2138007Z3U5GWDN3MY22-2026-03-31-T01



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

OUR BUSINESS AT A GLANCE

Our purpose is to

create enduring

worth

Investec Group’s 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 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.

Corporate / Institutional / Government / Intermediary			Private Clients (HNW / High Income) / Charities / Trusts


	Specialist Banking

	Corporate & Investment Banking, Private Banking

	Lending
	Transactional banking
	Treasury solutions
	Advisory
	Investment activities
	Deposit raising activities


	Wealth & Investment

	Access to wealth management services through our long- term strategic relationship with Rathbones Group plc



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

OUR BUSINESS AT A GLANCE CONTINUED



Our responsibility

Our purpose to ‘create enduring worth’ is inseparable from being a sustainable business – is rooted in the belief that our contribution to society and the planet should be an integral part of our business rather than a peripheral consideration. Our sustainability strategy is built on the understanding that our business should actively contribute to the betterment of society and our planet.



£14.9 billion sustainable and transition finance by 2030



Our values

Deep client partnerships, built on trust and Out of the Ordinary service, are the bedrock of our business


We uphold cast-iron integrity in all our dealings, consistently displaying moral strength


We seek creative, talented people with passion, energy and stamina, who collaborate unselfishly


We thrive on change and challenge the status quo with courage, constantly innovating and adapting to an ever-changing world


We believe in open and honest dialogue to test decisions, seek consensus and accept responsibility


We pursue diversity and strive to create an environment in which everyone can bring their whole selves


We show care for people , support our colleagues and respect the dignity and worth of the individual


We are committed to living in society, not off it, contributing meaningfully to the communities in which we operate


We embrace our responsibility to the environment and the well-being of our planet


We trust our people to exercise their judgement, promoting entrepreneurial flair and freedom to operate with risk consciousness and unwavering adherence to our values



Our investment proposition



1	2	3
Well-capitalised and highly liquid balance sheet	Committed to optimising shareholder returns – managing capital dynamically and allocating it to activities that generate returns above cost of capital	Diversified mix of earnings by business and geography

4	5	6
Building scale and leveraging our existing franchises – we operate in large and growing markets	Executing on specific growth initiatives to drive entrenchment and positive incremental returns	Clear path to achieving the upper end of our medium-term targets



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

OVERVIEW OF THE INVESTEC GROUP'S AND INVESTEC PLC'S ORGANISATIONAL STRUCTURE

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	NSX* secondary listing
	A2X secondary listing	BSE* secondary listing
		A2X secondary listing

Sharing

Agreement

Investec Bank plc

Investec

Bank

Limited

Investec

Wealth &

Investment

International

Group

Rathbones Group plc

Long-term strategic

associate

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 2026

OVERVIEW OF THE ACTIVITIES OF INVESTEC PLC



	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.

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.



	Private client banking activities					Corporate and investment banking activities


	High net worth (HNW) private clients					Corporate, private, intermediary, government and institutional clients


	Helping our clients create and preserve wealth with our high-touch and high-tech private client offering					A highly valued partner and adviser to our clients


	UK, Channel Islands, and Switzerland					UK and Europe, Channel Islands, USA, India


	• Lending • Private capital • Transactional banking • Savings • Foreign exchange.					• Lending • Treasury and risk management solutions • Advisory • Institutional research, sales and trading.


	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 2026

SALIENT FEATURES


	31 March 2026	31 March 2025	% change
Income statement and selected returns
Earnings attributable to equity holders (£’000)	340 243	331 753	2.6%
Adjusted operating profit (£’000)^^	462 280	460 103	0.5%
Operating costs (£’000)	637 777	631 810	0.9%
Cost to income ratio^^	53.3%	53.1%
Return on average assets ^*	1.1%	1.2%
Return on average risk weighted assets ^*	1.8%	1.8%
Net interest income as a % of operating income^^^	60.2%	65.2%
Non-interest income as a % of operating income^^^	39.8%	34.8%
Annuity income as a % of total operating income^^^	64.8%	68.2%

	31 March 2026	31 March 2025	% change
Balance sheet
Total assets (£’million)	32 000	29 824	7.3%
Net core loans (£’million)	17 804	16 814	5.9%
Cash and near cash balances (£’million)	9 379	9 090	3.2%
Customer accounts (deposits) (£’million)	22 468	21 456	4.7%
Funds under management (£’million)	3 315	2 691	23.2%
Gearing ratio (total assets to equity)	8.6x	8.5x
Level 3 (fair value assets) as a % of total assets	11.5%	9.4%
Core loans to equity ratio	4.8x	4.8x
Loans and advances to customers as a % of customer deposits	79.2%	78.4%
Credit loss ratio	0.57%	0.60%
Stage 3 exposures as a % of gross core loans subject to ECL	3.4%	3.4%
Stage 3 exposures net of ECL as a % of net core loans subject to ECL	2.6%	2.8%

Other regulatory ratios
LCR	349%	409%
NSFR	141%	145%

Capital and leverage ratios ^{^}
Total Capital ratio	17.9%	17.8%
Tier 1 ratio	14.3%	14.1%
Common Equity Tier 1 ratio	12.6%	12.3%
Leverage ratio	9.1%	9.6%

*Average balances are calculated on a straight-line average.

^The capital and leverage ratios are calculated applying the IFRS 9 transitional arrangements.

^^Refer to page 88 for calculation.

^^^Operating income refers to operating income as found on the face of the consolidated income statement adjusted to remove transactions relating to goodwill,

acquired intangibles and strategic actions within equity-accounted earnings.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES

Climat e-related disclosures overview

The disclosures below comply with the UK Companies (Strategic Report) (Climate-related Financial Disclosures) Regulations 2022.

In addition, we have prepared comprehensive disclosures in our 2026 Integrated Sustainability Report, available on our website,

providing more detailed and tailored information for stakeholders in line with Financial Conduct Authority (FCA) UKLR 6.6.6R(8).

Investec publicly committed to support the TCFD recommendations in 2019 and released its first standalone TCFD report in the

same year. This year, we have integrated TCFD-aligned disclosures into our Integrated Sustainability Report, and continue to

assess and develop our disclosures along with expected disclosure requirements such as IFRS S1 and S2, which build on the TCFD

framework. We continue to enhance the quality and automation of data used to measure financed emissions. We apply the

Partnership for Carbon Accounting Financials (PCAF) methodology to improve alignment across jurisdictions and ensure consistent

application of measurement methodologies. Further detail is provided in the Investec Group’s 2026 Integrated Sustainability Report

available on our website.

The disclosures presented below are consistent with the 2021 TCFD recommendations across all four pillars. A mapping table

between the 11 TCFD recommended disclosures and the corresponding UK CFD requirements is provided on page 211.



Governance
The Board’s oversight of climate and nature-related risks and opportunities
Reporting requirements: Climate-related financial disclosures: CFD: G1 / TCFD: 1


Board
Responsibility	Board meetings	Information and escalation channels
The Board plays a crucial role in providing strategic leadership and governance to ensure the Group’s long-term success and integrity. The Board is responsible for setting and overseeing the implementation of the Group’s strategic direction and approach to sustainability-related matters, ensuring that business objectives align with the Group’s mission and values. The Board is supported by various executive committees and management teams to address sustainability-related impacts, risks and opportunities (IROs). Furthermore, the Board monitors progress towards achieving sustainability-related targets and goals.	The Board comprises non-executive directors, the Chief Executive and the Finance Director, and its composition is designed to ensure an appropriate mix of knowledge, skills, experience, independence and diversity. The Board considers the collective skills, 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 key skills and experience of specific directors are detailed in their respective biographies on pages 143 to 146 in the Investec Group's 2026 integrated and strategic annual report.	The DLC Social and Ethics Committee (SEC) Chair, Nicky Newton-King, reports to the Board after each meeting on the nature and content of the discussions at the DLC SEC, including recommendations, and action to be taken, and makes recommendations to the Board when appropriate on any area within its remit where action or improvement is needed. In addition, sustainability-related IROs are escalated to the Board through the DLC BRCC and the DLC Executive Sustainability Committee (ESC), with documented feedback provided at every meeting.


Monitoring and oversight	Topics considered for the year ended 31 March 2026
Our climate-related goals and targets are set at a Group level with the following commitments: • Maintaining carbon neutrality across our operations (Scope 1, Scope 2 and operational Scope 3 emissions), with the Group remaining carbon neutral for the eighth consecutive year • Reducing emission intensity in the power generation sector by 20% to 45% from a 2024 baseline by 2030 • Engaging with 95% of Investec plc clients in the oil and gas sector by 2029 • Achieving zero thermal coal exposure in our loan book by 31 March 2030. The Board has received regular updates throughout the financial year, both written and verbal, on sustainability-related matters.	• Assessed and approved Phase I of the Group’s climate transition plan and related targets • Monitored the developments in the Group’s financed emissions profile and energy lending portfolio exposures • Assessed the progress against the Group’s sustainable and transition finance targets • Reviewed and approved the outcomes of the Group’s DMA and implications for strategy and risk management • Acknowledged the regulatory developments relating to sustainability disclosures and climate risk management. Climate-related risks receive particular attention due to their potential financial implications and systemic nature, and are considered through the Board’s oversight of the financed emissions profile and related risk assessments.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



Governance (continued)
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD: G1 / TCFD: 1


DLC Social and Ethics Committee (DLC SEC)
Responsibility	Committee meetings	Information and escalation channels
The DLC SEC is mandated by the Investec Group Board. This Committee, comprising both executive and non-executive directors, has accountability for monitoring the Investec Group’s performance in terms of sustainability-related matters. The principal objective of the DLC SEC is to assist the Investec Group Board in ensuring that the Investec Group remains a committed, socially responsible corporate citizen in the context of the economy, society and environment in which the Investec Group operates. More information on the Committee members can be found on page 110 of the Investec Group’s 2026 risk and governance report.	The DLC SEC consists of three independent non- executive directors, the Group Chief Executive and the IBP CRO. Committee discussions are additionally strengthened by the contribution of the Group Chair and a number of senior executives across the Group. The Committee met four times during the year ended 31 March 2026 where sustainability-related matters are considered as part of the regular agenda. The Committee is confident that they have a strong and diverse team of directors who will continue to oversee the interests of the Group’s stakeholders and the sustainability of the Group’s business.	The DLC SEC receives feedback on sustainability- related impacts, risks and opportunities (IROs). The Chief Strategy and Sustainability Officer escalates any sustainability matters raised by the DLC ESC either verbally or in written format to the DLC SEC.


Monitoring and oversight	Topics considered for the year ended 31 March 2026
The DLC SEC monitors and oversees progress against sustainability-related IROs through ongoing communication to the Committee through a standing agenda item. Key climate-related topics that are overseen and monitored include: • Sustainability strategy, framework and policies • Energy transition finance activities in relation to the sustainable and transition finance target • Scope 3 financed emissions • Energy lending portfolio • Sustainability transactions that are deemed to be of high concern • Sustainability ratings and rankings.	• Approved the Group’s phase I transition plan targets which include: – the emission reduction targets for the power generation sector – the client engagement targets for the oil and gas sector • Monitored progress towards sustainable and transition finance targets and oversaw initial implementation and reporting processes • Oversaw enhancements to sustainability-related disclosures, including climate metrics • Reviewed refinements to Scope 3 emissions calculations and enhancements to sustainability-related governance • Reviewed developments in sustainability ratings, memberships and affiliations • Oversaw the incorporation of climate considerations into risk management and screening processes.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



Governance (continued)
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD: G1 / TCFD: 1


DLC Board Risk and Capital Committee (DLC BRCC)
Responsibility	Committee meetings	Information and escalation channels
The DLC BRCC oversees sustainability-related risks within the Group’s risk management frameworks. This includes review of climate- related transition and physical risks, sector exposures, scenario analysis and stress-testing outcomes, and the integration of sustainability- related risks into risk appetite and capital planning processes. The Committee is also responsible for managing the principal risks of the Group, which include sustainability risk.	The Committee comprises of non-executive directors, the Chief Executive and the Group Finance Director, with the composition designed to provide the breadth of risk expertise and commercial acumen to fulfil their responsibilities. All the members have a strong awareness of climate and sustainability-related matters. The Committee met six times during the financial year ended 31 March 2026 where members were informed of climate and sustainability-related matters on an ad-hoc basis.	The DLC BRCC receives feedback through Committee meetings and interactions with the Group CRO, the IBP CRO (both of whom are members of the DLC ESC), the IBL CRO 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 sustainability-related impacts, risks and opportunities.


Monitoring and oversight	Topics considered for the year ended 31 March 2026
The DLC BRCC monitors and oversees progress against sustainability-related IROs through ongoing communication to the Committee on an ad-hoc basis. Key climate-related topics that are overseen and monitored include: • Scope 3 financed emissions • Energy lending portfolio.	• Reviewed the Group’s phase I transition plan targets which include: – the emissions reduction targets for the power generation sector – the client engagement targets for the oil and gas sector • Assessed the climate-related transition and physical risks across relevant sectors for the Group • Reviewed the Groups’ energy lending exposure including exposures to fossil fuels.


DLC Audit Committee
Responsibility	Committee meetings	Information and escalation channels
The role of the Committee is to consider the appropriateness of financial and non-financial disclosures and provide oversight on compliance to sustainability (including 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.	The Committee comprises entirely of non- executive directors and met nine times during the financial year ended 31 March 2026.	Where relevant, the Committee receives updates from Group Sustainability, Group Finance and from External Audit on the latest regulatory and disclosure requirements. Significant judgements and estimates were discussed, including the inherent risks posed by sustainability-related matters.


Topics considered for the year ended 31 March 2026
• Considered the integrity and consistency of sustainability-related disclosures in the Integrated Sustainability Report • Reviewed the internal controls and governance processes supporting sustainability-related data and reporting • Discussed the observations from external assurance on sustainability-related information.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



Governance (continued)
The Board’s oversight of climate and nature-related risks and opportunities continued
Reporting requirements: Climate-related financial disclosures: CFD: G1 / TCFD: 1


DLC Remuneration (REM) Committee
Responsibility	Committee meetings	Information and escalation channels
The Remuneration Committee considers the sustainability objectives of the Group when setting sustainability performance targets for Executive Directors’. This ensures that the Group’s long-term sustainability strategy is linked to the measures on which Executive Directors remuneration outcomes are being assessed upon.	The Committee met six times during the financial year ended 31 March 2026 and considered non- financial KPIs for the Group Executive Directors’ remuneration in some of those meetings.	The Committee gets informed on sustainability objectives when determining specific targets for the Executive Directors. The Committee then assess the performance of the Executive Directors against these targets and consider input from relevant committees including the DLC SEC. Refer to the 2026 Group remuneration report page 10 for executive remuneration.


Topics considered for the year ended 31 March 2026
• Incorporated non-financial performance metrics into Executive Directors’ remuneration • Reviewed progress against Executive Director’s non-financial objectives.


Management’s role in assessing and managing climate and nature-related risks and opportunities
Reporting requirements: Climate-related financial disclosures: CFD: G2 / TCFD: 2


Chief Executive (CE) responsibility
Responsibility	Information and escalation channels	Monitoring and oversight
The CE, Fani Titi, retains ultimate executive accountability for sustainability-related IROs and ensures that sustainability considerations are integrated into the Group’s strategy, risk management and decision-making processes. He is also on the board of the UN Global Compact network in South Africa.	The CE is informed of sustainability-related impacts, risks and opportunities through the Chief Strategy and Sustainability Officer, the DLC ESC and the DLC SEC, of which he is also a member. He also receives written feedback through the Board reports.	The CE is part of the DLC SEC and DLC BRCC, which monitor and oversee sustainability-related targets and performance.


Key achievements for the year ended 31 March 2026
• Endorsed Phase I of the Group’s climate transition plan and related targets • Assessed the progress against the Group’s sustainable and transition finance targets.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



Governance (continued)
Management’s role in assessing and managing climate and nature-related risks and opportunities (continued)
Reporting requirements: Climate-related financial disclosures: CFD: G2 / TCFD: 2


Group Executive Sustainability Committee (ESC)
Responsibility	Information and escalation channels	Monitoring and oversight
The DLC ESC coordinates the implementation of the Group’s sustainability strategy across geographies and businesses. The Committee reviews key sustainability risks, monitors progress against sustainability-related objectives and targets, and ensures alignment with regulatory developments and market expectations. The Committee also monitors sustainability- related conduct and reputational considerations, including the consistency of sustainability-related disclosures and product frameworks with underlying data, methodologies and regulatory expectations.	Key sustainability 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 DLC ESC meeting. Information is escalated to this committee through the following functions: • The Group sustainability team • The Investec Limited Sustainable Business Forum • The Investec plc Sustainable Business Forum • The Investec Wealth & Investment International Responsible Investment Committee • Group ERC • IBL ERC • IBP ERC.	This committee: • Receives updates on sustainability-related IROs at each meeting in a verbal or written format • Reviews Investec Group’s progress in terms of its sustainable and transition finance ambitions • Reviews the Group’s approach to its sustainability strategy • Integrates sustainability into the Group's core business strategy to ensure it is considered in decision-making processes • Reviews the Group’s sustainability ratings and assesses and engages on suggested actions to improve ratings and sustainability performance where appropriate. The Committee met six times during the financial year ended 31 March 2026.


Key achievements for the year ended 31 March 2026
• Confirmed the sustainability strategy of the Group with a particular focus on the Group’s social impact strategy • Engaged actively and guided the process of establishing the Group’s Phase I transition plan targets • Monitored the Group’s progress towards its sustainable and transition finance target • Engaged actively and provided support throughout the Group’s DMA • Monitored the Group’s Scope 3 financed emissions and energy lending exposures.


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 CRO, as well as Kevin McKenna, our IBP CRO, are members of the DLC ESC. Kevin McKenna is also the Senior Manager (SMF) responsible for climate risk for Investec Bank plc.


Executive responsibility within Investec Wealth & Investment International
Joubert Hay as the Chief Executive Officer of Investec Wealth & Investment International has executive responsibility for sustainability-related matters. The implementation has been assigned to key members of the Investec Wealth & Investment International Responsible Investment Committee who coordinate the integration of the sustainability, climate and nature-related matters in our Wealth & Investment business.


Chief Strategy and Sustainability Officer
The Group CE is supported by the DLC ESC to help align and coordinate the sustainability strategy and governance efforts across geographies and businesses. The Chief Strategy and Sustainability Officer is the Chair of the DLC ESC 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.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Strategy
	Climate and nature-related risks and opportunities identified over the short, medium and long term
	Reporting requirements: Climate-related financial disclosures: CFD: S1 / TCFD: 3


	Time horizons
	Our time horizons are defined alongside 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 years): Modest sector-wide exposure to transition or physical risk or where the consequences are not likely to be material to credit quality.


