec-Capitalmind Investment Limited | Non trading | England and Wales | 100% |  | - |

All of the above subsidiary undertakings are included in the consolidated accounts.
The subsidiaries listed above are only in relation to subsidiary undertakings whose results or financial position, in the opinion of the
directors, have a significant impact on the financial statements.
For more details on interests in associated undertakings and joint venture holdings refer to note 28 .
A complete list of subsidiary, associated undertakings and joint venture holdings as required by the Companies Act 2006 is
included in note j to the Investec plc company accounts on pages 211 to 215.
Consolidated structured entities
Investec plc has no equity interest in the following structured entities, which are consolidated. Typically, a structured entity is an
entity in which voting or similar rights are not the dominant factor in deciding control. The judgements to assess whether the Group
has control over these structures include assessing the purpose and design of the entity and considering whether the Group or
another involved party with power over the relevant activities is acting as a principal in its own right or as an agent on behalf of
others.

Name of principal structured entity | Type of structured entity
Cavern Funding 2020 plc | Securitised auto receivables
Landmark Mortgage Securities No. 2 plc | Securitised residential mortgages
Temese Funding 2 plc | Securitised receivables
Gresham Leasing One Limited | Aircraft related

For additional detail on the other securitised assets and liabilities arising on securitisation, refer to note 27.
Details of the risks to which the Group is exposed through all of its securitisations are included in the notes to risk and capital
management on page 187.

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155
53. Principal subsidiaries, associated companies and joint venture holdings –
Investec plc (continued)
The key assumptions for the main types of structured entities which the Group consolidates are summarised below:
Securitised residential mortgages
The Group has securitised residential mortgages in order to provide investors with exposure to residential mortgage risk and to
raise funding. These structured entities are consolidated due to the Group’s holdings of equity notes combined with its control over
servicing activities. The Group is not required to fund any losses above those incurred on the notes it has retained; such losses are
reflected in any impairment of securitised mortgages as those assets have not been derecognised.
Structured debt and loan portfolios
The Group has structured debt and loan portfolios for the purpose of issuing asset-backed securities. These structured entities are
consolidated due to the Group’s retention of equity notes and because it continues to act as the collateral manager. The Group is
not required to fund any losses above those incurred on the notes it has retained.
Securitised receivables
The Group has securitised portfolios of medium-term lease and hire purchase receivables. These structured entities are
consolidated as the Group has retained the equity notes and control over servicing activities. The Group is not required to fund
any losses above those incurred on the notes it has retained.
Other structured entities – commercial operations
The Group also consolidates a number of structured entities where control arises from rights attached to lending facilities and
similar commercial involvement. These arise primarily in the areas of aircraft funds, where the Group has rights which allow it
to maximise the value of the assets held and investments in mining projects due to its exposure to equity like returns and ability
to influence the strategic and financial decision-making.
The Group is not required to fund any losses above those which could be incurred on debt positions held or swaps which exist
with these structured entities. The risks to which the Group is exposed from these structured entities are related to the underlying
assets held in the structures.
Significant restrictions
As is typical for a large group of companies, there are restrictions on the ability of the Group to obtain distributions of capital,
access the assets or repay the liabilities of members of the Group due to the statutory, regulatory and contractual requirements
of its subsidiaries.
These are considered below:
Regulatory requirements
Subsidiary companies are subject to prudential regulation and regulatory capital requirements in the countries in which they are
regulated. These require entities to maintain minimum capital, leverage and exposure ratios restricting the ability of these entities
to make distributions of cash or other assets to the parent company. Regulated subsidiaries of the Group are required to maintain
liquidity pools to meet PRA and local regulatory requirements. The main subsidiaries affected are: Investec Bank plc, Investec Bank
(Channel Islands) Limited and Investec Bank (Switzerland) AG, which must maintain compliance with the regulatory minimum.
Capital management within the Group is discussed in the notes to risk and capital management on pages 200 to 202 .
Statutory requirements
The Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits,
and generally maintain solvency. These requirements restrict the ability of subsidiaries to remit dividends, except in the case
of a legal capital reduction or liquidation.
Contractual requirements
Asset encumbrance – the Group uses its financial assets to raise finance in the form of securitisations and through the liquidity
schemes of central banks. Once encumbered, the assets are not available for transfer around the Group. The assets typically
affected are disclosed in notes 19 and 56.

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156
53. Principal subsidiaries, associated companies and joint venture holdings –
Investec plc (continued)
Structured associates
The Group has investments in a number of structured funds specialising in aircraft financing where the Group acts as adviser
or fund manager in addition to holding units within the fund. As a consequence of these roles and funding, the Group has
significant influence over the fund and therefore the funds are treated as associates.
The Group applies the venture capital exemption to these holdings and, as such, the investments in the funds are accounted for
at fair value and held within the investment portfolio on the balance sheet.

Type of structured entity |  | Nature and purpose | Interest held by the Group/income earned
Aircraft investment funds |  | To generate fees from managing assets on behalf of third party investors | Investments in units issued by the fund
|  | These vehicles are financed through the issue of units to investors | Management fees

The table below sets out an analysis of the carrying amounts of interests held by the Group in structured associate entities.

At 31 March 2024 |  | Line on the balance sheet | Carrying value £'000 | Maximum exposure to loss | Income earned from structured entity | £'000 |
£’000 |  |
Aircraft investment funds |  | Investment portfolio | 22 108 | Limited to the carrying value | Investment income | 226 |

At 31 March 2023 |  | Line on the balance sheet | Carrying value £'000 | Maximum exposure to loss | Income earned from structured entity | £'000 |
£’000 |  |
Aircraft investment funds |  | Investment portfolio | 21 164 | Limited to the carrying value | Investment income | 2 832 |

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157
54 . Unconsolidated structured entities
The Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer
transactions and for specific investment opportunities. Unconsolidated structured entities are those which the Group does not
control in line with basis of consolidation as set out in the accounting policies on pages 80 to 91.
The table below describes the types of unconsolidated structured entities the Group has transactions with.

Type of structured entity |  |  | Nature and purpose |  |  | Interest held by the Group/income earned
Investment funds |  |  | To generate fees from managing assets on behalf of third party investors |  |  | Investments in units issued by the fund
|  |  | These vehicles are financed through the issue of units to investors |  |  | Management fees
Debt funds |  |  | To generate a return for investors by providing exposure to residential mortgage risk |  |  | Investments in units issued by the fund
|  |  | These vehicles are financed through the issue of notes to investors |  |  | Interest income/Investment income/ Management fees
Aircraft leasing structures |  |  | To generate fees from managing assets on behalf of third party investors |  |  | Investments in units issued by the fund
|  |  | These vehicles are financed through the issue of units to investors |  |  | Interest income/Investment income

The table below shows the Group's maximum exposure to the unconsolidated structured entities.

At 31 March 2024 | Investment fund | Debt fund | Aircraft leasing structure | Total
£’000
Loans and advances (fair value through profit and loss) | — | — | 11 477 | 11 477
Loans and advances (amortised cost) | — | — | — | —
Investment portfolio (fair value through profit and loss) | 30 722 | — | 1 114 | 31 836
Investment portfolio (amortised cost) | — | 10 | — | 10
Other debt securities (fair value through profit and loss) | — | 32 252 | — | 32 252
Total assets | 30 722 | 32 262 | 12 591 | 75 575
Other liabilities (fair value through profit and loss) | 12 | — | — | 12
Total liabilities | 12 | — | — | 12
Off-balance sheet commitments | 13 288 | 198 | 2 610 | 16 096
Maximum exposure at 31 March 2024 | 43 998 | 32 460 | 15 201 | 91 659

At 31 March 2023 | Investment fund | Debt fund | Aircraft leasing structure | Total
£’000
Loans and advances (fair value through profit and loss) | — | — | 418 | 418
Loans and advances (amortised cost) | — | — | 5 636 | 5 636
Investment portfolio (fair value through profit and loss) | 22 833 | — | — | 22 833
Investment portfolio (amortised cost) | — | — | — | —
Other debt securities (fair value through profit and loss) | — | 43 680 | — | 43 680
Total assets | 22 833 | 43 680 | 6 054 | 72 567
Other liabilities (fair value through profit and loss) | 36 | — | — | 36
Total liabilities | 36 | — | — | 36
Off-balance sheet commitments | 13 172 | 202 | 2 668 | 16 042
Maximum exposure at 31 March 2023 | 35 969 | 43 882 | 8 722 | 88 573

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158
54. Unconsolidated structured entities (continued)
Financial support provided to the unconsolidated structured entities
There are no contractual agreements which require the Group to provide any additional financial or non-financial support to these
structured entities.
During the year, the Group has not provided any such support and does not have any current intentions to do so in the future.
Sponsoring
The Group considers itself a sponsor of a structured entity when it facilitates the establishment of the structured entity.
Interests in structured entities which the Group has not set up
Purchased securitisation positions
The Group buys and sells interests in structured entities that it has not originated as part of its trading activities, for example,
residential mortgage securities, commercial mortgage securities, loans to corporates and resecuritisations. In such cases the Group
typically has no other involvement with the structured entity other than the securities it holds as part of its trading activities, and
its maximum exposure to loss is restricted to the carrying value of the asset.
Details of the value of these interests is included in the notes to risk and capital management on page 187.

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159
55 . Offsetting

| Amounts subject to enforceable netting arrangements
| Effects of offsetting on-balance sheet | Related amounts not offset*
At 31 March | Gross amounts | Amounts offset |  | Net amounts reported on the balance sheet |  | Financial instruments (including non- cash collateral) | Cash collateral |  | Net amount |
£’000 |  |  |  |
2024 |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 5 661 623 | — |  | 5 661 623 |  | — | — |  | 5 661 623 |
Loans and advances to banks | 676 464 | — |  | 676 464 |  | — | (19 695) |  | 656 769 |
Reverse repurchase agreements and cash collateral on securities borrowed | 1 140 115 | — |  | 1 140 115 |  | (8 940) | (1 381) |  | 1 129 794 |
Sovereign debt securities | 1 928 134 | — |  | 1 928 134 |  | — | — |  | 1 928 134 |
Bank debt securities | 297 255 | — |  | 297 255 |  | — | — |  | 297 255 |
Other debt securities | 708 285 | — |  | 708 285 |  | — | — |  | 708 285 |
Derivative financial instruments | 437 255 | — |  | 437 255 |  | (124 113) | (158 857) |  | 154 285 |
Securities arising from trading activities | 157 332 | — |  | 157 332 |  | (27 398) | — |  | 129 934 |
Loans and advances to customers | 16 570 313 | — |  | 16 570 313 |  | — | — |  | 16 570 313 |
Other loans and advances | 117 514 | — |  | 117 514 |  | — | (399) |  | 117 115 |
Other securitised assets | 66 702 | — |  | 66 702 |  | — | — |  | 66 702 |
Investment portfolio | 405 410 | — |  | 405 410 |  | — | — |  | 405 410 |
Other assets | 740 121 | — |  | 740 121 |  | — | — |  | 740 121 |
| 28 906 523 | — |  | 28 906 523 |  | (160 451) | (180 332) |  | 28 565 740 |
Liabilities |  |  |  |  |  |  |  |  |  |
Deposits by banks | 2 174 305 | — |  | 2 174 305 |  | — | (157 489) |  | 2 016 816 |
Derivative financial instruments | 472 662 | — |  | 472 662 |  | (124 113) | (15 417) |  | 333 132 |
Other trading liabilities | 18 449 | — |  | 18 449 |  | (8 940) | — |  | 9 509 |
Repurchase agreements and cash collateral on securities lent | 85 091 | — |  | 85 091 |  | (17 575) | (4 677) |  | 62 839 |
Customer accounts (deposits) | 20 790 611 | — |  | 20 790 611 |  | — | (2 749) |  | 20 787 862 |
Debt securities in issue | 1 273 106 | — |  | 1 273 106 |  | (9 823) | — |  | 1 263 283 |
Liabilities arising on securitisation of other assets | 71 751 | — |  | 71 751 |  | — | — |  | 71 751 |
Other liabilities | 1 025 813 | — |  | 1 025 813 |  | — | — |  | 1 025 813 |
Subordinated liabilities | 668 810 | — |  | 668 810 |  | — | — |  | 668 810 |
| 26 580 598 | — |  | 26 580 598 |  | (160 451) | (180 332) |  | 26 239 815 |

*The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master
netting agreements. The Group holds and provides cash and securities collateral in respect of derivatives transactions covered by these agreements. The right to set
off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result,
these arrangements do not qualify for offsetting under IAS 32.

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160
55 . Offsetting (continued)

| Amounts subject to enforceable netting arrangements
| Effects of offsetting on-balance sheet | Related amounts not offset*
At 31 March | Gross amounts | Amounts offset |  | Net amounts reported on the balance sheet |  | Financial instruments (including non- cash collateral) | Cash collateral |  | Net amount |
£’000 |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 5 400 401 | — |  | 5 400 401 |  | — | — |  | 5 400 401 |
Loans and advances to banks | 893 297 | — |  | 893 297 |  | — | (42 365) |  | 850 932 |
Reverse repurchase agreements and cash collateral on securities borrowed | 1 338 699 | — |  | 1 338 699 |  | (18 976) | (51 104) |  | 1 268 619 |
Sovereign debt securities | 1 221 744 | — |  | 1 221 744 |  | — | — |  | 1 221 744 |
Bank debt securities | 204 691 | — |  | 204 691 |  | — | — |  | 204 691 |
Other debt securities | 697 275 | — |  | 697 275 |  | — | — |  | 697 275 |
Derivative financial instruments | 634 123 | — |  | 634 123 |  | (202 876) | (265 816) |  | 165 431 |
Securities arising from trading activities | 127 537 | — |  | 127 537 |  | (33 902) | — |  | 93 635 |
Loans and advances to customers | 15 567 809 | — |  | 15 567 809 |  | — | — |  | 15 567 809 |
Other loans and advances | 142 626 | — |  | 142 626 |  | — | (4 959) |  | 137 667 |
Other securitised assets | 78 231 | — |  | 78 231 |  | — | — |  | 78 231 |
Investment portfolio | 489 204 | — |  | 489 204 |  | — | — |  | 489 204 |
Other assets | 965 449 | — |  | 965 449 |  | — | — |  | 965 449 |
| 27 761 086 | — |  | 27 761 086 |  | (255 754) | (364 244) |  | 27 141 088 |
Liabilities |  |  |  |  |  |  |  |  |  |
Deposits by banks | 2 172 171 | — |  | 2 172 171 |  | — | (315 023) |  | 1 857 148 |
Derivative financial instruments | 704 816 | — |  | 704 816 |  | (202 877) | (41 080) |  | 460 859 |
Other trading liabilities | 28 184 | — |  | 28 184 |  | (10 337) | — |  | 17 847 |
Repurchase agreements and cash collateral on securities lent | 139 529 | — |  | 139 529 |  | (20 986) | (6 244) |  | 112 299 |
Customer accounts (deposits) | 19 121 921 | — |  | 19 121 921 |  | — | (1 897) |  | 19 120 024 |
Debt securities in issue | 1 449 545 | — |  | 1 449 545 |  | (21 554) | — |  | 1 427 991 |
Liabilities arising on securitisation of other assets | 81 609 | — |  | 81 609 |  | — | — |  | 81 609 |
Other liabilities | 1 232 729 | — |  | 1 232 729 |  | — | — |  | 1 232 729 |
Subordinated liabilities | 731 483 | — |  | 731 483 |  | — | — |  | 731 483 |
| 25 661 987 | — |  | 25 661 987 |  | (255 754) | (364 244) |  | 25 041 989 |

*The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master
netting agreements. The Group holds and provides cash and securities collateral in respect of derivatives transactions covered by these agreements. The right to set
off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result,
these arrangements do not qualify for offsetting under IAS 32.

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161
56 . Derecognition
Transfer of financial assets that do not result in derecognition
The Group is party to securitisation transactions whereby assets continue to be recognised on-balance sheet (either fully
or partially) although they have been subject to legal transfer to another entity. Securitisations may, depending on the individual
arrangement, result in continued recognition of the securitised assets and the recognition of the debt securities issued in the
transaction.

| 2024 | 2023
No derecognition achieved | Carrying amount of assets that continue to be recognised | Carrying amount of associated liabilities |  | Carrying amount of assets that continue to be recognised | Carrying amount of associated liabilities |
£’000 |  |
Loans and advances to customers | 1 511 765 | — |  | 1 613 838 | — |
Loans and advances to banks | 69 389 | — |  | 80 799 | — |
| 1 581 154 | — |  | 1 694 637 | — |

The transferred assets above in both the current and prior year are held within structured entities which are wholly-owned and
consolidated by the Group. There are no external parties participating in these vehicles and therefore the Group continues to have
full exposure to the risks and rewards associated with the assets and the associated liabilities are eliminated on consolidation.
There are no restrictions or limitations on the Group's recourse to the assets held within the structured entities.
For transfer of assets in relation to repurchase agreements refer to note 19.
57 . Events after the reporting date
In the ordinary course of business, events may occur that influence the credit quality of loans and advances. At the date of this
report, we have concluded that no changes are required to our ECL provisions or there is insufficient new information available
since 31 March 2024 of any conditions which existed at the balance sheet date to reliably estimate any adjustments to these ECL
provisions.

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162
58. Restatements
The effective date of the combination of Investec Wealth & Investment Limited and Rathbones Group Plc was 21 September 2023.
The Investec Wealth & Investment business has been disclosed as a discontinued operation and the income statement for the prior
period has been appropriately re-presented. Refer to note 34 for discontinued operations.
In addition, realised cash flows on interest rate swaps were incorrectly grossed up and separately recognised as interest income
and interest expense. The two lines were appropriately reduced for the gross cash flows of £196.3 million, and the net movement
was accounted for in either ‘interest income’ or ‘interest expense’ (depending on whether it was an asset or liability being hedged).
These reclassifications in the income statement for the prior reported periods and the consequential restated comparatives have
been shown below.

| Year to | Reversal of | Re-presentation as a | Year to
| 31 March 2023 | interest rate swaps | discontinued | 31 March 2023
£’000 | as previously reported | gross-up | operation | restated
Interest income | 1 435 214 | (196 342) | (23 627) | 1 215 245
Interest expense | (698 226) | 196 342 | 859 | (501 025)
Net interest income | 736 988 | — | (22 768) | 714 220
Fee and commission income | 456 703 | — | (324 908) | 131 795
Fee and commission expense | (15 442) | — | — | (15 442)
Investment income | 18 223 | — | — | 18 223
Share of post-taxation profit of associates and joint venture holdings | 4 950 | — | — | 4 950
Trading income/(loss) arising from |  |  |  |
– customer flow | 87 366 | — | — | 87 366
– balance sheet management and other trading activities | 13 134 | — | — | 13 134
Other operating income | 6 879 | — | — | 6 879
Operating income | 1 308 801 | — | (347 676) | 961 125
Expected credit loss impairment charges | (66 752) | — | — | (66 752)
Operating income after expected credit loss impairment charges | 1 242 049 | — | (347 676) | 894 373
Operating costs | (854 875) | — | 255 909 | (598 966)
Operating profit before goodwill, acquired intangibles and strategic actions | 387 174 | — | (91 767) | 295 407
Impairment of goodwill | (805) | — | — | (805)
Amortisation of acquired intangibles | (12 625) | — | 12 625 | —
Closure and rundown of the Hong Kong direct investments business | (480) | — | — | (480)
Operating profit | 373 264 | — | (79 142) | 294 122
Financial impact of strategic actions^ | (5 340) | — | 4 938 | (402)
Profit before taxation | 367 924 | — | (74 204) | 293 720
Taxation on operating profit before goodwill, acquired intangibles and strategic actions | (76 824) | — | 17 201 | (59 623)
Taxation on goodwill, acquired intangibles and strategic actions | 2 031 | — | (2 031) | —
Profit after taxation from continuing operations | 293 131 | — | (59 034) | 234 097
Profit after taxation from discontinued operations | — | — | 59 034 | 59 034
Profit after taxation | 293 131 | — | — | 293 131
Profit attributable to other non-controlling interests | — | — | — | —
Earnings attributable to shareholders | 293 131 | — | — | 293 131

^Transaction costs associated with the Investec Wealth & Investment Limited and Rathbones Group Plc transaction have been re-presented as a discontinued
operation. These costs were recognised at Investec plc.

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163
59 . Credit and
counterparty risk
management
Credit and counterparty risk arises
primarily from three types of transactions:
• Lending transactions, through loans
and advances to clients and
counterparties, creating the risk that an
obligor will be unable or unwilling to
repay capital and/or interest on loans
and advances granted to them. This
category includes bank placements
where we have placed funds with
other financial institutions
• Financial instrument transactions,
producing issuer risk where payments
due from the issuer of a financial
instrument may not be received
• Trading transactions, giving rise to
settlement and replacement risk
(collectively counterparty risk):
– Settlement risk is the risk that the
settlement of a transaction does not
take place as expected, with one
party making required settlements as
they fall due but not receiving the
performance to which they are
entitled
– Replacement risk is the risk following
default by the original counterparty
resulting in the contract holder
having to enter into a replacement
contract with a second counterparty
in order to fulfil the transaction.
The relevant credit committees will also
consider wrong-way risk at the time of
granting credit limits to each
counterparty. In the banking book
environment, wrong-way risk occurs
where the value of collateral to secure a
transaction decreases as the probability
of default of the borrower or
counterparty increases. For counterparty
credit risk resulting from transactions in
traded products (such as OTC
derivatives), wrong-way risk is defined as
exposure to a counterparty that is
adversely correlated with the credit
quality of that counterparty. It arises
when default risk and credit exposure
increase together.
Credit and counterparty risk may also
arise in other ways and it is the role of
the risk management functions and the
various independent credit committees to
identify risks falling outside these
definitions.

Credit and counterparty risk governance structure

To manage, measure, monitor and mitigate
credit and counterparty risk, independent
credit committees exist in the UK . T hese
committees also have oversight of regions
where we assume credit risk and operate
under Board-approved delegated limits,
policies and procedures. There is a high
level of executive involvement and
oversight in the credit decision-making
forums depending on the size and
complexity of the deal. It is our policy that
all credit committees include voting
members who are independent of the
originating business unit. All decisions to
enter into a transaction are based on
unanimous consent.
In addition to the credit committees, the
following processes assist in managing,
measuring and monitoring credit and
counterparty risk:
• Day-to-day arrears management and
regular arrears reporting ensure that
individual positions and any potential
adverse trends are dealt with in a
timely manner
• Watchlist Forum s review the
management of distressed loans,
potential problem loans and exposures
in arrears that require additional
attention and supervision. These
committees review ECL impairments
and staging at an asset level as well as
potential fair value adjustments to
loans and advances to customers.
They provide recommendations for the
appropriate staging and level of ECL
impairment where required
• The Forbearance Forum reviews and
monitors counterparties who have
been granted forbearance measures
• The Impairment Decision Committee
reviews recommendations from
underlying Watchlist Forums and
considers and approves the
appropriate level of ECL impairments
and staging
• The Models Forum provides an internal
screening and validation process for
credit models. We have established
independent model validation teams
who review the models and provide
feedback on the accuracy and operation
of the models and note items for further
development through the forum
• An annual review of risk appetite
frameworks and limits that are
approved by IBP ERC, Investec Group
ERC, IBP and DLC BRCC and IBP and
DLC Board.

| Credit and counterparty risk appetite

The Board has set risk appetite limits
which regulate the maximum exposures
we would be comfortable to tolerate in
order to diversify and mitigate risk.
Should there be any breaches to limits, or
where exposures are nearing limits, these
exceptions are specifically highlighted for
attention, with remedial actions reported
at IBP BRCC, DLC BRCC and the
respective Boards.
The assessment of our clients and
counterparties includes consideration of
their character, integrity, core
competencies, track record and financial
strength. A strong emphasis is placed on
the historic and ongoing stability of
income and cash flow streams generated
by the clients. Our primary assessment
method is therefore the ability of the
client or counterparty to meet their
payment obligations.
Target clients include high net worth
individuals, active wealth creators, high-
income professionals, self-employed
entrepreneurs, owner managers in small
to mid-cap corporates, sophisticated
investors, established corporates, small
and medium-sized enterprises, financial
institutions and sovereigns.
We are client-centric in our approach and
originate loans mainly with the intent of
holding these assets to maturity, thereby
developing a ‘hands-on’ and long-
standing relationship.
Interbank lending is largely reserved for
those banks and institutions in the
Group’s core geographies of activity,
which are systemic and highly rated.

| Concentration risk

Concentration risk, with respect to
credit and counterparty risk, is when large
exposures exist to a single client
or counterparty, group of connected
counterparties, or to a particular
geography, asset class or industry. An
example of this would be where a number
of counterparties are affected by similar
economic, legal, regulatory or other factors
that could mean their ability to meet
contractual obligations are correlated.
Credit and counterparty risk is always
assessed with reference to the
aggregate exposure to a single
counterparty or group of related parties
to manage concentration risk. In order to
manage concentration, we will consider a
sell-down of exposures to market
participants if required.
Concentration risk can also exist where
portfolio loan maturities are clustered to

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164
single periods in time. Loan maturities are
monitored on a portfolio and a
transaction level by Group risk
management, Group lending operations
as well as the originating business units.

| Country risk

Country risk, with respect to credit and
counterparty risk, refers to the risk of
lending to a counterparty operating in a
particular country or the risk inherent in a
sovereign exposure, i.e. the risk of
exposure to loss caused by events in that
country. Country risk covers all forms of
lending or investment activity whether to/
with individuals, corporates, banks or
governments. This can include
geopolitical risks, transfer and
convertibility risks, and the impact on the
borrower’s credit profile due to local
economic and political conditions.
To mitigate country risk, there is a
preference for primary exposure in the
Group’s main operating geography. The
Group will accept exposures where we
have a branch or local banking
subsidiary, and tolerate exposures to
other countries where we are facilitating
a transaction for a client who requires
facilities in a foreign geography and
where we have developed a local
understanding and capability.
The Group’s credit risk appetite with
regard to country risk is characterised by
the following principles:
• Preference is to have exposure only to
politically stable jurisdictions that we
understand and have preferably
operated in before
• There is little specific appetite for
exposures outside of the Group’s pre-
existing core geographies or target
markets
• The legal environment should be
tested, have legal precedent in line
with OECD standards and have good
corporate governance
• In certain cases, country risk can be
mitigated by taking out political risk
insurance with suitable counterparties
where deemed necessary and where
considered economic.
While we do not have a separate country
risk committee, the relevant credit
committees as well as investment
committees , IBP ERC and where
necessary, Investec Group ERC will
consider, analyse and assess the
appropriate foreign jurisdiction limits.
In the UK, following the official exit from
the European Union, it remains necessary
to avoid exposures to certain European
countries due to the resulting legal and
regulatory implications. This relates
specifically to countries in which
borrowers are legally incorporated and
any deal will be thoroughly assessed on a
case by case basis to ensure compliance
with current regulations.

| Sustainability risk (including climate and ESG)

We assess sustainability risks as part of
the credit committee or investment
committee’s evaluation of lending or
investment decisions. This includes
additional due diligence for transactions
that fall into the high-risk ESG category
(as defined by the International Finance
Corporation), which involves a
comprehensive review by the Investec
Group sustainability team.
This review identifies any potential risks
relating to:
• Environmental impacts (including
climate, nature degradation and animal
welfare) to support SDG 13
• Social injustice (including human rights,
diversity, inclusion and modern slavery,
community displacement and health
and safety risks) to support SDG 10
• Governance matters (including
corruption, fraud and controversies)
• Macro-economic impacts (including
poverty, growth, and unemployment)
to support SDG 13 and SDG10.
If the Group sustainability team flags the
transaction as a high concern issue, it will
be escalated to IBP or Investec Group
ERC before any credit or investment
decision is made. Moreover, the DLC SEC
is informed of any transactions identified
as high concern issues.

| Refer to page 184 for further detail.

| Stress testing

The Investec Group’s stress testing
framework is designed to identify and
assess vulnerabilities under stress. The
process comprises a bottom-up analysis
of the Group’s material business activities,
incorporating views from risk management
teams, business and the executive. Stress
scenarios are designed based on findings
from the bottom-up process, taking into
consideration the broader macro-
economic and political risk backdrop.
These Investec-specific stress scenarios
form an integral part of our capital
planning process and IFRS 9 reporting.
The stress testing process also informs
the risk appetite review process, and the
management of risk appetite limits and is
a key risk management tool of the Group.
This process allows the Group to identify
underlying risks and manage them
accordingly.
The Group also performs ad hoc stress
tests and reverse stress testing. Ad hoc
stress tests are conducted in response to
any type of material and/or emerging risks,
with reviews undertaken of impacted
portfolios to assess any migration in quality
and highlight any vulnerabilities, identify
portfolio concentrations and make
appropriate recommendations such as a
reduction in risk appetite limits. Reverse
stress tests are conducted to stress the
Group’s business plan to failure and
consider a broad variety of extreme and
remote events.

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Management and measurement
of credit and counterparty risk
Fundamental principles employed in the
management of credit and counterparty
risk include:
• A clear definition of our target market
• A quantitative and qualitative
assessment of the creditworthiness of
our clients and counterparties
• Analysis of risks, including
concentration risk (concentration risk
considerations include asset class,
industry, counterparty and
geographical concentration)
• Decisions being made with reference
to risk appetite limits
• Prudential limits
• Regular monitoring and review of
existing and potential exposures once
facilities have been approved
• A high level of executive involvement
in decision-making with non-executive
review and oversight where applicable
• Portfolio reviews and stress testing.
Within the credit approval process,
internal and external ratings are included
in the assessment of client quality.
A large proportion of the Group’s portfolio
is not rated by external rating agencies.
We place reliance upon internal
consideration of clients, counterparties
and borrowers and use ratings prepared
externally where available to support our
decision-making process.
Regular reporting of credit and
counterparty risk exposures within our
operating units are made to
management, the executives and the
Board through the DLC BRCC and IBP
BRCC. The Board reviews and approves
the appetite for credit and counterparty
risk, which is documented in risk appetite
statements and policy documents. This is
implemented and reviewed by the credit
risk management teams in each
jurisdiction.
Reviews are also undertaken of all
material businesses, where the portfolios
are analysed to assess any migration in
portfolio quality, highlight any
vulnerabilities, identify portfolio
concentrations and make appropriate
recommendations, such as a reduction in
risk appetite limits or specific exposures.

| Credit and counterparty risk – nature of activities

Credit and counterparty risk is assumed
through a range of client-driven lending
activities to private and corporate clients
as well as other counterparties, such as
financial institutions and sovereigns.
These activities are diversified across a
number of business activities:
• Core loans and advances: the majority
of credit and counterparty risk is
through core loans and advances,
which account for almost all ECL
allowances across our portfolio, which
are detailed on pages 168 to 174
• Treasury function: there are also
certain exposures, outside of core
loans and advances, where we assume
credit and counterparty risk. These
arise from treasury investments in
high-quality liquid assets, including
highly rated government,
supranational, sub-sovereign and
agency (SSA) and covered bonds, and
treasury placements where the
treasury function, as part of the daily
management of the Group’s liquidity,
places funds with central banks and
other commercial banks and financial
institutions. These transactions are
typically short-term (less than one
month) money market placements or
secured repurchase agreements.
These market counterparties are
mainly investment grade rated entities
that occupy dominant and systemic
positions in their domestic banking
markets and internationally. These
counterparties are located mainly in
the UK, Western Europe, Asia, North
America, Southern Africa and Australia.
In addition, credit and counterparty risk
arises through the following exposures:
• Customer trading activities to
facilitate hedging of client risk
positions: our customer trading
portfolios consist of derivative
contracts in interest rates, foreign
exchange, commodities, credit
derivatives and equities that are
entered into, to facilitate a client’s
hedging requirements. The
counterparties to such transactions are
typically corporates, in particular where
they have an exposure to interest rates
or foreign exchange due to operating
in sectors that include imports and
exports of goods and services. These
positions are marked-to-market,
typically with daily margin calls to
mitigate credit exposure in the event of
counterparty default
• Structured credit: these are bonds
secured against a pool of assets,
mainly UK residential mortgages or
European or US corporate leverage
loans. The bonds are typically highly
rated (single ‘A’ and above), which
benefit from a high level of credit
subordination and can withstand a
significant level of portfolio default
• Debt securities: from time to time we
take on exposures by means of
corporate debt securities rather than
loan exposures. These transactions
arise on the back of client relationships
or knowledge of the corporate market
and are based on our analysis of the
credit fundamentals
• Corporate advisory and investment
banking activities: counterparty risk in
this area is modest. The business also
trades shares on an approved basis
and makes markets in shares where
we are appointed corporate broker
under pre-agreed market risk limits.
Settlement trades are largely on a
delivery versus payment basis, through
major stock exchanges. Credit risk only
occurs in the event of counterparty
failure and would be linked to any fair
value losses on the underlying security
• Settlement risk: can arise due to
undertaking transactions in an agency
capacity on behalf of clients. However,
the risk is not considered to be
material as most transactions are
undertaken on recognised exchanges,
with large institutional clients,
monitored daily, with trades usually
settled within two to three days.

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Credit risk mitigation
Credit risk mitigation techniques can be
defined as all methods by which the
Group seeks to decrease the credit risk
associated with an exposure. The
Investec Group considers credit risk
mitigation techniques as part of the credit
assessment of a potential client or
business proposal and not as a separate
consideration of mitigation of risk. Credit
risk mitigants can include any collateral
item over which the Group has a charge,
netting and margining agreements,
covenants, or terms and conditions
imposed on a borrower with the aim of
reducing the credit risk inherent to that
transaction.
As the Group has limited appetite for
unsecured debt, the credit risk mitigation
technique most commonly used is the
taking of collateral, with a strong
preference for tangible assets. Collateral
is assessed with reference to the
sustainability of value and the likelihood
of realisation.
Acceptable collateral generally exhibits
characteristics that allow for it to be
easily identified and appropriately valued
and assists the Group to recover
outstanding exposures.
Where a transaction is supported by a
mortgage or charge over property, the
primary credit risk is still taken on the
borrower. In addition, the relevant credit
committee normally requires a suretyship
or guarantee in support of a transaction
in our private client business.
For property-backed lending we also
consider the client’s overall balance
sheet. The following characteristics of
the property are also considered: the
type of property; its location; and the
ease with which the property could be
relet and/or resold. Where the property is
secured by lease agreement, the credit
committee prefers not to lend for a term
beyond the maximum term of the lease.
Commercial real estate generally takes
the form of good quality property often
underpinned by strong third party leases.
Residential property is also generally of a
high quality and based in desirable
locations. Residential and commercial
property valuations will continue to form
part of our ongoing focus on collateral
assessment. It is our policy to obtain a
formal valuation of every commercial
property offered as collateral for a
lending facility before advancing funds.
Residential properties are valued by
desktop valuation and/or approved
valuers, where appropriate.
Other common forms of collateral in the
retail asset class are motor vehicles, cash
and share portfolios. Primary collateral in
private client lending transactions can
also include a high net worth individual’s
share/investment portfolio. This is
typically in the form of a diversified pool
of equity, fixed income, managed funds
and cash. Often these portfolios are
managed by Rathbones. Lending against
investment portfolios is typically geared
at conservative loan-to-value (LTV)
ratios, after considering the quality,
diversification, risk profile and liquidity of
the portfolio.
Our corporate, government and
institutional clients provide a range of
collateral including cash, corporate
assets, debtors (accounts receivable),
trading stock, debt securities (bonds),
listed and unlisted shares and
guarantees.
The majority of credit mitigation
techniques linked to trading activity is in
the form of netting agreements and daily
margining. Primarily, the market standard
legal documents that govern this include
the International Swaps and Derivatives
Association (ISDA) Master Agreements,
Global Master Securities Lending
Agreement (GMSLA) and Global Master
Repurchase Agreement (GMRA). In
addition to having ISDA documentation in
place with market and trading
counterparties in over-the-counter (OTC)
derivatives, the credit committee may
require a Credit Support Annex (CSA) to
ensure that mark-to-market credit
exposure is mitigated daily through the
calculation and placement/receiving of
cash collateral. Where netting
agreements have been signed, the
enforceability is supported by an external
legal opinion within the legal jurisdiction
of the agreement.
Set-off is applied between assets,
subject to credit risk and related liabilities
in the annual financial statements, where:
• A legally enforceable right to set-off
exists
• There is the intention to settle the
asset and liability on a net basis, or to
realise the asset and settle the liability
simultaneously.
In addition to the above accounting set-
off criteria, banking regulators impose the
following additional criteria:
• Debit and credit balances relate to the
same obligor/counterparty
• Debit and credit balances are
denominated in the same currency and
have identical maturities
• Exposures subject to set-off are risk-
managed on a net basis
• Market practice considerations.
For this reason, there will be instances
where credit and counterparty exposures
are displayed on a net basis in these
annual financial statements but reported
on a gross basis to regulators.
The legal risk function ensures the
enforceability of credit risk mitigants
under the laws of the relevant
jurisdictions. When assessing the
potential concentration risk in its credit
portfolio, consideration is given to the
types of collateral and credit protection
that form part of the portfolio.

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| An analysis of gross core loans, asset quality and ECL

The tables that follow provide information with respect to the
asset quality of our gross core loans on a statutory basis.
Stage 3 exposures total £531 million at 31 March 2024 or 3.3%
of gross core loans subject to ECL (2.3% at 31 March 2023).
New defaults reflect signs of individual idiosyncratic stresses
across various portfolios with no specific trends evident.
The underlying loan portfolios continue to perform and Stage 2
exposures as a percentage of gross core loans subject to ECL
decreased to 8.6% from 8.7% at 31 March 2023.

£’million | 31 March 2024 |  | 31 March 2023 |
Gross core loans | 16 744 |  | 15 709 |
Gross core loans at FVPL | 641 |  | 551 |
Gross core loans subject to ECL* | 16 103 |  | 15 158 |
Stage 1 | 14 181 |  | 13 494 |
Stage 2 | 1 391 |  | 1 321 |
of which past due greater than 30 days | 150 |  | 35 |
Stage 3# | 531 |  | 343 |
ECL | (187) |  | (146) |
Stage 1 | (43) |  | (39) |
Stage 2 | (33) |  | (32) |
Stage 3 | (111) |  | (75) |
Coverage ratio |  |  |  |
Stage 1 | 0.30% |  | 0.29% |
Stage 2 | 2.4% |  | 2.4% |
Stage 3 | 20.9% |  | 21.9% |
Credit loss ratio | 0.58% |  | 0.37% |
ECL impairment charges on core loans | (90) |  | (54) |
Average gross core loans subject to ECL | 15 631 |  | 14 553 |
An analysis of Stage 3 gross core loans subject to ECL |  |  |  |
Stage 3 net of ECL | 420 |  | 268 |
Aggregate collateral and other credit enhancements on Stage 3 | 445 |  | 280 |
Stage 3 as a % of gross core loans subject to ECL | 3.3% |  | 2.3% |
Stage 3 net of ECL as a % of net core loans subject to ECL | 2.6% |  | 1.8% |

Note: Our exposure (net of ECL) to the Legacy portfolio has reduced from £37 million at 31 March 2023 to £ 32 million at 31 March 2024 . These Legacy assets are
predominately reported in Stage 3. These assets have been significantly provided for and coverage remains high at 57.1%.
* Refer to definitions on page 217 .
#Stage 3 exposures disclosed above and in the tables that follow are net of suspended interest predominantly relating to Lending and collateralised by property. Refer
to note 26 for additional information.

| An analysis of gross core loans by country of exposure

31 March 2024 |  | 31 March 2023
£16 744 million |  | £15 709 million

| United Kingdom | 83.3% |  |  | United Kingdom | 83.6%
| Europe (excluding UK) | 9.1% |  |  | Europe (excluding UK) | 8.8%
| North America | 5.2% |  |  | North America | 5.2%
| Asia | 1.7% |  |  | Asia | 1.4%
| Other | 0.5% |  |  | Other | 0.6%
| Australia | 0.2% |  |  | Australia | 0.4%

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An analysis of staging and ECL movements for core loans subject to ECL

The table below indicates underlying movements in gross core loans subject to ECL from 31 March 2023 to 31 March 2024.
The transfers between stages of gross core loans indicate the impact of stage transfers upon the gross exposure and associated
opening ECL. The increase in transfers into Stage 2 is mainly driven by idiosyncratic exposures that have deteriorated compared to
when the exposures originated, but where there is no specific concern with respect to loss. We have experienced an increase in
transfers to Stage 3, albeit not specific to any single asset class and reflective of the more challenging macro-economic
environment.
The net remeasurement of ECL arising from stage transfers represents the (increase)/decrease in ECL due to these transfers. New
lending net of repayments comprises new originations, further drawdowns, repayments and sell-downs as well as, with respect to
ECLs, Stage 3 ECLs that have been written off, typically when an asset has been sold.
The ECL impact of changes to risk parameters and models during the year largely relates to the changes in the macro-economic
scenarios as well as the release of management ECL overlay. The foreign exchange and other category largely comprises the
impact on the closing balance as a result of movements and translations in foreign exchange rates since 31 March 2023.

| Stage 1 | Stage 2 | Stage 3 | Total
£’million | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL
At 31 March 2023 | 13 494 | (39) | 1 321 | (32) | 343 | (75) | 15 158 | (146)
Lending collateralised by property at 31 March 2023 | 1 852 | (8) | 343 | (12) | 121 | (34) | 2 316 | (54)
Transfer from Stage 1 | (147) | 1 | 119 | (1) | 28 | — | — | —
Transfer from Stage 2 | 194 | (3) | (241) | 5 | 47 | (2) | — | —
Transfer from Stage 3 | — | — | — | — | — | — | — | —
ECL remeasurement arising from transfer of stage | — | 2 | — | — | — | (1) | — | 1
New lending net of repayments (includes assets written off) | 256 | (2) | (53) | 4 | (52) | 2 | 151 | 4
Changes to risk parameters and models | — | — | — | 1 | — | — | — | 1
Foreign exchange and other | — | — | — | — | — | — | — | —
Lending collateralised by property at 31 March 2024 | 2 155 | (10) | 168 | (3) | 144 | (35) | 2 467 | (48)
HNW and other private client lending at 31 March 2023 | 5 343 | (4) | 164 | (1) | 84 | (13) | 5 591 | (18)
Transfer from Stage 1 | (309) | — | 189 | — | 120 | — | — | —
Transfer from Stage 2 | 48 | — | (61) | — | 13 | — | — | —
Transfer from Stage 3 | — | — | — | — | — | — | — | —
ECL remeasurement arising from transfer of stage | — | — | — | — | — | (1) | — | (1)
New lending net of repayments (includes assets written off) | 184 | (2) | (32) | — | (47) | (1) | 105 | (3)
Changes to risk parameters and models | — | — | — | — | — | (1) | — | (1)
Foreign exchange and other | (3) | — | — | — | — | — | (3) | —
HNW and other private client lending at 31 March 2024 | 5 263 | (6) | 260 | (1) | 170 | (16) | 5 693 | (23)
Corporate and other lending at 31 March 2023 | 6 299 | (27) | 814 | (19) | 138 | (28) | 7 251 | (74)
Transfer from Stage 1 | (589) | 4 | 521 | (4) | 68 | — | — | —
Transfer from Stage 2 | 241 | (5) | (292) | 7 | 51 | (2) | — | —
Transfer from Stage 3 | — | — | — | — | — | — | — | —
ECL remeasurement arising from transfer of stage | — | 4 | — | (10) | — | (28) | — | (34)
New lending net of repayments (includes assets written off) | 854 | (3) | (72) | (4) | (39) | (2) | 743 | (9)
Changes to risk parameters and models | — | — | — | 1 | — | — | — | 1
Foreign exchange and other | (42) | — | (8) | — | (1) | — | (51) | —
Corporate and other lending at 31 March 2024 | 6 763 | (27) | 963 | (29) | 217 | (60) | 7 943 | (116)
At 31 March 2024 | 14 181 | (43) | 1 391 | (33) | 531 | (111) | 16 103 | (187)

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An analysis of credit quality by internal rating grade

The Group uses a 25-grade internal rating scale which measures the risk of default to an exposure without taking into account any
credit mitigation, such as collateral. This internal rating scale allows the Group to measure credit risk consistently across portfolios.
The internal rating scale is derived from a mapping to PDs and can also be mapped to external rating agency scales.

PD range |  | Investec internal rating scale |  | Indicative external rating scale
less than 0.538% |  | IB01 – IB12 |  | AAA to BBB-
0.538% – 6.089% |  | IB13 – IB19 |  | BB+ to B-
greater than 6.089% |  | IB20 – IB25 |  | B- and below
|  | Stage 3 |  | D

The internal credit rating distribution below is based on the 12-month PD at 31 March 2024 for gross core loans subject to ECL
by stage. The staging classifications are not only driven by the absolute PD, but on factors that determine a significant increase
in credit risk, including relative movement in PD since origination. There is therefore no direct correlation between the credit quality
of an exposure and its stage classification as shown in the table below:

At 31 March 2024 | IB01-IB12 | IB13-IB19 | IB20-IB25 | Stage 3 |  | Total |
£’million |  |
Gross core loans subject to ECL | 7 662 | 7 590 | 320 | 531 |  | 16 103 |
Stage 1 | 7 408 | 6 723 | 50 | — |  | 14 181 |
Stage 2 | 254 | 867 | 270 | — |  | 1 391 |
Stage 3 | — | — | — | 531 |  | 531 |
ECL | (7) | (50) | (19) | (111) |  | (187) |
Stage 1 | (6) | (36) | (1) | — |  | (43) |
Stage 2 | (1) | (14) | (18) | — |  | (33) |
Stage 3 | — | — | — | (111) |  | (111) |
Coverage ratio | 0.1% | 0.7% | 5.9% | 20.9% |  | 1.2% |

At 31 March 2023 | IB01-IB12 | IB13-IB19 | IB20-IB25 | Stage 3 |  | Total |
£’million |  |
Gross core loans subject to ECL | 8 816 | 5 850 | 149 | 343 |  | 15 158 |
Stage 1 | 8 460 | 4 996 | 38 | — |  | 13 494 |
Stage 2 | 356 | 854 | 111 | — |  | 1 321 |
Stage 3 | — | — | — | 343 |  | 343 |
ECL | (12) | (50) | (9) | (75) |  | (146) |
Stage 1 | (10) | (28) | (1) | — |  | (39) |
Stage 2 | (2) | (22) | (8) | — |  | (32) |
Stage 3 | — | — | — | (75) |  | (75) |
Coverage ratio | 0.1% | 0.9% | 6.0% | 21.9% |  | 1.0% |

The Group applies credit ratings in-line with its credit policies to all relevant financial instruments including other financial assets
(which include exposures to highly rated international banks and corporate bonds). Assessment and suitability of the rating is
vetted by the applicable credit authority and monitored as part of the overall credit management process. Where new information
that may affect the risk profile becomes available, this is considered and ratings may be adjusted accordingly.

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An analysis of core loans by risk category – Lending collateralised by property

Client quality and expertise are at the
core of our credit philosophy. We provide
senior debt and other funding for
property transactions, with a preference
for income-producing assets, supported
by an experienced sponsor providing a
material level of cash equity investment
into the asset and limited direct exposure
to sectors more vulnerable to cyclicality.
Our exposure to the property market is
well diversified with strong bias towards
prime locations for residential exposure
and focus on property fundamentals,
tenant quality and income diversity for
commercial assets. Debt service cover
ratios are a key consideration in the
lending process supported by reasonable
loan-to-security value ratios.
Year in review
Residential real estate has increased by
12.7% to £0.9 billion as clients take
advantage of opportunities in the current
market and undersupply of UK residential
housing. L ending collateralised by
property totalled £2.5 billion or 14.9% of
UK net core loans at 31 March 2024,
which remains in line with the Group’s risk
appetite to maintain a reduced proportion
of net core loan exposures in property-
related lending. New lending is diversified
by underlying asset classes at
conservative LTVs. Weighted average
LTV* on lending collateralised by
property remains conservative at 58%.
Development exposures are typically
undertaken at lower LTVs. These LTVs
do not take into account guarantees
provided by borrowers which provide
additional security to our lending and
would reduce LTV metrics further. Almost
all of property collateralised assets are
located in the UK.
Underwriting criteria remains
conservative and we are committed to
following a client-centric approach to
lending, only supporting counterparties
with strong balance sheets and requisite
expertise.

| Gross core loans at amortised cost and FVOCI | Gross core loans at FVPL | Gross core loans
| Stage 1 | Stage 2 | Stage 3 | Total |  |  |
£’million | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL |  | Gross exposure | ECL |  |  |
At 31 March 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | 1 365 | (8) | 119 | (3) | 92 | (21) |  | 1 576 | (32) |  | 49 | 1 625 |
Commercial real estate – investment | 1 045 | (7) | 102 | (1) | 86 | (17) |  | 1 233 | (25) |  | 45 | 1 278 |
Commercial real estate – development | 320 | (1) | 11 | (2) | — | — |  | 331 | (3) |  | 4 | 335 |
Commercial vacant land and planning | — | — | 6 | — | 6 | (4) |  | 12 | (4) |  | — | 12 |
Residential real estate | 790 | (2) | 49 | — | 52 | (14) |  | 891 | (16) |  | 5 | 896 |
Residential real estate – investment | 502 | (2) | 40 | — | 25 | (2) |  | 567 | (4) |  | 5 | 572 |
Residential real estate – development | 262 | — | 8 | — | 4 | (1) |  | 274 | (1) |  | — | 274 |
Residential vacant land and planning | 26 | — | 1 | — | 23 | (11) |  | 50 | (11) |  | — | 50 |
Total lending collateralised by property | 2 155 | (10) | 168 | (3) | 144 | (35) |  | 2 467 | (48) |  | 54 | 2 521 |
Coverage ratio |  | 0.46% |  | 1.8% |  | 24.3% |  |  | 1.9% |  |  |  |
At 31 March 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | 1 241 | (6) | 231 | (8) | 76 | (16) |  | 1 548 | (30) |  | 43 | 1 591 |
Commercial real estate – investment | 920 | (4) | 212 | (8) | 70 | (13) |  | 1 202 | (25) |  | 40 | 1 242 |
Commercial real estate – development | 308 | (2) | 13 | — | — | — |  | 321 | (2) |  | 3 | 324 |
Commercial vacant land and planning | 13 | — | 6 | — | 6 | (3) |  | 25 | (3) |  | — | 25 |
Residential real estate | 611 | (2) | 112 | (4) | 45 | (18) |  | 768 | (24) |  | 37 | 805 |
Residential real estate – investment | 359 | (1) | 39 | (2) | 11 | (1) |  | 409 | (4) |  | 35 | 444 |
Residential real estate – development | 244 | (1) | 69 | (1) | 9 | (3) |  | 322 | (5) |  | — | 322 |
Residential vacant land and planning | 8 | — | 4 | (1) | 25 | (14) |  | 37 | (15) |  | 2 | 39 |
Total lending collateralised by property | 1 852 | (8) | 343 | (12) | 121 | (34) |  | 2 316 | (54) |  | 80 | 2 396 |
Coverage ratio |  | 0.43% |  | 3.5% |  | 28.1% |  |  | 2.3% |  |  |  |

* Excludes a small portion of Legacy exposures that are predominately reported in Stage 3.