	Risks
	Policy and legal risk is classified as an emerging transition risk, with relevance across the short, medium and long term. Regulatory developments, including carbon pricing mechanisms, mandatory climate-related disclosure standards and the evolving risk of climate litigation, have the potential to influence asset valuations, increase operational complexity and drive changes in business practices. The policy environment is advancing rapidly, particularly through the integration of TCFD-aligned disclosures into FCA listing rules and the anticipated adoption of ISSB’s IFRS S2 standards. We respond to these developments through targeted engagement and active policy participation. We are members of key industry working groups in both jurisdictions, enabling us to stay informed and help shape regulatory outcomes in a proportionate and practical way. Across both regions, we also work closely with clients and suppliers to support credible decarbonisation strategies and encourage alignment with evolving climate and nature-related requirements. To date, the financial impact of this risk has been modest. We have incurred increased compliance costs associated with enhanced disclosure obligations, particularly within Investec Bank plc in response to Corporate Sustainability Reporting Directive (CSRD) and FCA requirements, but these remain within normal operating expenditure. We have not experienced any financially material impact related to policy as yet. Nonetheless, we continue to monitor developments closely.
	Technology risk is considered an emerging transition risk, particularly over the short to medium term. As new low-carbon technologies continue to develop and become more commercially viable, existing systems and infrastructure may become less efficient or fall short of stakeholder expectations. This creates the potential for misalignment with market trends and sustainability standards, especially in areas where digital infrastructure intersects with environmental performance. To manage this risk, we monitor technology developments and incorporate energy and emissions considerations into our operational planning. One key area of response has been the transition from on-premise data centres to cloud-based infrastructure, which supports lower energy use and improved scalability. We also assess opportunities to adopt more efficient technologies across our buildings and platforms, with the aim of continuously improving our environmental footprint and operational resilience. The costs associated with addressing this risk to date have been modest and not financially material. Transition-related investments, such as the adoption of cloud computing, have been absorbed within normal operational expenditure.
	Climate-related demand risk is considered an emerging transition risk, with increasing relevance over the short, medium and long term. Shifting market preferences, combined with evolving regulatory frameworks, are expected to drive growing demand for low-carbon products and services. These trends may lead to pressure on existing offerings and require additional investment to develop new solutions that align with climate goals and stakeholder expectations. Investec has actively responded to this trend by embedding sustainable and transition finance targets across the Group. We have committed to facilitating £18 billion in sustainable and transition finance by 2030, with Investec plc’s contribution of £14.9 billion. Investec plc facilitated £2.6 billion of sustainable and transition finance for the year ended 31 March 2026. Furthermore, we plan to engage with our clients to understand their transition strategies and evolving product needs. At this stage, we have not incurred financially material costs directly attributable to this risk. However, we recognise that continued growth in client demand for sustainable finance may require ongoing investment in product development, client engagement, and internal capabilities.
	Reputational risk is an emerging climate-related risk, relevant across the short, medium, and long term. As sustainability-related matters gain prominence, stakeholders, including clients, investors, regulators and civil society, are placing increasing emphasis on the alignment between our environmental commitments and our actions. This heightened scrutiny increases the potential for reputational sensitivity, particularly in relation to product claims, public disclosures and perceived consistency of climate action. To manage this risk, we prioritise clear, transparent communication and ongoing stakeholder engagement. We take a cautious and evidence-based approach to sustainability messaging, ensuring that disclosures and product claims are aligned with regulatory guidance and best practice standards. Our reputational risk considerations are embedded in our governance and approval processes for external market communication. To date, we have not incurred any financial costs arising from reputational matters linked to climate- or nature-related disclosures. Nonetheless, we continue to monitor this risk closely, given its potential to affect stakeholder trust, brand value and broader licence to operate, particularly as market expectations and regulatory scrutiny continue to evolve.
	Acute physical risk is considered a potential climate-related risk, with relevance across the short, medium and long term. These risks relate to weather- related events such as storms, floods and heatwaves, which could disrupt operations, impair physical assets or impact supply chains. Although extreme weather events are projected to increase in frequency and intensity under certain climate scenarios, our physical risk assessment indicates low exposure across our office, real estate and power generation portfolios. Investec actively evaluates acute physical risks annually. We conduct geospatial risk assessments across our owned and financed asset base, including real estate and power generation assets and operational offices. Our assessment, based on updated MSCI scenario-aligned hazard data (SSP1-2.6, SSP2-4.5, and SSP3-7.0), found no material or identifiable financial risk from acute hazards such as surface water flooding, river flooding, coastal flooding and extreme heat across office locations. In the UK, we face limited exposure. Given the relatively short-term nature of many of our lending exposures, we retain the flexibility to adjust portfolio composition as new risks emerge. To date, no financial losses have been incurred due to acute physical risks, and no asset impairments have resulted from weather-related disruptions. While current exposure remains low, we continue to monitor potential changes in hazard intensity and integrate physical risk metrics into our real estate and infrastructure due diligence, lending decisions and business continuity planning.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Strategy (continued)
	Climate and nature-related risks and opportunities identified over the short, medium and long term (continued)
	Reporting requirements: Climate-related financial disclosures: CFD: S1 / TCFD: 3


	Chronic physical risk is considered a potential climate-related risk for Investec, particularly over the medium and long term. This type of risk arises from slower-onset environmental changes such as rising sea levels, shifts in precipitation patterns and gradual temperature increases. These changes may influence the long-term suitability of certain locations for business operations, property investments or supply chain dependencies. Although the financial impact of these trends has not materialised to date, they remain an area of relevance for the Group. We manage this risk through physical risk assessments performed annually. Our analysis includes real estate, operational offices and power generation portfolios across key geographies, using updated scenario-aligned hazard data under the SSP1-2.6, SSP2-4.5 and SSP3-7.0 pathways. Investec plc’s UK operations face negligible chronic physical climate risk. While changes in extreme precipitation are expected to be limited, increases in extreme heat days are projected in certain geographies under climate scenarios. Physical value at risk assessments show no material financial exposure across office and real estate assets. No costs have been incurred to date as a direct result of chronic physical risks. However, we continue to monitor evolving climatic trends.


	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.
	Renewable energy finance is a current strategic opportunity for Investec plc, particularly over the short to medium term. As the UK and Europe advance their transition to a low-carbon economy, demand for funding in clean energy infrastructure, such as solar, wind and hybrid projects, is expected to increase. This is driven by a strong regulatory push toward net-zero targets, growing investor interest in sustainable assets, and the need to modernise ageing energy infrastructure. Investec plc supports this opportunity by providing capital and advisory services to energy transition projects. Our focus is on financing renewable energy infrastructure that contributes to emissions reductions, enhances energy system resilience, and supports a sustainable economy. We partner with independent power producers, developers and other stakeholders to structure finance solutions that align both environmental goals and commercial viability. These activities form a key component of our sustainable finance strategy and contribute toward our Group-wide commitment to facilitate £18 billion in sustainable and transition finance by 2030, of which £14.9 billion is attributable to Investec plc. To date, our investment in renewable energy finance has not resulted in any material financial risk or cost. On the contrary, it has strengthened our client relationships, broadened our sustainable finance offering, and positioned Investec plc to play an enabling role in the UK’s transition to net-zero infrastructure. We expect this opportunity to continue to grow over the medium term, in line with national climate ambitions and sectoral decarbonisation plans.
	Sustainable urban development is an actual opportunity for Investec plc, particularly over the short to medium term, as UK cities face increasing pressure to decarbonise, improve resilience to climate impacts, and enhance liveability. Financing green infrastructure, energy-efficient buildings and low-emission transport systems supports the UK’s national net-zero targets, while also addressing pressing environmental and social challenges such as air quality, energy poverty, and urban congestion. This opportunity aligns with Investec plc’s sustainable finance strategy and growing client demand for environmentally aligned real estate and infrastructure solutions. Investec plc is pursuing this opportunity by financing projects that contribute to the development of low-carbon, climate-resilient cities. This includes lending to energy-efficient residential and commercial property developments, retrofitting initiatives and the expansion of electric vehicle (EV) charging infrastructure. These projects respond to policy momentum, such as the UK’s Future Homes Standard and local authority sustainability mandates, and are evaluated using our Sustainable and Transition Finance Classification Framework, which ensures alignment with climate- and nature-related goals We anticipate that this opportunity will continue to grow over the medium term, driven by municipal investment plans, tightening building standards, and the expansion of green finance taxonomies. To date, our investment in sustainable urban development has not resulted in any material financial gains. Investec plc is well positioned to support this transition by mobilising capital into climate-aligned urban assets and by offering tailored finance solutions that meet both commercial and environmental objectives.


	The impact of climate and nature-related risks and opportunities on our businesses, strategy and financial planning
	Reporting requirements: Climate-related financial disclosures: CFD: S2 / TCFD: 4


	Climate- and nature-related risks and opportunities are actively considered as part of Investec plc’s business strategy, reflecting our commitment to sustainable value creation and long-term risk management. These factors are evaluated across short-, medium-, and long-term time horizons, and inform how we approach capital allocation, product innovation, client engagement, and regulatory readiness in the UK and Europe. The actual and potential impacts of climate-related risks and opportunities are assessed through structured scenario analysis and embedded into our enterprise risk management and strategic planning frameworks. This includes understanding exposure to transition risks such as policy changes, market shifts, and reputational drivers, as well as physical risks related to asset vulnerability and climate adaptation. At the same time, we actively pursue opportunities in renewable energy finance, green buildings, sustainable transport, and water resilience, areas where the UK’s policy ambition and investment demand continue to grow.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Strategy (continued)
	The impact of climate and nature-related risks and opportunities on our businesses, strategy and financial planning (continued)

	Actual impacts

	Policy and legal risk is an emerging transition risk that has already influenced Investec plc’s operations and internal processes. Regulatory developments in the UK, including TCFD-aligned disclosure requirements, the FCA’s ESG Sourcebook and the forthcoming application of the Corporate Sustainability Reporting Directive (CSRD), have required enhanced coordination across finance, risk, and sustainability functions. These developments have led to an increase in compliance activity and reporting complexity. While the associated costs remain below 1% of operating expenditure and are therefore not financially material, they represent a meaningful operational impact that continues to evolve in line with regulatory expectations.
	Technology risk has also driven change within Investec plc, particularly through the shift away from high-energy infrastructure towards more efficient digital systems. Investments in cloud computing and operational system upgrades have improved energy efficiency and strengthened digital resilience. These upgrades support our emissions reduction goals and transition alignment. To date, associated costs have been absorbed within normal IT and operations budgets and are not considered financially material.
	Reputational risk remains a key consideration for Investec plc, especially in a market where stakeholders increasingly expect integrity and transparency in sustainability-related claims. Although no reputational incidents or financial impacts have occurred, we have strengthened internal controls on product governance, marketing approvals, and sustainability disclosures. Sustainability-related risk review processes are embedded into product and client-facing communication workflows to ensure alignment with both regulatory expectations and stakeholder trust.
	Renewable energy finance has emerged as a strategic opportunity for Investec plc, contributing directly to our sustainable finance growth strategy. In the past year, our Energy & Infrastructure Finance teams in the UK and the US have continued to extend financing to support renewable energy projects and investments, as well as battery storage assets. Additionally, our asset financing business provides financing for renewable energy technologies including solar panels and onshore wind. Transactions of this nature contribute to our Group-wide commitment to facilitate £18 billion in sustainable and transition finance by 2030, of which £14.9 billion is attributable to Investec plc. The opportunity continues to grow in line with demand for clean energy infrastructure and investor preference for climate-aligned financing solutions.
	Potential impacts
	Climate-related demand risk may influence product relevance and competitiveness over time, particularly in wealth management and structured finance. In the UK, investor demand for net-zero-aligned portfolios and sustainability-labelled products continues to grow, driven by both regulatory expectations and client demand. This trend is expected to accelerate product innovation and capital allocation decisions across the business.
	Acute physical risk, including flooding and extreme weather events, has been assessed across Investec plc’s operational, real estate and power generation footprint. Based on scenario modelling, the physical risk to our assets remains low, with negligible exposure to high-risk flood zones or climate-sensitive infrastructure. These findings inform our business continuity planning, site selection, portfolio monitoring processes and insurance strategy, ensuring we remain prepared for any future shifts in hazard intensity under long-term climate pathways.
	Chronic physical risk, such as increasing average temperatures or long-term changes in rainfall, is expected to have limited direct impact on Investec plc’s operational, property and power generation portfolios in the short to medium term. While this risk is currently considered non-material, we continue to monitor its evolution and incorporate relevant findings into our strategic facilities planning and supplier evaluations and portfolio monitoring processes where appropriate.
	Sustainable urban development presents emerging opportunity areas for Investec plc. We see increasing interest in the UK in green transport systems and low-carbon real estate. These opportunities are aligned with the UK’s net-zero strategy, growing policy incentives, and client interest in sustainability-linked asset classes. They also contribute to Investec plc’s role in achieving the Group’s £18 billion sustainable and transition finance target by 2030, of which £14.9 billion is attributable to Investec plc.
	Strategic implications
	While Investec plc’s business model and overarching strategic priorities have remained consistent, we acknowledge that climate- and nature-related risks and opportunities are increasingly relevant to how we execute our strategy, engage clients, and allocate capital in the UK market. These considerations are embedded across key aspects of our operations and enterprise frameworks, guiding our response to evolving stakeholder expectations, regulatory developments, and climate-related market dynamics.
	Capital allocation: We are directing a growing proportion of lending and investment activity toward low-carbon infrastructure, renewable energy and climate mitigation projects, in alignment with our sustainable finance objectives. This reflects our support for the UK’s national net-zero goals and our contribution to the Group-wide sustainable finance target.
	Client strategy: We continue to expand our range of sustainability-aligned products and services and are enhancing engagement with clients, particularly in the oil and gas sector, in pursuit of our client engagement targets. This supports clients’ transition journeys and responds to growing demand for sustainability-related solutions and climate-resilient financing structures.
	Operational evolution: We have implemented upgrades to our technology infrastructure and governance practices to support enhanced climate-related disclosures and respond to increasing regulatory expectations. This includes improvements to systems, risk oversight and internal reporting capabilities.
	Regulatory responsiveness: Our UK strategy reflects tailored responses to frameworks such as TCFD, and CSRD, and the expected implementation of ISSB- aligned reporting. This positions us to stay ahead of regulatory developments while maintaining robust compliance.
	Risk integration: Climate- and nature-related factors are considered within credit risk assessments, portfolio management, product governance and strategic planning. While meaningful progress has been made in embedding these factors into our processes, we recognise that further work is required to ensure full integration across all business areas and to meet evolving best practice.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED


	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: CFD: S3 / TCFD: 5


	Scenario analysis
	We conducted a climate-related scenario assessment during 2024, building on the principles of the Bank of England’s (BoE) 2021 Climate Biennial Exploratory Scenario (CBES) for the financial industry. While the BoE and Prudential Regulation Authority did not issue updated CBES guidance in 2024, the methodologies and sectoral framing from the original CBES were used as a foundation for this assessment. The exercise included a transition scenario broadly aligned to the Paris Agreement’s 1.5°C target, focusing on early policy action, rapid decarbonisation and sector-specific shifts in energy usage and regulation. No specific carbon price trajectory was applied, but the scenario assumed an accelerated implementation of climate policy and widespread adoption of low-carbon technologies. In addition, a qualitative physical risk overlay was applied to assess potential exposure to flooding and heat stress within the Bank’s high net worth (HNW) mortgage portfolio. As part of the transition scenario, Investec plc assessed the top 100 exposures within key sectors, property, transportation, energy and manufacturing, through bespoke sectoral narratives. These narratives included assumptions about the availability of transition technologies, evolving customer preferences and jurisdictional policy divergence. The purpose was to understand whether the transition to a lower-carbon economy could materially affect asset values or client risk profiles. The results of this scenario analysis indicated that climate transition and physical risks to the Bank are low over a 5- to 10-year horizon, consistent with previous assessments. The findings were driven by low exposure to fossil fuel-linked activities, conservative risk appetite in high-risk sectors and limited physical risk exposure in the Bank’s property portfolios. We maintain strong capital and liquidity buffers that are sufficient to absorb the potential impact of adverse climate scenarios. Since the last climate risk assessment was conducted on the March 2024 book, the composition of our top real estate exposures may have evolved. These changes will be reflected in the next refresh of the climate risk assessment, which is expected to be undertaken during FY27.
	Assumptions applied
	The 2024 scenario analysis followed the structure and assumptions of the Bank of England’s 2021 Climate Biennial Exploratory Scenario (CBES). Although no new CBES was issued during 2024, the original framework was used to evaluate exposures under three narratives: an early-action transition pathway aligned to a 1.5°C scenario, a late-action disorderly scenario and a no-action physical risk scenario. The early-action narrative assumed accelerated policy implementation, carbon pricing of ~USD $150 per tonne by 2030 and widespread deployment of clean technologies. Sectoral narratives were developed for property, transport, energy, and manufacturing exposures, incorporating assumptions about policy implementation, technological uncertainty and client adaptation readiness. In addition, a qualitative flood risk overlay was applied to the HNW mortgage portfolio, based on assumptions around physical exposure, insurance coverage, and property location. While the exercise was not based on new quantitative models, it built upon our 2022 analysis by refining asset-level exposure inputs and sectoral transition expectations. There were no material changes to the core scenario assumptions used in the 2024 exercise relative to 2022, although the application of those scenarios was refined to reflect Investec plc’s current portfolio composition and risk focus. Across both entities, scenario analysis remains primarily qualitative, but continues to serve as a critical input into strategic planning, portfolio risk review, and forward-looking risk identification. The assumptions and dependencies used, while largely derived from external regulatory frameworks, were tailored to reflect Investec’s operating footprint and exposure profile. We acknowledge that our current methodology does not yet include probability-weighted forecasts or full capital-at-risk modelling. As scenario analysis capabilities mature, we plan to enhance the precision of financial impact estimates, improve documentation of scenario inputs, and build modelling capacity across credit, operational, and market risk domains. These efforts will support our future alignment with evolving international disclosure standards, including IFRS S2 and the UK Transition Plan Taskforce (TPT) Framework.
	Assumptions and estimates used in climate-related scenario analysis
	The scenario analyses conducted by Investec plc applied multi-decade time horizons consistent with regulatory frameworks.
	Investec plc’s assessment based on the Bank of England’s CBES framework considered climate risks over a 5- to 30-year horizon, with transition risk impacts modelled through to 2050, and chronic physical risks assessed under a no-transition scenario extending to 2100. These timeframes reflect the underlying assumptions in the NGFS and CBES scenarios and were used to understand both near- and longer-term vulnerabilities in the Group’s lending and real estate exposures.
	Scenario analysis use and financial impact estimation
	At present, Investec plc has not yet undertaken a fully modelled financial quantification of capital or earnings at risk under the climate-related scenarios described. However, we recognise this as a critical area of development and are actively working to enhance our capabilities. Planned improvements include the introduction of capital-at-risk estimates, scenario-adjusted credit loss projections, and broader integration of climate risk analytics into financial planning and risk reporting frameworks. That said, preliminary qualitative assessments and internal stress overlays suggest that climate-related credit and valuation risks are currently not financially material for Investec plc under the orderly and delayed transition scenarios assessed. Sector-level reviews, particularly of the top 100 counterparties across property, energy, transportation, and manufacturing, indicate low exposure to fossil fuel-linked activities and limited short-term vulnerability to policy, market, or technological shifts. These indicators support the current view that, over a 5- to 10-year horizon, climate-related financial risk for Investec plc is manageable and is not expected to materially impact capital buffers or liquidity requirements. Nonetheless, we will continue to evolve our scenario analysis tools to improve precision, comparability, and alignment with regulatory expectations, including those under IFRS S2 and the UK Transition Plan Framework.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Risk management
	Our processes for identifying and assessing climate and nature-related risks
	Reporting requirements: Climate-related financial disclosures: CFD: RM1 / TCFD: 6


	We recognise climate change as a material and evolving risk driver that requires ongoing assessment across strategic, operational and financial domains. Climate-related risk has been formally recognised within our enterprise-wide risk management framework as a principal risk since 2018. Our processes for identifying and assessing these risks continue to develop, informed by regulatory expectations in the UK, enhanced data availability, and evolving best practice in climate risk modelling and scenario analysis. Climate-related risks are identified and assessed at both the transactional and portfolio levels, and are integrated into existing governance and risk management frameworks. These assessments form part of our credit due diligence, sustainability screening processes, and portfolio-level risk reviews, ensuring that transition and physical risks are considered in line with regulatory requirements and stakeholder expectations.
	Transaction-level screening At Investec plc, lending and investment transactions associated with high-risk sectors (as defined by the EBRD sector mapping and aligned with IFC’s high- risk sector guidance) are subject to a sustainability screening process, which includes climate-related considerations. This screening is conducted by the Group Sustainability function, as and when a high-risk transaction is identified, prior to the proposal being submitted to the relevant credit or investment committee. The review covers a broad set of sustainability risk factors, including: • environmental impacts, including climate change, nature degradation and animal welfare • social injustice, including human rights, diversity and inclusion, modern slavery, community displacement and health and safety matters • governance matters, including corruption, fraud and controversies • broader macro-economic impacts, including poverty, economic growth and unemployment. Furthermore, each transaction is assessed by Credit for stranded asset risk, including the feasibility of refinancing at the end of the loan term.
	Escalation and oversight Where a transaction is flagged as having elevated climate or social risk, it is escalated to the Investec Bank plc Executive Risk Committee (IBP ERC) prior to any credit or investment decision. Additionally, the DLC SEC is notified of high-concern transactions to ensure appropriate oversight and governance.
	Portfolio-level physical risk assessments Investec plc conducts physical climate risk assessments on its real estate and infrastructure portfolios on an annual basis. These reviews help identify potential exposure to long-term physical risks, including flooding, extreme heat and severe weather events. Assessments are based on scenario-aligned hazard data and are used to inform property strategy, client lending decisions, and operational resilience planning.
	Portfolio-level transition risk assessments Investec plc has adopted a sector-based approach to assessing transition risk across its lending and investment portfolios. The assessment is refreshed annually (with the prior assessment done for the financial year ended 31 March 2025) and focuses on sectors most likely to be affected by changes in climate policy, carbon pricing, technological shifts and evolving consumer behaviour. Sectors identified as particularly sensitive to transition risk include: • Real estate and property • Utilities • Fossil fuel-related activities • Manufacturing • Mining • Transport and logistics. These sectors are more likely to experience direct financial or operational impacts arising from emissions-related policy measures, subsidies or taxes, and investor pressure to decarbonise. The risk assessment incorporates regional and jurisdictional differences in transition timing, with the UK regulatory environment recognised as being comparatively advanced and more prescriptive in climate-related expectations. Investec plc also supports a just and inclusive transition, and this principle is integrated into our risk analysis and client engagement practices. We acknowledge the social and economic complexities that come with sectoral change and ensure that our financing approach considers the broader implications for communities and industries in transition.
	Time horizon classification of risks For internal consistency and planning purposes, Investec plc classifies climate-related risks by time horizon as follows: • Short-term (0–1 year): Sectors currently experiencing credit implications due to transition pressures • Medium-term (1–5 years): Sectors with manageable exposure or near-term impact risk • Long-term (>5 years): Sectors with slower-moving exposure or minimal short- to medium-term impact on credit quality.
	Scenario-based risk identification Investec plc participates in climate scenario analysis and stress-testing in line with UK regulatory requirements set out by the Bank of England and the Prudential Regulation Authority (PRA). These stress tests are aligned with forward-looking scenario frameworks (e.g. BoE CBES and NGFS pathways) and allow us to assess our exposure to both transition and physical risks over multiple timeframes. Outputs from these exercises inform risk strategy, lending policies, and ongoing scenario development.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Risk management (continued)

	Our processes for managing climate and nature-related risks
	Reporting requirements: Climate-related financial disclosures: CFD: RM2 / TCFD: 7


	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 DLC ESC mandated by the Group’s Executive Directors’ reports sustainability-related matters to the DLC SEC. 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 environmental policy and climate change 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 and climate change statement 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 the Group Executive Directors’ remuneration.