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An analysis of core loans by risk category – High net worth and other private client lending

Our Private Banking activities target high
net worth individuals, active wealth
creators, high-income professionals, self-
employed entrepreneurs, owner
managers in small to mid-cap corporates
and sophisticated investors.
Lending products are tailored to meet the
requirements of our clients and deliver
solutions to enable target clients to
create and manage their wealth. Central
to our credit philosophy is ensuring the
sustainability of cash flow and income
throughout the cycle. As such, the client
base has been defined to include high
net worth clients (who, through
diversification of income streams, should
reduce income volatility) and individuals
in defined professions which have
historically supported a sustainable
income base, irrespective of the stage in
the economic cycle.
Credit risk arises from the following
activities:
• Mortgages: provides residential
mortgage loan facilities to target
market clients
• Other high net worth lending: provides
credit facilities to high net worth
individuals and their controlled entities
as well as portfolio loans to high net
worth clients against their investment
portfolios typically managed by
Rathbones.
Year in review
H igh net worth and other private client
lending totalled £5.7 billion or 34.5% of
UK net core loans at 31 March 2024.
There was moderate growth in
mortgages of 4.3% in the year to 31
March 2024 reflecting the lower market
demand for mortgages given the high
interest rate and uncertain macro-
economic environment.
Growth in this area has been achieved
with strong adherence to our lending
criteria. Weighted average LTVs on
mortgages is 66%.

| Gross core loans at amortised cost and FVOCI | Gross core loans at FVPL | Gross core loans
| Stage 1 | Stage 2 | Stage 3 | Total |  |  |
£’million | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL |  | Gross exposure | ECL |  |  |
At 31 March 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgages | 4 589 | (4) | 162 | — | 105 | (4) |  | 4 856 | (8) |  | 41 | 4 897 |
Other high net worth lending | 674 | (2) | 98 | (1) | 65 | (12) |  | 837 | (15) |  | 2 | 839 |
Total high net worth and other private client lending | 5 263 | (6) | 260 | (1) | 170 | (16) |  | 5 693 | (23) |  | 43 | 5 736 |
Coverage ratio |  | 0.11% |  | 0.4% |  | 9.4% |  |  | 0.4% |  |  |  |
At 31 March 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgages | 4 480 | (2) | 128 | — | 64 | (7) |  | 4 672 | (9) |  | 25 | 4 697 |
Other high net worth lending | 863 | (2) | 36 | (1) | 20 | (6) |  | 919 | (9) |  | 3 | 922 |
Total high net worth and other private client lending | 5 343 | (4) | 164 | (1) | 84 | (13) |  | 5 591 | (18) |  | 28 | 5 619 |
Coverage ratio |  | 0.07% |  | 0.6% |  | 15.5% |  |  | 0.3% |  |  |  |

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An analysis of core loans by risk category – Corporate and other lending

We focus on traditional client-driven
corporate lending activities. The credit
risk management functions approve
specific credit and counterparty limits
that govern the maximum credit
exposure to each individual counterparty.
In addition, further risk management
limits exist through industry and country
limits to manage concentration risk. The
credit appetite for each counterparty is
based on the financial strength of the
principal borrower, its business model
and market positioning, the underlying
cash flow to the transaction, the
substance and track record of
management, and the security package.
Political risk insurance, and other
insurance is taken where deemed
appropriate.
The Group has limited appetite for
unsecured credit risk and facilities are
typically secured by the assets of the
underlying borrower as well as shares in
the borrower.
A summary of the nature of the lending
and/or credit risk assumed within some of
the key areas in our corporate lending
business is provided below:
• Corporate and acquisition finance:
provides senior secured loans to
proven management teams and
sponsors running mid-cap, as well as
some large-cap companies. Credit risk
is assessed against debt serviceability
based upon robust cash generation of
the business demonstrated by both
historical and forecast information.
Corporates should demonstrate
relevance in their market, an
experienced management team, able
Board members, and strong earnings
and cash flow. We typically act as a
transaction lead arranger or on a club
or bi-lateral basis, and have a close
relationship with management and
sponsors
• Asset-based lending: provides
working capital and secured corporate
loans to mid-caps. These loans are
secured by the assets of the business,
for example, the accounts receivable,
inventory and plant and machinery. In
common with our corporate lending
activities, strong emphasis is placed on
supporting companies with scale and
relevance in their industry
• Fund finance: provides debt facilities
to asset managers and fund vehicles,
principally in private equity. The
geographical focus is the UK, Western
Europe and North America where the
Group can support experienced asset
managers and their funds which show
strong, long-term value creation and
good custodianship of investors’
money. Debt facilities are typically to a
fund entity and secured against
undrawn limited partner commitments
and/or the fund’s underlying assets
• Other corporate and financial
institutions and governments:
provides senior secured loans to mid-
to-large cap companies where credit
risk is typically considered with regard
to robust cash generation from an
underlying asset and supported by
performance of the overall business
based on both historical and forecast
information
• Small ticket asset finance: provides
funding to small- and medium-sized
corporates to support asset purchases
and other business requirements. The
portfolio is highly diversified by industry
and number of clients and is secured
against the asset being financed
• Motor finance: provides specialised
motor vehicle financing originated
through Mann Island Finance Limited
(MIVF). The portfolio is composed
predominantly of private motor vehicles
to individuals attributing to a granular
book with low concentration risk
• Aviation finance: structures, arranges
and provides financing for airlines,
leasing companies, operators and
corporates secured by aircraft at
conservative LTVs. Counterparties
include flag and commercial airline
carriers, leading aircraft lessors and
corporates/operators with strong
contracted cash flows
• Energy and infrastructure finance:
arranges and provides typically long-
term financing for energy and
infrastructure assets, in particular
renewable and traditional energy
projects as well as transportation
assets, typically against contracted
future cash flows of the project(s) from
well-established and financially sound
off-take counterparties. There is a
requirement for a strong upfront equity
contribution from an experienced
sponsor.
Year in review
Corporate and other lending increased by
9.9% from £7.6 billion at 31 March 2023
to £8.4 billion at 31 March 2024. There
has been diversified growth across
multiple corporate and other lending
asset classes including other corporate
and financial institutions and
governments, energy and infrastructure
finance, motor finance, small ticket asset
finance, aviation finance and corporate
and acquisition finance. We continue to
remain client-focused in our approach,
with good quality corporates exhibiting
strong cash flows and balance sheets.
The underlying portfolios remain resilient,
albeit certain individual clients have
experienced idiosyncratic stress in a
more challenging economic environment.

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| Gross core loans at amortised cost and FVOCI | Gross core loans at FVPL | Gross core loans
| Stage 1 | Stage 2 | Stage 3 | Total |  |
£’million | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL | Gross exposure | ECL |
At 31 March 2024 |  |  |  |  |  |  |  |  |  |
Corporate and acquisition finance | 1 831 | (9) | 249 | (7) | 102 | (33) | 2 182 | (49) | 135 | 2 317
Asset-based lending | 106 | — | 188 | (4) | — | — | 294 | (4) | — | 294
Fund finance | 1 320 | (1) | 24 | — | — | — | 1 344 | (1) | 51 | 1 395
Other corporate and financial institutions and governments | 529 | (3) | 65 | (4) | 22 | (3) | 616 | (10) | 66 | 682
Small ticket asset finance | 1 325 | (9) | 211 | (5) | 39 | (13) | 1 575 | (27) | — | 1 575
Motor finance | 1 022 | (3) | 81 | (5) | 19 | (7) | 1 122 | (15) | — | 1 122
Aviation finance | 96 | — | 76 | (1) | — | — | 172 | (1) | 270 | 442
Energy and infrastructure finance | 534 | (2) | 69 | (3) | 35 | (4) | 638 | (9) | 22 | 660
Total corporate and other lending | 6 763 | (27) | 963 | (29) | 217 | (60) | 7 943 | (116) | 544 | 8 487
Coverage ratio |  | 0.40% |  | 3.0% |  | 27.6% |  | 1.5% |  |
At 31 March 2023 |  |  |  |  |  |  |  |  |  |
Corporate and acquisition finance | 1 794 | (9) | 212 | (5) | 53 | (7) | 2 059 | (21) | 125 | 2 184
Asset-based lending | 271 | (1) | 44 | — | — | — | 315 | (1) | — | 315
Fund finance | 1 359 | (1) | 33 | — | — | — | 1 392 | (1) | 75 | 1 467
Other corporate and financial institutions and governments | 391 | (2) | 70 | (1) | 4 | (1) | 465 | (4) | 32 | 497
Small ticket asset finance | 1 142 | (9) | 279 | (6) | 30 | (11) | 1 451 | (26) | — | 1 451
Motor finance | 905 | (3) | 46 | (3) | 8 | (3) | 959 | (9) | — | 959
Aviation finance | 115 | (1) | 32 | (1) | — | — | 147 | (2) | 176 | 323
Energy and infrastructure finance | 322 | (1) | 98 | (3) | 43 | (6) | 463 | (10) | 35 | 498
Total corporate and other lending | 6 299 | (27) | 814 | (19) | 138 | (28) | 7 251 | (74) | 443 | 7 694
Coverage ratio |  | 0.43% |  | 2.3% |  | 20.3% |  | 1.0% |  |

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The tables that follow provide further analysis of the Group’s gross credit and counterparty exposures.
An analysis of gross credit and counterparty exposures
Gross credit and counterparty exposure totalled £30.6 billion at 31 March 2024 . Cash and near cash balances amounted to
£ 9.7 billion and are largely reflected in the following line items in the table below: cash and balances at central banks, loans and
advances to banks and sovereign debt securities. These exposures are all Stage 1. There are immaterial Stage 2 and Stage 3
exposures outside of loans and advances to customers which are small relative to the balance sheet. Loans and advances to
customers (including committed facilities) account for greater than 98% of overall ECLs.

An analysis of gross credit and counterparty exposures

£’million | 31 March 2024 |  | 31 March 2023 |
Cash and balances at central banks | 5 662 |  | 5 400 |
Loans and advances to banks | 676 |  | 893 |
Reverse repurchase agreements and cash collateral on securities borrowed | 1 140 |  | 1 339 |
Sovereign debt securities | 1 928 |  | 1 222 |
Bank debt securities | 297 |  | 205 |
Other debt securities | 708 |  | 698 |
Derivative financial instruments | 358 |  | 528 |
Securities arising from trading activities | 13 |  | 28 |
Loans and advances to customers | 16 744 |  | 15 709 |
Other loans and advances | 118 |  | 143 |
Other securitised assets | 2 |  | 5 |
Other assets | 33 |  | 38 |
Total on-balance sheet exposures | 27 679 |  | 26 208 |
Guarantees | 115 |  | 118 |
Committed facilities related to loans and advances to customers | 2 327 |  | 2 345 |
Contingent liabilities, letters of credit and other | 461 |  | 384 |
Total off-balance sheet exposures | 2 903 |  | 2 847 |
Total gross credit and counterparty exposures | 30 582 |  | 29 055 |

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A further analysis of gross credit and counterparty exposures
The table below indicates in which class of asset (on the face of the consolidated balance sheet) credit and counterparty
exposures are reflected. Not all assets included in the balance sheet bear credit and counterparty risk.

At 31 March 2024 | Total gross credit and counterparty exposure | of which FVPL | of which amortised cost and FVOCI | ECL# | Assets that we deem to have no legal credit exposure |  | Total assets |
£’million |  |
Cash and balances at central banks | 5 662 | — | 5 662 | — | — |  | 5 662 |
Loans and advances to banks | 676 | — | 676 | — | — |  | 676 |
Reverse repurchase agreements and cash collateral on securities borrowed | 1 140 | 164 | 976 | — | — |  | 1 140 |
Sovereign debt securities | 1 928 | — | 1 928 | — | — |  | 1 928 |
Bank debt securities | 297 | — | 297 | — | — |  | 297 |
Other debt securities | 708 | 59 | 649 | — | — |  | 708 |
Derivative financial instruments | 358 | 358 | — | — | 79 |  | 437 |
Securities arising from trading activities | 13 | 13 | — | — | 144 |  | 157 |
Loans and advances to customers | 16 744 | 641 | 16 103 | (187) | — |  | 16 557 |
Other loans and advances | 118 | — | 118 | — | — |  | 118 |
Other securitised assets | 2 | 2 | — | — | 65ˆ |  | 67 |
Investment portfolio | — | — | — | — | 405* |  | 405 |
Interest in associated undertakings and joint venture holdings | — | — | — | — | 857 |  | 857 |
Current taxation assets | — | — | — | — | 31 |  | 31 |
Deferred taxation assets | — | — | — | — | 120 |  | 120 |
Other assets | 33 | — | 33 | — | 707** |  | 740 |
Property and equipment | — | — | — | — | 73 |  | 73 |
Goodwill | — | — | — | — | 69 |  | 69 |
Software | — | — | — | — | 5 |  | 5 |
Other acquired intangible assets | — | — | — | — | — |  | — |
Total on-balance sheet exposures | 27 679 | 1 237 | 26 442 | (187) | 2 555 |  | 30 047 |
Guarantees | 115 | — | 115 | — | — |  | 115 |
Committed facilities related to loans and advances to customers | 2 327 | 102 | 2 225 | (8) | — |  | 2 319 |
Contingent liabilities, letters of credit and other | 461 | 27 | 434 | (3) | 112 |  | 570 |
Total off-balance sheet exposures^^ | 2 903 | 129 | 2 774 | (11) | 112 |  | 3 004 |
Total exposures | 30 582 | 1 366 | 29 216 | (198) | 2 667 |  | 33 051 |

#Includes £13.4 million of ECL held against financial assets held at FVOCI.
*Relates to exposures that are classified as investment risk in the banking book.
^While the Group manages all risks (including credit risk) from a day-to-day operational perspective, certain assets are within special purpose vehicles that ring-fence
the assets to specific credit providers and limit security to the assets in the vehicle. This balance reflects the credit exposure to credit providers external to the Group.
T he credit exposure that the Group has in the vehicles is reflected in the ‘total gross credit and counterparty exposure’ for other securitised assets.
**Other assets include settlement debtors which we deem to have no credit risk exposure as they are settled on a delivery against payment basis.
^^Includes uncommitted, undrawn facilities that are not included in notes 45 and 46.

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A further analysis of gross credit and counterparty exposures (continued)

At 31 March 2023 | Total gross credit and counterparty exposure | of which FVPL | of which amortised cost and FVOCI | ECL# | Assets that we deem to have no legal credit exposure | Total assets
£’million
Cash and balances at central banks | 5 400 | — | 5 400 | — | — | 5 400
Loans and advances to banks | 893 | — | 893 | — | — | 893
Reverse repurchase agreements and cash collateral on securities borrowed | 1 339 | 346 | 993 | — | — | 1 339
Sovereign debt securities | 1 222 | 24 | 1 198 | — | — | 1 222
Bank debt securities | 205 | — | 205 | — | — | 205
Other debt securities | 698 | 94 | 604 | (1) | — | 697
Derivative financial instruments | 528 | 528 | — | — | 106 | 634
Securities arising from trading activities | 28 | 28 | — | — | 100 | 128
Loans and advances to customers | 15 709 | 551 | 15 158 | (146) | — | 15 563
Other loans and advances | 143 | — | 143 | — | — | 143
Other securitised assets | 5 | 5 | — | — | 73ˆ | 78
Investment portfolio | — | — | — | — | 489* | 489
Interest in associated undertakings and joint venture holdings | — | — | — | — | 52 | 52
Current taxation assets | — | — | — | — | 34 | 34
Deferred taxation assets | — | — | — | — | 112 | 112
Other assets | 38 | — | 38 | — | 927** | 965
Property and equipment | — | — | — | — | 121 | 121
Goodwill | — | — | — | — | 255 | 255
Software | — | — | — | — | 9 | 9
Other acquired intangible assets | — | — | — | — | 41 | 41
Total on-balance sheet exposures | 26 208 | 1 576 | 24 632 | (147) | 2 319 | 28 380
Guarantees | 118 | — | 118 | — | — | 118
Committed facilities related to loans and advances to customers | 2 345 | 147 | 2 198 | (13) | — | 2 332
Contingent liabilities, letters of credit and other | 384 | — | 384 | (2) | 121 | 503
Total off-balance sheet exposures^^ | 2 847 | 147 | 2 700 | (15) | 121 | 2 953
Total exposures | 29 055 | 1 723 | 27 332 | (162) | 2 440 | 31 333

#Includes £5.3 million of ECL held against financial assets held at FVOCI.
*Relates to exposures that are classified as investment risk in the banking book.
^While the Group manages all risks (including credit risk) from a day-to-day operational perspective, certain assets are within special purpose vehicles that ring-fence
the assets to specific credit providers and limit security to the assets in the vehicle. This balance reflects the credit exposure to credit providers external to the Group.
The credit exposure that the Group has in the vehicles is reflected in the ‘total gross credit and counterparty exposure’ for other securitised assets.
**Other assets include settlement debtors which we deem to have no credit risk exposure as they are settled on a delivery against payment basis.
^^Includes uncommitted, undrawn facilities that are not included in notes 45 and 46.

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| Gross credit and counterparty exposures by industry

| High net worth and other professional individuals | Lending collateralised by property | Agriculture | Electricity, gas and water (utility services) | Public and non-business services | Business services | Finance and insurance
£’million
At 31 March 2024 |  |  |  |  |  |  |
Cash and balances at central banks | — | — | — | — | 5 662 | — | —
Loans and advances to banks | — | — | — | — | — | — | 676
Reverse repurchase agreements and cash collateral on securities borrowed | — | — | — | — | 131 | — | 1 009
Sovereign debt securities | — | — | — | — | 1 902 | — | 26
Bank debt securities | — | — | — | — | — | — | 297
Other debt securities | — | — | — | — | 3 | 24 | 596
Derivative financial instruments | — | 1 | 1 | 7 | 1 | 6 | 316
Securities arising from trading activities | — | — | — | — | — | — | 13
Loans and advances to customers | 5 736 | 2 521 | 19 | 790 | 234 | 1 180 | 2 321
Other loans and advances | — | — | — | — | — | — | 118
Other securitised assets | — | — | — | — | — | — | —
Other assets | 5 | — | — | — | — | — | 27
Total on-balance sheet exposures | 5 741 | 2 522 | 20 | 797 | 7 933 | 1 210 | 5 399
Guarantees | 12 | — | — | — | — | — | 81
Committed facilities related to loans and advances to customers | 215 | 300 | — | 433 | 62 | 158 | 847
Contingent liabilities, letters of credit and other | 39 | — | — | 268 | — | 3 | 135
Total off-balance sheet exposures | 266 | 300 | — | 701 | 62 | 161 | 1 063
Total gross credit and counterparty exposures | 6 007 | 2 822 | 20 | 1 498 | 7 995 | 1 371 | 6 462
At 31 March 2023 |  |  |  |  |  |  |
Cash and balances at central banks | — | — | — | — | 5 400 | — | —
Loans and advances to banks | — | — | — | — | — | — | 893
Reverse repurchase agreements and cash collateral on securities borrowed | — | — | — | — | 253 | — | 1 086
Sovereign debt securities | — | — | — | — | 1 213 | — | 9
Bank debt securities | — | — | — | — | — | — | 205
Other debt securities | — | — | — | — | 6 | 15 | 561
Derivative financial instruments | — | — | 1 | 20 | — | 8 | 427
Securities arising from trading activities | — | — | — | — | — | 1 | 23
Loans and advances to customers | 5 619 | 2 396 | 17 | 513 | 232 | 1 275 | 2 157
Other loans and advances | — | — | — | — | — | — | 130
Other securitised assets | — | — | — | — | — | — | —
Other assets | — | — | — | — | — | — | 29
Total on-balance sheet exposures | 5 619 | 2 396 | 18 | 533 | 7 104 | 1 299 | 5 520
Guarantees | 6 | — | — | 1 | — | — | 89
Committed facilities related to loans and advances to customers | 175 | 427 | — | 393 | 85 | 185 | 722
Contingent liabilities, letters of credit and other | — | — | — | 246 | — | 11 | 108
Total off-balance sheet exposures | 181 | 427 | — | 640 | 85 | 196 | 919
Total gross credit and counterparty exposures | 5 800 | 2 823 | 18 | 1 173 | 7 189 | 1 495 | 6 439

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Retailers and wholesalers | Manufacturing and commerce | Construction | Other residential mortgages | Corporate commercial real estate | Mining and resources | Leisure, entertainment and tourism | Transport | Motor finance | Com- munication | Total
— | — | — | — | — | — | — | — | — | — | 5 662
— | — | — | — | — | — | — | — | — | — | 676
— | — | — | — | — | — | — | — | — | — | 1 140
— | — | — | — | — | — | — | — | — | — | 1 928
— | — | — | — | — | — | — | — | — | — | 297
— | — | — | 51 | — | — | — | 34 | — | — | 708
6 | 12 | — | — | 1 | — | — | 6 | — | 1 | 358
— | — | — | — | — | — | — | — | — | — | 13
246 | 860 | 143 | — | 120 | 36 | 87 | 811 | 1 122 | 518 | 16 744
— | — | — | — | — | — | — | — | — | — | 118
— | — | — | 2 | — | — | — | — | — | — | 2
1 | — | — | — | — | — | — | — | — | — | 33
253 | 872 | 143 | 53 | 121 | 36 | 87 | 851 | 1 122 | 519 | 27 679
— | — | — | — | 3 | — | — | 19 | — | — | 115
12 | 135 | 1 | — | 7 | — | 3 | 30 | — | 124 | 2 327
— | 14 | — | — | — | — | — | 2 | — | — | 461
12 | 149 | 1 | — | 10 | — | 3 | 51 | — | 124 | 2 903
265 | 1 021 | 144 | 53 | 131 | 36 | 90 | 902 | 1 122 | 643 | 30 582
— | — | — | — | — | — | — | — | — | — | 5 400
— | — | — | — | — | — | — | — | — | — | 893
— | — | — | — | — | — | — | — | — | — | 1 339
— | — | — | — | — | — | — | — | — | — | 1 222
— | — | — | — | — | — | — | — | — | — | 205
— | — | — | 70 | — | — | — | 46 | — | — | 698
18 | 16 | 2 | — | 1 | 6 | — | 27 | — | 2 | 528
— | — | — | 4 | — | — | — | — | — | — | 28
293 | 803 | 139 | — | 119 | 136 | 76 | 645 | 959 | 330 | 15 709
— | 2 | — | 11 | — | — | — | — | — | — | 143
— | — | — | 5 | — | — | — | — | — | — | 5
— | — | — | — | — | — | — | — | — | 9 | 38
311 | 821 | 141 | 90 | 120 | 142 | 76 | 718 | 959 | 341 | 26 208
— | — | — | — | 3 | — | — | 19 | — | — | 118
12 | 119 | 4 | — | 8 | 4 | 3 | 15 | — | 193 | 2 345
— | 17 | — | — | — | — | 1 | 1 | — | — | 384
12 | 136 | 4 | — | 11 | 4 | 4 | 35 | — | 193 | 2 847
323 | 957 | 145 | 90 | 131 | 146 | 80 | 753 | 959 | 534 | 29 055

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| Gross credit and counterparty exposures by residual contractual maturity

At 31 March 2024 | Up to three months | Three to six months | Six months to one year | One to five years | Five to 10 years | >10 years |  | Total |
£’million |  |
Cash and balances at central banks | 5 662 | — | — | — | — | — |  | 5 662 |
Loans and advances to banks | 671 | — | 5 | — | — | — |  | 676 |
Reverse repurchase agreements and cash collateral on securities borrowed | 856 | 186 | 88 | 10 | — | — |  | 1 140 |
Sovereign debt securities | 1 258 | 281 | 156 | 205 | 28 | — |  | 1 928 |
Bank debt securities | 8 | — | 10 | 267 | 12 | — |  | 297 |
Other debt securities | 8 | — | 16 | 54 | 306 | 324 |  | 708 |
Derivative financial instruments | 69 | 30 | 70 | 149 | 35 | 5 |  | 358 |
Securities arising from trading activities | 1 | — | — | 2 | 10 | — |  | 13 |
Loans and advances to customers | 1 701 | 1 154 | 1 894 | 8 761 | 1 823 | 1 411 |  | 16 744 |
Other loans and advances | 3 | — | — | 56 | 59 | — |  | 118 |
Other securitised assets | — | — | — | — | — | 2 |  | 2 |
Other assets | 33 | — | — | — | — | — |  | 33 |
Total on-balance sheet exposures | 10 270 | 1 651 | 2 239 | 9 504 | 2 273 | 1 742 |  | 27 679 |
Guarantees | 90 | — | 3 | 22 | — | — |  | 115 |
Committed facilities related to loans and advances to customers | 93 | 197 | 296 | 1 356 | 371 | 14 |  | 2 327 |
Contingent liabilities, letters of credit and other | 126 | — | 17 | 309 | 9 | — |  | 461 |
Total off-balance sheet exposures | 309 | 197 | 316 | 1 687 | 380 | 14 |  | 2 903 |
Total gross credit and counterparty exposures | 10 579 | 1 848 | 2 555 | 11 191 | 2 653 | 1 756 |  | 30 582 |

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60 . Additional credit and counterparty risk
information
Credit risk classification and provisioning policy
I FRS 9 requirements have been embedded into our Group credit
risk classification and provisioning policy. A framework has been
established to incorporate both quantitative and qualitative
measures.

| For further detail on our credit risk classification and provision policy please refer to pages 84 .