	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: CFD: RM3 / TCFD: 8


	We assess sustainability risks as part of the Credit Committee or Investment Committee’s evaluation of lending or investment decisions. This includes sustainability screening, conducted by the Group Sustainability team, for transactions that fall into sustainability categories classified as high risk. We continuously support 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 and climate change statement, biodiversity statement and a fossil fuel policy. We conduct screening on high-risk sectors 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 and 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 conducts 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 DLC ESC 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 are continuously improving our screening process across all our business activities and actively working on making this process more efficient. Transactions are categorised into high, medium and low risk according to the EBRD mappings using the World Bank IFC guidelines. • 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 screening process performed by the Group sustainability team. The screening also assesses alignment with the Group’s sustainability-related policies and, for climate- and nature-related risks, includes consideration of the potential impact of the transaction and, where relevant, the credibility of client transition plans at the point of screening. Where transactions fall outside the Group’s risk appetite, do not meet the requirements of our policies or fall within excluded activities, they may be declined. For each high-risk transaction, a sustainability screening is provided by the Group sustainability team for consideration by our Credit and Investment Committees. Operational risk: We reviewed our exposure to physical risk within Investec Limited and 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 sustainability due diligence on all suppliers when they are onboarded. Litigation/liability: Where required our legal documentation includes sustainability-related terms and conditions.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	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: CFD: M1 / TCFD: 9


	The following section outlines how our key targets relate to these themes, and clarifies terminology, boundaries, and entity-specific commitments.
	Topic	Target	Definition/ clarification	Entity	Start date/ horizon	Related risk/ opportunity	Progress/ measure FY2025
	Carbon footprint	Investec plc’s target is to remain carbon neutral for Scope 1, Scope 2 and operational Scope 3 emissions.	Carbon neutrality is achieved through a combination of emissions reduction efforts and the purchase of Renewable Energy Certificates (RECs) and verified carbon offsets for residual, unavoidable emissions. This target responds to transition risk and aligns with stakeholder expectations for direct environmental responsibility	Group-wide	Ongoing	Transition risk: • Policy and legal risk • Reputational risk.	Operational footprint tCO₂e • Scope 1: 210 (2025: 216) • Scope 2: 1 306 (2025: 935) • Scope 3: 5 625 (2025: 8 890) • Total operational footprint: 7 141 (2025: 10 041). Refer to our Basis of Reporting on our website here
	Fossil fuel lending	Zero coal exposure (Investec plc) by 31 March 2027 (achieved in September 2024). Cease direct financing of new oil and gas exploration, extraction and production by 1 January 2035.	Investec plc and Limited have separate targets based on market and portfolio maturity.	Entity- specific	2024– 2035	Transition risk: • Policy and legal risk • Climate-related demand risk • Reputational risk.	Fossil fuel as a % of core loans and advances: 0.96% ( 2025 : 1.39% ) Coal as a % of core loans and advances 0.00% ( 2025 : 0.00% ) Coal exposure as a % of total energy lending portfolio 0.00% (2025 : 0.00% ) Renewables exposure as a % of total energy lending portfolio 80.92% (2025 : 73.97% )
	Financed emissions	Investec Group is committed to achieving net-zero financed emissions by 2050.	Reduction aligned to 1.5°C pathway; offsets only for residual emissions.	Group-wide	By 2050	Transition risk: • Policy and legal risk • Climate-related demand risk • Reputational risk.	Current financed emissions*: Scope 1 and 2: 2 714 332 tCO ₂e (March 2024 : 2 970 303 ^ tCO ₂e) Scope 3: 137 218 tCO₂e (March 2024: 114 949^ tCO₂e) Introduced decarbonisation targets, including a 20–45% emissions intensity reduction in power generation and engagement with 95% of UK and US oil and gas clients by 2029.
	High-risk sectors	While we have not yet set an explicit Group-wide target, we continue to manage our exposure to IFC-defined high-risk sectors, which include extractives, infrastructure, and heavy industry. This metric is linked to our credit risk management approach and exposure to transition-sensitive clients.	High-risk as defined by IFC environmental risk classifications.	Group-wide	Ongoing	Transition risk: • Policy and legal risk • Reputational risk	High-risk lending: 6.7% of total core loans and advances (2025: 7.8%).
	Sustainable and transition finance	Investec plc’s target is to facilitate £14.9 billion of sustainable and transition finance by 2030.	Target to support climate-related opportunities and transition finance activities.	Entity- specific	From 1 April 2025	Opportunity: • Renewable energy finance • Water infrastructure and conservation • Sustainable urban development.	£2.6 billion sustainable and transition finance facilitated for the year ended 31 March 2026.

^ Recalculated with immaterial impact on overall entity emissions. Recalculation reflects methodology enhancements, including improved emission factors and refined scope disaggregation. * Financed emissions are reported one year in arrears.



01	Operational and strategic overview	Investec plc Annual Financial Statements 2026

CLIMATE-RELATED DISCLOSURES CONTINUED



	Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
	Reporting requirements: Climate-related financial disclosures: CFD: M2 / TCFD: 10


	• Investec plc’s operational emissions decreased by 29% in the current reporting year. Operational emissions decreased, primarily driven by a reduction in Scope 3 emissions, particularly from commercial air travel. This reflects both a targeted reduction in travel activity, as well as updates to the calculation methodology. Overall, the decrease reflects a combination of reduced activity and methodology refinements, alongside ongoing improvements in data completeness across Investec plc’s emissions inventory. Refer to page 55 for the SECR disclosures. • In line with our ambition to be net-zero by 2050, we have made significant progress over the past year, including the introduction of science-aligned decarbonisation and client engagement targets for the energy sector. Alongside this, our focus has been on strengthening the completeness and quality of our financed emissions, driven by enhancements to calculation methodologies, data processes and governance, and supported by closer engagement with business teams to source and validate key data inputs. These improvements have enabled more accurate and consistent reporting, including refinements to prior-year emissions. As a result, we have analysed 79% of our loans and investment exposure as of 31 March 2025.


	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: CFD: M3 / TCFD: 11


	Progress is monitored through climate-related targets and ambitions across the following: • Investec Group: Emission reduction target between 20% and 45% from a 2024 baseline for the power generation sector • Investec plc: Client engagement target for 95% of our Investec plc clients in the oil and gas sector by 2029, focusing on their transition pathways and decarbonisation • 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 committed 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, which was achieved in September 2024 • Continue our efforts in financing climate solutions • Embedding climate into our culture and decision-making.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

Risk management

and governance

Our risk management culture ensures we are locally

responsive yet globally aware. This section contains

our risk management disclosures.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

IN THIS SECTION



24	Risk management approach and framework


25	Year in review from a risk perspective


27	Principal risks


42	Investec plc Audit Committee report


50	Directors’ report



02	Risk management and governance	Investec plc Annual Financial Statements 2026

RISK MANAGEMENT APPROACH AND FRAMEWORK

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 four to six 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

• Maintain compliance in relation to regulatory requirements

• Coordinate risk management activities across the Group

covering all legal entities and jurisdictions

• Establish and convene appropriate risk committees, as

mandated by the Board

• Resource risk teams suitably and with appropriate expertise

and facilitate operating independence

• Provide the Board reasonable assurance that the risks the

Group is exposed to are identified and appropriately

managed and controlled.

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

Chair of the Group Board 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 2026

YEAR IN REVIEW FROM A RISK PERSPECTIVE

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 ongoing geopolitical tensions across the world,

including the latest conflict in the Middle East, we have

continued to grow our business in a risk conscious manner and

are well placed to navigate the uncertainty. The Group has

operated against a backdrop of ongoing global market volatility,

including uncertainty in equity valuations, developments in

private credit markets, currency fluctuations and changes in

forward-looking interest rate, inflation and energy cost

assumptions. Notwithstanding these conditions, the Group has

performed strongly and is well positioned to benefit from

emerging opportunities.

The Group remains well capitalised, maintains high levels of

liquidity, runs modest levels of market risk and favours secured

lending to clients with predictable income streams.

Loans and advances to customers as a percentage of customer

deposits remained conservative at 79.2% (31 March 2025:

78.4%). 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 Minimum Requirements for Own Funds and Eligible

Liabilities (MREL) transition has commenced from

1 January 2026 in a phased manner with end-state MREL

applying from 1 January 2032. Investec plc resolution status

with respect to MREL changed to bail-in from 1 January 2026.

In the year ahead, a key priority is the completion of its

Recoverability Assessment Framework (RAF). This will further

strengthen the Group’s recovery and resolution framework and

will be delivered alongside planned issuance activity.

Cash and near cash balances at 31 March 2026 amounted to

£ 9.4 billion (31 March 2025 : £ 9.1 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 41.7% of customer

deposits. At 31 March 2026 , the Liquidity Coverage ratio (LCR)

for Investec plc was 349% and the Net Stable Funding ratio

(NSFR) was 141% , 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 we continue to navigate global markets with

heightened levels of volatility.

IBP’s long-term Moody’s deposit rating is A1 (stable outlook)

and during the year Investec plc’s rating was upgraded one

notch to A3 (stable outlook), which will continue to support

MREL issuance. IBP’s long-term Fitch issuer default rating

remains at A- (stable outlook).

We have successfully grown our loan book while ensuring its

resilience and remaining focused on our core areas of

expertise. Competitive pressures have increased across our

markets, including from private credit participants, however the

Group continues to operate within its defined risk appetite and

maintains a disciplined approach to underwriting and risk

selection.

We are strategically positioned to pursue disciplined growth

and have strong levels of capital and liquidity to support such

growth. Increased and diversified client activity and new client

acquisition resulted in an increase in the Group’s net core loan

book to £17.8 billion (31 March 2025: £16.8 billion). Growth was

due to increased activity diversified across multiple asset

classes of corporate client lending as well as residential

mortgage 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.

Concentration risk is well managed and exposures are spread

across geographies and industries. We remain confident that

we have a well-diversified portfolio across sectors.

The Group’s net core loan exposures remain well diversified

with commercial rent producing property loans comprising

approximately 7.8% of net core loans, other lending

collateralised by property 6.2%, high net worth and other

private client lending 35.0% and corporate and other lending

51.0% (with most industry concentrations well below 5%).

Asset quality ratios reflect the solid performance of the

underlying portfolios despite challenging conditions. The credit

loss ratio reduced to 0.57% at 31 March 2026 (31 March 2025:

0.60%), in line with guidance provided in November 2025. This

was driven by specific idiosyncratic impairments, in part given

higher for longer rates and challenges in achieving anticipated

exit valuations.

Stage 3 remained flat at 3.4% of gross core loans subject to

ECL at 31 March 2026 (31 March 2025: 3.4%). Stage 3

exposures remain diversified across multiple asset classes and

provisions are individually assessed.

Stage 2 exposures as a proportion of gross core loans subject

to ECL decreased to 7.4% at 31 March 2026 (31 March 2025:

8.1%) as underlying portfolios continue to perform.

The measurement of ECL under IFRS 9 creates reliance on expert

credit judgements. Key judgemental areas under IFRS 9 are

highlighted in this document and are subject to robust

governance processes. Stage 3 ECLs continue to be assessed

using a combination of scenario analysis, expert judgement and

modelled ECL.

Macro-economic scenarios have been updated during the

course of the year to reflect the changing landscape,

particularly with respect to the conflict in Iran, inflationary

pressures and the risk of overheated equity markets.


	Further detail on key judgements can be found on page 173 .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

YEAR IN REVIEW FROM A RISK PERSPECTIVE CONTINUED

We continue to progress the integration of sustainability

considerations across our business activities and decision-

making processes. Our commitment to human rights and

support for internationally recognised principles, guidelines and

voluntary environmental, social and governance (ESG)

standards are embedded within our credit and investment

decision-making processes, taking into account the material

considerations relevant to the geographies in which we

operate. We continue to advance towards our previously

announced Investec Group target to facilitate £18 billion of

sustainable and transition finance by 2030, of which Investec

plc aims to contribute £14.9 billion. During the reporting period,

we facilitated £3.1 billion of sustainable and transition finance,

of which £2.6 billion was attributable to Investec plc.

We continued to strengthen our climate risk management

capabilities and regulatory readiness in response to evolving

prudential and sustainability-related requirements, including the

Prudential Regulation Authority’s SS5/25 expectations relating

to climate-related financial risks. We also continued to enhance

our governance, risk management and reporting capabilities to

support the integration of climate-related considerations into

our business activities and strategic decision-making

processes.

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 continue to manage our investment portfolio exposure in

line with our objective of optimising capital allocation, reducing

income volatility and aligning the business with our client

franchises. We have continued to manage 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 the

balance sheet totalled £414 million at 31 March 2026 (31 March

2025: £348 millon).

The Group continued to maintain a sound balance sheet with a

low gearing ratio of 8.6 times and a core loans to equity ratio of

4.8 times at 31 March 2026.

The Group maintained a sound capital position, well in excess

of minimum regulatory requirements, with a Common Equity

Tier 1 (CET1) ratio of 12.6% (31 March 2025: 12.3%) and a

leverage ratio of 9.1% (31 March 2025: 9.6%). 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%. The Bank is

progressing on the journey to migrate its capital measurement

to the Internal Ratings Based (IRB) approach.

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 test our

resilience to potential external shocks regularly. The Group

remains focused on managing conduct and reputational risks.

Keeping abreast of industry-wide trends with respect to rapidly

evolving 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.

The Group notes the FCA’s March 2026 update on the Motor

Finance redress scheme following the August 2025 Supreme

Court judgment and has assessed the implications. Based on

the scheme as currently proposed, the Group considers its

existing £30 million provision (including redress and associated

costs) to remain appropriate. The FCA’s scheme remains

subject to ongoing legal challenges which, if successful, may

materially affect the design and implementation of any redress

framework. Accordingly, the legal and regulatory position, as

well as the nature, extent and timing of any remediation, remain

materially uncertain pending the outcome of these proceedings.

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.

Fundamental risk performance during the period has been

sound and management remains focused on maintaining a

robust underlying balance sheet, notwithstanding the macro-

economic pressures and uncertainty we continue to face in our

areas of operation. Going forward, we continue to navigate

ongoing operations with heightened awareness of the global

outlook, changing energy, currency and sovereign risk

dynamics and geopolitical tensions across the world. We

maintain high levels of liquidity and diversified funding,

supported by a strong capital base in line with our risk appetite.

This positions us well to support our clients through the

period ahead.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS

Principal risks are the most material and significant risks we face, which

the Board and senior management believe could have an impact on our

strategy, operations, financial performance and viability. These risks are

summarised in the section that follows, with further information

pertaining to the management and monitoring thereof.

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

frameworks and statements for Investec plc and Investec

Limited set out the Board’s mandated risk appetite . The risk

appetite frameworks act as a guide to determine the acceptable

risk profile of the Group. The risk appetite statements ensure

that limits/targets are applied and monitored across all key

operating jurisdictions and legal entities.

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.

Three levels of defence

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 units: responsible for identifying and

managing risks inherent in the products, activities, processes

and systems for which they are accountable

• Level 2 – Independent risk and compliance functions:

responsible for building and embedding risk frameworks,

monitoring the implementation of effective risk management

practices, 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

providing independent and objective assurance over the

design and effectiveness of governance, risk management

and control processes.

Overview of principal risks

The Board, through its various committees, has performed a

robust assessment of the 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 occur which are outside of its

control. It is, therefore, necessary to assess these potential

events and possible mitigating actions. 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 outcomes.

In 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

strategy, operations, financial performance and viability.

Mitigation measures are considered to address these emerging

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 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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Credit risk		The risk of loss arising from an obligor's, typically a client or counterparty, failure to meet its contractual obligations, including any deterioration in the credit quality of third parties to whom the Group is exposed, from funds extended, committed, invested, or otherwise exposed, whether on- or off-balance sheet


Link to strategy and opportunities		Monitoring and mitigation activities • Independent credit committees exist with oversight extending to regions where credit risk is assumed. 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 favours lower risk, income-based lending with exposures well collateralised and credit risk taken over a short to medium term • Investec has limited appetite for unsecured debt. A strong emphasis is placed on proven income and cash flows generated by the clients and risk is managed through assessment of the ability of clients to meet their payment obligations and/or tangible assets provided in support of their obligations • Concentration risk is well managed and exposures are well spread across geographies, asset classes and industries • We target a diversified loan portfolio, lending to clients we know and understand. Credit risk is always assessed with reference to the aggregate exposure to a single counterparty or group of related parties to manage concentration risk. These are reported to DLC BRCC on a regular basis. In order to manage concentration, we will sell-down exposures to market participants as required • There is a preference for primary exposure in the Group’s main operating geography and where we have operations, a branch or local banking subsidiary. The Group will tolerate exposures to other countries where we have developed a local understanding and capability or where we are facilitating a transaction for a client • 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 155 to 172.

		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 at 31 March 2026 The Group currently remains within all tolerance levels given the current weakened economic environment. The Group credit loss ratio was calculated at 0.57% for 31 March 2026 (31 March 2025: 0.60% ). 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 16.4% .
		We limit our core loan exposure to a single/ connected individual or company to £120 million. We also have a number of risk tolerance limits and targets for specific asset classes and industries.	We maintained this risk appetite level throughout the year with no breaches of approved limits.

*Refer to definitions on page 212.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Sustainability risk		The risk that the Group’s lending and investment activities and business operations 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 manage sustainability-related risks, 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 responsibility to the broader economy, environment and society • The Group recognises 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 DLC Executive Sustainability Committee, mandated by the Investec Group’s executive directors, reports relevant sustainability-related matters to the DLC SEC, DLC BRCC and Group ERC. The main objectives of the committee are to coordinate sustainability-related efforts across geographies and businesses • The DLC BRCC oversees and monitors key transition and physical climate considerations, ensuring effective management of climate-related risks and opportunities in alignment with our sustainability objectives • Sustainability risk considerations are incorporated into lending or investment decisions by the relevant credit or investment committee, with support from the Investec Group sustainability team • The environmental policy and climate impact statement considers the risks and opportunities that climate change and nature degradation present to the global economy • Sustainability-related metrics and KPIs are linked to executive director remuneration.


More information
	Read more on pages 156 , 177 to 178 and pages 114 to 137 of the Investec Group's 2026 integrated and strategic annual report and the Investec Group’s 2026 integrated 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 sustainability 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 2026 integrated sustainability report.	Positioning as of 31 March 2026 We maintained this risk tolerance level in place throughout the year.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Investment risk		The risk of loss or volatility in value arising from the Group’s exposure to investments made predominantly in unlisted companies and certain listed investments as well as select property investments


Link to strategy and opportunities		Monitoring and mitigation activities • An investment committee exists in the UK which provides oversight to regions where we assume investment risk • Risk appetite limits and targets are set to limit our exposure to investment risk • As a matter of course, concentration risk is actively managed and investments are well spread across geographies and industries.



Further information
	Read more on page 179 .

		Risk appetite and tolerance metric We have moderate appetite for investment risk, and set a risk tolerance of less than 15% of CET1 capital for our unlisted principal investment portfolio.	Positioning at 31 March 2026 Our unlisted investment portfolio amounted to £199 million, representing 7.7% of CET1.



Market risk in the trading book		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 respective trading desks


Link to strategy and opportunities		Monitoring and mitigation activities • Independent market risk management teams identify, measure, monitor and manage market risk • 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 181 to 184 .
	Read more on pages 181 to 184 .
		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 £1.65 million.	Positioning at 31 March 2026 We met these internal limits; one- day 95% VaR was £ 0.2 million at 31 March 2026 .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Liquidity risk		The risk of the possibility that, despite being solvent, the Group is unable to meet payment obligations as they fall due, in normal and stressed conditions, or to fund increases in assets, as a result of insufficient capacity or the inability to access liquidity. 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 • The Group’s 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 is self-sufficient from a funding and liquidity standpoint and must adhere to the respective Board-approved risk appetite limits and management policy metrics • The Group 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 assets 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, obligations will continue to be met • The maintenance of sustainable prudent liquidity resources takes precedence over profitability • The Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source, instrument and currency • Core loans are predominantly funded by stable funding • 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 • 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.



Further information
	Read more on pages 185 to 191 .
	Read more on pages 185 to 191 .
		Risk appetite and tolerance metric The Group carries a high level of liquidity in all its 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 2026 Total cash and near cash balances amounted to £ 9.4 billion at year end, representing 41.7% of customer deposits.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Interest rate risk in the banking book (IRRBB)		The risk of the impact of adverse movements in interest rates on both 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 respective ALCO • Each banking entity has its own Board-approved IRRBB policy and risk appetite, which is clearly defined in relation to both earnings risk and economic value of equity risk • The policy dictates that long-term (>one year) IRRBB is managed within Board-approved risk appetite limits. 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, including interest rate repricing mismatch, net interest income (NII) and net present value (NPV) sensitivity to changes in interest rate risk factors.



Further information
	Read more on pages 190 and 191.
	Read more on pages 190 and 191.
		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 2026 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 Internal Capital Adequacy Assessment Process (ICAAP).



Capital risk		The risk that the Group does not have sufficient capital to meet regulatory requirements, to absorb potential losses, 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 • The determination of target capital is driven by our strategy, risk profile 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) with the oversight and management of capital and leverage • The leverage ratio is considered and monitored as part of the capital management framework • A detailed assessment of the regulatory and internal capital position is undertaken on an annual basis and is documented in the ICAAP. The ICAAP is reviewed by PLC and DLC Capital Committees before being recommended for approval to DLC BRCC and the Board.



Further information
	Read more on pages 195 to 199 .
	Read more on pages 195 to 199 .

		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%, minimum Tier 1 ratio of >11% and a CET1 ratio of >10%, on a consolidated basis for Investec plc. We maintain a conservative leverage profile and target a leverage ratio in excess of 6%.	Positioning at 31 March 2026 Investec plc met all these targets.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Reputational risk		The risk of potential harm to the Group's reputation, name or brand, which may impact financial performance and/or stakeholder relationships. 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 through detailed processes and governance/ escalation procedures from business units to Group ERC and 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 86 of the Investec Group's 2026 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 2026 We have continued to mitigate and/or manage these risks where possible throughout the year.



Strategic risk		The risk of ineffective strategy execution caused by internal implementation weaknesses or inadequate responses to adverse external market forces, that can independently or collectively lead to income volatility


Link to strategy and opportunities		Monitoring and mitigation activities • Group strategy is directed towards generating and sustaining a diversified income base for the Group • 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 • In the instance where income falls, we retain the flexibility to reduce costs (particularly variable remuneration), thereby maintaining a competitive cost to income ratio • We actively monitor and assess return on equity (ROE) and return on tangible equity (ROTE) to support disciplined capital allocation, ensuring alignment with strategic targets and shareholder return expectations.



Further information
	Read more on pages 8 to 87 of the Investec Group's 2026 integrated and strategic annual report and pages 16 to 26 of the Investec Group’s 2026 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 has a 31 March 2027 return on tangible equity (ROTE) target range for its UK and Other operations of between 12.5% to 13.5%.	Positioning at 31 March 2026 The Investec Group’s UK and Other operations reported a ROE of 10.8% and a ROTE of 13.7% .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk		The risk of loss or earnings volatility resulting from inadequate or failed internal processes, people and systems or external events


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 risk – Conduct risk (including Consumer Duty) – Data management risk – Financial crime risk – Fraud risk – Legal risk – Model risk – People risk – Physical safety and security risk – Processing and execution risk – Regulatory and compliance risk – Financial reporting and tax risk – Technology risk (including cyber risk) – Third party risk • The Group maintains insurance to cover key insurable risks.



Further information
	Read more on pages 192 and 193 and pages 84 to 89 of the Investec Group’s 2026 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 2026 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 risk		The risk associated with disruptive incidents which may impact critical functions and important business services by affecting key dependencies such as processes, premises, people, technology, equipment, and third‑party providers


Link to strategy and opportunities		Monitoring and mitigation activities • The Group maintains business continuity through appropriate resilience strategies that cater for severe but plausible scenarios, irrespective of the cause • These strategies include, but are not limited to, enabling employees to work from home, the application of high availability technology solutions, obtaining third party dependency business continuity assurances, implementing substitutability arrangements and ensuring readiness of physical solutions for critical infrastructure components • Resilience testing is conducted annually to validate business continuity strategies and ensure they remain effective and appropriate. This includes annual recovery testing for all critical systems that support important business services.



Further information
	Read more on pages 192 and 193 .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



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 employees, reputational and/or financial damage to the Group


Link to strategy and opportunities		Monitoring and mitigation activities • Our conduct risk approach is underpinned 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 • 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 • The conduct risk policy is designed to create an environment for consumer protection and market integrity within the business, supported by an appropriate conduct risk management framework • Consumer Duty rules and guidance set higher and clearer standards of consumer protection across the financial services industry and require institutions to put their customers’ needs first. These requirements have been incorporated into conduct risk frameworks, policies and governance arrangements.



Further information
	Read more on pages 192 , 193 and pages 84 to 89 of the Investec Group's 2026 risk and governance report.



Operational risk – Data management risk		The risk associated with poor management in acquiring, processing, storing, and protecting client, employee and the Group’s proprietary data


Link to strategy and opportunities		Monitoring and mitigation activities • The Investec Group has a Group data governance policy that establishes a consistent, enterprise- wide framework for managing data as a strategic asset. The policy covers the full spectrum of DAMA (Data Management Association) data capabilities from governance and quality to architecture, security, analytics and lifecycle management • Clear accountability for data ownership, stewardship and custodianship is defined to ensure effective oversight, control, and escalation of data-related risks • Appropriate data governance and management tooling is in place, or being enhanced, to support data consolidation, secure storage, privacy, access control, lineage, metadata and reporting across the Group • Data flows, reconciliations and integrations are automated where practicable, reducing manual processing, minimising operational risk and improving resilience and data integrity • Data quality is monitored, reported and remediated in accordance with defined standards, business requirements and regulatory expectations • Advanced analytics and insights are used to support proactive risk monitoring and informed decision-making • Data retention, archiving and secure destruction controls are implemented to meet business needs and comply with applicable legal, regulatory and privacy obligations.



Further information
	Read more on pages 192 and 193 .
	Read more on pages 192 and 193 .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Financial crime risk		The risk arising from the potential handling of the proceeds of crime, money laundering, terrorist financing, proliferation financing, sanctions breaches, bribery or corruption, and any related offence. It also includes the risk of regulatory sanctions or reputational damage resulting from a failure to meet regulatory requirements designed to prevent such activities


Link to strategy and opportunities		Monitoring and mitigation activities • Comprehensive financial crime risk management framework is maintained to prevent, detect and respond to financial crime risks across all jurisdictions in which the Group operates • Established policies and procedures are in place to promote business with clients in such a manner that minimises financial crime risk • Regular financial crime training is provided to employees to reinforce awareness and reporting obligations • 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: – Appropriate client due diligence is performed on all clients and prospective clients with identification, verification and risk rating proportionate to their risk profile – Sanctions screening is conducted against relevant local and international sanctions lists in respect of clients, related parties and transactions – Transaction monitoring controls are applied on an ongoing basis to identify unusual or suspicious activity across client relationships – Suspicious transactions and activity when identified, is reported to the relevant regulatory authorities in accordance with applicable legal and regulatory requirements – Clients or business relationships that are not within the Group’s financial crime risk appetite are exited or declined in line with policy – An independent integrity (whistleblowing) line is in place to ensure that staff can report regulatory breaches, allegations of fraud, bribery or corruption, and non-compliance with policies – The effectiveness of financial crime controls is subject to ongoing review and independent assurance to ensure alignment with evolving regulatory requirements and emerging risks. • There is regular reporting to the DLC Audit Committee, DLC BRCC as well as Group ERC.



Further information
	Read more on pages 192 , 193 and page 89 of the Investec Group's 2026 risk and governance report.



Operational risk – Financial reporting and tax risk		The risk of potential non-compliance with internal or statutory reporting requirements and tax obligations, including payment and filing deadlines. It also encompasses risks arising from inadequate tax planning, poor transaction execution, and failures in tax compliance and reporting processes


Link to strategy and opportunities		Monitoring and mitigation activities Financial reporting risk • Governance over key accounting and financial reporting policies and procedures is maintained by the technical accounting with material matters escalated to the DLC Audit Committee • Financial reporting controls include segregation of duties, access management and journal controls over finance systems and reporting tools • Significant accounting judgements and estimates are subject to appropriate oversight, technical review and supporting documentation • Independent assurance is provided through internal and external audit, with control findings remediated and recurring themes escalated through governance structures Tax risk • 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 • The Group remains focused on achieving the highest levels of compliance with applicable reporting frameworks, tax legislation and/or regulation and professional standards in jurisdictions in which we operate.



Further information
	Read more on pages 192 , 193 and page 87 of the Investec Group's 2026 risk and governance report.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Fraud risk		The risk of intentional and deceptive conduct (such as fraud, corruption, theft, forgery or other misconduct) carried out by internal or external parties, whether acting alone or colluding, with the aim of obtaining unlawful benefit or causing loss to the Group


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 and adherence to these are proactively monitored • Detection and prevention systems are utilised to help identify potential fraud, reaching out to clients or suppliers 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 • Collaboration with industry bodies supports collective fraud prevention efforts and facilitates the recovery of funds that have been paid away • 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 192 and 193 .



Operational risk – Legal risk		The risk associated with losses caused by defective transactions, termination of contracts, infringement of Investec or third party intellectual property rights, unmanaged changes in applicable laws and errors in legal process execution


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 • 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 • 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 suitably qualified third party legal firms/counsel to be utilised where necessary • The Group may, at its discretion, constitute dedicated committees to deal with specific legal matters.



More information
	Read more on page 86 of the Investec Group's 2026 risk and governance report.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Model risk		The risk of the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. Model risk can lead to financial loss, poor business and strategic decision-making, or damage to the Group’s reputation


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 regular model reviews (prioritised by risk), model validations and overlays to manage this risk • The frameworks address roles and responsibilities, governance processes and committees and approaches to managing model risk • Material models are recorded in a model inventory, which tracks approval status, validation date, ongoing issues, caveats/recommendations in relation to model use, as well as the model validation findings • Models are subject to independent initial and then regular validation by specialist risk teams, the frequency and scale of which are 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 192 and 193 .



Operational risk – People risk		The risk associated with inadequate or inappropriate management of human resources. This includes improper resourcing, breaches of employment legislation, mismanagement of employee relations, insufficient leadership capability and succession, failure to maintain a safe work environment, and the inability to recruit, develop, retain, and engage diverse talent. It also encompasses ensuring alignment with Investec's purpose, values, and culture


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 and measure performance • 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 • We take a holistic approach to employee wellbeing by supporting physical, mental, social and financial health, enabling our employees to thrive.


Further information
	Read more on pages 124 to 126 of the Investec Group's 2026 integrated and strategic annual report and the Investec Group’s 2026 integrated sustainability report which is published and available on our website: www.investec.com



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Physical security and safety risk		The risk associated with the potential or actual impact to the Group arising from threats to people, assets, facilities or information due to unauthorised access, theft, vandalism, natural disasters or other physical threats

Link to strategy and opportunities		Monitoring and mitigation activities • There is 24/7 surveillance and access control including CCTV and controlled access systems at all Investec office locations • Continuous evaluation is conducted on emerging security threats through intelligence gathering and site risk assessments • Security awareness programmes train employees on physical security and emergency preparedness.


More information
	Read more on pages 192 and 193 .



Operational risk – Processing and execution risk		The risk associated with the failure to process, manage, execute, and record transactions and other processes (such as change programmes) correctly and appropriately


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 • Key business processes are regularly reviewed and the relevant risks assessed through the risk and control self-assessment process • We manage operational capacity to meet client and industry needs and continue to explore automation to improve efficiency and reduce human error • Material change is managed through dedicated projects with formalised project governance.



Further information
	Read more on pages 192 and 193 .



Operational risk – Regulatory and compliance risk		The risk of potential regulatory sanctions (including fines and penalties), reputational damage or financial loss resulting from failure to meet regulatory requirements


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 and professional standards in each of our jurisdictions • Our culture underpins the compliance framework and is supported by robust frameworks, policies, processes and skilled 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 legislation and/or regulation and professional standards.



Further information
	Read more on pages 192 , 193 and pages 88 and 90 of the Investec Group’s 2026 risk and governance report.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Technology risk		The risk of disruption, failure, or misuse of digital and technology assets, including AI-enabled systems, that support the Bank's operations, services, and strategy


Link to strategy and opportunities		Technology disruption risk - The risk associated with disruption to the technology systems which underpin our critical business processes and client services Monitoring and mitigation activities • Resilient system design and regularly tested continuity arrangements reduce the likelihood and impact of technology disruptions on critical business operations • The technology environment is proactively monitored to provide visibility of performance, capacity, and availability across critical services • Mature incident management capabilities support rapid response and timely restoration of services, with structured post-incident reviews to strengthen resilience and reduce recurrence risk • A defined, business-aligned strategy guides investments and third-party partnerships to enhance technology resilience, scalability, and modernisation of legacy systems • Automation and strengthened governance of technology change reduce operational error and enhance system reliability • Governance structures provide oversight of significant technology investments to manage transition risk within an increasingly digital and cloud-enabled operating environment Information security risk - The risk of loss, misuse, unauthorised disclosure, or inappropriate access affecting the confidentiality, integrity, or availability of information assets Monitoring and mitigation activities • Data protection controls are implemented in line with information sensitivity, with enhanced safeguards applied to high-risk and confidential data • Access to systems and data is tightly controlled, supported by automated access management and regular access reviews • Privileged access is restricted, protected by strong safeguards, and subject to enhanced monitoring and oversight • Targeted insider threat monitoring capabilities identify anomalous behaviours and potential data loss, supporting early detection and response • Ongoing awareness and targeted security training programmes reinforce high levels of vigilance and accountability in handling sensitive information Cyber risk - The risk associated with external cyber threats leading to unauthorised access, compromise of critical systems, data theft, or disruption of the Group’s technology environment Monitoring and mitigation activities • The Group maintains an adaptive cyber capability that evolves in line with a rapidly changing and increasingly sophisticated threat landscape • Advanced technologies are deployed to provide layered detection and protection against sophisticated attacks • A 24/7 global security team enables timely identification and mitigation of emerging threats, augmented by external threat intelligence partners and industry collaboration • Cyber risks arising from third parties and digital supply chain ecosystems are actively monitored and managed • Controls are stress-tested through independent security assessments, attack simulations, and executive response exercises • The Group’s cyber capabilities are benchmarked against industry peers and informed by external cyber rating platforms to support ongoing improvement • The Group actively assesses and addresses emerging risks associated with artificial intelligence (AI) and evolving attack techniques • Regular reporting to senior management and the Board provides oversight of cyber risk exposure and preparedness.



Further information
	Read more on page 192 and 193 .



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PRINCIPAL RISKS CONTINUED


Link to strategy – key
	Delivering a truly client-centred organisation	Growth initiatives	Capital allocation discipline



Operational risk – Third party risk		The risk associated with inadequate risk management and oversight of third party services, as well as delivery failure and regulatory non-compliance by service providers


Link to strategy and opportunities		Monitoring and mitigation activities • Formal policies and practices govern the assessment of suitability, selection, approval, oversight and off-boarding of third party service providers • A dedicated third party management function coordinates and promotes consistency of third party practices across the Group, supported by risk-based due diligence and ongoing reviews proportionate to risk and materiality • Comprehensive legal agreements ensure that contractual obligations are met, required service levels are maintained, and data appropriately safeguarded • The Group takes specific considerations into account regarding the country of the third parties or suppliers and the various applicable legislations and regulations in which they operate • Contingency planning and defined exit strategies are maintained for critical third parties to support operational resilience and enable orderly transition in stressed or planned scenarios • Ongoing monitoring of strategic technology partnerships, critical technology third parties and their fourth party dependencies, supports the management of digital resilience and interdependency risks • We continue to enhance the monitoring and management of concentration risk across critical third-party services, giving consideration to factors such as transferability and substitutability when assessing suppliers and third parties, both within the business and across the financial sector systemically • The Group ensures adherence to relevant laws and regulations relating to third parties across the jurisdictions in which it operates, including review of third parties’ modern slavery statements or equivalent disclosures at onboarding, supported by risk based periodic reassessments and ongoing adverse media monitoring, with specialist oversight and escalation of potential concerns where appropriate.



Further information
	Read more on pages 192 and 193 .

Emerging and other risks

Emerging risks that have been identified are highlighted on pages 26 to 29 of the Investec Group's 2026 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 52.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT



			Diane Radley Chair of the PLC Audit Committee
			“Guiding internal control evolution in a rapidly changing AI world.”

Introduction and vote of thanks

I am pleased to present the Investec plc Audit Committee (the

Committee) report for the financial year ended 31 March 2026.

The Committee has fulfilled its responsibilities in accordance

with its Terms of Reference and in compliance with relevant

laws and regulations, including but not limited to the UK

Banking Act of 2009; UK Companies Act of 2006; UK Corporate

Governance Code of 2018 (UK Code); Audit Committees and

the External Audit: Minimum Standard issued by the Financial

Reporting Council (FRC); and the UK Listing Rules.

Role of the Committee

The main role of the Committee is to provide independent

challenge and oversight across the Investec plc’s financial

results, as well as over the disclosure of relevant financial and

non-financial information. In doing so, the Committee evaluates

the adequacy and effectiveness of accounting policies and

satisfies itself that significant estimates and judgements made

by management in preparing the financial results are sound and

reasonable.

Additionally, the Committee conducts a comprehensive

evaluation of the control environment and assurance

mechanisms related to both financial reporting and accounting,

determining their effectiveness in promoting accurate and

dependable disclosures. The Committee maintains oversight of

the external and internal audit functions, safeguarding quality,

efficiency and independence. It also addresses any concerns

raised internally or externally regarding the implementation of

accounting principles and external reporting standards.

The Committee continuously engages with Deloitte LLP,

independently of management.

External and Internal audit quality

In 2026, an evaluation of the external auditors’ performance

was undertaken to assess their objectivity and the

effectiveness of the audit process. Key members of the finance

team and business leaders provided input into the evaluation,

which was reviewed by the Committee with no material

concerns.

Investec’s Internal Audit (IA) maintains a comprehensive internal

Quality Assurance (QA) function, supported by a QA

improvement programme encompassing all aspects of IA

activities. This framework facilitates ongoing evaluation of the

department’s effectiveness in alignment with the Institute of

Internal Auditors (IIA) Standards and Code of Practice, as well

as adherence to documented policies and procedures that

ensure compliance with the ethical requirements of the IIA

Code of Ethics and all relevant legal and regulatory obligations

In accordance with Global IA Standards, the IA function must

undergo an external review by a qualified and independent

assessor or assessment team at least once every five

years.The function was last reviewed by Ernst & Young during

the 2025 financial year, with the overall assessment concluding

that the activities of Investec IA “generally conforms” to the IIA

Professional Practice of Internal Auditing – the highest possible

rating. The Committee has congratulated the IA team on this

strong result. In 2026, an annual assessment of the IA function

was conducted internally by the Committee, which concluded it

was operating effectively and independently.

With respect to the Investec plc structure, the Committee is

responsible for overseeing and evaluating matters related to

the audit of the Group. It addresses issues pertinent to Investec

plc, collaborating closely with the Audit Committees of its

subsidiaries, thereby ensuring comprehensive Group reporting.

Committee members attend subsidiary Audit Committee

meetings, participate in sessions with the DLC IT Risk and

Governance Committee (ITRGC) and the DLC Board Risk and

Capital Committee (BRCC), and provide regular feedback to the

Committee.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED

Key Committee responsibilities include:

• Overseeing and ensuring the integrity of the Group’s

reporting process, including the effectiveness of financial

and other internal control systems and financial reporting

processes. We further assess the Group’s compliance with

applicable legal, sustainability, regulatory and accounting

standards and disclosure requirements

• Satisfying itself that significant estimates and judgements

made by management in reporting the Group’s financial

results are appropriate and reasonable

• Providing independent oversight of the Group’s assurance

functions with a focus on combined assurance, including

external audit, internal audit, risk, regulatory compliance and

financial control functions

• Reviewing internal audit independence and effectiveness

• Monitoring the independence and objectivity of the external

audit function and the effectiveness of the external audit

process as well as reviewing the appropriateness of the

Group’s relationship with external audit and approving its

remuneration

• Approving all non-audit services provided by external audit and

monitoring compliance with the non-audit service policy as

approved by the Committee.


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

Committee composition and attendance

The Committee is composed of independent non-executive

directors, each possessing the necessary financial literacy and

skills in addition to expertise in banking and financial services.

In August 2025, Louisa Stephens was appointed to the

Committee following her appointment as a non-executive

director to the DLC Board and I look forward to her

contribution. Vivek Ahuja, who was appointed to the Committee

in May 2025, stepped down from this role in January 2026

following his appointment as Chair of Investec Bank plc. Having

reached nine years of service with the Group, Brian Stevenson

did not make himself available for re-election to the Board at

the 2025 Annual General Meeting (AGM) and resultingly

resigned from the Committee. I would like to thank Brian and

Vivek for their contribution to the Committee.

The Group CE, Group FD, Group COO, Group CRO, Heads of

Internal Audit, Chief Tax Officer, the Group Head of Finance

and the External Auditors are all permanent invitees at

Committee meetings.

The Committee held eight meetings during the year, which

aims to provide feedback on key external and internal audit

findings.



2025

May	Two meetings Audit Quality Sessions – external and internal audit Approval of the 2025 year-end financial results Governance meeting – approval of Combined Assurance Framework

June	Approval of the 2025 annual report and annual financial statements Provided assurance over sustainability reporting

Aug		Approval of regulatory audit returns

Sept	Governance meeting – oversight of assurance activities, financial results and approval of External Audit plan

Nov	Two meetings Approval of the 2025 interim financial results Governance meetings – oversight of assurance activities, financial results and training on changes to ECL modelling

2026

March	Governance meeting – oversight of assurance activities, financial results and approval of Internal Audit plan


	Members	Meetings attended / Eligible to attend
	Diane Radley (Chair)	8/8
	Vivek Ahuja ¹	6/7
	Vanessa Olver	8/8
	Louisa Stephens²	5/5
	Brian Stevenson³	3/3

1. Vivek Ahuja was appointed as a member of the Committee effective

6 May 2025 and stepped down as a member of the Committee from

29 January 2026.

2. Louisa Stephens was appointed as a member of the Committee effective

21 August 2025.

3. Brian Stevenson was appointed as a member of the Committee effective

26 July 2024 and stepped down as a member of the Committee from

08 August 2025.


	Further details of the experience of the members can be found in their biographies in the Investec Group’s 2026 integrated and strategic annual report.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED

Principal areas of focus

Key matters

Key matters are those areas of focus that, in the view of the Committee, are material in nature - requiring significant exercise of

judgement - and that may be subjective or complex from an accounting or auditing perspective.