Internal credit rating models and ECL methodology

Internal credit rating models cover all material asset classes.
These internal credit rating models are also used for IFRS 9
modelling after adjusting for key differences. Internal credit
models calculate through the economic cycle losses whereas
IFRS 9 requires 12-month or lifetime point-in-time losses based
on conditions at the reporting date and multiple economic
scenario forecasts of the future conditions over the expected
lives.

| Further information on internal credit ratings is provided on page 170 .

| Key judgements

The measurement of ECL has reliance on expert credit
judgement. Key judgemental areas are highlighted below and
are subject to robust governance processes. Key drivers of
measurement uncertainty include:
• The assessment of a significant increase in credit risk
• A range of forward-looking probability weighted macro-
economic scenarios
• Estimations of probabilities of default, loss given default and
exposures at default using models.

| For further detail on our process for determining ECL please refer to page 85 .

Key judgements at 31 March 2024
Key judgemental areas under IFRS 9 are subject to robust
governance processes. At 31 March 2024, the composition and
weightings of the forward-looking macro-economic scenarios
were revised to reflect the current pressures in the macro-
economic environment, however there remains reliance on
expert credit judgements to ensure that the overall level of ECL
is reasonable.
We hold a management overlay of £3.7 million at 31 March
2024 (31 March 2023: £4.9 million). The £1.2 million reduction in
the year reflects the enhanced performance of the models,
albeit there remains ongoing uncertainty in the macro-economic
environment. The overlay is apportioned to Stage 2 assets.
Macro-economic sensitivities
Changes in macro-economic scenarios and weightings may
result in the volatility of provisions, particularly to Stage 1 and 2
assets. Sensitivities to macro-economic scenarios and factors
form part of our overall risk monitoring, in particular the Bank’s
potential ECLs if each scenario were given a 100% weighting. In
these instances all non-modelled ECLs, including credit
assessed ECLs and other management judgements remain
unchanged.
The table below summarises the variance from reported ECL
should the base case and two downside cases be weighted by
100%. Whilst the outputs from these 100% weighted scenarios
are consistent with the macro-economic factor inputs set out in
the context of each scenario, in practice the outcome could
differ due to management actions or other key judgements
applied.

£’million At 31 March 2024 | Change in reported ECL
Base case (100%) | 5.7
Downside 1 – inflation (100%) | (4.9)
Downside 2 – global stress (100%) | (22.0)

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Forward-looking macro-economic scenarios

The measurement of ECL also requires the use of multiple
economic scenarios to calculate a probability weighted
forward-looking estimate. These scenarios are updated at least
twice a year, or more frequently if there is a macro-economic
shock or significant shift in expectations. The weighting of
these scenarios for IFRS 9 as well as the scenarios themselves
are discussed and presented at the relevant BRCCs as well as
the relevant capital committees for approval, which form part of
the principal governance framework for macro-economic
scenarios. They are also approved by the relevant Audit
Committees.
A number of forecast economic scenarios are considered for
capital planning, stress testing (including Investec-specific
stress scenarios) and IFRS 9 ECL measurement.
For Investec plc, four macro-economic scenarios were used in
the measurement of ECL. These scenarios incorporate a base
case, an upside case and two downside cases.
As part of the annual scenario review and taking into account
the current macro-economic environment, adjustments have
been made to the composition of the downside scenarios. The
previous downside 1 – inflation scenario, capturing the risk of
persistent inflation and high policy interest rates has been
retained but updated. The downside 2- global shock has been
replaced with the downside 2 - global stress (cautious easing,
severe recession scenario). This new scenario is comparable in
terms of GDP shock. It has also been designed so that it can act
as a proxy for a number of evolving economic risks.
In addition to a reassessment of the macro-economic scenarios,
a review of the weightings for the new scenarios also took
place, to take into account the latest economic circumstances
and the associated risks to the outlook. The latest weightings
are as follows: 10% upside; 60% base case; 15% Downside 1 –
inflation; and 15% Downside 2 – global stress. The risks to
economic activity remain skewed to the downside, with the
weightings calibrated to consider the risk that inflation, whilst
having moderated from its peak, may remain elevated and
consequently so may interest rates for longer. The weightings
also take into account risks surrounding issues associated with
commercial real estate, China, geopolitics and protectionism,
among others.
In the base case, the UK economy is expected to recover from
the shallow recession seen across the second half of 2023. The
strengthening in activity is driven by the fading cost-of-living
crisis as inflation eases and a recovery in household real
incomes takes hold. Policy rate cuts are assumed to add further
support to the recovery. Given inflation is expected to return to
target in 2024, the BoE is predicted to cut interest rates, with
the bank rate anticipated to fall to 4.50% by the end of 2024
and to 3.25% at the end of 2025. As such UK economic growth
is expected to strengthen to 1.0% in 2024/2025 and to 2.0% in
2025/2026, whilst medium-term growth is assumed to return to
trend at 1.6%. Lower interest rates and strengthening economic
activity are also expected to lead to a recovery in UK real estate
markets. The global situation is anticipated to mirror that of the
UK, with a further moderation in inflation leading to an easing in
central bank policy rates and strengthening economic activity.
Downside 1 – inflation scenario assumes that inflation pressures
prove more sustained and protracted as wages rise to
compensate for higher prices, in turn adding to cost price
pressures for companies: thus, CPI inflation is expected to
average 4.1% across the scenario horizon. Central banks respond
by tightening policy further, with the bank rate assumed to rise to
5.75% and remaining at this level for an extended period of time.
This further tightening of monetary conditions triggers renewed
weakness in the economy, the UK backdrop being one of
economic stagnation, with annual GDP growth averaging -0.1%
across the five-year horizon.
Downside 2 – global stress (cautious easing, severe recession)
is a hypothetical scenario designed as a proxy for economic tail
risks. The scenario assumes a deep global economic downturn.
However, given residual inflation concerns, central banks are
more cautious to ease monetary policy than they were to
tighten it. In the UK interest rates are assumed to be cut from
5.25% to 2.00%. Consequently, the UK endures a material six-
quarter recession, with the cumulative fall in GDP totalling 4%.
Given the severity of the recession asset values undergo a
correction, with UK residential house prices falling 15%, whilst
the current downturn in commercial real estate is exacerbated,
values falling 18%.
The down case scenarios are severe but plausible
scenarios created based on Investec specific bottom-up
stress tests, whilst also considering IFRS 9 specific sensitivities
and non-linearity.
In the upside case, economic activity proves more resilient, and
the pace of recovery more robust as stronger confidence and
lower interest rates prompt a pickup in investment. Ultimately
through the scenario horizon, productivity growth is expected
to support stronger levels of growth. Accordingly medium-term
GDP growth averages 2% per annum. The relatively swift
rebound in activity is experienced globally, and monetary policy
normalizes gradually enough so as not to subdue growth.
The graph below shows the forecasted UK GDP under each
macro-economic scenario applied at 31 March 2024.
UK GDP Forecast

| £’billion

| Upside |  |  | Base case
| Downside 1 – inflation |  |  | Downside 2 – global stress

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The table that follows shows the key factors that form part of the UK and Other macro-economic scenarios and their relative
applied weightings.

| At 31 March 2024 average 2024 – 2029 | At 31 March 2023 average 2023 – 2028
Macro-economic scenarios | Upside | Base case | Downside 1 inflation | Downside 2 global stress | Upside | Base case | Downside 1 inflation | Downside 2 global shock
% | % | % | % | % | % | % | %
UK |  |  |  |  |  |  |  |
GDP growth | 1.9 | 1.6 | (0.1) | 0.2 | 1.9 | 1.2 | (0.2) | 0.2
Unemployment rate | 3.5 | 4.4 | 5.5 | 6.5 | 3.6 | 4.6 | 5.4 | 6.8
CPI inflation | 1.9 | 2.0 | 4.1 | 2.4 | 2.5 | 2.2 | 5.8 | 2.1
House price growth | 3.0 | 2.5 | (0.6) | (1.6) | 2.1 | 0.5 | (1.7) | (4.6)
BoE – Bank rate (end year) | 3.1 | 3.2 | 5.4 | 2.5 | 2.8 | 2.8 | 4.5 | 1.0
Euro area |  |  |  |  |  |  |  |
GDP growth | 1.9 | 1.5 | 0.4 | 0.3 | 2.1 | 1.4 | 0.1 | 0.2
US |  |  |  |  |  |  |  |
GDP growth | 2.5 | 1.9 | 0.7 | 0.8 | 2.6 | 1.5 | 0.6 | 0.5
Scenario weightings | 10 | 60 | 15 | 15 | 10 | 50 | 20 | 20

The following table shows annual averages of economic factors for the base case over a five-year period based on the economic
forecasts in place as at 31 March 2024.

Base case % | Financial years
2024/2025 | 2025/2026 | 2026/2027 | 2027/2028 | 2028/2029
UK |  |  |  |  |
GDP growth | 1.0 | 2.0 | 1.6 | 1.6 | 1.6
Unemployment rate | 4.6 | 4.4 | 4.4 | 4.3 | 4.3
CPI inflation | 1.7 | 2.1 | 2.0 | 2.0 | 2.0
House price growth | 1.9 | 3.4 | 2.5 | 2.4 | 2.4
BoE – Bank rate (end year) | 4.0 | 3.0 | 3.0 | 3.0 | 3.0
Euro area |  |  |  |  |
GDP growth | 1.0 | 1.6 | 1.5 | 1.6 | 1.6
US |  |  |  |  |
GDP growth | 1.6 | 1.8 | 1.9 | 2.1 | 2.3

The following table outlines the extreme point forecast for each economic factor across the scenarios as at 31 March 2024.
Baseline represents the five-year base case average. Upside scenario values represent the best outcomes, namely the highest
quarterly level of GDP, house price growth (year on year), lowest level of unemployment and Bank rate. Upside scenario value
for CPI inflation is represented by the five-year average. Downside scenario values represent the worst outcomes being lowest
quarterly level of GDP, house price growth (year on year). For Bank rate and CPI inflation the most extreme point is listed, the
highest level reflective in downside 1 – inflation scenario and the lowest in downside 2 - global stress scenario.

Five-year extreme points At 31 March 2024 | Upside | Baseline: Base case five-year average | Downside 1 inflation | Downside 2 global stress
% | % | % | %
UK |  |  |  |
GDP growth | 2.5 | 1.6 | (1.5) | (3.6)
Unemployment rate | 3.5 | 4.4 | 5.8 | 7.9
CPI inflation | 1.9 | 2.0 | 4.5 | 2.0
House price growth | 4.7 | 2.5 | (3.7) | (11.0)
BoE – Bank rate (end year) | 3.0 | 3.2 | 5.8 | 2.0
Euro area |  |  |  |
GDP growth | 2.1 | 1.5 | (0.5) | (3.0)
US |  |  |  |
GDP growth | 3.0 | 1.9 | (0.3) | (4.0)

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61 . Sustainability risk (including climate and ESG)

Investec’s sustainability strategy aligns with
two impact UN Sustainable Development
Goals: climate action (SDG 13) and reduced
inequalities (SDG 10), supported by six
other core SDGs, namely:
• Quality education (SDG 4)
• Clean water and sanitation (SDG 6)
• Affordable and clean energy (SDG 7)
• Decent work and economic growth
(SDG 8)
• Industry innovation and infrastructure
(SDG 9)
• Sustainable cities and communities
(SDG 11).
The Investec Group ESG Executive
Committee, mandated by the Investec
Group’s Executive Directors, reports any
relevant matters to DLC SEC and
Investec Group ERC. The main objectives
of the committee are to align and
integrate sustainability activities across
the organisation while focusing on the
many business opportunities within
Investec’s priority SDGs and escalating
significant matters for consideration by
the Investec Group's respective
committees and leaders. The committee
provides feedback to the business on
emerging sustainability issues while
identifying and communicating to the
relevant forums any relevant external
issues that could adversely affect the
organisation's reputation.
We use different tools and frameworks to
measure the ESG performance and impact
of our clients and transactions, such as the
Equator Principles, Partnership for Carbon
Accounting Financials (PCAF), the UN
Global Compact, the UN Guiding Principles
on Business and Human Rights, and the
OECD Guidelines for Multinational
Enterprises.
We aim to embed sustainability
considerations in our daily operations and
credit decision-making processes. We
also recognise the interconnection
between climate change and nature loss,
and the exposure of our business and
operational activities to various types
of climate and nature-related risks. We
adopt a precautionary approach towards
managing climate and nature-related risks
in our decision-making processes.
We expect our clients to adopt and follow
best practices and standards on ESG
issues and to report their ESG
performance and impact. We also track
and disclose our ESG due diligence
activities and outcomes to our
stakeholders and regulators. This stems
from the belief that one of the greatest
socio-economic and environmental
impacts we can have is to partner
with our clients and stakeholders to
accelerate a cleaner, more resilient
and inclusive world.
With regards to climate action
(SDG 13):
Our climate change statement takes into
account our commitment to a net-zero
carbon economy by 2050. In addition, our
biodiversity statement strengthens our
commitment to protecting our natural
environment. In addition, the Investec
Group makes a positive impact on
biodiversity through our environmental
philanthropy activities and reduces
negative effects by addressing financial
crimes related to illegal wildlife trade.
In principle:
• We are committed to integrating
climate change and nature-related risk
considerations into our day-to-day
operations and in our lending and
investment decisions
• We have a number of Investec Group
environmental policies that also guide
credit decision-making from a
sustainability and ESG perspective
• We support the key provisions of the
Equator Principles (EP). All transactions
in non-designated countries are EP
monitored and compliant
• We will not engage in activities that
negatively impact conservation areas
or have an irreversible negative impact
on the environment, indigenous people
or natural assets.
Our approach to net-zero
We support the Paris Agreement aims of
holding the increase in global average
temperature to well below 2°C above pre-
industrial levels and continue to pursue
efforts towards limiting it to 1.5°C.
Within our own operations
We embrace our responsibility to
understand and manage our own carbon
footprint. We upheld our commitment and
maintained carbon neutrality in our direct
operational carbon emissions status for the
sixth financial year by sourcing 100% of our
Scope 2 energy consumption from
renewable energy through the purchase of
Renewable Energy Certificates and
offsetting the remaining unavoidable
residual emissions of 89% at 31 March
2024 (31 March 2023: 85%) through the
purchase of verified and high-quality
carbon credits.
Within our lending and investment
activities
We acknowledge that the widest and most
impactful influence we can have
is to manage and reduce our carbon
emissions in the business we conduct
and more specifically in our lending and
investing portfolios (Scope 3-financed
activities). As such, we are members of the
Net-Zero Banking Alliance (NZBA)
and continue to work with the PCAF to
measure our financed emissions. In 2021
we established a base line towards a net-
zero path and will continue to refine our
assumptions around Scope 3 emissions.
Our net-zero strategy is built on three pillars:
• Phase out of coal exposures in the
Group by 31 March 2027
• Increase investment in sustainable
and transition finance
• Reducing Scope 3 financed emissions
through influencing and engaging with
our clients on their net-zero pathways.
This year we have invested in the
automation of Scope 3 financed emissions
calculations, enhanced our data collection
efforts and refined our assumptions around
Scope 3 emissions. We continue to build
capacity within our various businesses to
support our clients and stakeholders to
move as quickly and smoothly as possible
towards a zero carbon economy.
With regards to reducing
inequalities (SDG 10):
The Group is dedicated to fostering a
purposeful, inclusive culture and we
enable this through our workplace and
Investec experience.
Furthermore, we understand no single
business can address the many socio-
economic needs and so our focus is on
education and learnerships,
entrepreneurship and job creation,
environment and philanthropy.
In principle:
• We are committed to encouraging
a sense of belonging for all people,
irrespective of difference
• We are committed to focusing on
creating education and learnership
opportunities within our communities
• We are committed to creating jobs for
young people through quality work
experience placements.
Within our own operations
• At 31 March 2024 we had 58%
representation of women and 42%
ethnic diversity, as defined by the UK
listing rule, on the DLC board
• Our community initiatives serve as the
cornerstone of our commitment to
creating enduring worth. This
reinforces our overarching goal of
fostering corporate responsibility.

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Within our lending and investment activities
We support a number of internationally recognised principles,
guidelines and voluntary standards which reflect our commitment
to respecting human rights, building inclusive communities and
supporting activities that reduce inequality. In principle we will
not engage in activities:
• that do not respect human rights, and do not respect the
rights of local communities and indigenous peoples
• that are in non-compliance with minimum standards for
occupational health and safety and the relevant local
legislation
• Investec places significant importance on addressing modern
slavery according to the UK Modern Slavery Act 2015. This
extends to reviewing third parties' policies on this matter in
our due diligence questionnaire. The Investec Group
sustainability team carefully evaluates these questionnaires
and escalates any potential concerns.
Climate and nature-related financial disclosures
Investec has published a separate climate and nature-related
report that aligns with the Financial Stability Board’s Taskforce
on Climate-related Financial Disclosures (TCFD)
recommendations. The TCFD report also includes some
recommendations of the Taskforce on Nature-related Financial
Disclosures (TNFD). As our knowledge and the recommended
guidance on TNFD matures, we aim to enhance these
disclosures over time. The table below illustrates a summary of
progress in terms of the recommendations according to the
TCFD and TNFD.

| Refer to detailed information in the Investec Group’s 2024 climate and nature-related disclosures which are published and available on our website: www.investec.com

| Governance | Strategy | Risk management | Metrics
Achievements in prior years | • Established an Investec Group ESG Executive Committee to align and monitor the Investec Group’s climate action • Engaged with stakeholders on our disclosures to get feedback on how we can improve our governance and oversight • Became a member of the NZBA. | • Acknowledged the Paris Agreement’s aim of holding the increase in the global average temperature to well below 2°C compared to pre-industrial levels and of pursuing efforts towards limiting it to 1.5°C • Supported the Partnership for Biodiversity Accounting Financials (PBAF) • Launched a number of ESG and climate-specific products and services. | • Strengthened our climate focus in the Investec plc and IBP risk appetite assessment resulting in a net-zero aligned target set towards zero coal exposure by 31 March 2027 • Reviewed and updated our fossil fuel policy with the primary change being managing our thermal coal exposure to zero by 31 March 2030 for the Investec Group. | • Achieved carbon neutrality across our direct operational activities • Joined PCAF and measured our Scope 3 emissions within our lending and investing activities • Assessed net-zero pathways according to Science Based Targets Initiative (SBTi) guidance. .
Achievements for the financial year ended March 2024 | • External sustainability training completed by four members of the Investec Group Executive Team including our Investec Group CE • Activated a focused learning pathway for management and staff, targeted towards their unique requirements within their respective areas • Listened to and engaged with our stakeholders through conducting a double materiality assessment. | • Enhanced our sustainable finance framework to include transition and social finance • Investec plc incorporated climate risks and opportunities in their financial planning through the annual budget process. | • Reviewed developments with regards to climate-related disclosure guidance, specifically the recommendations relating to IFRS S1 and IFRS S2 • Updated our fossil fuel policy with a target of no new financing for oil and gas exploration, extraction or production projects directly, regardless of jurisdiction, from 1 January 2035 • Identified and disclosed material sustainability-related matters as a result of our double materiality assessment. | • Automated our Scope 3 financed emission calculations and continued to refine our assumptions • Engaged with SBTi on their recommendations for Financial Institutions with the aim of setting verified climate-related targets.
Looking forward | • Link Executive remuneration to updated sustainability-related KPIs including a climate focused KPI • Stronger focus on ESG and sustainability (including climate and nature-related) matters in the DLC BRCC and DLC Audit Committee • Continue to strengthen the Investec Group’s climate-related and sustainability disclosures. | • Promote sustainable products and solutions within our client ecosystem • Support transition finance within our high-emitting client ecosystem where applicable • Active engagement within our client ecosystem promoting sustainability agendas • Review and assess the integration of climate-related matters into business strategy. | • Enhanced screening on biodiversity and nature-related risks according to the TNFD recommendations • Embed monitoring and managing of Scope 3 emissions within the risk management process across our business • Enhanced sustainability disclosures. | • Set a sustainable finance target • Track clients who publicly disclose their net-zero pathways to achieve a clear aggregated downward trend of emissions towards net-zero by 2050.

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| 62 . Investment risk in the banking book

Investment risk in the banking book
comprises 1.6% of total assets at 31
March 2024 . We have refocused our
principal investment activities on clients
where we have and can build a broader
relationship through other areas of
activity in the Group.
We partner with management and other
co-investors by bringing capital raising
expertise, working capital management,
merger and acquisition and investment
experience into client-driven private
equity transactions as well as leveraging
third party capital into the Group’s funds
that are relevant to the Group’s client
base. Investments are selected based on:
• The track record and credibility of
management
• Attractiveness of the industry and the
positioning therein
• Valuation/pricing fundamentals
• Sustainability analyses
• Exit possibilities and timing thereof
• The ability to build value by
implementing an agreed strategy.
Investments in listed shares may arise on
an IPO, or sale of an investment to a
listed company. There is limited appetite
for listed investments.
Additionally, from time to time, the
manner in which certain lending
transactions are structured results
in equity, warrants or profit shares
being held, predominantly in unlisted
companies. We also source development,
investment and trading opportunities to
create value within agreed risk
parameters.
Following the distribution that took place
on 31 May 2022, Investec plc retains a
c.10% shareholding in Ninety One.
Management of investment risk
As investment risk arises from a variety of
activities conducted by the Group, the
monitoring and measurement thereof
varies across transactions and/or type of
activity.
Investment committees exist in the UK
which provide oversight of the regions
where we assume investment risk.
Risk appetite targets and limits are set to
manage our exposure to equity and
investment risk. An assessment of
exposures against limits and targets is
reported to IBP and DLC BRCCs.
As a matter of course, concentration risk
is avoided and investments are spread
across geographies and industries.
Valuation and se nsitivity
assumptions and accounting
methodologies

| For a description of our valuation principles and methodologies refer to pages 83 to 89 and pages 112 to 119 for factors and sensitivities taken into consideration in determining fair value.

| An analysis of income and revaluations of these investments can be found in the investment income note on page 95 .

Summary of investments

£’million | On-balance sheet value of investments 31 March 2024 | On-balance sheet value of investments 31 March 2023
Category
Unlisted investments | 246 | 315
Listed equities | 1 | 2
Ninety One | 159 | 172
Total investment portfolio | 406 | 489
Trading properties | 63 | 75
Warrants and profit shares | 4 | 5
Total | 473 | 569

Note: IW&I UK was previously 100% consolidated in the Group. Going forward the Group's investment in Rathbones will be equity accounted for on a statutory basis and
recognised as an associate. We do not include the investment in Rathbones Group plc as a part of the above analysis due to the nature of this strategic transaction. Please
refer to further detail on page 7
An analysis of the investment portfolio (excluding Ninety One), warrants and profit shares

31 March 2024
£251 million

| Finance and insurance | 48.1%
| Retailers and wholesalers | 10.6%
| Transport | 9.8%
| Real estate | 9.7%
| Business services | 8.4%
| Construction | 5.7%
| Other | 5.4%
| Communication | 2.3%

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| 63 . Securitisation/ structured credit activities exposures

Overview
The Group’s definition of securitisation/
structured credit activities is wider than
the definition applied for regulatory
capital purposes. The regulatory capital
definition focuses largely on positions we
hold in an investor capacity and includes
securitisation positions we have retained
in transactions in which the Group has
achieved significant risk transfer. We
believe, however, that the information
provided below is meaningful in that it
groups all these related activities in order
for a reviewer to obtain a full picture of
the activities that we have conducted
in this space. Some of the information
provided below overlaps with the Group’s
credit and counterparty exposure
information.
In the UK, capital requirements for
securitisation positions are calculated
using either the standardised approach
(SEC-SA) or the external ratings-based
approach (SEC-ERBA). Given risk-
weightings under the SEC-SA approach
do not rely on external ratings, a
breakdown by risk-weight has also been
provided in the analysis below.
Securitisation transactions provide the
bank with a cost-effective, alternative
source of financing either through sale
to the market or through use of the notes
issued as collateral for other funding
mechanisms.
We hold rated structured credit
instruments. These are UK, US and
European exposures and amounted
to £703 million at 31 March 2024
(31 March 2023: £650 million) with 99.9%
being AAA and AA rated. Of the total
structured credit exposures, 99.7% have
a risk weighting of less than 40%.

| For accounting methodologies refer to page 86 .