The following key matters were the focus of the Committee during the 2026 financial year::


	Key matter		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, changes in methodology and assumptions. Additional consideration was given to the impact on the ECL provisions as a result of the conflict in the Middle East • Reviewed for reasonableness the benchmarking of macro-economic scenarios, ECLs, Credit Loss Ratio (CLR) and coverage ratios against relevant UK peers • Assessed ECL experienced against forecasts and back-testing, 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.
	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, investment properties, fair value loans and large bespoke derivative structures, a high degree of subjectivity surrounds the inputs to the valuations and associated 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 2026 • 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.
	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 • 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 52 of the Investec Group’s 2026 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 under the International Financial Reporting Interpretations Committee (IFRIC) 23.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED

Execution of responsibilities


	Responsibility		What we did
	Going concern and the viability statement		• Considered reports and stress-testing analysis on the Group’s budgets, forecasts, profitability, the current and the proposed changes to the business model, capital, liquidity and solvency and the impact of legal proceedings, if any, on both going concern and the three-year Viability Statement • Considered the impact of strategic corporate actions on the capital plans and the three-year Viability Statement.
	Technology, information security and cyber and data management controls impacting financial reporting		• Received and reviewed reports in respect of IT systems, cyber security and controls impacting financial reporting and feedback from the DLC ITRGC • Received regular reports from IA on the effectiveness of IT controls tested as part of the internal audit process • Met with IT external auditors to discuss the results of the audit of IT systems and controls.
	External audit and audit quality		• 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 judgements and estimates, restatements and the control environment, in the context of the external audit report on the review performed on the interim results, and the audit performed on the annual results • Approved the external audit plan, audit fee, engagement letter, management representation letters and the main areas of focus of the audit • Reviewed the appropriateness of materiality levels to be applied by the external auditors in their year end audit • Assessed the independence and effectiveness of the external auditors before recommending the auditors to the Board for their reappointment at the AGM. This included an assessment of the FRC’s inspection report, as well as internal quality review reports and processes. Concluded the external audit process to be effective, taking into account the Group Finance assessment of audit effectiveness.
	Regulatory compliance and reporting		• Received regular reports from the DLC BRCC and maintained membership between it and our own Committee to ensure we were comfortable with 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 and regulators.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED


	Responsibility		What we did
	Sustainability, including climate risk		• Reviewed reporting and disclosures • Reviewed the scope of the external assurance provided on the sustainability reporting and disclosures • Considered the changing regulatory landscape for all jurisdictions in which the Group operates.
	Internal controls Assess the overall control environment and 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 all financial and non-financial risks • Evaluated and tracked the status of material control issues identified by internal and external audit and tracked the progress of the associated remediation plans against agreed timeframes • Reviewed reports from the independent audit committees of the Group’s subsidiaries, including entities for which the Group’s management is operationally responsible • Reviewed the newly implemented Financial Control Framework designed to enhance and standardise the financial control environment supporting reliable financial reporting • 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 the DLC ITRGC meeting and received regular reports 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 the combined assurance model, ensuring completeness of risks and adequacy and effectiveness of assurance coverage • Reviewed the process put in place to provide assurance on the control attestation as required by provision 29 of the UK Corporate Governance Code. The first attestation will be provided in the annual statements for the year ending 31 March 2027 • 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 its planned and actual audit coverage for the year.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED


	Responsibility		What we did
	Combined assurance matrix		• Received regular updates on the new Group-wide combined assurance model process being undertaken to further enhance the combined assurance model and the alignment of risk taxonomies across the Group • Confirmed that the existing combined assurance models remained applicable for the 2026 financial year, covering the various disciplines of Risk Management, Regulatory compliance, internal and external audit as well as 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 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 strategy, business model and financial position.		• Undertook an assessment on behalf of the Board, to provide the Board with assurance that it can make the related statement. This included a review of the accounting treatment of key judgements, accounting policies applied and the quality of earnings assessment • Obtained input and assurance from the external auditors and considered the level of and conclusion on the summary of audit differences • Concluded that the processes underlying the preparation of the annual report and financial statements for the financial year ended 31 March 2026 were appropriate in ensuring that those statements were fair, balanced and understandable • Reviewed the process put in place to provide assurance on the control attestation as required by provision 29 of the UK Code. The first attestation will be provided in the annual statements for the year ending 31 March 2027.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED


	Responsibility		What we did
	Finance function		• Considered the financial reporting as prepared by Group Finance regarding the interim results for the period ended 30 September 2025 and final results for the 31 March 2026 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.
	Internal Audit The Committee is responsible for the internal audit plan coverage, tracking of findings, monitoring audit quality, the level of resources, and the independence and effectiveness of the function.		• Scrutinised and reviewed internal audit plans, risk assessments and methodology and approved the annual plan. The Committee satisfied itself that Internal Audit has the appropriate resources to execute on the annual plan • Reviewed and approved the Group internal audit charter • Provided input into and considered the annual performance, objectives and independence of the Head of Internal Audit • The Chair met with the Head of Internal Audit prior to each Committee meeting, without Management present, to discuss the remit of and reports of internal audit - and any issues arising from the internal audits conducted • 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 timely close-out by management • Discussed and considered the internal audit quality assurance programme • Reviewed the use of data analytics in ensuring comprehensive population testing in data sets, with a focus on journal entry testing • Reviewed the Investec plc written assessment of the overall effectiveness of the organisation’s governance, risk and control framework. This included 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 • Considered succession and the skills matrix for internal audit.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

PLC AUDIT COMMITTEE REPORT CONTINUED

External audit

Non-audit services

Our policy on non-audit services was developed to safeguard

auditor objectivity and independence.

Total fees paid for the financial year ended 31 March 2026

amounted to £7.7 million (2025: £8.5 million), of which

£1.5 million (2025: £2.7 million) related to the provision of non-

audit services. The non-audit services related to those 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.

Total Fees (£m)

Auditor independence, objectivity and audit quality

The Committee thoroughly assessed audit quality at both the

engagement and firm levels, including audit effectiveness,

independence, and rotation requirements across all jurisdictions

where the Group operates.

In its review of audit quality and independence, the Committee

undertook a comprehensive feedback process. After due

evaluation, the Committee is confident that the safeguards it

has implemented are sufficient to ensure the objectivity and

effectiveness of the audit process, as well as the independence

of Deloitte LLP.

The Committee reviewed the External Auditors’ report, focusing

specifically on the key audit matters and opinion. Closed

meetings were held with the External Auditors to address any

areas of concern, discuss their working relationship with

Management, and evaluate the effectiveness of the finance

function. No material concerns were identified.

Re-election of auditors

The Board and the Committee are recommending the re-

appointment of Deloitte LLP, as auditors of Investec plc, at its

AGM in August 2026 for the financial year ending

31 March 2027. The Committee confirms its satisfaction with

the performance and quality of the External Audit function, the

External Audit firms and the engagement partners.

Focus for the 2026/2027 financial year

In addition to fulfilling its key responsibilities in line with its

Terms of Reference, the Committee will be focusing on:

• Preparation for provision 29 of the UK Code of 2024 which

requires boards to monitor and annually review the

company's risk management and internal control framework -

including a declaration on the effectiveness of material

controls (financial, operational, reporting, and compliance),

and reporting on any failures and corrective actions taken

• Continued focus on the significant judgements and estimates

that influence the financial performance and position of the

Group

• Review of the output of the Financial Control Framework

which embeds key controls and ensures internal control

processes remain relevant in a changing world.

• Oversight of the revision process for the Combined

Assurance model, ensuring the effective functioning of the

Group’s financial systems and processes are monitored by a

relevant and refreshed model

• Challenging management on key IT general control risks and

increasing levels of automation in the financial reporting

areas. Focus will be applied to the use of AI and related

controls.

Conclusion

The Committee affirms that it has effectively discharged its

responsibilities and positively contributed to the Group’s

governance framework. It remains committed to upholding the

highest standards in financial reporting integrity and internal

control environments.

Diane Radley

Chair, Investec plc Audit Committee

12 June 2026



02	Risk management and governance	CORPORATE GOVERNANCE	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT

The Directors' report for the year ended 31 March 2026

comprises pages 50 to 57 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 137 of the Investec Group’s 2026 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 pages 97 to 98

• Information on how the directors have had regard to the

Group's stakeholders, and the effect of that regard, on pages

40 to 50 of the Investec Group’s 2026 integrated and

strategic report.

The strategic report (as contained in the Investec Group’s 2026

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 2026 integrated and strategic report and the

Investec Group’s 2026 risk and governance report.

Information relating to the use of financial instrumen ts by the

Company can be found on pages 104 to 107 and is incorporated

by reference.

Additional information for shareholders of Investec plc is

detailed in Schedule A to the Directors’ report on pages 58 and

60.

Disclosures required pursuant to the UK Listing Rule 6.6.1.R can

be found on the following pages:


Directors’ remuneration	p177 Integrated Report
Waiver of dividends	p169 Integrated Report
Corporate governance statements	p147 - 149 Integrated Report
Significant contracts	on page 140

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 143 to 146 of the Investec Group’s 2026 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
Brian Stevenson	Non-Executive Director	7 August 2025
Appointments
Vivek Ahuja	Non-Executive Director	6 May 2025
Louisa Stephens	Non-Executive Director	21 August 2025
Nkululeko Sowazi	Non-Executive Director	8 June 2026

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.

Philip Hourquebie will reach nine years of service with the

Group and accordingly will not stand for re-election at the 2026

AGMs of the Group.

Stephen Koseff has informed the Board that he will not stand

for re-election at the 2026 AGMs of the Group.

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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

Directors and their interests


	Details of the directors’ shareholdings and options to acquire shares are detailed in the Investec Group’s 2026 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.

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 buyback shares.

Directors were granted authority to issue and allot shares and

to buy back shares at the 2025 AGM. Shareholders will be

asked to renew these authorities at the 2026 AGM and further

details will be provided in the AGM notice.

Contracts


	Details of contracts with directors can be found o n pages 21 and 22 of the Investec Group's 2026 remuneration report.

Authorised and issued share capital

Details of the share capital are set out on pages 133 to 134 in

note 37 to the annual financial statements.

Investec plc did not issue any ordinary shares during the

financial year ended 31 March 2026.

Investec plc did not repurchase any of its ordinary shares during

the financial year ended 31 March 2026. Investec Limited held

65 541 154 Investec plc shares.

At 31 March 2026, Investec plc held 46 920 089 shares in

treasury (2025: 50 175 786 ), for allotment under share plans.

The maximum number of shares held in treasury by Investec plc

during the period under review was 50 084 598 shares.

Ordinary dividends

An interim dividend of 17.5p per ordinary share (2024: 16.5p)

was paid on 30 December 2025, as follows:

• 17.5p per ordinary share to non-South African resident

shareholders registered on 12 December 2025, and

• To South African resident shareholders registered on

12 December 2025, through a dividend paid by Investec

Limited on the SA DAS share, equivalent to 17.5p per

ordinary share.

The directors have proposed a final dividend to shareholders

registered on 21 August 2026 of 21p (2025: 20p) 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

6 August 2026. If approved, this will be paid on

15 September 2026, as follows:

• 21p per ordinary share to non-South African resident

shareholders registered on 21 August 2026, and

• South African resident shareholders registered on

21 August 2026, through a dividend paid by Investec Limited

on the SA DAS share, equivalent to 21p per ordinary share.

Preference dividends

Non-redeemable, non-cumulative, non-

participating preference shares

Preference dividend number 39 for the period 1 April 2025 to

30 September 2025, amounting to 26.19862p per share, was

declared to members holding preference shares registered on

28 November 2025 and was paid on 12 December 2025.

Preference dividend number 40 for the period 1 October 2025

to 31 March 2026, amounting to 24.21920p per share, was

declared to members holding preference shares registered on

21 August 2026 payable on 4 September 2026.

Rand-denominated non-redeemable, non-

cumulative, non-participating preference shares

Preference dividend number 29 for the period 1 April 2025 to

30 September 2025, amounting to 511.89384 cents per share,

was declared to members holding Rand-denominated

non-redeemable, non-cumulative, non-participating preference

shares registered on 28 November 2025 and was paid on

12 December 2025.

Preference dividend number 30 for the period 1 October 2025

to 31 March 2026, amounting to 488.85959 cents per share,

was declared to members holding Rand-denominated non-

redeemable, non-cumulative, non-participating preference

shares registered on 21 August 2026 and payable on

26 August 2026.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

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 in the Investec

Group’s 2026 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.

Viability statement

The UK Corporate Governance Code requires the Board to

provide both a going concern statement (see page 52) and a

viability statement. The viability statement sets out the Board’s

assessment of Investec plc’s current position, future prospects,

and the principal and emerging risks it faces, including the

period assessed and the rationale for selecting that timeframe.

The Board has used a three-year assessment period as this is

aligned to the Investec plc’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 provides

senior management and the Board sufficient and realistic

visibility of Investec plc’s viability over the three years to 31

March 2029.

Following confirmation by the IBP 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 Bank and these are highlighted on page 27 onwards, with

further detail provided in the Investec Bank plc (Investec plc’s

parent company) annual report.

Through its various committees and sub committees, notably

the IBP Audit Committee, the IBP BRCC and the IBP Capital

Committees, 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 Investec plc. The activities of these Board sub-

committees and the issues considered by them are described in

the governance section of this report.

Taking these risks into account, together with the Bank’s

strategic objectives and the prevailing market environment, the

Board approved the overall mandated risk appetite framework

for Investec plc. The risk appetite frameworks set broad

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 and capital in accordance with the three lines of defence

model, i.e. business units, independent risk & compliance

functions and independent internal audit. In addition, to manage

the Bank’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 and Capital 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 and capital 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 Investec plc’s strategy and allow the Bank

to operate within its risk appetite framework. Performance

against the risk appetite framework is reviewed at each IBP

BRCC meeting, with a report-back provided at each Board

meeting.

In terms of the FCA and PRA requirements, Investec plc is also

required to meet regulatory standards with respect to capital

and liquidity. In terms of these requirements, Investec plc 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 Bank’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). Investec plc 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 Bank’s risk appetite also

requires it to maintain specified minimum levels for both the

liquidity coverage ratio and net stable funding ratio and

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 legal banking entity within Investec plc is required

to be fully self-funded. The Bank currently has £9.4 billion in

cash and near cash assets, representing 44% of customer

deposits.

Investec plc maintains a three-year capital planning horizon,

developed annually and reviewed semi-annually. These plans

are also updated on an ad-hoc basis in response to material

events. By assessing the capital adequacy under various

economic and internal scenarios, the Bank evaluates impacts on

earnings, asset growth, risk appetite, and liquidity. Ultimately,

this process provides Senior Management and the Board with

the insights necessary to maintain sufficient capital against

internal and regulatory targets over the medium term. Investec

plc targets a CET1 ratio in excess of 10%, a tier 1 ratio greater

than 11%, a minimum capital adequacy ratio of 14% to 17%, and

a leverage ratio in excess of 6%.

The parameters used in the capital and liquidity stresses are

reviewed regularly, taking into account the principal and

emerging risks facing the Bank, changes in the business

environments and inputs from business units. Scenarios are



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

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: The UK economy proved to be resilient in the face

of 2025’s tariff uncertainty. This performance is expected to

translate into a modest pace of growth in 2026 and beyond,

supported by interest rate cuts, increased investment and a

housebuilding drive. Inflation is expected to moderate

following the mini upswing in 2025, averaging 2.4% in 2026

and returning to target in 2027. Easing price pressures are

anticipated to prompt additional monetary easing from the

Bank of England, with the Bank rate expected to fall to 3.25%

at the end of 2026 and to 3.00% in 2027. Globally economic

growth is expected to remain stable, with annual Global GDP

expected to average 3.3% over the forecast horizon.

Advanced market economies are projected to post modest

rates of growth, with the US expected to outperform with

annual rates of growth in excess of 2%. China is assumed to

see GDP growth of around 4.5% over the medium term. As

with the UK, globally monetary policy is anticipated to return

to more neutral levels.

Investec plc’s expected base case is as approved and

implemented through the budgetary process prior to the onset

of the Middle East conflict and is used for year‑end reporting as

well as medium‑term business and capital planning purposes.

Notwithstanding this, IBP recognises the heightened volatility in

the external macroeconomic environment and the resulting

uncertainty around certain forecasting assumptions, including

the near‑term trajectory of inflation and the consequent interest

rate outlook. These factors have been considered in forming

IBP’s overall assessment of viability.

In assessing stress scenarios for the 2026 capital planning

exercise, two different macroeconomic scenarios were

considered. The first scenario focuses on the risks associated

with AI valuations and private credit and a significant market

shock. The second scenario considers the implications from a

prolonged conflict in Iran and a significant rise in energy prices.

These are defined below:

• Severe downside scenario 1: Equity markets witness a

significant repricing in AI tech companies, triggering sharp

falls in equities more broadly, the FTSE 100 falls 56%. This

spreads across asset classes and prompts an unwinding of

what had been a period of compressed risk premiums (£ high

yield credit spreads widen by 1525bps), permeating into the

private credit space. The market shock feeds through into the

real economy. In the UK, GDP is assumed to contract by

c.5%. Against this difficult macro backdrop UK real estate

values fall 15%. Central banks are assumed to respond

aggressively to the demand shock, cutting interest rates and

restarting Quantitative Easing (QE). In the UK the Bank of

England is expected to cut the Bank rate to a low of 0.25%.

Given the expedited policy response and lack of a lasting

impact on lending the economy is expected to recover

relatively quickly, recovering the pre-crisis peak in GDP in two

years. The shock is global in nature with the US in particular

affected by a sharp fall in AI investment, the economy

contracting 5.7%, the EU21 by contrast sees a 4.1% fall in

output, world GDP -2.9%. As with UK, interest rates are cut to

close to zero in both the US and EU21.

• Downside scenario 2: Represents the risk scenario of a

significant escalation in the Iranian war, pushing oil prices to

$150/bbl and natural gas prices to 200p/therm, with prices

remaining elevated for a prolonged period of time. In the UK

CPI inflation is assumed to rise to 6.0% at the peak and

average 4.4% over the 5 year projection horizon. The Bank of

England is assumed to respond to the inflationary pressures

with a tightening in monetary policy, with the Bank rate rising

to 5.50% in Q1 2027, before easing towards the end of the

scenario horizon. The economy endures a seven-quarter

recession with GDP contracting by 3.1% peak to trough.

Unemployment rises to a peak of 7.9%, which combined with

higher interest rates contributes to a 17% fall in house prices.

Given the global nature of the energy price shock inflation

rises sharply across the world prompting interest rate

increases from other major central banks. The Federal

Reserve is assumed to increase interest rates by 175bps and

the ECB by 150bps. The US and Euro area economies see

recessions of 2.7% and 2.5% respectively. Consequently,

global GDP growth contracts by 1.8%.

Investec plc implements regulatory scenarios (UK BoE Bank

Capital Stress Scenario) when they are published by the

regulator. At the time of writing the Bank of England had not

published a new regulatory stress test for 2026. Its previous

scenario the 2025 Bank Capital Stress Test (BCST) was

incorporated into the 2025 ICAAP.

The Board has assessed the Bank’s viability in its ‘base case’

and stress scenarios. In assessing Investec plc’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.

Furthermore, an idiosyncratic scenario is run as part of the

capital planning exercise. The idiosyncratic scenario is triggered

by an adverse hypothetical event idiosyncratic to Investec plc

causing elevated losses, negatively setting it apart from its

peers. The scenario narrative assumes such an event would

lead to a negative external signal specific to Investec, which

then triggers further financial and non-financial consequences.

Investec also carries out ‘reverse stress tests’, i.e., scenarios

that cause the business model to fail. Reverse stress 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 IBP. 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 PRA requirements, on a

proportionate basis for the size and complexity of the Group. To

date, findings indicate that transition and physical risk is low

and Investec plc has sufficient liquidity and capital to continue

as a going concern and meet regulatory liquidity and capital

requirements.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

Investec plc is required to maintain a contingency funding and

recovery plan, and a resolution pack for the Investec plc

consolidated Group. The recovery plan documents how the

Board and senior management will ensure that the Investec plc

Group recovers from extreme financial stress to avoid liquidity

and capital difficulties. The key focus in the recovery plan is the

Bank and the protection of its depositors and other clients.

The BoE confirmed in a letter dated 19 December 2025 the

preferred resolution strategy for Investec plc would remain as

bail-in, with Investec plc and IBP as a material subsidiary,

subject to a binding MREL requirement. The MREL transition

commenced on 1 January 2026 in a phased manner with end

state MREL applying from 1 January 2032. As a bail-in firm,

Investec plc has come into scope of the BoE’s Resolvability

Assessment Framework and will be required to achieve the

three resolvability outcomes by 1 July 2027. Investec plc is

committed to ensuring its resolution capabilities meet the

required regulatory standards.

Investec plc also maintains an operational resilience framework

that defines important business services, impact tolerances,

recovery time objectives and plans to respond effectively to any

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 and, more recently, during the escalation of

the Middle East conflict. In addition, senior management hosts

an annual risk appetite process at which the Bank’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 is presented to the Board during its strategic

review process early in the year.

In assessing the Bank’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 Investec plc 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 27 to 41 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 27 which provides information on the overall Group’s

risk appetite

• Page 24 which provides an overview of the Group’s approach

to risk management

• Pages 27, 156, 181 and 195 which highlight information on the

Group’s various stress testing processes

• Pages 185 to 191 which specifically focus on the Group’s

philosophy and approach to liquidity management

• Page 194 which provides detail on the recovery and

resolution plan

• Pages 195 to 199 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 12 June

2026. 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 109 to 113 of the Investec Group’s 2026 risk and governance report.

Sustainability report


	For information on our approach to social, environmental and ethical matters, please refer to the Investec Group’s 2026 Integrated Sustainability Report which is published and made available on our website www.investec.com



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

Investec plc carbon footprint

Streamlined energy and carbon reporting (SECR)


		2025/26			2024/25
Metric	Unit	UK and offshore1	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 ₂e	157	53	210	213	3	216
Emissions from purchase of electricity (Scope 2 location based)	tC0 ₂e	687	619	1 306	521	414	935
Total gross Scope 1 & Scope 2 emissions (location based)	tC0 ₂e	844	672	1 516	734	417	1 151
Energy consumption used to calculate above emissions ²	kWh	4 604 745	1 268 350	5 873 095	3 549 772	745 309	4 295 081
Intensity ratio: Location based gross Scope 1 + 2 emissions per employee ³	tC0 ₂e/ Headcount	0.44	1.41	0.63	0.37	1.15	0.49
Total gross Scope 3 operational emissions	tC0 ₂e	4 988	637	5 625	8 466	424	8 890
Total gross Scope 1, Scope 2 & Scope 3 operational emissions (location based)	tC0 ₂e	5 832	1 310	7 142	9 200	841	10 041
Intensity ratio: Location based gross Scope 1, 2 + 3 operational emissions per employee ³	tC0 ₂e/ Headcount	3.04	2.74	2.98	4.67	2.32	4.31
Scope 2 market based ⁴	tC0 ₂e	—	—	—	—	—	—
Carbon offsets ^5,6	tC0 ₂e	5 145	690	5 835	8 679	427	9 106
Total annual net emissions (market based)	tC0 ₂e	—	—	—	—	—	—

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 (2025). The reporting period is April 2025 to March

2026, as per the financial accounts. Investec plc’s Scope 1 emissions refer to natural gas, LPG, CO2, 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: employee commuting and working from home.

Energy efficiency and carbon reduction initiatives

During the 2025/2026 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 and CO2 (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 CO2) 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 Verified Carbon Standards (VCS) carbon credits. These carbon credits were sourced from

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”.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

Climate-related financial

disclosures report


	Refer to the Investec Group’s 2026 Integrated Sustainability 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 e s 104 to 108 of the Investec Group’s 2026 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 13 of the Investec Group’s 2026 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 42 to 49.

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.

Deloitte LLP have indicated their willingness to continue in

office as auditors. A resolution proposing their re-appointment

as auditors will be submitted to the annual general meeting.

Major shareholders


	The largest shareholders of Investec plc are shown on page 187 of the Investec Group’s 2026 integrated and strategic annual report.

Special resolutions

At the AGM held on 7 August 2025, 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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

DIRECTORS’ REPORT CONTINUED

Diversity, equity and inclusion

Diversity, equity and inclusion are integral to Investec’s purpose

of creating enduring worth. Our approach is supported by clear

governance and accountability and focuses on building a

representative, inclusive and high-performing organisation,

where people have equitable access to opportunity and are

treated with respect. We are committed to attracting,

developing and retaining talent across a broad range of

backgrounds, perspectives and experiences, and to building a

workforce that reflects the communities and markets in which

we operate.

We enable diversity, equity and inclusion through targeted

recruitment strategies that actively seek difference, structured

development programmes, employee networks, inclusive

people practices and policies and active stakeholder

engagement. We have clearly defined measures and targets

and monitor representation and progression across the talent

and succession pipeline.

Investec is committed to being an equal opportunity employer.

In accordance with our policies and practices, and relevant

International Labour Organization (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 2026 sustainability report.

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 2026 (2025: Nil).

Subsidiary and associated undertakings


	Details of principal subsidiary and associated companies are reflected on pages 148 to 150

Contingent liabilities, legal matters and

provisions

The Board considered contingent liabilities, legal matters and

provisions with a view to ensuring appropriate accounting

treatment in the financial statements. Refer to note 44 on

page 139.

Events after the reporting date


	Refer to note 53 of the Annual Financial statements.

Signed on behalf of the Board of Investec plc

Philip Hourquebie

Group Chair

12 June 2026

Fani Titi

Group Chief Executive

12 June 2026



02	Risk management and governance	Investec plc Annual Financial Statements 2026

SCHEDULE A TO THE DIRECTORS’ REPORT

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 company law including the Companies Act 2006 (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 2026

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

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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

SCHEDULE A TO THE DIRECTORS’ REPORT CONTINUED

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 a special 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 them. Under the Company’s share

incentive plan, participants receiving forfeitable award type are

the beneficial owners of the shares but are 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.

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 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 regard 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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

SCHEDULE A TO THE DIRECTORS’ REPORT CONTINUED

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 enable 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.



02	Risk management and governance	Investec plc Annual Financial Statements 2026

We are making good progress

with our strategy to enhance our

platforms, leverage our franchises,

and deliver long-term value for

our stakeholders.



03	Annual financial statements	Investec plc Annual Financial Statements 2026

Annual financial

statements

Our performance is a testament to the continued

execution of our strategy. This section contains

Investec plc’s annual financial statements.



03	Annual financial statements	Investec plc Annual Financial Statements 2026

IN THIS SECTION



64	Directors’ responsibilities


66	Independent auditor’s report to the members of Investec plc


68	Consolidated income statement


69	Consolidated statement of comprehensive income


70	Consolidated balance sheet


71	Consolidated cash flow statement


72	Consolidated statement of changes in equity


74	Accounting policies


88	Notes to the financial statements


155	Notes to risk management (including capital management)


200	Parent company annual financial statements



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

DIRECTORS’ RESPONSIBILITIES

Directors ’ responsibilities

The following statement, which should be read in conjunction

with the auditor’s report set out on pages 66 to 67, 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 2026, 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 Parent Company, and

of the profit or loss of the Group and the Parent 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 Parent Company

and/or the Group will not continue in business

• Provision 29 of the 2024 UK Corporate Governance Code is

not applicable for the current financial year. The

requirements will be adhered to in the next financial year



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

DIRECTORS’ RESPONSIBILITIES CONTINUED

The directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the Parent

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

Parent 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.

Under 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 corporate and financial information on the

Group’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 regard 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.

Directors’ responsibility statement

The directors, whose names and functions are set out on pages

143 to 146 of Investec Group’s 2026 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 2026 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 2026.

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 Parent Company, which appear on pages 50 to

57 and pages 92 to 96, were approved by the Board

of directors on 12 June 2026.

Signed on behalf of the Board

Philip Hourquebie

Group Chair

12 June 2026

Fani Titi

Group Chief Executive

12 June 2026



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INVESTEC PLC

Report on the audit of the special

purpose financial statements

Opinion

In our opinion the special purpose financial statements of

Investec plc (the ‘parent company’) and its subsidiaries (the

‘group’) for the year ended 31 March 2026 are prepared, in all

material respects in accordance with the accounting policies

stated on pages 74 to 87.

We have audited the special purpose financial statements

which comprise:

• the consolidated income statement;

• the consolidated statement of comprehensive income;

• the consolidated balance sheet;

• the consolidated cash flow statement;

• the consolidated statement of changes in equity;

• the parent company balance sheet;

• the parent company statement of changes in shareholders’

equity;

• the group material accounting policy information and related

notes 1 to 53 excluding the risk and capital management

disclosures in notes 54 to 63 marked as unaudited; and

• the parent company statement of accounting policies and the

related notes a to j.

The financial reporting framework that has been applied in their

preparation is the accounting policies stated on pages 74 to 87.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (UK) (ISAs (UK)), including ISA (UK) 800.

Our responsibilities under those standards are further described

in the auditor's responsibilities for the audit of the special

purpose financial statements section of our report.

We are independent of the group and the parent company in

accordance with the ethical requirements that are relevant to

our audit of the special purpose financial statements in the UK,

including the Financial Reporting Council’s (the ‘FRC’s’) 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.

Emphasis of matter – basis of accounting

We draw attention to pages 74 to 87 of the special purpose

financial statements, which describes the basis of accounting

and is a special purpose framework. The financial statements

are prepared to assist the company in complying with the

financial reporting provisions of the contractual agreements as

explained further on page 74. As a result, the special purpose

financial statements may not be suitable for another purpose.

Our opinion is not modified in respect of this matter.

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.

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

company’s ability to continue as a going concern for a period of

at least twelve months from when the financial statements are

authorised for issue.

Our evaluation of the directors’ assessment of the group’s and

parent company’s ability to continue to adopt the going concern

basis of accounting included:

• obtaining an understanding of management’s process to

arrive at their conclusion to prepare the financial statements

on a going concern basis;

• with the involvement of our regulatory specialists:

– challenging the liquidity and capital adequacy and stress

testing assumptions used by management, including

consideration of regulatory enquiries and observations,

management actions and whether applied stresses were

reasonable in the context of the group and parent

company’s operating environment;

– assessing emerging operational, regulatory and market

risks facing entities within the group and the parent

company, including the impact of volatility in global

financial markets and management’s strategic initiatives;

• evaluating the group’s business model and operations;

• assessing the key assumptions supporting the group’s and

parent company’s latest budget forecasts;

• assessing the historical accuracy of forecasts prepared by

management; and

• assessing the appropriateness of going concern disclosures

made in the notes to the financial statements.

Our responsibilities and the responsibilities of the directors with

respect to going concern are described in the relevant sections

of this report.

Other information

The other information comprises the information included in the

annual report, other than the special purpose financial

statements and our auditor’s report thereon. The directors are

responsible for the other information contained within the

annual report. Our opinion on the special purpose financial

statements does not cover the other information and 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 special purpose 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 this gives rise to a material

misstatement in the special purpose financial statements

themselves. If, based on the work we have performed, we

conclude that there is a material misstatement of this other

information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of directors

As explained more fully in the directors’ responsibilities

statement, the directors are responsible for the preparation of

the special purpose financial statements in accordance with the

financial reporting provisions of the contractual agreements as

explained further on page 74, and for such internal control as

the directors determine is necessary to enable the preparation

of special purpose financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the special purpose financial statements, the

directors are responsible for assessing the group’s and parent

company’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the

going concern basis of accounting unless the directors either

intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INVESTEC PLC CONTINUED

Auditor’s responsibilities for the audit of

the special purpose financial statements

Our objectives are to obtain reasonable assurance about

whether the special purpose 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 special purpose financial statements.

A further description of our responsibilities for the audit of the

special purpose financial statements is located on the FRC’s

website at: www.frc.org.uk/auditorsresponsibilities. This

description forms part of our auditor’s report.

Extent to which 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 material

misstatements in respect of irregularities, including fraud. The

extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below.

We considered the nature of the group’s industry and its control

environment, and reviewed the group’s documentation of their

policies and procedures relating to fraud and compliance with

laws and regulations. We also enquired of management, internal

audit, members of the legal, risk and compliance functions, the

directors and the audit committee about their own identification

and assessment of the risks of irregularities, including those

that are specific to the group’s business sector.

We obtained an understanding of the legal and regulatory

frameworks that the group operates in, and identified the key

laws and regulations that:

• had a direct effect on the determination of material amounts

and disclosures in the financial statements.These included

the contractual arrangements which create the Dual Listed

Company structure and tax legislation; and

• do not have a direct effect on the financial statements but

compliance with which may be fundamental to the group’s

ability to operate or to avoid a material penalty. These

included regulations and supervisory requirements of the PRA,

FCA and HMRC.

We discussed among the audit engagement team including

component audit teams and relevant internal specialists such as

tax, credit, valuations, IT and regulatory specialists regarding the

opportunities and incentives that may exist within the

organisation for fraud and how and where fraud might occur in

the financial statements.

As a result of performing the above, we identified the greatest

potential for fraud in the following areas, and our procedures

performed to address them are described below:

• Provision for expected credit losses (ECL) on loans and

advances to customers: We evaluated the Group's ECL policy

against IFRS 9, tested the accuracy of the underlying data,

and, with specialist involvement, challenged the

reasonableness of the macroeconomic scenarios applied in

the context of the current economic environment, the

appropriateness of the significant increase in credit risk

(“SICR”) criteria and methodology for corporate loans (as well

as an assessment by the audit team of the implementation of

SICR criteria with reference to quantitative and qualitative

factors), collateral valuations, and cash flow assumptions

used in the ECL calculation.

• Valuation of level 3 equity investments and associated

unrealised income: We involved valuation specialists to

support us in challenging management's valuations, including

the methodology and data inputs. This involved obtaining an

independent valuation range, comparing it to management's

valuation, and recalculating unrealised gains based on our

independent assessments.

In common with all audits under ISAs (UK), we are also required

to perform specific procedures to respond to the risk of

management override. In addressing the risk of fraud through

management override of controls, we tested the

appropriateness of journal entries and other adjustments;

assessed whether the judgements made in making accounting

estimates are indicative of a potential bias; and evaluated the

business rationale of any significant transactions that are

unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks

identified included the following:

• reviewing financial statement disclosures by testing to

supporting documentation to assess compliance with

provisions of relevant laws and regulations described as

having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or

unexpected relationships that may indicate risks of material

misstatement due to fraud;

• enquiring of management, internal audit, and in-house and

external legal counsel concerning actual and potential

litigation and claims, and instances of non-compliance with

laws and regulations; and

• reading minutes of meetings of those charged with

governance, reviewing internal audit reports, reviewing

correspondence with HMRC, PRA and FCA.

Other matter

Investec plc has prepared a separate set of combined

consolidated statutory financial statements for the year ended

31 March 2026 in accordance with United Kingdom adopted

international accounting standards and IFRS Accounting

Standards as issued by the International Accounting Standards

Board on which we issued a separate auditor’s report to the

shareholders of Investec plc dated 12 June 2026.

Use of our report

This report is made solely to the company’s directors, as a body,

in accordance with our engagement letter dated 17 October 2025

and solely for the purpose of presenting the financial position and

results of Investec plc and its subsidiaries as if the contractual

arrangements which create the Dual Listed Company structure

did not exist. Our audit work has been undertaken so that we

might state to the company’s directors those matters we are

required to state to them in an auditor’s report and for no other

purpose. To the fullest extent permitted by law, we do not accept

or assume responsibility to anyone other than the company, for

our audit work, for this report, or for the opinions we have formed.

The engagement partner on the audit resulting in this

independent auditor’s report is Tom Millar.

Deloitte LLP

London, United Kingdom

12 June 2026



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED INCOME STATEMENT


For the year to 31 March
£’000	Notes	2026	2025
Interest income	2	1 734 966	1 960 100
Interest income calculated using effective interest rate method		1 636 052	1 868 358
Other interest income		98 914	91 742
Interest expense	2	(1 013 690)	(1 185 447)
Net interest income		721 276	774 653
Fee and commission income	3	228 334	194 743
Fee and commission expense	3	(21 489)	(13 911)
Investment income	4	61 489	52 718
Share of post-taxation profit of associates and joint venture holdings	25	60 283	40 921
Profit before amortisation and integration costs		89 862	75 220
Amortisation of acquired intangibles		(15 048)	(6 312)
Acquisition related and integration costs of associate		(14 531)	(27 987)
Trading income arising from
– customer flow*		91 494	85 542
– balance sheet management and other trading activities		6 030	14 236
Other operating income	5	20 778	5 764
Operating income		1 168 195	1 154 666
Expected credit loss impairment charges	6	(97 362)	(97 040)
Operating income after expected credit loss impairment charges		1 070 833	1 057 626
Operating costs	7	(637 777)	(631 810)
Financial impact of strategic actions**		(19 119)	(19 993)
Profit before taxation		413 937	405 823
Taxation on operating profit before acquired intangibles and strategic actions	9	(74 868)	(73 863)
Taxation on acquired intangibles and strategic actions	9	1 529	(195)
Profit after taxation		340 598	331 765
Profit attributable to non-controlling interests		(355)	(12)
Earnings attributable to equity holders		340 243	331 753
Earnings attributable to ordinary shareholders		301 926	291 616
Earnings distributed to perpetual preferred securities and Other Additional Tier 1 security holders		38 317	40 137

*Included within Trading income arising from customer flow is income of £97.4 million ( 31 March 2025 : £ 93.8 million) and interest expense of £5.9 million

(31 March 2025 : £ 8.3 million).

**In the prior year, an immaterial amount in respect of Closure and rundown of the Hong Kong direct investments business was presented separately. In the current

year, this has been collapsed into Financial impact of strategic actions, with the comparative restated accordingly.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


For the year to 31 March
£’000	Notes	2026	2025

Profit after taxation		340 598	331 765
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	(8 931)	(11 259)
Gains on realisation of debt instruments at FVOCI recycled through the income statement	9	2 171	(166)
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income	9	(128)	(6 120)
Foreign currency adjustments on translating foreign operations		(2 806)	(4 517)
Hedge of net investment in subsidiary		(2 080)	—
Items that will not be reclassified to the income statement:
Fair value movements on equity instruments at FVOCI taken directly to other comprehensive income	9	77 212	(24 559)
Share of other comprehensive income of associates and joint venture holdings		26	(3 803)
Total comprehensive income		406 062	281 341
Total comprehensive income/(loss) attributable to non-controlling interests		117	(12)
Total comprehensive income attributable to equity holders		406 179	281 329
Total comprehensive income attributable to ordinary shareholders		367 862	241 192
Total comprehensive income distributed to perpetual preference securities and Other Additional Tier 1 securities		38 317	40 137



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED BALANCE SHEET


At 31 March
£’000	Notes	31 March 2026	31 March 2025
Assets
Cash and balances at central banks	15	3 173 756	4 191 750
Loans and advances to banks	16	801 104	860 267
Reverse repurchase agreements and cash collateral on securities borrowed	17	1 884 699	1 640 765
Sovereign debt securities	18	3 688 138	2 524 702
Bank debt securities	19	473 920	324 179
Other debt securities	20	1 117 751	770 722
Derivative financial instruments	21	354 121	299 281
Securities arising from trading activities	22	44 723	149 912
Loans and advances to customers	24	17 803 653	16 813 723
Fair value adjustment for asset portfolio hedged risk	47	(20 507)	—
Other loans and advances	24	114 438	139 212
Investment portfolio	23	414 380	347 590
Interests in associated undertakings and joint venture holdings	25	851 867	832 141
Current taxation assets		80 309	25 382
Deferred taxation assets	26	72 671	120 918
Other assets	27	907 198	652 143
Property and equipment	28	149 630	58 940
Goodwill	29	75 700	67 520
Software	30	12 458	4 742
		32 000 009	29 823 889
Liabilities
Deposits by banks		902 678	1 477 568
Derivative financial instruments	21	419 205	274 791
Other trading liabilities	32	19 409	16 242
Repurchase agreements and cash collateral on securities lent	17	1 065 587	178 202
Customer accounts (deposits)	33	22 467 743	21 455 855
Fair value adjustment for liability portfolio hedged risk	47	(10 395)	—
Debt securities in issue	34	1 413 031	1 301 802
Current taxation liabilities		9 264	9 023
Other liabilities	35	1 278 677	938 959
		27 565 199	25 652 442
Subordinated liabilities	36	697 632	682 218
		28 262 831	26 334 660
Equity
Ordinary share capital	37	198	198
Ordinary share premium		555 812	555 812
Treasury shares	39	(236 585)	(217 070)
Other reserves		73 209	7 299
Retained income		2 968 743	2 767 000
Ordinary shareholders’ equity		3 361 377	3 113 239
Perpetual preference share capital and premium	38	24 794	24 794
Other Additional Tier 1 securities in issue	41	350 000	350 000
Non-controlling interests in partially held subsidiaries		1 007	1 196
Total equity		3 737 178	3 489 229
Total liabilities and equity		32 000 009	29 823 889

Included in Loans and advances to banks £46 million (31 March 2025: £48 million); Sovereign debt securities £1.1 billion (31 March 2025:

£178 million); Bank debt securities £12.4 million (31 March 2025: £15 million); Securities arising from trading activities £9.8 million (31 March 2025:

£9 million) and Other loans and advances £0.1 million (31 March 2025: £0.5 million) are assets provided as collateral in respect of liabilities, where

the transferee has the right to resell or repledge. In addition, included in Sovereign debt securities £143 million (31 March 2025: £52 million) are

assets similarly pledged in respect of securities lending transactions.

Fani Titi

Group Chief Executive

12 June 2026



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED CASH FLOW STATEMENT


For the year to 31 March £’000	Notes	2026	2025
Profit before taxation adjusted for non-cash items and other adjustments	43	525 171	600 454
Taxation paid		(62 028)	(58 843)
Increase in operating assets	43	(3 146 084)	(1 330 779)
Increase/(decrease) in operating liabilities	43	2 003 894	(141 860)
Net cash outflow from operating activities		(679 047)	(931 028)
Cash flow on acquisition of subsidiaries, net of cash acquired		(1 167)	—
Cash flow on disposal of associates and joint venture holdings		(5 769)	—
Cash flow on acquisition of property, equipment, software and other intangible assets		(46 964)	(3 943)
Cash flow on disposal of property, equipment, software and other intangible assets		7	205
Cash flow on disposal of associate		1 952	—
Net cash outflow from investing activities		(51 941)	(3 738)
Dividends paid to ordinary shareholders		(117 679)	(103 901)
Dividends paid to other equity holders		(38 317)	(44 004)
Redemption of Other Additional Tier 1 instruments		—	(108 108)
Cash flow on acquisition of treasury shares, net of related costs		(62 051)	(45 171)
Proceeds from issue of subordinated debt		298 343	—
Redemption of subordinated debt		(290 850)	—
Lease liabilities paid		(143 227)	(43 776)
Net cash outflow from financing activities		(353 781)	(344 960)
Effects of exchange rates on cash and cash equivalents		7 014	(1 128)
Net decrease in cash and cash equivalents		(1 077 755)	(1 280 854)
Cash and cash equivalents at the beginning of the year		5 052 017	6 332 871
Cash and cash equivalents at the end of the year		3 974 262	5 052 017
Cash and cash equivalents is defined as including:
Cash and balances at central banks		3 173 756	4 191 750
On demand loans and advances to banks^		800 506	860 267
Cash and cash equivalents at the end of the year		3 974 262	5 052 017

^ The loans and advances to banks balance in the Group cash flow statement does not agree to the balance sheet amount, as £0.6m (2025: £nil) of the balance sheet

total relates to positions with maturities of three to six months, which are not included in cash and cash equivalents.