Risk management
All existing or proposed exposures to a
securitisation are analysed on a case-by-
case basis, with approval required from
the appropriate credit committee. The
analysis looks through to the historical
and expected future performance of the
underlying assets, the position of the
relevant tranche in the capital structure
as well as analysis of the cash flow
waterfall under a variety of stress
scenarios. External ratings and risk-
weightings are presented, but only for
information purposes since the Group
principally relies on its own internal risk
assessment. Overarching these
transaction level principles is the Board-
approved risk appetite policy, which
details the Group’s appetite for such
exposures, and each exposure is
considered relative to the Group’s
overall risk appetite. We can use explicit
credit risk mitigation techniques where
required; however, the Group prefers
to address and manage these risks
by approving exposures for which
the Group has explicit appetite through
the consistent application of the risk
appetite policy.

| In addition, securitisations of Investec own originated assets are assessed in terms of the credit risk management philosophies and principles as set out above.

Credit analysis
In terms of our analysis of our credit and
counterparty risk, exposures arising from
securitisation/structured credit activities
reflect only those exposures to which we
consider ourselves to be at risk.

Nature of exposure/activity | 31 March 2024 £’million |  | 31 March 2023 £’million | Balance sheet and credit risk classification
Structured credit (gross exposure) | 738 |  | 715 | Other debt securities and other loans and advances
<40% RWA | 736 |  | 709
>40% RWA | 2 |  | 6

Analysis of gross structured credit exposure

£’million | AAA | AA | A | BBB | BB | B and below | Total rated | Total unrated |  | Total |
US corporate loans | 495 | 81 | — | — | — | — | 576 | 34 |  | 610 |
UK RMBS | 36 | 14 | 1 | — | — | — | 51 | 1 |  | 52 |
European corporate loans | 76 | — | — | — | — | — | 76 | — |  | 76 |
Total at 31 March 2024 | 607 | 95 | 1 | — | — | — | 703 | 35 |  | 738 |
<40% RWA | 607 | 95 | — | — | — | — | 702 | 34 |  | 736 |
>40% RWA | — | — | 1 | — | — | — | 1 | 1 |  | 2 |
Total at 31 March 2023 | 564 | 78 | 8 | — | — | — | 650 | 65 |  | 715 |

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64 . Market risk in the
trading book

Traded market risk profile

The focus of our trading activities is
primarily to support our clients. Our
strategic intent is that proprietary trading
should be limited and that trading should
be conducted largely to facilitate client
flow. Within our trading activities, we act
as principal with clients or the market.
Market risk exists where we have taken
on principal positions resulting from
market making, underwriting and
facilitation of client business in the
foreign exchange, interest rate, equity,
credit and commodity markets.

| Traded market risk year in review

In the UK, the financial year in review has
been characterised by continued central
bank tightening, with associated macro-
driven market fluctuations. Global yield
curves are considerably higher than as at
31 March 2023 and remain inverted.
Inflation has fallen significantly over the
year, with markets pricing in interest rate
cuts over the second half of the calendar
year. Equity markets recovered over the
second half of the financial year, with the
FTSE100 +4.2% and FTSE250 +5.1% for
the year ended 31 March 2024. The
structured products book continues to
wind down and is now substantially
reduced. Notwithstanding, the macro
hedge remains in place and continues to
be updated to ensure that it continues to
provide downside protection in the event
of an extreme market dislocation.
The primary focus of all trading activity
continues to be managing and hedging
the market risk arising from client-related
activity, and directional exposures remain
at a minimum. Utilisation of risk limits
have remained moderate, and the desks
have remained prudent during the year.

Traded market risk governance structure

Traded market risk is governed by
policies that cover the management,
identification, measurement and
monitoring of market risk. We have
independent market risk teams to
identify, measure, monitor and manage
market risk.
The market risk teams have reporting
lines that are separate from the trading
function, thereby ensuring independent
oversight. The Market Risk Forum,
mandated by the IBP ERC, manages
market risk in accordance with approved
principles, policies and risk appetite.
Trading desk risk limits are reviewed by
the Market Risk Forum and approved by
IBP ERC in accordance with the risk
appetite defined by the Board. Any
significant changes in risk limits are then
taken to Investec Group ERC, IBP and
DLC BRCCs as well as IBP and DLC
Boards for review and approval. The
appropriateness of limits is continually
reassessed, with limits reviewed at least
annually, in the event of a significant
market event or at the discretion of
senior management.

Measurement of traded market risk

A number of quantitative measures are
used to monitor and limit exposure to
traded market risk. These measures
include:
• Value at Risk (VaR) and Expected
Shortfall (ES) as portfolio measures
of market risk exposure
• Scenario analysis, stress tests and
tools based on extreme value theory
(EVT) that measure the potential
impact on portfolio values of extreme
moves in markets
• Sensitivity analysis that measures the
impact of individual market risk factor
movements on specific instruments or
portfolios, including interest rates,
foreign exchange rates, equity prices,
credit spreads and commodity prices.
We use sensitivity measures to monitor
and limit exposure across portfolios,
products and risk types.
Stress and scenario analyses are used
to add insight into the possible outcomes
under severe market disruptions. The
stress testing methodology assumes that
all market factors move adversely at the
same time and that no actions are taken
during the stress events to mitigate risk.
Stress scenarios based on historical
experience as well as hypothetical
scenarios are considered and are
reviewed regularly for relevance in the
ever-changing market environment.
Stress scenarios are run daily with
analysis presented to IBP Review
Executive Risk Review Forum (IBP Review
ERRF) weekly and IBP BRCC when the
committees meet or more often should
market conditions require this.

| Traded market risk management, monitoring and control

Market risk limits are set according to our
risk appetite policy. Limits are set at
trading desk level with aggregate risk
across all desks also monitored against
overall market risk appetite limits. Current
market conditions as well as stressed
market conditions are taken into account
when setting and reviewing these limits.
Market risk teams review the market risks
in the trading book with detailed risk
reports produced daily for each trading
desk and for the aggregate risk of the
trading book. The material risks identified
are summarised in daily reports that are
distributed to, and discussed with senior
management when required. The
production of risk reports allows for the
monitoring of all positions in the trading
book against prescribed limits.
Documented policies and procedures are
in place to ensure there is a formal
process for recognition and authorisation
for risk excesses incurred.
The risk management software is fully
integrated with source trading systems,
allowing valuation in risk and trading
systems to be fully aligned. All valuation
models are subject to independent
validation by market risk ensuring models
used for valuation and risk are validated
independently of the front office.

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188

Value at Risk

VaR is a technique that estimates the
potential losses as a result of movements
in market rates and prices over a
specified time horizon at a given level of
confidence. The VaR model derives
future scenarios from a historic time
series of market rates and prices, taking
into account inter-relationships between
the different markets such as interest
rates and foreign exchange rates. The
VaR model is based on a full revaluation
historical simulation and incorporates the
following features:
• Two-year historical period based
on an unweighted time series
• Daily movements in each risk factor
e.g. foreign exchange rates, interest
rates, equity prices, credit spreads and
associated volatilities are simulated
with reference to historical market
rates and prices, with proxies only
used when no or limited historical
market data is available
• Risk factor movements are based
on both absolute and relative returns
as appropriate for the different types
of risk factors.
VaR numbers using a one-day holding
period are monitored daily at the 95%
and 99% confidence intervals, with limits
set at the 95% confidence interval.
Expected shortfalls are also monitored
daily at the 95% and 99% levels, being
the average of the losses in the tail of
the VaR distribution.
The table below contains the 95% one-day VaR figures for the trading businesses.

| 31 March 2024 | 31 March 2023
95% one-day VaR | Year end | Average | High | Low | Year end | Average | High | Low |
£’000 |
Interest rates | 43 | 45 | 60 | 31 | 43 | 33 | 73 | 15 |
Foreign exchange | 12 | 10 | 98 | — | 8 | 13 | 76 | 3 |
Equities | 173 | 225 | 641 | 117 | 295 | 324 | 762 | 124 |
Commodities | 8 | 9 | 15 | 5 | — | — | — | — |
Credit | 36 | 32 | 85 | — | 64 | 14 | 67 | 1 |
Consolidated* | 186 | 238 | 612 | 137 | 352 | 331 | 770 | 103 |

*The consolidated VaR is lower than the sum of the individual VaRs. This arises from the correlation offset between various asset classes (diversification).

Expected shortfall

The ES measure overcomes some of VaR’s shortcomings. ES seeks to quantify losses encountered in the tail beyond the VaR level.
The 95% one-day ES is the average loss given that the 95% one-day VaR level has been exceeded. The table below contains the
95% one-day ES figures.

95% one-day ES | 31 March 2024 |  | 31 March 2023
£’000 |
Interest rates | 59 |  | 68
Foreign exchange | 29 |  | 15
Equities | 210 |  | 366
Commodities | 13 |  | —
Credit | 48 |  | 163
Consolidated* | 224 |  | 472

*The consolidated ES is lower than the sum of the individual ESs. This arises from the correlation offset between various asset classes.

Stressed VaR

Stressed VaR (sVaR) is calculated using the VaR model but is based on a one-year period through which the relevant market
factors experienced stress. The information in the table below contains the 99% one-day sVaR.

£’000 | 31 March 2024 |  | 31 March 2023 |
99% one-day sVaR | 694 |  | 672 |

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189

| Backtesting

The performance of the VaR model is regularly monitored through backtesting. This is done by comparing daily clean profit and
loss against one-day VaR based on a 99% confidence level. Clean profit and loss excludes items such as intra-day transactions,
valuation adjustments, provisions, recoveries, commission, fees and hedge costs included in the new trade revenue. If a loss
exceeds the one-day VaR, a backtesting exception is considered to have occurred. Over time we expect the average rate
of observed backtesting exceptions to be consistent with the percentile of the VaR statistic being tested. This is conducted
at an aggregate and desk level on a daily basis.
The graph that follows shows the result of backtesting the total daily 99% one-day VaR against the clean profit and loss data
for our trading activities over the reporting period. Based on these graphs, we can gauge the accuracy of the VaR figures,
i.e. 99% of the time, losses are not expected to exceed the 99% one-day VaR.
The average VaR for the year ended 31 March 2024 was lower than for the year ended 31 March 2023 . Using clean profit
and loss data for backtesting resulted in one exception over the period at the 99% confidence level, i.e. where the loss was
greater than the 99% one-day VaR. This reflects the limited net market risk exposure in the trading book and the relatively low
equity market volatility over the reporting period.

99% one-day VaR backtesting (£)

| 99% one-day VaR |  |  | Clean P/L

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190

| Clean profit and loss histogram

The histogram below illustrates the distribution of clean profit and loss during the financial year for our trading businesses. The
graph shows that a clean profit was realised on 153 days out of a total of 250 days in the trading business. The average daily clean
profit and loss generated for the year to 31 March 2024 was £70 355 (31 March 2023 : £87 798 ).
Clean profit and loss
Frequency: Days in the year

| Clean profit/(loss) earned per day (£’million)

| Market risk – derivatives

The Group enters into various derivative contracts, largely on the back of customer flow. These are used for hedging foreign
exchange, interest rates, commodity, equity and credit exposures and to a small extent as principal for trading purposes. Traded
instruments include financial futures, options, swaps and forward rate agreements.

| Information showing our derivative trading portfolio over the reporting period on the basis of the notional principal and the fair value of all derivatives can be found on page 126 .

The notional principal indicates our activity in the derivatives market and represents the aggregate size of total outstanding
contracts at year end. The fair value of a derivative financial instrument represents the present value of the positive or negative
cash flows which would have occurred had we closed out the rights and obligations arising from that instrument in an orderly
market transaction at year end. Both these amounts reflect only derivatives exposure and exclude the value of the physical
financial instruments used to hedge these positions.

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191

| 65. Balance sheet risk management

The balance sheet risk framework
continually ensures that a comprehensive
approach is taken to the management
and mitigation of liquidity, funding and
IRRBB risks, while ensuring adherence to
regulatory requirements and internal risk
appetite and policies.
Balance sheet risk governance
structure and risk mitigation
Investec plc (and its subsidiaries,
including IBP) are ring-fenced from
Investec Limited (and its subsidiaries),
and vice versa. Both legal entities (and
their subsidiaries) are therefore required
to be self-funded, and manage their
funding, liquidity and IRRBB risk as
separate entities.
Each banking entity must have its own
Board-approved balance sheet risk
management policies. Risk appetite limits
are set at the relevant Board level and
reviewed at least on an annual basis. The
size, materiality, complexity, maturity and
depth of the market as well as access to
stable funds are all inputs considered
when establishing the risk appetite for
each relevant region. Specific regulatory
requirements may further dictate additional
restrictions to be adopted in a region.
Under delegated authority of the
respective Boards, the Group has
established ALCOs within each banking
entity, using regional expertise and local
market access as appropriate. The ALCOs
are mandated to ensure independent
oversight of liquidity risk and IRRBB.
ALCOs review the exposures within the
balance sheet together with market
conditions, and decide on strategies to
mitigate any undesirable risk. The
Treasury function within each banking
entity is mandated to holistically manage
the risk on a day-to-day basis.
The Treasury function, by banking entity,
is required to exercise tight control of all
balance sheet risks (liquidity, funding,
concentration, encumbrance and IRRBB)
within the Board-approved risk appetite
limits. IRRBB and asset funding requirements
are transferred from the originating
business to the Treasury function.
The Treasury function, by banking entity,
directs pricing for all deposit products,
establishes and maintains access to
stable funds with the appropriate tenor
and pricing characteristics, and manages
liquid securities and collateral.
Balance sheet risk management is based
within Group risk management and is
responsible for identifying, quantifying,
monitoring and communicating risks
while providing independent oversight of
the treasury activities and guaranteeing
the adherence to the Group’s policies.
There is a regular internal audit of the
processes and policies within the balance
sheet risk management function, the
frequency of which is determined by
internal audit.
Daily, weekly and monthly reports are
independently produced highlighting
Group activity, exposures and key
measures against thresholds and limits
and are distributed to management,
ALCO, Treasury, IBP Review ERRF, IBP
ERC , IBP BRCC, and DLC BRCC as well as
summarised reports for Board meetings.
Liquidity risk
Management and measurement of
liquidity risk
Cohesive liquidity management is vital
for protecting our depositors, preserving
market confidence, safeguarding our
reputation and ensuring sustainable
growth with established funding sources.
Through active liquidity management,
we seek to preserve stable, reliable and
cost-effective sources of funding.
A number of internal and regulatory
metrics are used on a current and
forward-looking basis to manage liquidity
risk and funding risk. Future cash flows are
monitored on a contractual, business-as-
usual and stressed basis. Stress testing is
based on a range of historical and
hypothetical scenarios.
We further carry out reverse stress tests
to identify business model vulnerabilities
which tests ‘tail risks’ that can be missed
in normal stress tests.
Additionally, the Group maintains
contingency funding plans which detail
the course of actions that can be taken in
the event of a liquidity stress. The plans
help to ensure that cash flow estimates
and commitments can be met in the
event of general market disruption or
adverse bank-specific events, while
minimising detrimental long-term
implications for the business.
The plan have been tested within our
core jurisdictions via an externally
facilitated liquidity crisis simulation
exercise which assess the Group's
sustainability and ability to adequately
contain a liquidity stress.

| Further information on recovery and resolution planning can be found on page 199 .

Funding strategy
We maintain a funding structure of stable
customer deposits and long-term
wholesale funding well in excess of
funded assets. We target a diversified
funding base, avoiding undue concentrations
by investor type, maturity, market source,
instrument and currency.
We acknowledge the importance of our
retail deposit client base as the principal
source of stable and granular funding. We
continue to develop products to attract
and service the investment needs of our
client base in line with our risk appetite.
Entities within the Group actively
participate in global financial markets and
our relationships are continuously
enhanced through regular investor
presentations internationally. Entities are
only allowed to have funding exposure to
wholesale markets where they can
demonstrate that the market is sufficiently
deep and liquid, and then only relative to
the size and complexity of their business
as part of a diversified funding mix.
The Group’s ability to access funding at
cost-effective levels is influenced by
maintaining or improving the entity’s
credit rating. A reduction in credit ratings
could have an adverse effect on the
Group’s funding costs, and on access to
wholesale term funding; however, our
diversified funding base places limited
reliance on wholesale funding and
protects our ability to raise sufficient
funding under both business as usual and
stressed market conditions.
Liquidity buffer
To protect against potential shocks, we
hold a liquidity buffer in the form of cash,
unencumbered high-quality liquid assets
(typically in the form of government or
rated securities eligible for repurchase with
the central bank). The liquidity buffer is well
in excess of regulatory requirements as
protection against disruptions in cash
flows. The liquidity buffer is managed
within Board-approved targets. The Group
remains a net liquidity provider to the
interbank market, placing significantly
more funds with other banks than our
short-term interbank borrowings. We do
not rely on overnight interbank deposits to
fund term lending.
For non-cash items, prudent market risk
limits are in place to control the market
volatility of securities and the amount of
cash that can be generated by those
securities under a market stress.
From 1 April 2023 to 31 March 2024
average cash and near cash balances
over the period amounted to £8.7 billion.

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Cash and near cash trend
£’million

| Central bank cash placements and guaranteed liquidity |  |  | Cash |  |  | Near cash (other ‘monetisable’ assets)

An analysis of cash and near cash at 31 March 2024 |  | Customers accounts (deposits) by type at 31 March 2024
£9 652 million |  | £20 791 million

| Central bank cash placements and guaranteed liquidity | 83.5% |  |  | Individuals | 65.3%
| Cash | 10.7% |  |  | Other financial institutions and corporates | 26.9%
| Near cash (other ‘monetisable’ assets) | 5.8% |  |  | Small business | 7.8%

Asset encumbrance
An asset is defined as encumbered if it has been pledged as
collateral against an existing liability and, as a result, is no longer
available to the Group to secure funding, satisfy collateral needs
or be sold to reduce funding requirement.
Encumbered assets are identified in accordance with the
definitions under European Capital Requirements Regulation
(CRR), and regular reporting is provided to the PRA.
Risk management monitors and manages total balance sheet
encumbrance within a Board-approved risk appetite limit. Asset
encumbrance is one of the factors considered in the discussion of
new products or new funding structures, and the impact on risk
appetite is assessed.
The Group uses secured transactions to manage short-term cash
and collateral needs, and utilises securitisations in order to raise
external term funding as part of its diversified liability base.
Securitisation notes issued are also retained by the Group which
are eligible for the BoE’s Single Collateral Pool to s upport central
bank liquidity facilities.
Further disclosures on encumbered and unencumbered assets
can be found within the Investec plc Pillar 3 d ocument.

| On page 124 we disclose further details of assets that have been received as collateral under reverse repurchase agreements and securities borrowing transactions where the assets are allowed to be resold or pledged.

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Liquidity mismatch
The following tables show the
contractual and behavioural liquidity
mismatch.
The contractual liquidity table records all
assets and liabilities with the underlying
contractual maturity.
With respect to the behavioural liquidity
table, we adjust the contractual profile of
certain assets and liabilities:
• Liquidity buffer: the actual contractual
profile of the assets in the liquidity
buffer is of little consequence, as
practically the Group would meet any
unexpected net cash outflows by
repo’ing or selling these highly liquid
securities. Consequently, for the
liquidity buffer:
– The time horizon to monetise our
regulatory liquid assets which are
guaranteed by the central bank has
been adjusted to ‘on demand’
– The time horizon for the cash and
near cash portfolio of discretionary
treasury assets has been set to one
month where there are deep
secondary markets for this elective
asset class.
• Customer deposits: historical
observations were used to model the
behavioural maturity profile, and this
analysis has identified significant
additional sources of structural liquidity
in the form of core deposits that exhibit
stable behaviour.
Contractual liquidity at 31 March 2024

£’million | Demand | Up to one month | One to three months | Three to six months | Six months to one year | One to five years | >Five years |  | Total |
Cash and short-term funds – banks | 6 279 | 54 | — | — | 5 | — | — |  | 6 338 |
Investment/trading assets | 1 564 | 869 | 883 | 481 | 329 | 736 | 1 068 |  | 5 930 |
Securitised assets | 4 | — | — | 1 | 1 | 21 | 40 |  | 67 |
Advances | 90 | 657 | 912 | 1 156 | 1 857 | 8 723 | 3 293 |  | 16 688 |
Other assets | 48 | 398 | 22 | 17 | 111 | 352 | 90 |  | 1 038 |
Assets | 7 985 | 1 978 | 1 817 | 1 655 | 2 303 | 9 832 | 4 491 |  | 30 061 |
Deposits – banks | (242) | — | (10) | (9) | — | (1 913) | — |  | (2 174) |
Deposits – non-banks | (6 113) | (1 121) | (4 660) | (3 211) | (3 860) | (1 826) | — |  | (20 791) |
Negotiable paper | (2) | (6) | (10) | (34) | (63) | (1 149) | (9) |  | (1 273) |
Securitised liabilities | — | — | (7) | (3) | (6) | (36) | (20) |  | (72) |
Investment/trading liabilities | (79) | (55) | (30) | (37) | (75) | (244) | (56) |  | (576) |
Subordinated liabilities | — | — | — | — | — | — | (669) |  | (669) |
Other liabilities | (4) | (465) | (143) | (20) | (122) | (216) | (64) |  | (1 034) |
Liabilities | (6 440) | (1 647) | (4 860) | (3 314) | (4 126) | (5 384) | (818) |  | (26 589) |
Total equity | — | — | — | — | — | — | (3 472) |  | (3 472) |
Contractual liquidity gap | 1 545 | 331 | (3 043) | (1 659) | (1 823) | 4 448 | 201 |  | — |
Cumulative liquidity gap | 1 545 | 1 876 | (1 167) | (2 826) | (4 649) | (201) | — |  |  |

Behavioural liquidity at 31 March 2024
As discussed above.

£’million | Demand | Up to one month | One to three months | Three to six months | Six months to one year | One to five years | >Five years |  | Total |
Behavioural liquidity gap | 6 594 | (184) | (3 787) | (1 938) | (1 980) | 1 120 | 175 |  | — |
Cumulative | 6 594 | 6 410 | 2 623 | 685 | (1 295) | (175) | — |  |  |

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I nterest rate risk in the banking book (IRRBB)
Measurement and management of IRRBB
IRRBB is an inherent consequence of conducting banking
activities, and arises from the provision of non-trading banking
products and services. The Group considers the management
of banking margin of vital importance, and our IRRBB philosophy
is reflected in our day-to-day practices.
The aim of IRRBB management is to protect net interest income
and economic value in accordance with the Board-approved
risk appetite. IRRBB is measured and analysed by utilising
standard tools of traditional interest rate repricing mismatch and
net present value (NPV) sensitivity to changes in interest rate
risk factors:
• Income metrics capture the change in accruals expected over
a specified time horizon in response to a change in interest
rates
• Economic value metrics capture all future cash flows in order
to calculate the Group’s net worth and therefore can highlight
risks beyond the short-term earnings time horizon.
These metrics are used to assess and to communicate to senior
management the financial impact of possible future interest rate
scenarios, covering:
• Interest rate expectations and perceived risks to the central
view
• Standard shocks to levels and shapes of interest rates and
yield curves.
The repricing gap provides a simple representation of the
balance sheet, with the sensitivity of fair values and earnings to
changes to interest rates calculated off the repricing gap. This
also allows for the detection of interest rate risk concentration
in specific repricing buckets. Net interest income sensitivity
measures the change in accruals expected over the specified
horizon in response to a shift in the yield curve, while economic
value sensitivity and stress testing to macro-economic
movement or changes to the yield curve measures the interest
risk implicit change in net worth as a result of a change in
interest rates on the current values of financial assets and
liabilities. Economic value measures have the advantage that all
future cash flows are considered and therefore assess the risk
beyond the earnings horizon.
Sources of IRRBB include:
• Repricing risk: arises from the timing differences in the fixed
rate maturity and floating rate repricing of Group assets,
liabilities and derivative positions. This affects the interest
rate margin realised between lending income and borrowing
costs when applied to our rate sensitive portfolios
• Yield curve risk: repricing mismatches also expose the
Group to changes in the slope and shape of the yield curve
• Basis risk: arises from imperfect correlation in the
adjustments of the rates earned and paid on different
instruments with otherwise similar repricing characteristics
• Embedded option risk: arises from optional elements
embedded in items where the Group or its customers can
alter the level and timing of their cash flows, such as the
prepayment of fixed rate loans and withdrawal of non-
maturity deposits (NMDs)
• Endowment risk: refers to the interest rate risk exposure
arising from the net differential between interest rate
insensitive assets, interest rate insensitive liabilities and
capital.
The above sources of interest rate risk affect the interest rate
margin realised between lending income and borrowing costs
when applied to our rate sensitive asset and liability portfolios,
which has a direct effect on future net interest earnings and the
economic value of equity.
Each banking entity has its own Board-approved IRRBB
appetite, which is clearly defined in relation to both income risk
and economic value risk. The Group has limited appetite for
IRRBB.
Operationally, daily management of interest rate risk is
centralised within the Treasury of each banking entity and is
subject to local independent risk and ALCO review. Treasury
mitigates any residual undesirable risk where possible, by
changing the duration of the banking book’s discretionary liquid
asset portfolio, or through derivative transactions. The Treasury
mandate allows for a tactical response to market volatility which
may arise during changing interest rate cycles, in order to
hedge residual exposures. Any resultant interest rate position
is managed under the IRRBB risk limits. Balance sheet risk
management independently monitors a broad range of interest
rate risk metrics to changes in interest rate risk factors, detailing
the sources of interest rate exposure.
Automatic optionality arising from variable rate products with an
embedded minimum lending rate serves as an income
protection mechanism for the Group against falling interest
rates, while behavioural optionality risk from customers of fixed
rate products is mitigated by early repayment charges.
The UK Bank maintains a structural hedging programme to
reduce the sensitivity of earnings to short-term interest rate
movements. An amortising profile of £1.56 billion tangible equity
has been assigned with an average duration of 2.5 years evenly
distributed over the period. The termed equity is then hedged
and managed within the Group’s overall interest rate risk
appetite.
Net interest income sensitivity at 31 March 2024
IRRBB is measured and monitored using an income sensitivity
approach. The tables below reflect an illustrative annualised net
interest income value sensitivity to a 0.25% parallel shift in
interest rates, based on modelled assumptions, assuming no
management intervention.

million | All (GBP)
25bps down | (8.0)
25bps up | 7.2

Economic value (EV) sensitivity at 31 March 2024
IRRBB is measured and monitored using the EV sensitivity
approach. The tables below reflect an illustrative economic
value sensitivity to a 2% parallel shift in interest rates, based on
modelled assumptions, assuming no management intervention.
This sensitivity effect would only have a negligible direct impact
on our equity.

million | All (GBP)
200bps down | 2.8
200bps up | (9.1)

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195
Regulatory requirements
Liquidity risk
The two minimum BCBS standards for
funding liquidity are:
• The Liquidity Coverage ratio (LCR)
which is designed to ensure that banks
have sufficient high-quality liquid
assets to meet their liquidity needs
throughout a 30-calendar day severe
stress
• The Net Stable Funding ratio (NSFR)
which is designed to capture structural
issues over a longer time horizon by
requiring banks to have a sustainable
maturity structure of assets and a
stable liability base.
The Investec plc and IBP (solo basis)
LCRs are calculated based on the rules
contained in the PRA rulebook overlaid
with our own interpretations where the
regulation requires. Banks are required to
maintain a minimum LCR of 100%. As at
31 March 2024 the LCR was 453% for
Investec plc and 519% for IBP (solo
basis).
Within the UK, the NSFR has become
a binding requirement for banks since
January 2022. Banks are now required
to maintain a minimum NSFR of 100%.
The NSFR at 31 March 2024 was 146%
for Investec plc and 144% for IBP
(solo basis).
Investec plc undertakes an annual ILAAP
which documents the approach to
liquidity management across the firm.
This document is approved by the IBP
and DLC Boards before being provided to
the PRA for use, alongside the Liquidity
Supervisory Review and Evaluation
Process, to determine the bank’s
Individual Liquidity Guidance, also known
as a Pillar II requirement.
IRRBB
In 2016, the BCBS finalised their
standards for IRRBB which recommended
the risk is assessed as part of the Bank’s
capital requirements, outlined six
prescribed shock scenarios, and
recommended enhanced disclosure
requirements for supervisors to
implement.
The regulatory framework requires banks
to assess their Pillar II requirements,
including those related to IRRBB, as part
of their ICAAP in accordance with
PS22/21 and SS31/15. This is reviewed
on at least an annual basis and reviewed
and approved by IBP BRCC, DLC BRCC
and by the IBP and DLC Boards.
Balance sheet risk year in review
The Group maintained its strong liquidity
position and continues to hold high levels
of surplus liquid assets. Our liquidity risk
management process remains robust and
comprehensive.
Funding continues to be dynamically
raised through a mix of customer
liabilities diversified by customer type,
currency, channel and tenor, avoiding
reliance on any particular channel and
ensuring continued access to a wide
range of depositors. Those diversified
funding channels have proven to be
capable of raising funding throughout the
year to support asset growth despite the
uncertain macro-economic environment,
persistent market volatility and increased
competition for deposits. Overall
customer deposits have grown
substantially in the year to 31 March
2024.
We have limited reliance on wholesale
funding but we maintain access and
presence, using such wholesale issuance
to strategically diversify our funding base
and complement the other liability
channels by focusing, where appropriate,
on tenor and currency as part of a longer
term strategic plan.
Wholesale issuance in the year took
advantage of market windows to focus
on refinancing upcoming calls to lengthen
term, with the added benefit of
continuing to diversify the debt capital
markets investor base. As a result we
have no requirement to issue in the
wholesale markets in the financial year to
end March 2025. As of March 2024, the
preferred resolution strategy for IBP
remained bank insolvency procedure with
no MREL requirement in excess of its
minimum capital requirements. However,
the BoE formally notified Investec plc on
28 June 2023 that the preferred
resolution strategy will change from bank
insolvency procedure to bail-in and as
such Investec plc, and IBP as a material
subsidiary, will be subject to a revised
MREL requirement. The MREL transition
will commence from 1 January 2026 in a
phased manner with end-state MREL
applying from 1 January 2032. Any
additional MREL requirements will be met
over time as part of increasing wholesale
market issuance from the existing
established base and we will continue to
evaluate issuance opportunities in the
near term as part of this glide path.
As at 31 March 2024, IBP had £1.2 billion
of drawings under the BoE Term Funding
Scheme with additional incentives for
Small and Medium Enterprises (TFSME)
maturing in late 2025.
Funding consists primarily of customer
deposits, with loans and advances to
customers as a percentage of customer
deposits at 79.7% at 31 March 2024. We
are therefore well positioned from a
funding and liquidity perspective if there
were to be further disruption to financial
markets given both the highly diversified
nature of Investec plc’s deposit base and
the reliance on term and notice deposits
rather than demand deposits. Deposits
grew by 8.7% over the year to £20.8
billion. Granularity of deposits is a key
area of focus and Investec plc has a
substantial portion of eligible deposits
that are covered by FSCS protection. The
FSCS is a UK government-backed
scheme designed to provide protection
to eligible customers, to the maximum
value of £85 000, in the event that a
financial institution is unable to meet its
financial obligations.
Cash and near cash balances at 31 March
2024 amounted to £9.7 billion (31 March
2023: £8.6 billion).
This overall approach has enabled the
Group to maintain a strong liquidity
position at the year end across a range of
metrics in line with our conservative
approach to balance sheet risk
management.
Looking forward, the focus remains on
maintaining a strong liquidity position in
light of overall market volatility. Funding
continues to be actively raised, across a
diverse funding base, in line with a
medium- to long-term strategy to reduce
the overall tenor-adjusted cost of the
liability base supported by stable credit
ratings.

| Refer to page 29 for further detail on credit ratings.

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196

| 66. Operational risk

Operational risk is an inherent risk in the ordinary course of business activity. The impact could be financial as well as non-financial.
Possible non-financial impacts could include customer detriment, reputational or regulatory consequences.
Management and measurement of operational risk
The Group manages operational risk through an operational risk management framework that is embedded across all levels of the
organisation and is supported by a strong risk management culture. The key purpose of the operational risk management
framework is to define the policies and practices that provide the foundation for a structured and integrated approach to identify,
assess, mitigate/manage, monitor and report on operational risks.
The key operational risk practices are as follows:

Identify and assess
| Risk and control assessments | • Risk and control assessments are forward-looking, qualitative assessments of inherent and residual risk that are performed on key business processes using a centrally defined risk framework • These assessments enable business to identify, manage and monitor operational risks, incorporating other elements of the operational risk management framework such as risk events and key indicators • Detailed control evaluations are performed, and action plans developed and implemented where necessary to ensure that risk exposure is managed within acceptable levels.
| Internal risk events | • Internal risk events provide an objective source of information relating to failures in the control environment • The tracking of internal risk event data provides an opportunity to improve the control environment and to minimise the occurrence of future risk events • In addition, internal risk event data is used as a direct input into the Pillar II capital modelling process.
| External risk events | • External risk events are operational risk related events originating outside the organisation • The Group is an active member of a global external data service used to benchmark our internal risk event data against other local and international financial service organisations • The external data is analysed to enhance the control environment, inform scenario analysis and provide insight into emerging operational risks.
| Mitigate/manage
| Risk exposures | • Risk exposures are identified through the operational risk management processes, including but not limited to risk assessments, internal risk events, key indicators and audit findings • Residual risk exposure is evaluated in terms of the Group’s risk appetite and mitigated where necessary by improving the control environment, transferring through insurance, terminating the relevant business activity or accepting the risk exposure for a period of time subject to formal approval and monitoring.
| Monitor
| Key risk indicators | • Indicators are metrics used to monitor risk exposures against identified thresholds • The output provides predictive capability in assessing the risk profile of the business.

Operational risk governance framework
The operational risk governance structures form an integral part
of the operational risk management framework. Key
components of the governance structures are:
Roles and responsibilities
The Group, in keeping with sound governance practices, has
defined roles and responsibilities for the management of
operational risk in accordance with the three lines of defence
model, i.e. business line management, an independent operational
risk function and an independent internal audit function.
Specialist control functions are responsible for the management
of key operational risks. These include, but are not limited to:
compliance (including financial crime compliance), cyber,
finance, fraud, legal, technology and information security risks.
Committees
Operational risk is managed and monitored through various
governance forums and committees that are integrated with th e
Group’s risk management governance structure and report to
Board level committees.
The Group’s operational risk profile is reported to the
governance forums and committees on a regular basis, which
contributes to sound risk management and decision-making
by the Board and management.
• Operational risk:
Management forums and committees are in place at each entity
level. Key responsibilities include the monitoring of operational
risk and oversight of the operational risk management
framework, including approval of the operational risk
management policies.
• Technology, information security and cyber risk:
The DLC IT Risk and Governance Committee is responsible
for the monitoring of current and emerging technology and
information security risks. In addition, this committee considers
the strategic alignment of technology within the business.
The UK Technology Management Committees monitor
technology risks for the UK entities and escalate current and
emerging risks to the DLC IT Risk and Governance Committee
and relevant local risk governance forums and committees.

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197
Risk appetite
Operational risk appetite is defined as the
level of risk exposure that is acceptable
to the Board in order to achieve its
business and strategic objectives. The
Board is responsible for setting and
regularly reviewing the risk appetite. The
operational risk appetite policy defines
the amount of operational risk exposure,
or potential adverse impact of a risk
event, that the Group is willing to accept
through qualitative and quantitative
measures.
Operational risks are managed in
accordance with the approved risk
appetite. Any breaches of limits are
escalated in accordance with the
appropriate governance structures.
Operational risk year in review
Key operational risk themes
During the year the Group remained
focused on the management of the
following key operational risks:
Business disruption and operational
resilience risk
• Investec's resilience capabilities are
continuously tested through the
occurrence of disruptive events
• Significant planning and testing has
taken place to ensure impact
tolerances are adhered to during
disruption events to mitigate against
client harm
• Investec remains committed to
upholding global regulatory
requirements for operational resilience,
ensuring compliance with regulatory
expectations and delivering value to
our stakeholders.
Information security and cyber risk
• Recognising the unpredictable nature
and sophistication of cyber and insider
threats, information and cyber security
were key focus for the Group
• Ransomware events continued to be
observed across the sector, and often
involved theft of sensitive data for the
purpose of extortion
• While still in its early stages, threat
actors began exploring the use of
artificial intelligence (AI) to automate
and enhance attack
• Targeted security evaluations continue
to run internally and by independent
specialists to validate controls and
inform ongoing improvements
• The Group’s risk exposure was well
managed and no material losses
attributed to information security or
cyber events were recorded.
Technology risk
• As part of the Group’s digitalisation
strategies, high rates of technology
change were noted. Isolated
disruptions associated with key
modernisation and growth initiatives
were well managed.
Regulatory compliance risk
• Increasingly stringent regulatory
compliance obligations continued to be
a focus for the Group
• There has been a sustained focus by
regulators on organisational resilience
in the financial services sector and
emphasis placed on working towards
ensuring a financial system that is fair,
efficient and resilient
• Material regulatory developments in
the UK for the Group are:
– The implementation of the new
Consumer Duty, which requires
higher standards of consumer
protection and ensures that firms
prioritise good customer outcomes
– The Edinburgh Reforms (c.30 policy
initiatives) which include a review of
the Senior Managers and
Certification Regime, consumer
credit legislation, retail investment
disclosures regime (PRIIPs), and
various wholesale regulations
including Short Selling, Prospectus
Regime and MiFIDII.
Third party risk
• The Group’s commitment to
digitalisation placed increased reliance
on third party services and cloud
providers
• Ongoing enhancements were made to
third party due diligence and reporting
practices to ensure that we meet
evolving regulatory requirements
• This was supported by robust
oversight of third party performance
and monitoring of their financial health
and cyber posture
• Where adverse indicators were
identified, we engaged in constructive
dialogue with our third parties and
implemented risk mitigation strategies
to safeguard our operations
• The Group strengthened visibility of
concentration risk, associated with our
third parties and their fourth parties.
Processing and execution risk
• Processing and execution risks
identified through internal risk event
monitoring remains a significant
operational risk theme due to the
frequency and monetary impact of
reported operational risk loss events
• The main factors contributing to these
risks during the reporting period
include, amongst others, unintentional
human error, ineffective change
management, inadequate process
design, and insufficient management
oversight
• Despite the organisation's commitment
to digitalisation, there is still a reliance
on manual processes. When
automation is not possible, process
redesign is undertaken to address
control gaps. Additionally, there is a
strong emphasis on monitoring key
controls through collaborative
assurance initiatives
• Every effort is made to minimise the
impact of processing and execution
risks on clients by promptly
implementing recovery measures.
Insurance
The Group maintains adequate insurance
to cover key insurable risks. The
insurance process and requirements are
managed by the Group insurance risk
manager. Regular interaction between
operational risk management and
insurance risk management ensures that
there is an exchange of information in
order to enhance the mitigation of
operational risk.

| Please refer to pages 80 to 84 of the Investec Group's 2024 risk and governance report for additional information regarding compliance, reputational risk and legal risk.

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| 67. Recovery and resolution planning

The purpose of the recovery plans are
to document how the Board and
management will plan for Investec plc
to recover from extreme financial stress
to avoid liquidity and capital difficulties.
The plans are reviewed and approved
by the Board on an annual basis.
The recovery plan:
• Integrates with existing contingency
planning
• Identifies roles and responsibilities
• Identifies early warning indicators and
trigger levels
• Analyses how the Group could be
affected by the stresses under various
scenarios
• Includes potential recovery actions
available to the Board and
management to respond to the
situation, including immediate,
intermediate and strategic actions
• Identify the recovery capacity available
to avoid resolution actions
• Run externally facilitated simulations
or firedrill exercises as required by the
regulations.
The Bank Recovery and Resolution
Directive (BRRD) was implemented in the
UK via the UK Banking Act 2009. It was
amended by the BRRD (Amendment)
(EU Exit) Regulation 2020, which
implemented into UK law certain
amendments to the BRRD.
The BoE, the UK resolution authority has
the power to intervene in and resolve a
financial institution that is no longer
viable. This is achieved through the use
of various resolution tools, including the
transfer of business and creditor
financed recapitalisation (bail-in within
resolution) that allocates losses to
shareholders and unsecured and
uninsured creditors in their order of
seniority, at a regulator determined point
of non-viability that may precede
insolvency.
The PRA has made rules that require
authorised institutions to draw up
recovery plans and resolution packs.
Recovery plans are designed to outline
credible recovery options that authorised
institutions could implement in the event
of severe stress in order to restore their
business to a stable and sustainable
condition. The resolution pack contains
detailed information on the services
provided, as well as the structure and
operation of the authorised institution in
question which will be used by the BoE
to develop resolution strategies for that
specific institution, assess its current
level of resolvability against the strategy,
and to inform work on identifying barriers
to the implementation of operational
resolution plans.
In line with PRA and onshored EU
requirements, Investec plc maintains a
resolution pack and a recovery plan. Even
though the recovery plan is framed at
Investec plc level, given that IBP
constitutes over 79% of Investec plc’s
balance sheet, the focus of this
document is the recovery of IBP and the
protection of its depositors and other
clients.
Similarly, the resolution pack is drafted
for Investec plc. As Investec plc is an
approved UK Financial Holding Company
(FHC) and IBP is its most significant
entity, the Investec plc resolution
strategy is expected to be driven and
determined by IBP’s resolution strategy.
As of March 2024, the preferred
resolution strategy for IBP remained bank
insolvency procedure with no Minimum
Requirements for Own Funds and Eligible
Liabilities (MREL) requirement in excess
of its minimum capital requirements.
However, the BoE formally notified
Investec plc on 28 June 2023 that the
preferred resolution strategy will change
from bank insolvency procedure to bail-in
and as such Investec plc, and IBP as a
material subsidiary, will be subject to a
revised MREL requirement. The MREL
transition will commence from 1 January
2026 in a phased manner with end-state
MREL applying from 1 January 2032. Any
additional MREL requirements will be met
over time as part of increasing wholesale
market issuance from the existing
established base and we will continue to
evaluate issuance opportunities in the
near term as part of this glide path.
As a bail-in firm, Investec plc will come
into scope of the BoE’s Resolvability
Assessment Framework and is
committed to ensuring its resolution
capabilities meet the required regulatory
standards.

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| 68. Capital management and allocation

Current regulatory framework
Investec plc is an approved UK Financial Holding Company (FHC), responsible for ensuring compliance with consolidated prudential
requirements on a consolidated basis. Investec Bank plc, the main banking subsidiary of the Investec plc Group, continues to be
authorised by the PRA and regulated by the FCA and the PRA. Investec plc calculates capital resources and requirements using the
Basel III framework, as implemented in the European Union through the CRR and CRD IV, as amended by CRR II and CRD V.
Following the end of the Brexit transitional period, the EU rules (including binding technical standards) were onshored and now
form part of domestic law in the UK by virtue of the European Union (Withdrawal) Act 2018.
A summary of capital adequacy and leverage ratios

| Investec plc* | Investec plc*
| 31 March 2024 | 31 March 2023
Common Equity Tier 1 ratio** | 12.1% | 11.7%
Common Equity Tier 1 ratio (fully loaded)*** | 12.0% | 11.4%
Tier 1 ratio** | 14.6% | 13.1%
Total Capital ratio** | 18.4% | 17.2%
Risk weighted assets (£'million)** | 18 509 | 17 767
Leverage exposure measure (£'million) | 27 015 | 25 216
Leverage ratio | 10.0% | 9.2%
Leverage ratio (fully loaded)*** | 9.9% | 9.0%

*The capital adequacy and leverage disclosures for Investec plc includes the deduction of foreseeable charges and dividends when calculating CET1 and Tier 1 capital.
These disclosures differ from the disclosures included in Investec Group’s year-end results booklet 2024, which follow our normal basis of presentation and do not
include this deduction. Investec plc’s CET1 ratio would be 30bps (31 March 2023: 31bps) and the leverage ratio 21bps (31 March 2023: 22bps) higher, on this basis.
**The CET1, Tier 1, Total Capital ratios and RWAs are calculated applying the IFRS 9 transitional arrangements.
***The CET1 ratio (fully loaded) and the leverage ratio (fully loaded) assumes full adoption of IFRS 9.
Investec plc applies the Standardised
Approach to calculate credit risk and
counterparty credit risk, credit valuation
adjustment (CVA) risk, securitisation risk,
operational risk and market risk capital
requirements. Since 1 January 2022,
Investec plc adopted the outstanding
CRR II changes to be implemented in the
UK, most notably the new Standardised
Approach for measuring Counterparty
Credit Risk (SA-CCR) and changes to the
large exposure regime.
Investec plc is not subject to the
minimum leverage ratio requirement of
3.25% under the UK leverage ratio
framework, but is subject to a
‘supervisory expectation’ to manage
excessive leverage by ensuring the
leverage ratio does not fall below 3.25%.
For simplicity, the same leverage ratio
exposure measure and capital measure
applies to all UK banks (including the
exemption of central bank reserves and
reflect updated international standards).
Subsidiaries of Investec plc may be
subject to additional regulations as
implemented by local regulators in their
respective jurisdictions. Where capital is
a relevant consideration, management
within each regulated entity pays close
attention to prevailing local regulatory
rules as determined by their respective
regulators.
Year under review
During the year under review, Investec
plc complied with the capital adequacy
requirements imposed on it by the PRA.
Investec plc continues to hold capital in
excess of all the capital and buffer
requirements. At 31 March 2024, the
CET1 ratio increased to 12.1% from 11.7%
at 31 March 2023. CET1 capital increased
by £166 million to £2.2 billion, mainly as a
result of CET1 capital generation of
£706 million through profit after taxation.
The increase is partially offset by:
• An increase of £359 million in the
goodwill and intangible asset
deduction (net of deferred taxation
liability) arising mainly on the IW&I UK
and Rathbones combination, with
£56 million of the increase attributable
to the Group’s acquisition of a majority
interest in Capitalmind
• Dividends paid to ordinary
shareholders and Additional Tier 1
security holders of £117 million
• A net decrease in other comprehensive
income of £12 million, which includes
the fair value decrease in our
investment in Ninety One and the
reversal of the cash flow hedge
reserve which is not recognised in
CET1 capital
• A decrease of £29 million in the IFRS 9
transitional add-back adjustment
• An increase in the treasury shares of
£10 million.
Risk weighted assets (RWAs) increased
by 4.2% or £742 million to £18.5 billion
over the period, predominantly within
credit risk RWAs.
Credit risk RWAs, which includes equity
risk, increased by £1.1 billion. £270 million
of the increase is attributable to RWAs
arising on the proportional consolidation
of the Group’s 41.25% interest in
Rathbones net of IW&I UK. The remaining
increase reflects asset growth in Project
Finance, Growth & Acquisition Finance,
Mortgages and Asset Finance.
Counterparty credit risk RWAs (including
CVA risk) decreased by £117 million
compared to 31 March 2023, primarily
driven by a decrease in repurchase
agreements and derivative financial
instruments.
Market risk RWAs decreased by
£85 million, mainly due to a decrease
in the collective investment undertaking
position risk.
Operational risk RWAs decreased by
£145 million to £1.9 billion. The decrease
is mainly due to the removal of IW&I UK
gross income from the three-year
average income calculation. The PRA
granted Investec plc permission to
remove the discontinued operation from
the calculation. The decrease in
operational risk RWAs is marginally offset
by higher profits and the inclusion of
41.25% of Rathbones’ gross income in the
RWA calculation.
The Group's leverage ratio increased to
10.0% from 9.2% at 31 March 2023.
Tier 1 capital increased by £374 million.
£166 million of the increase is attributable
to an increase in CET1 capital, driven by
an increase in profit after taxation offset
by an increase in the goodwill and
intangible asset deduction and other

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regulatory adjustments. The remaining
increase of £208 million arose from the
Investec plc liability management
exercise which was undertaken in
February 2024 and resulted in
£142 million of existing Fixed Rate Reset
Perpetual Additional Tier 1 Write Down
Capital Securities (callable in December
2024) to be repurchased via a concurrent
cash tender and replaced with
£350 million of Sterling-denominated
Fixed Rate Reset Perpetual Additional
Tier 1 Write Down Capital securities
callable in February 2030.
The leverage exposure measure
increased by £1.8 billion, of which
£626 million has arisen on the
proportional consolidation of 41.25% of
Rathbones net of IW&I UK with the
remaining increase driven by asset
growth across multiple balance sheet line
items, most notably in loans to customers
of £1 billion, sovereign debt securities of
£706 million, bank debt securities of
£93 million offset by reductions in
reverse repurchase agreements and
derivative financial instruments of £617
million.
Minimum capital requirement
Investec plc’s minimum CET1 requirement
at 31 March 2024 is 8.6% comprising a
4.5% Pillar 1 minimum requirement, a 2.5%
Capital Conservation Buffer (CCB), a 0.31%
Pillar 2A requirement and a 1.3%
Countercyclical Capital Buffer (CCyB). The
Group’s institution-specific CCyB
requirement is calculated based on the
relevant exposures held in jurisdictions in
which a buffer rate has been set. As at
31 March 2024 the UK CCyB rate is 2%.
Significant regulatory developments in
the period
From 5 July 2023, the UK CCyB rate
increased from 1% to 2%. The Financial
Policy Committee agreed, when they met
in July 2023, to maintain the UK CCyB
rate at 2%, ensuring banks have sufficient
capacity to absorb future shocks without
unduly restricting lending.
On 30 November 2022, the PRA
published a consultation paper on the
Implementation of the Basel 3.1
standards, which set out the proposed
rules and expectations that cover parts of
the Basel 3 standards that remain to be
implemented in the UK and relate to the
calculation of RWAs.
The Basel 3.1 standards aim to restore
credibility in risk weighted ratios, by
introducing more robust and risk-
sensitive Standardised Approaches,
whilst curtailing the RWA benefits Internal
Models can provide. The proposals aim to
advance the PRA’s primary objective to
promote the safety and soundness of the
firms that it regulates. By improving the
measurement of risk, the PRA are of the
view that it will help ensure firms are
adequately capitalised given the risks
they are exposed to. Whilst the PRA are
proposing limited adjustments to the
international standards in order to adhere
to the global reforms, they have
proposed the removal of several
onshored EU discretions, such as the
small and medium-sized enterprise (SME)
supporting factor.
The consultation closed for comment on
31 March 2023 with the rule changes
initially planned to take effect from
1 January 2025.
On 27 September 2023, the PRA
released a statement confirming the
implementation will be delayed by six
months to 1 July 2025, with full
compliance required by 1 January 2030.
The statement also confirmed that the
final rules will be published in two
separate parts. The initial set of near-final
rules, which encompass market risk,
CCR, CVA risk and operational risk, were
published in December 2023. The
publication of the second set of rules is
scheduled for the second quarter of
2024. Once HM Treasury has passed
legislation to revoke the relevant parts of
the onshored CRR, the PRA will issue a
final policy statement, containing all of
the Basel 3.1 standards. The publication
of the second set of rules will now be
delayed, due to the release date falling
within the UK pre-election period, which
could result in further delays to the UK
implementation of Basel 3.1.
The PRA have also indicated that the
Pillar 2A framework will need to be
recalibrated due to the changes to the
Standardised Approaches for the
different risk types and confirmed that an
off-cycle review of firm-specific Pillar 2
capital requirements will be conducted
ahead of day 1 implementation.
On 29 November 2023 the Basel
Committee published for consultation a
new Pillar 3 disclosure framework for
climate-related financial risks. Final
proposals will be issued in the second
half of 2024, with the framework
expected to take effect from
1 January 2026. The PRA are yet to
consult on these proposals.
Pillar 3 disclosure requirement

| The 31 March 2024 Pillar 3 disclosures for the Investec plc Group are published in a standalone disclosure report and can be found on the Investec Group’s website.