Cash and cash equivalents have an original maturity profile of less than three months. Loans and advances to banks with a maturity

profile of greater than three months are £0.6 million (31 March 2025 : £ nil).

Included within net cash outflow from operating activities is Interest received of £1 699 million (2025: £1 953 million), interest paid

of £1 025 million (2025: £1 243 million) and dividends received of £17.5 million ( 2025: £15.7 million).



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



£’000	Ordinary share capital	Ordinary share premium	Treasury shares
At 1 April 2024	202	555 812	(193 981)
Movement in reserves 1 April 2024 – 31 March 2025
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	—	—	—
Purchase of treasury shares	—	—	(45 171)
Vesting of share based payments/settlements	—	—	22 082
Cancellation of special converting shares	(4)	—	—
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	—	—	—
Net equity impact of non-controlling interest movements	—	—	—
Net equity movements in associates and joint ventures	—	—	—
At 31 March 2025	198	555 812	(217 070)
Movement in reserves 1 April 2025 – 31 March 2026
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	—	—	—
Hedge of net investment in subsidiary	—	—	—
Total comprehensive income for the year	—	—	—
Share-based payments adjustments	—	—	—
Purchase of treasury shares	—	—	(62 051)
Vesting of share based payments/settlements	—	—	42 536
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	—	—	—
Net equity impact of non-controlling interest movements	—	—	—
Net equity movements in associates and joint ventures	—	—	—
At 31 March 2026	198	555 812	(236 585)

Total comprehensive income attributable to ordinary shareholders is total comprehensive income attributable to equity holders,

less dividends distributed to other equity holders including other Additional Tier 1 security holders and amounts to £367.9 million

(31 March 2025: £241.2 million).



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONTINUED


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
—	27 120	17 664	9 136	2 569 911	2 985 864	24 794	3 010 658	458 108	2 851	3 471 617

—	—	—	—	331 753	331 753	—	331 753	—	12	331 765
—	(166)	—	—	—	(166)	—	(166)	—	—	(166)
—	—	(11 259)	—	—	(11 259)	—	(11 259)	—	—	(11 259)
—	(6 120)	—	—	—	(6 120)	—	(6 120)	—	—	(6 120)
—	(24 559)	—	—	—	(24 559)	—	(24 559)	—	—	(24 559)
—	—	—	(4 517)	—	(4 517)	—	(4 517)	—	—	(4 517)
—	—	—	—	(3 803)	(3 803)	—	(3 803)	—	—	(3 803)
—	(30 845)	(11 259)	(4 517)	327 950	281 329	—	281 329	—	12	281 341
—	—	—	—	41 953	41 953	—	41 953	—	—	41 953
—	—	—	—	—	(45 171)	—	(45 171)	—	—	(45 171)
—	—	—	—	(22 082)	—	—	—	—	—	—
—	—	—	—	—	(4)	—	(4)	—	—	(4)
—	—	—	—	—	—	—	—	(108 108)	—	(108 108)
—	—	—	—	(103 901)	(103 901)	—	(103 901)	—	—	(103 901)
—	—	—	—	(1 780)	(1 780)	1 780	—	—	—	—
—	—	—	—	—	—	(1 780)	(1 780)	—	—	(1 780)
—	—	—	—	(38 357)	(38 357)	—	(38 357)	38 357	—	—
—	—	—	—	—	—	—	—	(38 357)	—	(38 357)
—	—	—	—	1 755	1 755	—	1 755	—	(1 667)	88
—	—	—	—	(8 449)	(8 449)	—	(8 449)	—	—	(8 449)
—	(3 725)	6 405	4 619	2 767 000	3 113 239	24 794	3 138 033	350 000	1 196	3 489 229

—	—	—	—	340 243	340 243	—	340 243	—	355	340 598
—	2 171	—	—	—	2 171	—	2 171	—	—	2 171
—	—	(8 931)	—	—	(8 931)	—	(8 931)	—	—	(8 931)
—	(128)	—	—	—	(128)	—	(128)	—	—	(128)
—	77 212	—	—	—	77 212	—	77 212	—	—	77 212
—	—	—	(2 334)	—	(2 334)	—	(2 334)	—	(472)	(2 806)
—	—	—	—	26	26	—	26	—	—	26
—	—	—	(2 080)	—	(2 080)	—	(2 080)	—	—	(2 080)
—	79 255	(8 931)	(4 414)	340 269	406 179	—	406 179	—	(117)	406 062
—	—	—	—	52 123	52 123	—	52 123	—	—	52 123
—	—	—	—	—	(62 051)	—	(62 051)	—	—	(62 051)
—	—	—	—	(42 536)	—	—	—	—	—	—
—	—	—	—	(117 679)	(117 679)	—	(117 679)	—	—	(117 679)
—	—	—	—	(1 567)	(1 567)	1 567	—	—	—	—
—	—	—	—	—	—	(1 567)	(1 567)	—	—	(1 567)
—	—	—	—	(36 750)	(36 750)	—	(36 750)	36 750	—	—
—	—	—	—	—	—	—	—	(36 750)	—	(36 750)
—	—	—	—	—	—	—	—	—	(72)	(72)
—	—	—	—	7 883	7 883	—	7 883	—	—	7 883
—	75 530	(2 526)	205	2 968 743	3 361 377	24 794	3 386 171	350 000	1 007	3 737 178



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES

Basis of preparation

Under the contractual arrangements implementing the dual listed companies (DLC) structure, Investec plc and Investec Limited,

the latter a company incorporated in South Africa, effectively form a single economic enterprise in which the economic and voting

rights of shareholders are equalised, with neither entity assuming a dominant role. In accordance with this structure, the

appropriate presentation under UK adopted international accounting standards and under IFRS® Accounting Standards is achieved

by combining the results and the financial position of both companies using merger accounting principles. For an understanding of

the results, financial position and cash flows of the Investec DLC Group, refer to the Investec integrated annual report. The

combined consolidated financial statements of Investec plc and Investec Limited are therefore considered the statutory financial

statements of Investec plc and Investec Limited respectively.

The Group financial statements in this document are prepared to present the financial position, results and cash flows of Investec

plc and its subsidiaries and are prepared as if Investec plc were a standalone component of the DLC structure, but with earnings

per share disclosed in the DLC combined consolidated financial statements by virtue of the sharing arrangement, for the purpose of

providing financial information to the shareholders of Investec plc. With the exception of these specific items, the Group financial

statements have been prepared in accordance with UK adopted international accounting standards and with IFRS Accounting

Standards as issued by the International Accounting Standards Board (IASB).

As stated on page 52, 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, other than those standards and amendments that

became effective in the current year, which had no material impact on the Group.

The Group and Company annual financial statements have been prepared on a historical cost basis, except as otherwise indicated.

Basis of consolidation

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

interests and other components of equity. Any resultant gain or loss is recognised in profit or loss. Any investment retained is

recognised at fair value.

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 held with strategic intention, 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. These investments

are presented as ‘Interests in associated undertakings and joint venture holdings’ on the balance sheet. In circumstances where

interests in associated undertakings and joint venture holdings arise in which the Group has no strategic intention, these

investments are held for capital appreciation and/or investment income and are classified as ‘venture capital’ holdings and are

elected as held at fair value through profit or loss. These investments are presented within investment portfolio on the balance

sheet.

For equity accounted associated undertakings and joint venture holdings, the Group’s 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.

After application of the equity method, management evaluates if there is objective evidence that its net investment in the

associated undertaking or joint venture holding is impaired and therefore that an impairment test is necessary.

Because goodwill forms part of the carrying amount of the net investments in an associate or a joint venture, it is not separately

recognised, therefore it is not tested for impairment separately. Instead, the entire carrying amount of the investment is tested for

impairment in accordance with IAS 36 Impairment of Assets as a single asset, by comparing its recoverable amount (higher of value

in use and fair value less costs of disposal) with its carrying amount.

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 are eliminated in full for subsidiaries and to the

extent of the interest held in an associated undertaking or joint venture holding.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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 the 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 per geography, which represent both operating and reportable segments, namely Wealth &

Investment, Private Banking, Corporate and 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, measured at the acquisition date fair value, and the fair value of any prior non-controlling interests in

the acquiree. Acquisition costs incurred are expensed immediately in the income statement.

When the Group acquires a business, it identifies all assets and liabilities of the business and recognises these at fair value at the

time of the acquisition. It also 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.

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.

For business combinations 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, with resultant gains or losses recognised 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 a contingent consideration classified as an asset or liability will be recognised in accordance with IFRS

9 at fair value through profit or loss. 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 difference between the consideration transferred and the net identifiable assets

acquired and liabilities assumed less the amount recognised for non-controlling interests. If this consideration is less than

Investec’s share of 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.

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 with reference to the fair

value of the shares or share options on the date of grant to the employee. 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.

The cost of the share-based payment is recognised in the income statement, within operating costs, as the service conditions of

the grant are met, with the charge varying based on the number of awards expected to vest. A corresponding increase is

recognised in equity. 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.

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.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

Employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the undiscounted

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 cash or other financial

instruments to employees over a predetermined vesting period. 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 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.

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 each Group

entity 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

exchange rates 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 are initially recognised through other comprehensive income as a separate component of equity (foreign

currency reserve) upon consolidation and are reclassified to the income statement upon disposal of the foreign operation

• Non-monetary items that are measured at historical costs are translated using the exchange rates ruling at the date of the

transaction. Non-monetary items that are measured at fair value are translated using the exchange rate at the date of the

valuation, with movements due to changes in foreign currency being presented in terms of the accounting policy for changes in

the fair value movement of the respective item .

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)

• 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

Interest income on debt instruments at amortised cost and 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.

To the extent that interest income arises on trading activities, it is presented within the trading section of the income statement.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

Fee and commission income

Fee and commission income includes revenue from contracts with customers earned from transactional banking fees, providing

advisory services as well as portfolio management and includes rental income from investments.

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.

Rental income arises from operating leases and is recognised on a straight-line basis over the lease term.

Investment income

Investment income includes dividends, capital appreciation and income from investments, other than margin income arising on

securities held for the purpose of generating interest yield. Dividend income is recognised when the Group’s right to receive

payment is established.

Other sources of income

Trading income arises from customer flow and balance sheet management and other trading activities.

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 income includes the profit on trading portfolios, which are

marked-to-market daily.

Included in other operating income is incidental rental income, gains on realisation of properties (other than investment and trading

properties which is included in investment income) and revenue from other investments. Operating costs associated with these

investments are included in operating costs in the income statement.

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 incorporates 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.

Financial assets are classified as at fair value through profit or loss (FVPL) if they are equity instruments or derivative instruments,

while debt instruments are classified based on the business model and characteristics of related cash flows. Financial liabilities are

classified as at amortised cost other than trading liabilities and derivative instruments, which are classified as 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 Business Combinations 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).

Financial liabilities may also be designated as at FVPL when doing so results in more relevant information, because either it

eliminates or significantly reduces 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 financial assets and



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

financial liabilities is managed and its performance is evaluated on a fair value basis. In addition, where 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), the Group may designate the entire hybrid contract as a

financial instrument at FVPL.

Debt instruments are typically designated at fair value when they incur interest at a fixed rate. The Group enters into derivatives

based on the contractual or behavioural term of the instruments, as appropriate, to protect against movements in market interest

rates as an economic hedge, therefore the designation allows for the elimination of an accounting mismatch arising on fair value

movements on these derivatives.

Business model assessment

For financial assets, IFRS 9 Financial Instruments 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 a group

of investments is managed. Factors considered by the Group in determining the business model for a portfolio 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 that dictate the classification in instances where the cash flows meet the

SPPI test.

▪ 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.

Financial instruments measured at amortised cost

Financial assets that are debt instruments 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.

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 subsequently remeasured at fair value and changes therein (except for those relating to impairment, interest 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 in investment

income.

Financial assets measured at FVOCI are included in the impairment calculations and impairment is recognised in profit or loss.

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 and losses on financial assets that are equity instruments are never

recycled to the income statement. Dividends are recognised in the income statement within investment income when the right of

the payment has been established. Equity instruments at FVOCI are not subject to an impairment assessment.

Financial guarantees and commitments

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 issued by the Group are not classified as insurance contracts and are initially recognised at fair

value.

Subsequent to initial recognition, the liability under each guarantee is measured at the higher of the amount initially recognised less

the cumulative amount of income recognised in accordance with IFRS 15 Revenue from Contracts with Customers, and the best

estimate of expected credit loss (ECL) calculated for the financial guarantee. Subsequent to initial measurement, all changes in the

balance sheet carrying value are recognised in the income statement.

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 or FVOCI, the undrawn commitment is also considered to be in the

scope of the ECL measurement model.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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 ‘expected credit loss impairment (charges)/release’ in the income statement.

Allowances in respect of financial guarantees and loan commitments are presented as other liabilities and charges recorded within

the same line the in income statement. 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, will be classified as Stage 3. Loans which are 90

days or more past due are considered to be in default.

The Group applies the effective interest rate on Stage 3 assets to 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 calculation basis

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.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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 written off in full against the related ECL impairment allowance when the entity has no reasonable

expectations of recovering a financial asset in its entirety or a portion thereof. 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

ECL is 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 and guarantees that are

integral to the instrument, the 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 effective interest rate (EIR) for

the asset. Lifetime ECL is calculated using the lifetime PD curve, and the appropriate LGDs and EADs, and discount rates using the

EIR for the remaining life of the financial asset.

Expert judgement models or appropriate proxies for PDs 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

Financial instruments held at FVPL include all instruments classified as held for trading, those instruments designated as held at

FVPL, those financial assets which do not meet the criteria for amortised cost or FVOCI and derivative financial instruments.

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 FVPL are designated as such on initial

recognition of the instrument and remain in this classification until derecognition.

Changes in fair value of financial liabilities designated at fair value that are attributable to changes in own credit risk are recognised

in other comprehensive income. Any other changes in fair value are recognised in the income statement.

Reclassification of financial instruments

Financial assets are only reclassified where there has been a change in business model. Certain financial liabilities can be

reclassified to equity.

Modification of financial assets and liabilities

Where the contractual terms of a financial asset or liability are renegotiated or otherwise modified in a way that is not considered to

be substantial, the gross carrying amount of the asset or liability is recalculated using the original effective interest rate where

applicable. The difference between the respective amounts is recognised as a modification gain or loss in the income statement.

Where the modification is considered to be substantial, it is treated as a settlement of the original instrument and recognition of a

new instrument. The difference in the respective carrying amounts is recognised in the income statement.



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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.

When the Group has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset,

the asset continues to be recognised only to the extent of the Group’s continuing involvement, in which case, the Group also

recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights

and obligations that the Group has retained.

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.

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.

Certain loans and advances that are originated by the Group are transferred to structured entities, with the structured entities in

turn issuing 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 if the required criteria are met, and only any position still held by the

Group in the structured entity or retained interests in the assets 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 recognised in the income statement

when the inputs become observable, when the instrument is derecognised or over the life of the transaction, only to the extent that

it arises from a change in a factor (including time) that market participants would take into account when pricing the asset or

liability.

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 balance sheet

management activities to manage exposures to foreign currency, interest rate and equity 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 classified in the same way as instruments that are held-for-trading.

Hedge accounting

When the Group first implemented IFRS 9 Financial Instruments, 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, cash flow hedge or hedge 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



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• 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 are attributable to the hedged risk are also recognised in the income statement. Under micro

hedging, a corresponding adjustment is made to OCI where the hedged item is measured at FVOCI and to the carrying value of the

item itself for amortised cost items. For macro hedges of amortised cost items this adjustment is shown as a separate balance

sheet line item.

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 that

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, are accounted for in a way similar to cash flow hedges. 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 hedging relationship ceases to meet the qualifying criteria,

including 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-nil fair value at the date of recognition, 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 the Group are recorded as non-controlling interests on the balance sheet.

Equity instruments are initially measured net of directly attributable issue costs.

Treasury shares represent issued equity repurchased by the Group which have not been cancelled. Treasury shares are deducted

from shareholders’ equity and are held at acquisition cost plus related transaction costs. Where treasury shares are subsequently

sold or reissued, net proceeds received are included in shareholders’ equity. Realised gains or losses on disposal are reflected

directly in retained income.

Dividends on ordinary shares are recognised as a deduction from equity at the earlier of the payment date or the date that it is

approved by Investec plc.

Non-sovereign and non-bank cash placements

Non-sovereign and non-bank cash placements relates to overnight deposits placed with large corporate clients contractually

callable on demand.

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 as the requirements of derecognition have not been met. 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 financial instruments have been purchased at the same time as derivatives with the same counterparty, such that the

combined position has the economic substance of secured lending, an asset is recognised under ‘reverse repurchase agreements

and cash collateral on securities borrowed’.



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The difference between the sale and repurchase prices is treated as interest and is accrued over the life of the agreement using

the effective interest method.

Securities lending and borrowing transactions that are not cash collateralised do not result in recognition of securities borrowed or

derecognition of securities lent. 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.

The cash collateral from agency-based scrip lending transactions is presented on a net basis where the master netting agreement

provides for a legal right of offset and the intention is to settle net.

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 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 equipment10% – 33%

• Furniture and vehicles10% – 25%

• Freehold properties2% – 4%

• Leasehold property and improvements*

• Right-of-use assets*

*Depreciation rates on leasehold improvements are determined with 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 with reference to the period of the lease.

No depreciation is provided on freehold land. However, similar to other property-related assets, freehold land is subject to

impairment testing when an indication of impairment exists.

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.

Property and equipment are derecognised on disposal or when no future economic benefits are expected to be realised.

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

• 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, any lease payments made at or

before the commencement date, 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 remeasurements of

the lease liability.

The lease liability is subsequently remeasured when there is a change in either the lease term, the Group’s assessment of whether

it will exercise a purchase, extension or termination option, future lease payments arising from a change in index or rate or if there is

a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee.

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.

For those lease modifications that do not result in a separate lease, the Group remeasures the lease liability using the lease term of

the modified lease and the discount rate as determined at the effective date of modification. Where the modification decreases the

scope of the lease, the Group decreases the carrying amount of the right-of-use asset to reflect partial or full termination of the

lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification. For all



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ACCOUNTING POLICIES CONTINUED

other lease modifications which are not accounted for as a separate lease, the amount of the remeasurement of the lease liability is

recognised as an adjustment to the corresponding right-of-use asset without affecting profit or loss.

The Group has elected to apply the accounting exemption 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. All other leases are operating leases.

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.

On the balance sheet, the ROU assets are included within property and equipment unless the asset is held for investment

purposes, in which case the nature of the investment will determine the presentation. Finance lease receivables are ordinarily

included within loans and advances to customers but are included in other assets where the Group holds a head lease and the

sublease arrangement with external parties is a finance lease. Lease liabilities are included within other liabilities.

Trading properties

Trading properties are carried at the lower of cost and net realisable value.

Software and other acquired intangible assets

Software and other acquired intangible assets are recorded at cost less accumulated amortisation and impairments. Software and

intangible assets with a finite life are amortised over the useful 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 8 to 20 years

• Acquired software 3 to 7 years

• Internally generated software 3 to 5 years

Where software is not controlled, related costs are expensed as the benefits of use are received.

Impairment of non-financial assets

At each balance sheet date, the Group reviews the carrying value of non-financial assets for indication of impairment. 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, and annually in the case of cash-generating units containing goodwill. 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 controlled by the Group, they are not recognised on the balance sheet but are

included at market value as part of third-party assets under management.



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ACCOUNTING POLICIES CONTINUED

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 on 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 asset can be utilised.

Items recognised directly in other comprehensive income are net of related current and deferred taxation.

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, for which 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 that qualifies for recognition. Contingent assets and contingent liabilities are not recognised on the balance sheet.

Standards and interpretations issued but not yet effective

The following amendments, standards and interpretations that have been issued but are not yet effective, are applicable to the

Group and expected to have an impact on financial reporting. 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. With the exception of the

standards noted below, all other amendments, standards and interpretations, issued but not yet effective, are not expected to

impact the Group materially.

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 the location,

aggregation and disaggregation of financial information. Changes proposed under IFRS 18 relate only to the presentation and

disclosure within the financial statements and do not affect the recognition or measurement of transactions.

The direct and consequential amendments under IFRS 18 are effective for annual reporting periods beginning on or after

1 January 2027. The new standard will result in structural changes to the presentation of the Group’s income statement, changes in

aggregation and disaggregation throughout the financial statements and additional disclosures relating to certain performance

measures. The reporting teams are in the process of making decisions on the revised presentation of financial statements, and the

full impact of the implementation is still under assessment.