Philosophy and approach
Investec plc Group’s approach to capital
management utilises both regulatory
capital as appropriate to that jurisdiction
and internal capital, which is an internal
risk-based assessment of capital
requirements. Capital management
primarily relates to management of the
interaction of both, with the emphasis on
regulatory capital for managing portfolio
level capital sufficiency and on internal
capital for ensuring that returns are
appropriate given the level of risk taken
at an individual transaction or business
unit level.
We intend to maintain a sufficient level of
capital to satisfy regulatory requirements
and our internal target ratios. On a
consolidated basis for Investec plc and
Investec Limited, we target a Total
Capital ratio range of between 14% and
17%, and we target a minimum Tier 1 ratio
of 11% and a CET1 ratio above 10%.
The determination of target capital is
driven by our risk profile, strategy and
risk appetite, taking into account the
regulatory and market factors applicable
to the Group. At the most fundamental
level, we seek to balance our capital
consumption between prudent
capitalisation in the context of the
Group’s risk profile and optimisation of
shareholder returns. Our internal capital
framework is designed to manage and
achieve this balance.
The internal capital framework is based
on the Group’s risk identification, review
and assessment processes and is used
to provide a risk-based approach to
capital allocation, performance and
structuring of our balance sheet. The
objectives of the internal capital
framework are to quantify the minimum
capital required to:
• Maintain sufficient capital to satisfy the
Board’s risk appetite across all risks
faced by the Group
• Provide protection to depositors
against losses arising from risks
inherent in the business
• Provide sufficient capital surplus to
ensure that the Group is able to retain
its going concern basis under relatively
severe operating conditions
• Inform the setting of minimum
regulatory capital through the ICAAP
and subsequent Supervisory Review
and Evaluation Process (SREP). The
ICAAP documents the approach to
capital management, including the
assessment of the regulatory and
internal capital position of each Group
• The ICAAP is reviewed and approved
by DLC BRCC and the Board.

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201
The framework has been approved by
the Board and is managed by the DLC
Capital Committee, which is responsible
for oversight of the management of
capital on a regulatory and an internal
capital basis.
Capi tal planning and stress/scenario
testing
A capital plan is prepared for Investec plc
and is maintained to facilitate discussion
of the impact of business strategy and
market conditions on capital adequacy.
This plan is designed to assess capital
adequacy under a range of economic and
internal conditions over the medium term
(three years), with the impact on
earnings, asset growth, risk appetite and
liquidity considered. The plan provides
the Board with an input into strategy and
the setting of risk appetite by considering
business risks and potential
vulnerabilities, capital usage and funding
requirements given constraints where
these exist.
Capital plans are prepared and presented
to the Capital Committees on a monthly
basis. The plans are updated with the
actual month-end position and forecast
out to the end of the fiscal year, taking
into account updated profit and loss and
asset growth forecasts.
The goal of capital planning is to provide
insight into potential sources of
vulnerability of capital adequacy by way
of market, economic or internal events.
As such, the three-year capital plans are
stressed based on conditions most likely
to cause Investec plc duress. The
conditions are agreed by the Investec plc
Capital Committee after the key
vulnerabilities have been determined
through the stress testing workshops.
Such plans are used by management to
formulate balance sheet strategy and
agree management actions, trigger points
and influence the determination of our
risk appetite. At a minimum level, each
capital plan assesses the impact on our
capital adequacy in an expected case
and in downturn scenarios. On the basis
of the results of this analysis, the
Investec plc Capital Committee, DLC
Capital Committee and DLC BRCC are
presented with the potential variability
in capital adequacy and are responsible,
in consultation with the Board, for
considering the appropriate response.
Reverse stress testing is performed
annually as part of the ICAAP process.

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202
Capital structure and capital adequacy

| Investec plc* | Investec plc*
£'million | 31 March 2024 | 31 March 2023
Shareholders' Equity | 2 917 | 2 373
Shareholders’ equity excluding non-controlling interests | 3 011 | 2 468
Foreseeable charges and dividends | (56) | (55)
Perpetual preference share capital and share premium | (25) | (25)
Deconsolidation of special purpose entities | (13) | (15)
Non-controlling interests | — | —
Non-controlling interests per balance sheet | 3 | 1
Non-controlling interests excluded for regulatory purposes | (3) | (1)
Regulatory adjustments to the accounting basis | (3) | 16
Additional value adjustments | (5) | (5)
Cash flow hedging reserve | (18) | (28)
Adjustment under IFRS 9 transitional arrangements | 20 | 49
Deductions | (677) | (318)
Goodwill and intangible assets net of deferred taxation | (671) | (312)
Deferred taxation assets that rely on future profitability excluding those arising from temporary difference | (2) | (2)
Securitisation positions which can alternatively be subject to a 1 250% risk weight | (1) | (4)
Defined benefit pension fund adjustment | (3) | —
Common Equity Tier 1 capital** | 2 237 | 2 071
Additional Tier 1 instruments | 458 | 250
Tier 1 capital ** | 2 695 | 2 321
Tier 2 capital** | 712 | 739
Tier 2 instruments | 712 | 764
Non-qualifying surplus capital attributable to non-controlling interests | — | (25)
Total regulatory capital** | 3 407 | 3 060
Risk weighted assets** | 18 509 | 17 767

*The capital adequacy and leverage disclosures for Investec plc includes the deduction of foreseeable charges and dividends when calculating CET1 and Tier 1 capital.
These disclosures differ from the disclosures included in Investec Group’s year-end results booklet 2024, which follow our normal basis of presentation and do not
include this deduction. Investec plc’s CET1 ratio would be 30bps (31 March 2023: 31bps) and the leverage ratio 21bps (31 March 2023: 22bps) higher, on this basis.
** The CET1, Tier 1, Total Capital ratios and RWAs are calculated applying the IFRS 9 transitional arrangements.

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203
Risk weighted assets and capital requirements

| Investec plc | Investec plc
£’million | 31 March 2024 | 31 March 2023
Risk weighted assets** | 18 509 | 17 767
Credit risk | 15 278 | 14 122
Equity risk | 527 | 594
Counterparty credit risk | 370 | 477
Credit valuation adjustment risk | 27 | 37
Market risk | 428 | 513
Operational risk | 1 879 | 2 024
Capital requirements | 1 481 | 1 421
Credit risk | 1 223 | 1 130
Equity risk | 42 | 47
Counterparty credit risk | 30 | 38
Credit valuation adjustment risk | 2 | 3
Market risk | 34 | 41
Operational risk | 150 | 162

Leverage

£’million | Investec plc* | Investec plc*
31 March 2024 | 31 March 2023
Total exposure measure | 27 015 | 25 216
Tier 1 capital** | 2 695 | 2 321
Leverage ratio | 10.0% | 9.2%
Total exposure measure (fully loaded) | 26 995 | 25 168
Tier 1 capital (fully loaded) | 2 675 | 2 273
Leverage ratio (fully loaded)*** | 9.9% | 9.0%

*The leverage disclosures for Investec plc include the deduction of foreseeable charges and dividends when calculating Tier 1 capital. These disclosures differ from the
leverage disclosures included in Investec Group’s year-end results booklet 2024, which follow our normal basis of presentation and do not include this deduction.
Investec plc’s leverage ratio would be 21bps (31 March 2023: 22bps) higher, on this basis.
**The CET1, Tier 1, Total Capital ratios and RWAs are calculated applying the IFRS 9 transitional arrangements.
***The CET1 ratio (fully loaded) and the leverage ratio (fully loaded) assumes full adoption of IFRS 9.

03 |  | Annual Financial Statements |  |  | Investec plc Annual Financial Statements 2024
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204

Total regulatory capital flow statement |  |
| Investec plc | Investec plc
£'million | 31 March 2024 | 31 March 2023
Opening Common Equity Tier 1 capital | 2 071 | 1 931
Dividends paid to ordinary shareholders and Additional Tier 1 security holders | (117) | (106)
Profit after taxation | 706 | 293
Foreseeable charges and dividends | (1) | (11)
Treasury shares | (10) | (15)
Distribution to shareholders | — | (91)
Share-based payment adjustments | (14) | 5
Capitalmind (Option to buy NCI shares) | (3) |
Movement in other comprehensive income | (22) | (43)
Investment in capital of financial entities above 10% threshold | — | 164
Cash flow hedging reserve | 10 | (28)
Goodwill and intangible assets (deduction net of related taxation liability) | (359) | (9)
Deferred tax that relies on future profitability (excluding those arising from temporary differences) | — | 6
Deconsolidation of special purpose entities | 2 | 5
IFRS 9 transitional arrangements | (29) | (28)
Other, including regulatory adjustments and other transitional arrangements | 3 | (2)
Closing Common Equity Tier 1 capital | 2 237 | 2 071
Opening Additional Tier 1 capital | 250 | 250
Issued capital | 350 | —
Redeemed capital | (142) |
Closing Additional Tier 1 capital | 458 | 250
Closing Tier 1 capital | 2 695 | 2 321
Opening Tier 2 capital | 739 | 628
Issued capital | — | 346
Redeemed capital | (43) | (348)
Other, including regulatory adjustments and other transitional arrangements | 17 | 113
Closing Tier 2 capital | 712 | 739
Closing total regulatory capital | 3 407 | 3 060

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205
Balance sheet

At 31 March | Notes |  | 2024 |  | 2023 Restated |
£’000 |  |  |
Assets |  |  |  |  |  |
Fixed assets |  |  |  |  |  |
Investments in subsidiary undertakings | b |  | 1 701 774 |  | 1 701 774 |
Securities and subordinated liabilities issued by subsidiary undertaking | c |  | 1 334 316 |  | 1 115 737 |
Amounts owed by group undertakings | i |  | 556 753 |  | 541 948 |
|  |  | 3 592 843 |  | 3 359 459 |
Current assets |  |  |  |  |  |
Investments in listed equities |  |  | 158 889 |  | 172 285 |
Taxation |  |  | 6 242 |  | 17 886 |
Prepayments and accrued income |  |  | 4 745 |  | 2 740 |
– with subsidiary undertakings |  |  | — |  | 17 503 |
– balances with other banks |  |  | 461 |  | 503 |
|  |  | 170 337 |  | 210 917 |
Current liabilities |  |  |  |  |  |
Creditors: amounts falling due within one year |  |  |  |  |  |
Amounts owed to Group undertakings | i |  | 7 356 |  | — |
Other liabilities |  |  | 3 351 |  | 6 189 |
Accruals and deferred income |  |  | 10 700 |  | 12 438 |
Net current assets |  |  | 148 930 |  | 192 290 |
Creditors: amounts falling due after one year |  |  |  |  |  |
Debt securities in issue | d |  | 492 486 |  | 475 811 |
Subordinated liabilities | e |  | 699 940 |  | 698 591 |
Net assets |  |  | 2 549 347 |  | 2 377 347 |
Capital and reserves |  |  |  |  |  |
Ordinary share capital | h |  | 202 |  | 202 |
Ordinary share premium | h |  | 555 812 |  | 555 812 |
Capital reserve |  |  | 173 |  | 180 606 |
Fair value reserve |  |  | 21 548 |  | 34 943 |
Retained earnings |  |  | 1 488 710 |  | 1 330 990 |
Ordinary shareholders’ equity |  |  | 2 066 445 |  | 2 102 553 |
Perpetual preference share capital and premium | h |  | 24 794 |  | 24 794 |
Shareholders’ equity excluding non-controlling interests |  |  | 2 091 239 |  | 2 127 347 |
Other Additional Tier 1 securities in issue | h |  | 458 108 |  | 250 000 |
Total capital and reserves |  |  | 2 549 347 |  | 2 377 347 |

The notes on pages 208 to 215 form an integral part of the financial statements.
The Company’s profit for the year, determined in accordance with the Companies Act 2006, was £112 679 076
( 2023 : £114 940 942).
The Company’s distributable reserves as at 31 March 2024 were £1 488 709 800 (2023: £1 330 990 451).
Approved and authorised for issue by the Board of Directors on 24 June 2024 and signed on its behalf by:
Fani Titi
Group Chief Executive
24 June 2024

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206
Statement of changes in shareholders’ equity

£’000 | Ordinary share capital | Ordinary share premium | Capital reserve | Fair value reserve | Retained earnings |  | Ordinary shareholders’ equity |  | Perpetual preference share capital and premium |  | Shareholders’ equity excluding non- controlling interests |  | Other Additional Tier 1 securities in issue |  | Total equity |
At 31 March 2022 | 202 | 806 812 | 180 606 | 159 661 | 1 135 468 |  | 2 282 749 |  | 24 794 |  | 2 307 543 |  | 250 000 |  | 2 557 543 |
Total comprehensive income | — | — | — | (124 718) | 158 556 |  | 33 838 |  | — |  | 33 838 |  | — |  | 33 838 |
Employee benefit liability recognised | — | — | — | — | (1 033) |  | (1 033) |  | — |  | (1 033) |  | — |  | (1 033) |
Dividends paid to preference shareholders | — | — | — | — | (540) |  | (540) |  | — |  | (540) |  | — |  | (540) |
Dividends paid to ordinary shareholders | — | — | — | — | (88 463) |  | (88 463) |  | — |  | (88 463) |  | — |  | (88 463) |
Dividends declared to Other Additional Tier 1 security holders | — | — | — | — | (16 880) |  | (16 880) |  | — |  | (16 880) |  | 16 880 |  | — |
Dividends paid to Other Additional Tier 1 security holders | — | — | — | — | — |  | — |  | — |  | — |  | (16 880) |  | (16 880) |
Transfer from share premium to retained income | — | (251 000) | — | — | 251 000 |  | — |  | — |  | — |  | — |  | — |
Distribution to shareholders | — | — | — | — | (107 118) |  | (107 118) |  | — |  | (107 118) |  | — |  | (107 118) |
At 31 March 2023 | 202 | 555 812 | 180 606 | 34 943 | 1 330 990 |  | 2 102 553 |  | 24 794 |  | 2 127 347 |  | 250 000 |  | 2 377 347 |
Total comprehensive income | — |  |  | (13 395) | 93 784 |  | 80 389 |  | — |  | 80 389 |  | — |  | 80 389 |
Dividends paid to preference shareholders | — |  |  |  | (1 455) |  | (1 455) |  | — |  | (1 455) |  | 20 638 |  | 19 183 |
Dividends paid to ordinary shareholders | — |  |  |  | (94 404) |  | (94 404) |  | — |  | (94 404) |  | (20 638) |  | (115 042) |
Dividends declared to Other Additional Tier 1 security holders | — |  |  |  | (20 638) |  | (20 638) |  | — |  | (20 638) |  | 350 000 |  | 329 362 |
Dividends paid to Other Additional Tier 1 security holders | — |  |  |  | — |  | — |  | — |  | — |  | (141 892) |  | (141 892) |
Release of capital reserve to retained earnings^ | — |  | (180 433) |  | 180 433 |  | — |  | — |  | — |  |  |  | — |
At 31 March 2024 | 202 | 555 812 | 173 | 21 548 | 1 488 710 |  | 2 066 445 |  | 24 794 |  | 2 091 239 |  | 458 108 |  | 2 549 347 |

^The capital reserve transferred to retained earnings on the deconsolidation of Investec Wealth & Investment Limited is in respect of a reserve created on the original
acquisition by Investec plc.

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207
a. Basis of preparation
The parent accounts of Investec plc are prepared in accordance
with Financial Reporting Standard 101 Reduced Disclosure
Framework (FRS 101) and in accordance with applicable
accounting standards. The Company is incorporated and
domiciled in England and Wales and the Company’s accounts
are presented in Pound Sterling and all values are rounded to
the nearest thousand (£’000) except where otherwise indicated.
The accounts have been prepared on the historical cost basis.
The principal accounting policies adopted are set out below.
The Company has taken advantage of the following disclosure
exemptions under FRS 101, where applicable to the Company:
• The requirements of paragraphs 45(b) and 46-52 of IFRS 2
Share-based Payment
• The requirements of paragraphs 62, B64(d), B64(e), B64(g),
B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)
(ii), B66 and B67 of IFRS 3 Business Combinations. Equivalent
disclosures are included in the consolidated financial
statements of Investec plc in which the entity is consolidated
• The requirements of paragraph 33(c) of IFRS 5 Non-current
Assets Held for Sale and Discontinued Operations
• The requirements of IFRS 7 Financial Instruments: Disclosures
• The requirements of paragraphs 91 – 99 of IFRS 13 Fair Value
Measurement
• The requirement in paragraph 38 of IAS 1 Presentation of
Financial Statements to present comparative information in
respect of: (i) paragraph 79(a)(iv) of IAS 1, (ii) paragraph 73(e)
of IAS 16 Property Plant and Equipment, (iii) paragraph 118(e)
of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of
IAS 40 Investment Property and (v) paragraph 50 of IAS 41
Agriculture
• The requirements of paragraphs 10(d), 10(f), 16, 38A to 38D,
40A to 40D,111 and 134 – 136 of IAS 1 Presentation of
Financial Statements
• The requirements of IAS 7 Statement of Cash Flows
• The requirements of paragraphs 30 and 31 of IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors
• The requirements of paragraph 17 and 18A of IAS 24 Related
Party Disclosures
• The requirements in IAS 24 Related Party Disclosures to
disclose related party transactions entered into between two
or more members of a group, provided that any subsidiary
which is a party to the transaction is wholly owned by such
a member
• The requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d) –
134(f) and 135(c) – 135(e) of IAS 36 Impairment of Assets
• The requirements of paragraph 52, the second sentence
of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16
Leases
• The requirements of paragraph 58 of IFRS 16, provided that
the disclosures of details of indebtedness required by
paragraph 61(1) of Schedule 1 to the Regulations is presented
separated for lease liabilities and other liabilities, and in total
• The requirements of paragraph 24(b) of IFRS 6 Exploration for
and Evaluation of Mineral Resources to disclose the operating
and investing cash flows arising from the exploration for and
evaluation of mineral resources
• The requirements of paragraph 74A(b) of IAS 16.
As permitted by FRS 101, the Company has taken advantage
of the disclosure exemptions available under that standard
in relation to share-based payments, financial instruments,
capital management, presentation of a cash flow statement,
presentation of comparative information in respect of certain
assets, standards not yet effective, impairment of assets,
business combinations, discontinued operations and related
party transactions.
Where required, equivalent disclosures are given
in consolidated financial statements of the Group.
On the basis of current financial projections and having made
appropriate enquiries, the directors have a reasonable
expectation that the Company has adequate resources to
continue in operational existence up to 31 March 2025, which is
a period greater than twelve months from the date of issue of
the financial statements that aligns with internal budgeting
processes. Accordingly, the going concern basis is adopted in
the preparation of the financial statements.
Foreign currencies
Monetary assets and liabilities in foreign currencies are translated
into Pound Sterling at exchange rates ruling at the balance sheet
date. All foreign currency transactions are translated into Pound
Sterling at the exchange rate ruling at the time of the transaction.
Forward foreign exchange contracts are revalued at the market
rates ruling at the date applicable to their respective maturities.
Any gain or loss arising from a change in exchange rates
subsequent to the date of the transaction is included as an
exchange gain or loss in the income statement.
Investments
Investments in subsidiaries and interests in associated
undertakings are stated at cost less any accumulated
impairment in value.
Equity instruments measured at FVOCI
The Group measures equity instruments at FVOCI when it
considers the investments to be strategic or held for long-term
dividend yield. The equity instruments are not held for trading.
Gains or losses on the derecognition of these equity securities
are not transferred to profit or loss.
Otherwise, equity instruments are measured at fair value
through profit or loss (except for dividend income, which
is recognised in profit or loss).

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Income
Dividends from subsidiaries are recognised when received.
Interest is recognised on an accrual basis.
Taxation
Current tax payable is provided on the amount expected
to be payable on taxable profit at rates that are enacted or
substantively enacted and applicable to the relevant period.
Deferred taxation is provided using the balance sheet method
on temporary differences between the carrying amount of an
asset or liability in the balance sheet and its tax base, except
where such temporary differences arise from:
• The initial recognition of goodwill
• The initial recognition of an asset or liability in a transaction which
is not a business combination and at the time of the transaction
has no effect on the income statement or taxable profit
• In respect of temporary differences associated with the
investments in subsidiaries and interests in associated
undertakings, where the timing of the reversal of the temporary
differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future
• Deferred tax assets or liabilities are measured using the tax
rates that have been enacted or substantively enacted at the
balance sheet date
• Deferred tax assets are recognised to the extent that
it is probable that future taxable profit will be available
against which the deferred tax asset can be utilised
• Items recognised directly in other comprehensive income
are net of related current and deferred taxation.
Company’s own profit and loss account
The Company has taken advantage of the exemption in
Section 408 of the Companies Act 2006 to not present its own
profit and loss account.
Financial assets
Financial assets are recorded at amortised cost applying the
effective interest rate method where they are classified as
amortised cost or fair value through profit and loss.
Financial liabilities
Financial liabilities are recorded at amortised cost applying the
effective interest rate method.
b. Investments in subsidiary undertakings

At 31 March | 2024 |  | 2023 |
£’000 |  |
At the beginning of the year | 1 701 774 |  | 1 701 774 |
Additions | — |  | — |
Disposals | — |  | — |
At the end of the year | 1 701 774 |  | 1 701 774 |

c. Securities issued by subsidiary
undertaking
On 5 October 2017, the Company acquired £200 million Fixed
Rate Reset Perpetual Additional Tier 1 Write Down Capital
Securities (AT1 securities) issued by Investec Bank plc. The
securities are perpetual and pay a distribution rate on
5 March, June, September and December, commencing from
5 December 2017. At each distribution payment date, Investec
Bank plc can decide whether to pay the distribution rate, which
is non-cumulative, in whole or in part. The distribution rate is
6.75% per annum until 5 December 2024; thereafter, the
distribution rate resets every five years to a rate 5.749% per
annum plus the benchmark gilts rate. The AT1 securities will
be automatically written down and the Company will lose their
entire investment in the securities should the CET1 capital ratio
of the Investec Bank plc Group, as defined in the PRA’s rules,
fall below 7%. The AT1 securities are redeemable at the option
of Investec Bank plc on 5 December 2024 or on each
distribution payment date thereafter. No such redemption may
be made without the consent of the PRA. On 22 January 2019,
the Company acquired a further £50 million of AT1 securities
issued by Investec Bank plc. On 1 March 2024, the company
bought back £142 million of these securities. £108 million of
these securities remain outstanding as of 31 March 2024.
On 4 October 2021, Investec Bank plc entered into a
£350 000 000 subordinated loan with Investec plc at a fixed
interest rate of 2.625% (2032 Loan). Interest, after the initial
short period distribution paid on 4 January 2022, is paid
annually commencing on 4 January 2023 and ending on the
maturity date. The loan will mature on 4 January 2032. The
borrower may prepay the loan in full on any date in the period
from 4 October 2026 to (and including) 4 January 2027 subject
to conditions.
On 6 December 2022 Investec Bank Plc entered into
a £350 million loan with Investec plc at a fixed interest rate
of 9.125% (2033 Loan). Interest, after the initial short period
distribution paid on 6 March 2023, is paid annually commencing
on 6 March 2024 and ending on the maturity date. The loan will
mature on 6 March 2033. The borrower may prepay the loan in
full on any date in the period from 6 December 2027 to (and
including) 6 March 2028.
On 13 February 2023 Investec Bank plc entered into a
£200 million senior loan with Investec plc at a fixed interest rate
of 1.875%. The loan matures on 16 July 2028 and pays interest
at a fixed rate annually in arrears. The borrower may prepay
the loan in full on 16 July 2027.
On 28 February 2024, Investec Bank plc issued £350 million of
Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital
Securities which were purchased by the company. These
securities are perpetual and pay interest on a semi-annual basis
on 28 February and 28 August each year, commencing on 28
August 2024. At each interest payment date, Investec Bank plc
can decide whether to pay the coupon, which is non-

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209
cumulative, in whole or in part. The interest rate is 10.50% per
annum until 28 February 2030; thereafter it resets every
subsequent five years to a rate of 6.566% per annum plus the
benchmark gilt rate. The securities will be automatically written
down and the company will lose their entire investment in the
securities should the Common Equity Tier 1 capital ratio of the
Investec Bank plc group as defined in the PRA’s rules fall below
7%. The securities are redeemable at the option of Investec
Bank plc on any day falling in the period from (and including) 28
August 2029 to (and including) 28 February 2030 or on any day
falling in the period of six months prior to (and including) any
five year reset date thereafter. No such redemption may be
made without the consent of the PRA.
d. Debt securities in issue
On 16 July 2021, the company issued £350 million 1.875%
Senior Unsecured Notes from its EMTN. The notes mature
on 16 July 2028 and pay interest at a fixed rate annually in
arrears. On 13 February 2023 the company issued a further
£200 million of the 1.875% Senior Unsecured Notes due 2028,
at a discount of 17.4070%, which has been consolidated with
and formed a single series with the existing Notes. The issuer
may redeem the notes at par on 16 July 2027.
e. Subordinated liabilities
On 4 October 2021, Investec plc issued £350 000 000
of 2.625% subordinated notes due 2032 at a discount
(2032 Notes). Interest, after the initial short period distribution
paid on 4 January 2022, is paid annually commencing on
4 January 2023 and ending on the maturity date. The notes
are listed on the London Stock Exchange. The notes will be
redeemed at par on 4 January 2032. The issuer may redeem
the notes at par on any date in the period from 4 October 2026
to (and including) 4 January 2027 subject to conditions.
On 6 December 2022, Investec plc issued £350 000 000
of 9.125% subordinated notes due 2033 at a discount
(2033 Notes). Interest, after the initial short period distribution
paid on 6 March 2023, is paid annually commencing on
6 March 2024 and ending on the maturity date. The notes
are listed on the London Stock Exchange. The notes will be
redeemed at par on 6 March 2033. The issuer may redeem the
notes at par on any date in the period from 6 December 2027
to (and including) 6 March 2028 subject to conditions.
f. Audit fees
Details of the Company’s audit fees are set out in note 7 of the
Group financial statements.
g. Dividends
Details of the Company’s dividends are set out in note 11 of the
Group financial statements.
h. Share capital
Details of the company’s ordinary share capital are set out in
note 40 of the Group financial statements. Details of the
perpetual preference shares are set out in note 41 of the Group
financial statements. Details of the Other Additional Tier 1
securities are set out in note 44 of the Group financial
statements.
i. Restatements
Amounts owed by Group undertakings were restated from
Current assets to Fixed assets in accordance with guidance
provided by IAS1 paragraph 66. There is no expectation that the
amount will be realised within a twelve month period post the
reporting date. The 31 March 2024 amount was £556.7 million
(31 March 2023: £541.9 million and 31 March 2022: £523.3
million).
j. Audit opinion
The audit opinion on the financial statements of the Investec plc
parent company is included within the independent auditor’s
report to the members of Investec plc within the Investec
Group's integrated annual report for the year ended
31 March 2024.

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210
k. Subsidiaries

At 31 March 2024 | Principal activity |  | Interest held |
United Kingdom Registered office: 30 Gresham Street, London, EC2V 7QP, UK |  |  |
Investec 1 Limited * | Investment holding company |  | 100% |
Investec Holding Company Limited * | Investment holding company |  | 100% |
Investec (UK) Limited | Holding company |  | 100% |
Guinness Mahon Group Limited | Dormant |  | 100% |
Investec Bank plc | Banking institution |  | 100% |
PIF Investments Limited | Dormant |  | 100% |
Beeson Gregory Index Nominees Limited | Dormant |  | 100% |
EVO Nominees Limited | Dormant |  | 100% |
Evolution Securities Nominees Limited | Dormant |  | 100% |
Investec Finance Limited | Dormant |  | 100% |
Investec Group Investments (UK) Limited | Investment holding company |  | 100% |
Investec Capital Solutions Limited | Lending company |  | 100% |
Diagonal Nominees Limited | Nominee |  | 100% |
GFT Holdings Limited | Dormant |  | 100% |
Investec Investment Trust plc | Debt issuer |  | 100% |
Investec Investments (UK) Limited | Investment holding company |  | 100% |
Inv-German Retail Ltd | Property company |  | 100% |
Investec Securities Limited | Dormant |  | 100% |
Technology Nominees Limited | Nominee |  | 100% |
Torteval LM Limited | Investment holding company |  | 100% |
Torteval Funding LLP | Financing company |  | 100% |
Kendals Regeneration Limited (formerly Nars Holdings Limited) | Property company |  | 100% |
Evolution Capital Investment Limited | Dormant |  | 100% |
Investec Investments Limited | Investment holding company |  | 100% |
PSV Marine Limited | Shipping holding company |  | 100% |
PSV Anjali Limited | Shipping holding company |  | 100% |
PSV Randeep Limited | Shipping holding company |  | 100% |
Investec India Holdco Limited | Investment holding company |  | 80.48% |
Investec Alternative Investment Management Limited | Fund management activities |  | 100% |
Investec-Capitalmind Investment Limited | Non trading |  | 100% |
NI (HH) LLP | Property company |  | 93% |
HH Farringdon Limited | Nominee |  | 100% |

*Directly owned by Investec plc.

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211
k. Subsidiaries (continued)

At 31 March 2024 | Principal activity |  | Interest held |
Registered office: Reading International Business Park, Reading, RG2 6AA, UK |  |  |  |
Mann Island Finance Limited | Leasing company |  | 100% |
CF Corporate Finance Limited | Leasing company |  | 100% |
MI Vehicle Finance Limited | Leasing company |  | 100% |
Quantum Funding Limited | Leasing company |  | 100% |
Investec Asset Finance plc | Leasing company |  | 100% |
Australia Registered office: Boardroom Pty Limited, Level 12, 225 George Street, Sydney NSW 2000, Australia |  |  |  |
Investec Holdings Australia Pty Limited | Holding company |  | 100% |
Investec Australia Finance Pty Limited | Lending company |  | 100% |
Investec Australia Pty Limited | Financial services |  | 100% |
Bowden (Lot 32) Direct Pty Limited | Dormant |  | 100% |
British Virgin Islands Registered office: Palm Grove House, PO Box 438, Road Town, Tortola, British Virgin Islands |  |  |  |
Finistere Directors Limited | Corporate director |  | 100% |
GFT Directors Limited | Corporate director |  | 100% |
Registered office: Craigmuir Chambers, Road Town, Tortola, VG 1110, British Virgin Islands |  |  |  |
Fertile Sino Global Development Limited | Holding company |  | 100% |
France Registered office: 27 Rue Maurice Flandin – 69003 Lyon Cedex 03, France |  |  |  |
SCI CAP Philippe | Property company |  | 100% |
Registered office: 151 Boulevard Haussman, 75008 Paris, France |  |  |  |
Capitalmind SAS | Advisory services |  | 60% |
Germany Registered office: Sonnenberger Straße 16, 65193 Weisbaden, Germany |  |  |  |
Capitalmind GmbH & Co. KG | Advisory services |  | 60% |

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212
k. Subsidiaries (continued)

At 31 March 2024 | Principal activity |  | Interest held |
Guernsey Registered office: PO Box 188, Glategny Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3LP, Channel Islands |  |  |  |
Investec Asset Finance (Channel Islands) Limited | Leasing company |  | 100% |
Registered office: Glategny Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 1WR, Channel Islands |  |  |  |
Investec Bank (Channel Islands) Limited | Banking institution |  | 100% |
Investec Bank (Channel Islands) Nominees Limited | Nominee |  | 100% |
Registered office: PO Box 290, Glategny Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3RP, Channel Islands |  |  |  |
Bayeux Limited | Corporate director |  | 100% |
Finistere Limited | Corporate nominee |  | 100% |
Finistere Secretaries Limited | Corporate secretary |  | 100% |
ITG Limited | Corporate director |  | 100% |
Registered office: Heritage Hall, Le Marchant Street, St Peter Port, Guernsey, GY1 4JH, Channel Islands |  |  |  |
Investec Captive Insurance Limited | Captive insurance company |  | 100% |
Jersey Registered office: 2nd Floor One The Esplanade, St Helier, Channel Islands, Jersey, JE2 3QA |  |  |  |
Appleton Resources (Jersey) Limited | Holding company |  | 100% |
India Registered office: B Wing, 11th Floor, Parinee Crescenzo, Bandra Kurla Complex, Bandra East, Mumbai – 400 051, India |  |  |  |
Investec Credit Finance Private Limited | Lending platform |  | 99% |
Investec Global Services (India) Private Limited | ITES outsourcing |  | 100% |

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213
k. Subsidiaries (continued)

At 31 March 2024 | Principal activity |  | Interest held |
Ireland Registered office: The Harcourt Building, Harcourt Street, Dublin 2, Ireland |  |  |  |
Investec Holdings (Ireland) Limited | Holding company |  | 100% |
Investec Ireland Limited | Financial services |  | 100% |
Investec International Limited | Aircraft leasing |  | 100% |
Neontar Limited | Holding company |  | 100% |
Investec Securities Holdings Ireland Limited | Holding company |  | 100% |
Investec Private Finance Ireland Limited | Loan credit servicing |  | 100% |
Investec Ventures Ireland Limited | Investment management services |  | 100% |
Venture Fund Private Principals Limited | Investment services |  | 100% |
Investec Europe Limited | MiFiD firm |  | 100% |
Registered office: 32 Molesworth Street, Dublin 2, Ireland |  |  |  |
Gresham Leasing 2 Limited | Equipment rental and leasing |  | 100% |
Luxembourg Registered office: 15 Boulevard Friedrich Wilhelm Raiffeisen L-2411 Luxembourg |  |  |  |
PDF II GP s.a.r.l. | Fund management activities |  | 100% |
Netherlands Registered office: Reitschweg 49, 5232BX's-Hertogenbosch, the Netherlands |  |  |  |
Capitalmind International B.V. | Non-trading |  | 60% |
Capitalmind B.V. | Advisory services |  | 60% |
Singapore Registered office: 8 Wilkie Road, #03-01 Wilkie Edge, Singapore 228095 |  |  |  |
Investec Singapore Pte Limited | Securities services |  | 100% |
Switzerland Registered office: 23 Avenue de France, CH – 1202, Geneva, Switzerland |  |  |  |
Reichmans Geneva SA | Trading company |  | 100% |
Registered offices: Löwenstrasse 29, CH-8001 Zurich, Switzerland |  |  |  |
Investec Bank (Switzerland) AG | Banking institution and wealth manager |  | 100% |
United States of America Registered office: 10 E. 53rd St., 22nd Floor, New York, NY 10022, USA |  |  |  |
US Multifamily GP LLC | Investment holding company |  | 100% |
Investec USA Holdings Corp | Holding company |  | 100% |
Investec Inc | Investment holding company |  | 100% |
Fuel Cell IP 1 LLC Investment | Investment holding company |  | 100% |
Fuel Cell IP 2 LLC Investment | Investment holding company |  | 100% |
Investec Securities (US) LLC | Financial services |  | 100% |
Registered office: One Carbon Center-Suite 501, 13905 McCorkle Ave. SE, Chesapeake, WV 25315 |  |  |  |
Appleton Coal LLC | Investment holding company |  | 100% |

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214
k. Subsidiaries (continued)
Associates and joint venture holdings

At 31 March 2024 | Principal activity |  | Interest held |
United Kingdom Registered office: 8 Finsbury Circus, London EC2M 7AZ |  |  |  |
Rathbones Group Plc | Financial services |  | 41.25% |
British Virgin Islands Registered office: Vistra Corporate Service Centre, Wickhams Cay II, Road Town, Tortola VG1110, British Virgin Islands |  |  |  |
iMarkets (Holdings) Limited | Online trading platform |  | 33% |
Registered office: Wattley Building, 2nd Floor, 160 Main Street, PO Box 3410, Road Town, Tortola, British Virgin Islands |  |  |  |
Templewater Holdings Limited | Holding company |  | 50% |
Guernsey Registered office: 1st Floor Tudor House Le Bordage, St Peter Port, Guernsey, GY1 1DB |  |  |  |
Grovepoint Limited | Investment and advisory |  | 41.9% |
India Registered office: 32/1. 14th Cross, 9th Main, 6th Sector H.S.R. Layout, Bangalore, Karnataka 560102, India |  |  |  |
JSM Advisers Private Limited | Fund management |  | 55% |
Registered office: B Wing, 11th Floor, Parinee Crescenzo, Bandra Kurla Complex, Bandra East, Mumbai-400051 |  |  |  |
Investec Capital Services (India) Private Limited | Merchant banking and stock broking |  | 80.3% |

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215

| We supplement our IFRS figures with alternative performance measures used by management internally and which provide valuable, relevant information to readers. These measures are used to align internal and external reporting, identify items management believes are not representative of the underlying performance of the business and provide insight into how management assesses period-on-period performance. A description of the Group’s alternative performance measures and their calculation, where relevant, is set out below.
| Alternative performance measures are not measures within the scope of IFRS and are not a substitute for IFRS financial measures. Alternative performance measures constitute pro-forma financial information. The pro-forma financial information is the responsibility of the Board of Directors and is presented for illustrative purposes only and because of its nature may not fairly present the Group’s financial position, changes in equity, and results in operations or cash flows.

Adjusted operating profit | Refer to the calculation in the table below

£’000 | 31 March 2024 |  | 31 March 2023 |
Operating profit before goodwill, acquired intangibles and strategic actions | 463 472 |  | 369 974 |
Less: Profit attributable to non-controlling interests | (1 204) |  | — |
Adjusted operating profit^ | 462 268 |  | 369 974 |

Annuity income | Net interest income plus net annuity fees and commissions
|  | Refer to pages 94 and 95 .
Core loans | The table below describes the differences between “loans and advances to customers” as per the balance sheet and gross core loans

£’million | 31 March 2024 |  | 31 March 2023 |
Loans and advances to customers per the balance sheet | 16 570 |  | 15 568 |
ECL held against FVOCI loans | (13) |  | (5) |
Net core loans | 16 557 |  | 15 563 |
of which amortised cost and FVOCI (“subject to ECL”) | 15 916 |  | 15 012 |
of which FVPL | 641 |  | 551 |
Add: ECL | 187 |  | 146 |
Gross core loans | 16 744 |  | 15 709 |
of which amortised cost and FVOCI (“subject to ECL”) | 16 103 |  | 15 158 |
of which FVPL | 641 |  | 551 |

Cost to income ratio | Refer to calculation in the table below

£’000 | 31 March 2024 |  | 31 March 2023 |
Operating costs (A) | 656 599 |  | 598 966 |
Operating income | 1 206 066 |  | 1 035 692 |
Less: Profit attributable to non-controlling interests | (1 204) |  | — |
Total (B) | 1 204 862 |  | 1 035 692 |
Cost to income ratio (A/B)^ | 54.5% |  | 57.8% |

Coverage ratio | ECL as a percentage of gross core loans subject to ECL
Credit loss ratio | ECL impairment charges on core loans as a percentage of average gross core loans subject to ECL
Gearing ratio | Total assets divided by total equity
Loans and advances to customers as a % of customer deposits | Loans and advances to customers as a percentage of customer accounts (deposits)
Net interest margin | Interest income net of interest expense, divided by average interest-earning assets
|  | Refer to calculation on page 94 .
Return on average assets | Adjusted earnings attributable to ordinary shareholders divided by average total assets excluding assurance assets
Return on risk weighted assets | Adjusted earnings attributable to ordinary shareholders divided by average risk weighted assets

^ This key metric is based on the pro-forma income statements on page 10.

|  | ALTERNATIVE PERFORMANCE MEASURES |  |  | Investec plc Annual Financial Statements 2024
ALTERNATIVE PERFORMANCE MEASURES

216
Cash and near cash
Includes cash, near cash (other 'monetisable' assets) and
central bank cash placements and guaranteed liquidity
ECL
Expected credit loss
Funds under management
Consists of third party funds managed by the Wealth &
Investment business, and by the Property business (which
forms part of the Specialist Bank) in the prior year
FVOCI
Fair value through other comprehensive income
FVPL
Fair value through profit and loss
Legacy business in the UK Specialist Bank
('Legacy')
Legacy, as separately disclosed from 2013 to 2018, comprises
pre-2008 assets held on the UK bank’s balance sheet, that had
very low/negative margins and assets relating to business we
are no longer undertaking
Net-zero
Balancing the amount of emitted greenhouse gases with
equivalent emissions that are either offset or sequestered.
Ninety One and Ninety One group
All references to Ninety One and Ninety One group refer to
Ninety One plc and its subsidiaries plus Ninety One Limited and
its subsidiaries
Ongoing basis
Ongoing information, as separately disclosed from 2013 to
2018, excludes Legacy assets (refer to definition), as well as the
following businesses sold in previous years: Investec Bank
(Australia) Limited, Kensington Group plc and Start Mortgage
Holdings Limited
Strategic actions
Comprises the closure and rundown of the Hong Kong direct
investments business and financial impact of group restructures
Structured credit
Reflects the gross exposure of rated and unrated structured
credit classified within other debt securities and other loans and
advances on the balance sheet.

| Refer to page 187 for detail.

Subject to ECL
Includes financial assets held at amortised cost and FVOCI

|  | DEFINITIONS |  |  | Investec plc Annual Financial Statements 2024
DEFINITIONS

217
The following abbreviations have been used throughout this report:
AGM Annual general meeting
ALCO Asset and Liability Committee
AT1 Additional Tier 1
BCBS Basel Committee of Banking Supervision
BCR Banking Competition Remedies Limited
BID Belonging, Inclusion and Diversity
BoE Bank of England
BRCC Board Risk and Capital Committee
BRRD Bank Recovery and Resolution Directive
BSE Botswana Stock Exchange
CA Chartered Accountant
CAM Combined Assurance Matrix
CCB Capital Conservation Buffer
CCyB Countercyclical Capital Buffer
CDO Collateralised debt obligation
CDS Credit default swap
CEO Chief Executive
CET1 Common Equity Tier 1
CFP Contingency Funding Plan
CLO Collateralised loan obligation
CLR Credit Loss Ratio
COO Chief Operating Officer
COVID Corona Virus Disease
CPI Consumer Price Index
CRD IV Capital Requirements Directive IV
CRO Chief Risk Officer
CRR Capital Requirements Regulation
CRS Common Reporting Standard
CSA Credit Support Annex
CVA Credit valuation adjustment
DCF Discounted cash flow
DFM Discretionary Fund Management
DLC Dual listed company
DLC BRCC DLC Board Risk and Capital Committee
DLC Nomdac DLC Nominations and Directors
Affairs Committee
DLC Remco DLC Remuneration Committee
DLC SEC DLC Social and Ethics Committee
EAD Exposure at default
EBA European Banking Authority
EC European Commission
ECL Expected credit loss
EIR Effective interest rate
EP Equator Principles
EQAR Engagement Quality Assurance Review
ERV Expected rental value
ES Expected shortfall
ESG Environmental, social and governance
EU European Union
EVT Extreme value theory
FATCA Foreign Account Tax Compliance Act
FCA Financial Conduct Authority
FINMA Swiss Financial Market Supervisory
Authority
FPC Financial Policy Committee
FRC Financial Reporting Council
FSCS Financial Services Compensation Scheme
FUM Funds under management
FVOCI Fair value through other comprehensive
income
FVPL Fair value through profit and loss
GDP Gross domestic product
GDPR General Data Protection Regulation
GFSC Guernsey Financial Services Commission
GM Guinness Mahon
GMRA Global Master Repurchase Agreement
GMSLA Global Master Securities Lending
Agreement
Group ERC Group Executive Risk Committee
GRRRMF Group Risk Review and Reserves
Matters Forum
HNW High net worth
HR Human resources
HQLA High quality liquid assets
IAM Investec Asset Management Limited
IASs International Accounting Standards
IBL Investec Bank Limited
IBOR Interbank offered rate
IBP Investec Bank plc
IBP BRCC IBP Board Risk and Capital Committee
IBP ERC IBP Executive Risk Committee
IBP Review ERRF IBP Review Executive Risk Review Forum
ICAAP Internal Capital Adequacy
Assessment Process
IFA Independent Financial Adviser
IFC International Finance Corporation
IFRIC International Financial Reporting
Interpretations Committee
IFRS International Financial Reporting Standard
IIA Institute of Internal Auditors
ILAAP Internal Liquidity Adequacy
Assessment Process
IRB Internal Ratings Based
IRRBB Interest Rate Risk in the Banking Book
ISDA International Swaps and Derivatives
Association
IT Information technology
IW&II Investec Wealth & Investment International
Group
JSE Johannesburg Stock Exchange
LCR Liquidity Coverage ratio
LGD Loss given default
LHS Left hand side
LIBOR London Inter-bank Offered Rate
LSE London Stock Exchange
LTI Long-term incentive
LTV Loan-to-value
MDR Mandatory Disclosure Rules
MLRO Money Laundering Reporting Officer
MREL Minimum Requirements for Own Funds
and Eligible Liabilities
MRT Material Risk Taker
NCI Non-controlling interests
NSFR Net Stable Funding ratio
NSX Namibian Stock Exchange
NZBA Net-Zero Banking Alliance
OCI Other comprehensive income
OD Organisation development
OECD Organisation for Economic Co-operation
and Development
OTC Over the counter

|  | GLOSSARY |  |  | Investec plc Annual Financial Statements 2024
GLOSSARY

218
PBAF Partnership for Biodiversity Accounting Financials
PCAF Partnership for Carbon Accounting
Financials
PD Probability of default
PRA Prudential Regulation Authority
RHS Right hand side
ROU Right of use asset
RPA technologies Robotic Process Automation technologies
RRP Recovery Resolution Plan
RWA Risk weighted asset
RFR Risk-free rate
SA-CCR Standardised Approach for
measuring Counterparty Credit Risk
S&P Standard & Poor’s
SBTi Science Based Targets initiative
SDGs Sustainable Development Goals
SICR Significant increase in credit risk
SIPP Self Invested Personal Pension
SME Small and Medium-sized Enterprises
SMMEs Small, Medium & Micro Enterprises
SPPI Solely payments of principal and interest
SREP The Supervisory Review and Evaluation
Process
STI Short-term incentive
sVaR Stressed VaR
TCFD Task Force on Climate-related Financial
Disclosures
tCO2e Tonnes of CO2 emissions
TFSME Bank of England Term Funding Scheme for
Small and Medium Enterprises
UN United Nations
UN GISD United Nations Global Investment for
Sustainable Development
UK United Kingdom
UKLA United Kingdom Listing Authority
VaR Value at Risk
YES Youth Employment Service

|  | GLOSSARY |  |  | Investec plc Annual Financial Statements 2024
GLOSSARY CONTINUED

219
Secretary and registered office
David Miller
30 Gresham Street
London EC2V 7QP
United Kingdom
Telephone (44) 20 7597 4000
Website
www.investec.com
Registration number
Reg. No. 3633621
Auditors
Ernst & Young LLP
Sponsors
Investec Bank Limited
100 Grayston Drive
Sandown Sandton 2196
PO Box 785700 Sandton 2146
Transfer secretaries
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Telephone (44) 370 707 1077
Directorate as at 24 June 2024
Executive Directors
F ani Titi (C hief E xecutive)
N ishlan Samujh (G roup F inance D irector)
Non-Executive Directors
Philip Hourquebie(Chair)
Zarina Bassa (Senior Independent Director)
Henrietta Baldock
Stephen Koseff
Nicky Newton-King
Jasandra Nyker
Vanessa Olver
Diane Radley
Philisiwe Sibiya
Brian Stevenson
Contact details

| Contact details for all our offices can be found on the group’s website at: www.investec.com

For queries regarding information in this document
Investor Relations
Telephone | (44) 20 7597 5546
| (44) 20 7597 4493
Email | investorrelations@investec.com
Website | www.investec.com/en_gb /welcome-to-investec/about-us/ investor-relations.html

|  | CORPORATE INFORMATION |  |  | Investec plc Annual Financial Statements 2024
CORPORATE INFORMATION

220

investec.com |  |