Amendments to IFRS 9 Amendments to Classification and Measurement of Financial Instruments and

IFRS 7 disclosures

The IASB has issued amendments to the classification and measurement of financial instruments which, amongst other changes

less significant to the Group, clarify that a financial liability is derecognised on the ‘settlement date’, when the related obligation is

discharged, cancelled, expires or the liability otherwise qualifies for derecognition. It also introduces an accounting policy option to

derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions

are met.

These amendments are effective for annual reporting periods beginning on or after 1 January 2026. The reporting teams are

working closely with the respective operations teams in order to determine the impact of these changes.



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ACCOUNTING POLICIES CONTINUED

Key management assumptions

In preparation of the annual financial statements in accordance with IFRS Accounting Standards, the Group makes certain

estimations and applies judgements in applying accounting policies that affect the reported amount of assets, liabilities, income and

expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may be based upon

amounts which differ from those estimates.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including

expectations of future events that are believed to be reasonable under the circumstances. In preparing the financial statements,

the Group has considered the impact of climate-related risks on its financial position and performance. 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.

Key areas of estimation uncertainty 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 13

Details of unlisted investments can be found in note 23 with further analysis contained in the risk management note on page 179.

• 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 staging due to a significant increase in credit risk

– 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.

Details of ECL measurement can be found in the risk management note on pages 159 and 162.

▪ 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

– 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

• 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 a limited effect on accounting judgements and estimates for the current period.

The following items represent the most significant effects that climate change can have in the shorter term:



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ACCOUNTING POLICIES CONTINUED

– 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 on 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.

Refer to further analysis contained in the risk management note on pages 155 to 176.

Critical accounting judgements are applied in these key areas:

• 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 49.

• 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 12 June 2027, which is a period of 12 months

from the date of issue of the financial statements. Accordingly, the going concern basis is adopted in the preparation of the

financial statements.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS

1 . Segmental business analysis – income statement

Wealth & Investment

Wealth & Investment includes our share of equity accounted earnings of the combined Rathbones Group, and IBSAG which houses

our Swiss wealth business .

Private Banking

Our Private Banking business in the UK comprises lending (primarily residential mortgages), savings and transactional banking

(including international payments) to HNW clients, coupled with bespoke foreign exchange and financing solutions for qualifying

HNW clients.

Corporate, Investment Banking and Other

Our Corporate and Investment Banking businesses comprises business activities that provide lending, advisory and risk

management services to growth-orientated corporate clients in the private companies, private equity and listed companies arenas,

including specialist sector-focused expertise. This segment also includes our central treasury and liability management channels.

Group Investments

Assets in this segment have been separated from our core banking activities in order to make a more meaningful assessment of the

underlying performance and value of the franchise businesses, and at the same time provide transparency of the standalone values

of the assets classified as Group Investments.

Group Costs

G roup costs are disclosed separately and include 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.

Adjusted operating profit

Management’s measure of operating profit, ‘adjusted operating profit’, is calculated based on profit before taxation, adjusted to

remove goodwill, acquired intangibles and strategic actions, including such items within equity accounted earnings, and non-

controlling interests.


For the year to 31 March	2026	2025
£’000	2026	2025
Profit before taxation	413 937	405 823
Financial impact of strategic actions*	19 119	19 993
Adjustments related to equity accounted earnings	29 579	34 299
Amortisation of acquired intangibles	15 048	6 312
Acquisition related and integration costs of associate	14 531	27 987
Less: profit attributable to non-controlling interests	(355)	(12)
Adjusted operating profit	462 280	460 103

*Included within this line in the current year are movements in value on deferred considerations on various transactions, continuing integration costs resulting from the

Rathbones deal as well as various capital costs incurred in contemplation of potential transactions.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

1. Segmental business analysis – income statement (continued)


		Specialist Banking
	Private Client		Corporate, Investment Banking and Other	Group Investments	Group Costs
For the year to 31 March 2026	Wealth & Investment	Private Banking				Total Group
£’000	Wealth & Investment	Private Banking				Total Group
Net interest income	6 128	76 528	638 620	—	—	721 276
Fee and commission income	12 292	1 094	214 948	—	—	228 334
Fee and commission expense	(855)	(26)	(20 608)	—	—	(21 489)
Investment income	3	—	49 579	11 907	—	61 489
Share of post-taxation operating profit of associates and joint venture holdings	80 897	—	8 965	—	—	89 862
Trading income/(loss) arising from
– customer flow	1 686	3 144	86 664	—	—	91 494
– balance sheet management and other trading activities	(39)	61	6 008	—	—	6 030
Other operating income	—	—	20 778	—	—	20 778
Operating income	100 112	80 801	1 004 954	11 907	—	1 197 774
Expected credit loss impairment charges	5	(4 036)	(93 331)	—	—	(97 362)
Operating income after expected credit loss impairment charges	100 117	76 765	911 623	11 907	—	1 100 412
Operating costs	(19 064)	(44 245)	(542 738)	—	(31 730)	(637 777)
Profit attributable to non-controlling interests	—	—	(355)	—	—	(355)
Adjusted operating profit/(loss)	81 053	32 520	368 530	11 907	(31 730)	462 280
Selected returns and key statistics
Cost to income ratio	19.0%	54.8%	54.0%	n/a	n/a	53.3%
Total assets (£’mn)	1 026	5 636	25 126	212	—	32 000
Total liabilities (£’mn)	208	19	28 028	—	8	28 263



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

1 . Segmental business analysis – income statement (continued)


		Specialist Banking
	Private Client			Group Investments	Group Costs
For the year to 31 March 2025	Wealth & Investment	Private Banking	Corporate, Investment Banking and Other			Total Group
£’000	Wealth & Investment	Private Banking	Corporate, Investment Banking and Other			Total Group
Net interest income	7 381	96 639	670 633	—	—	774 653
Fee and commission income	10 424	979	183 340	—	—	194 743
Fee and commission expense	(1 054)	(19)	(12 838)	—	—	(13 911)
Investment income	1	—	41 740	10 977	—	52 718
Share of post-taxation operating profit of associates and joint venture holdings	69 147	—	6 073	—	—	75 220
Trading income/(loss) arising from
– customer flow	1 792	3 018	80 732	—	—	85 542
– balance sheet management and other trading activities	(34)	(47)	14 317	—	—	14 236
Other operating income	—	—	5 764	—	—	5 764
Operating income	87 657	100 570	989 761	10 977	—	1 188 965
Expected credit loss impairment charges	(16)	(5 582)	(91 442)	—	—	(97 040)
Operating income after expected credit loss impairment charges	87 641	94 988	898 319	10 977	—	1 091 925
Operating costs	(15 366)	(47 860)	(535 062)	—	(33 522)	(631 810)
Profit attributable to non-controlling interests	—	—	(12)	—	—	(12)
Adjusted operating profit/(loss)	72 275	47 128	363 245	10 977	(33 522)	460 103
Selected returns and key statistics
Cost to income ratio	17.5%	47.6%	54.1%	n/a	n/a	53.1%
Total assets (£’mn)	1 022	5 196	23 472	134	n/a	29 824
Total liabilities (£’mn)	185	26	26 115	—	9	26 335



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

2 . Net interest income


		2026			2025
For the year to 31 March	Notes	Average balance sheet value^*	Interest income	Average yield	Average balance sheet value^*	Interest income	Average yield
£’000	Notes	Average balance sheet value^*	Interest income	Average yield	Average balance sheet value^*	Interest income	Average yield
Cash, near cash and bank debt and sovereign debt securities	1	9 469 766	364 431	3.85%	9 976 288	477 608	4.79%
Loans and advances	2	17 328 589	1 240 215	7.16%	16 727 744	1 334 303	7.98%
Private client		5 469 986	275 196	5.03%	5 183 842	281 839	5.44%
Corporate, institutional and other clients		11 858 603	965 019	8.14%	11 543 902	1 052 464	9.12%
Other debt securities and other loans and advances		1 115 692	66 248	5.94%	795 811	56 535	7.10%
Other	3	2 961	64 072	n/a	141 669	91 654	n/a
Total interest-earning assets		27 917 008	1 734 966	6.21%	27 641 512	1 960 100	7.09%


		2026			2025
For the year to 31 March	Notes	Average balance sheet value^*	Interest expense	Average yield	Average balance sheet value^*	Interest expense	Average yield
£’000	Notes	Average balance sheet value^*	Interest expense	Average yield	Average balance sheet value^*	Interest expense	Average yield
Deposits by banks and other debt-related securities	4	3 190 496	116 924	3.66%	3 112 165	121 022	3.89%
Customer accounts (deposits)		21 726 884	811 529	3.74%	21 446 503	944 449	4.40%
Subordinated liabilities		710 045	44 232	6.23%	690 103	42 565	6.17%
Other	5	161 609	41 005	n/a	219 339	77 411	n/a
Total interest-bearing liabilities		25 789 034	1 013 690	3.93%	25 468 110	1 185 447	4.65%
Net interest income			721 276			774 653
Annualised net interest margin			2.58%			2.80%

Notes:

1Comprises (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.

2Comprises (as per the balance sheet) loans and advances to customers.

3Comprises (as per the balance sheet) lease receivables (housed in other assets on the balance sheet) and other assets as well as interest income from derivative

financial instruments and off-balance sheet assets where the nominal amount is not reflected on the balance sheet.

4Comprises (as per the balance sheet) deposits by banks; debt securities in issue; repurchase agreements and cash collateral on securities lent.

5Comprises (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 the nominal amount is not reflected on the balance sheet.

*The average balance sheet value is calculated using a straight-line 13-point average.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

3 . Net fee and commission income


For the year to 31 March	2026	2025
£’000	2026	2025
Wealth & Investment businesses net fee and commission income*	11 437	9 370
Fund management fees/fees for assets under management	10 335	9 050
Private client transactional fees	1 957	1 374
Fee and commission expense	(855)	(1 054)
Specialist Banking net fee and commission income	195 408	171 462
Specialist Banking fee and commission income ^{^}	216 042	184 319
Specialist Banking fee and commission expense	(20 634)	(12 857)
Net fee and commission income	206 845	180 832
Fee and commission income	228 334	194 743
Fee and commission expense	(21 489)	(13 911)
Net fee and commission income	206 845	180 832
Annuity fees (net of fees payable)	54 754	35 953
Deal fees	152 091	144 879

*Wealth & Investment businesses relates to Investec Bank (Switzerland) AG.

^Included in Specialist Banking is fee and commission income of £26.1 million ( 31 March 2025: £ 8.4 million) for operating lease income, generated from aircraft leasing

structures, which are out of the scope of IFRS 15 – Revenue from Contracts with Customers.

4. Investment income


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	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
2026
Realised	2 247	17 701	—	19 948	(1 583)	—	15 017	33 382
Unrealised*	670	1 885	—	2 555	172	(1 090)	7 576	9 213
Dividend income	12 179	5 255	—	17 434	—	—	75	17 509
Funding and other net related income	—	—	—	—	—	1 385	—	1 385
	15 096	24 841	—	39 937	(1 411)	295	22 668	61 489
2025
Realised	(2 001)	6 526	1 194	5 719	4 897	—	(994)	9 622
Unrealised*	2 541	37 462	(451)	39 552	(3 410)	(11 000)	702	25 844
Dividend income	11 230	4 428	—	15 658	—	—	75	15 733
Funding and other net related income	—	—	—	—	—	1 519	—	1 519
	11 770	48 416	743	60 929	1 487	(9 481)	(217)	52 718

*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 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

5. Other operating income


For the year to 31 March	2026	2025
£’000	2026	2025
Insurance proceeds	10 321	—
Losses recognised on property and equipment	1	(41)
Unrealised (losses)/gains on other investments	775	(911)
Income from operating leases	1 924	2 595
Income from government grants*	7 757	4 121
	20 778	5 764

*Government grants income includes Research and Development Expenditure Credits.

^Insurance proceeds relate to a recovery in respect of a previously written off exposure on a policy that was not integral to the loan.

6 . Expected credit loss impairment charges


For the year to 31 March	2026	2025
£’000	2026	2025
Expected credit losses have arisen on the following items:
Loans and advances to customers	96 583	97 279
Other loans and advances	12	6
Other balance sheet assets	309	859
Undrawn commitments and guarantees	458	(1 104)
	97 362	97 040



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

7 . Operating costs


For the year to 31 March	2026	2025
£’000	2026	2025

Staff compensation costs	414 958	423 152
Salaries and wages (including directors’ remuneration)**	328 687	335 046
Share-based payment expense	21 299	23 733
Social security costs	43 407	43 615
Pensions and provident fund contributions	21 565	20 758
Training and other costs	11 046	10 017
Staff costs	426 004	433 169
Premises expenses	29 502	27 805
Premises expenses (excluding depreciation and impairments)	12 972	12 179
Premises depreciation and impairments	16 530	15 626
Equipment expenses (excluding depreciation)	58 063	48 887
Business expenses*	108 437	102 953
Marketing expenses	13 170	12 831
Depreciation, amortisation and impairment on equipment, software and intangibles^	2 601	6 165
	637 777	631 810

*Business expenses mainly comprise insurance costs, consulting and professional fees, travel expenses and subscriptions.

^Included within depreciation charge for the year is £nil (31 March 2025: £4 million) of depreciation expense relating to other assets.

**Details of the directors’ emoluments, pensions and their interests are disclosed in the Investec remuneration report 2026 .

Segmental breakdown of operating costs


		Specialist Banking
	Private Client		Corporate, Investment Banking and Other	Group Costs
For the year to 31 March 2026	Wealth & Investment	Private Banking			Total Group
£’000	Wealth & Investment	Private Banking			Total Group
Staff costs	9 715	13 881	386 531	15 877	426 004
Premises expenses	1 280	1 375	26 596	251	29 502
Equipment expenses (excluding depreciation)	3 114	6 105	48 258	586	58 063
Business expenses	4 831	20 263	68 280	15 063	108 437
Marketing expenses	89	2 621	10 507	(47)	13 170
Depreciation, amortisation and impairment on equipment, software and intangibles	35	—	2 566	—	2 601
	19 064	44 245	542 738	31 730	637 777


		Specialist Banking
	Private Client		Corporate, Investment Banking and Other	Group Costs
For the year to 31 March 2025	Wealth & Investment	Private Banking			Total Group
£’000	Wealth & Investment	Private Banking			Total Group
Staff costs	8 019	17 180	393 565	14 405	433 169
Premises expenses	579	1 397	25 214	615	27 805
Equipment expenses (excluding depreciation)	3 258	6 645	38 600	384	48 887
Business expenses	3 365	20 031	61 865	17 692	102 953
Marketing expenses	76	2 607	9 722	426	12 831
Depreciation, amortisation and impairment on equipment, software and intangibles	69	—	6 096	—	6 165
	15 366	47 860	535 062	33 522	631 810



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

7. Operating costs (continued)

The amounts below represent the costs incurred or to be incurred by the Group in respect of the audit of the financial statements

and for other audit related services for the respective financial years.


For the year to 31 March	2026	2025
£’000	2026	2025
Deloitte fees ^{^}
Total audit fees	6 188	5 756
Audit of the Group’s accounts	520	482
Audit of the Group’s subsidiaries	5 668	5 274
Total non-audit fees	1 547	2 697
Audit-related assurance services ¹	1 109	1 066
Other assurance services ²	65	564
Services related to corporate finance transactions ³	63	60
Other non-audit services	310	1 007
Total auditor’s remuneration	7 735	8 453

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 £1.7 million (2025: £1.6 million) are borne by the Company and relate to the Investec DLC Group.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

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.

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. Awards made under the UK share

schemes are settled in Investec plc shares (INVP and INP).

These awards are contingent on the continued employment of employees up to the date of vesting. 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 below, 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.

Equity-settled awards granted under Investec share plans

The share incentive awards are granted in the following award types, each of which vest in line with the specified parameters.

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 dividend 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 on-market purchases.


For the year to 31 March	2026	2025
£’000	2026	2025
Share-based payment expense
Equity-settled	21 299	23 733


For the year to 31 March	2026	2025
£’000	2026	2025
Weighted average fair value of awards granted in the year
UK schemes	26 139	20 992


	UK schemes
	2026		2025
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	23 757 112	—	27 720 761	—
Granted during the year	5 653 508	—	4 561 496	—
Exercised during the year^	(9 413 482)	—	(7 907 686)	—
Awards forfeited during the year	(539 960)	—	(617 459)	—
Outstanding at the end of the year	19 457 178	—	23 757 112	—
Exercisable at the end of the year	938 831	—	807 309	—

^The weighted average share price of options exercised during the year was £5.52 (2025: £5.35).

The weighted average share price during the year was £5.53 (2025: £5.50).



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

8. Share-based payments (continued)


Additional information relating to awards:	2026	2025
Long-term incentive grants with no strike price
Exercise price range	£nil	£nil
Weighted average remaining contractual life	1.89 years	1.61 years
Weighted average fair value of awards and long-term grants at measurement date	£4.62	£4.60
The fair values of awards granted were calculated at market price, adjusted for relevant terms and conditions as applicable. For awards granted during the year, the inputs into the model were as follows:
– Share price at date of grant	£5.30 - £5.46	£5.16 - £5.77
– Exercise price	£nil	£nil
– Expected volatility	n/a	n/a
– Award life	0.12 - 7.01 years	0 - 7.01 years
– Expected dividend yields	n/a	n/a
– Risk-free rate	n/a	n/a


	UK schemes
	2026		2025
Year of vesting 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	—	3,4,5	45 819	3,4,5
– Forfeitable shares	130 468	3,4,5	5 858 445	3,4,5
– Nil-cost options	5 000	4,5	5 000	4,5
Investec plc Executive Incentive Plan 2013
– Executive conditional awards	2 639 147	2,3.5,5 & 2,3,4 & 2.5,3.5,5 & & 3,4,5,6,7	4 641 586	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	823 357	3,4,5	572 384	3,4,5
– Executive conditional awards	4 311 813	2,3.5,5 & 2,3,4 & 2.5,3.5,5 & & 3,4,5,6,7	2 735 383	1,2,3 & 3,4,5 & 3,4,5,6,7
– Forfeitable shares	11 537 393	3,4,5	9 888 495	3,4,5
Outstanding at the end of the year	19 457 178		23 757 112

On 15 October 2025, the UK regulators confirmed changes to their remuneration rules, which impacted the seven-year deferral

periods applied to Executive Conditional awards made to certain material risk takers.

As a result of these changes the vesting periods on the underlying awards were shortened.



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

8. Share-based payments (continued)


	UK schemes
	2026		2025
Summary by share plan	Number of share awards outstanding	Maximum award limit per individual	Number of share awards	Maximum award limit per individual
Investec 1 Limited Share Incentive Plan	135 468	10 000 000	5 909 264	10 000 000
Investec plc Executive Incentive Plan 2013	2 649 147	2 500 000	4 651 586	2 500 000
Investec plc Share Incentive Plan 2021	16 672 563	15 000 000	13 196 262	15 000 000
Outstanding at the end of the year	19 457 178		23 757 112


Vesting period of outstanding options by financial year	2026	2025
Year to 31 March 2025	—	807 309
Year to 31 March 2026	938 831	8 983 351
Year to 31 March 2027	4 926 976	5 191 751
Year to 31 March 2028	4 840 527	4 973 168
Year to 31 March 2029	4 626 765	3 074 783
Year to 31 March 2030	3 197 515	407 529
Year to 31 March 2031	654 682	224 179
Year to 31 March 2032	162 316	95 042
Year to 31 March 2033	109 566	—
Outstanding at the end of the year	19 457 178	23 757 112



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

9 . Taxation


For the year to 31 March £’000	2026	2025
Income statement taxation charge
Current taxation
UK
Current taxation on income for the year	55 003	68 377
Adjustments in respect of prior years	(39 461)	2 077
Corporation tax before double tax relief	15 542	70 454
Double tax relief	—	(402)
	15 542	70 052
Europe	9 961	8 249
Australia	690	106
Other ^*	749	458
	11 400	8 813
Total current taxation	26 942	78 865
Deferred taxation
UK	46 201	(5 056)
Europe	85	92
Other	111	157
Total deferred taxation	46 397	(4 807)
Total taxation charge for the year	73 339	74 058
Total taxation charge for the year comprises:
Taxation on operating profit before acquired intangibles and strategic actions	74 868	73 863
Taxation on acquired intangibles and strategic actions	(1 529)	195
	73 339	74 058
Deferred taxation comprises:
Origination and reversal of temporary differences	4 843	(2 268)
Changes in taxation rates	(15)	462
Adjustment in respect of prior years	41 569	(3 001)
	46 397	(4 807)
The deferred taxation credit in the income statement arose from:
Deferred capital allowances	42 455	(10 621)
Income and expenditure accruals	(557)	889
Asset in respect of unexpired options	4 330	4 073
Unrealised fair value adjustment on financial instruments	101	203
Movement in deferred tax assets related to assessed losses	68	649
Liability/(asset) in respect of pension surplus		—
Deferred tax on acquired intangibles	—	—
	46 397	(4 807)

*Where Other largely includes India and North America.

100



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

9 . Taxation (continued)


For the year to 31 March	2026	2025
£’000	2026	2025
The rates of corporation tax for the relevant years are:	%	%
UK	25	25
Europe (average)	15	10
Australia	30	30
Profit before taxation	413 937	405 823
Taxation on profit before taxation	73 339	74 058
Effective tax rate	17.7%	18.2%
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 of 25% ( 2025 : 25%)	103 484	101 454
Taxation adjustments relating to foreign earnings*	(8 853)	(6 635)
Taxation relating to prior years	2 108	(924)
Non-operating items	10 634	13 748
Share options accounting expense/(income)	(392)	2 207
Non-taxable income	(34 842)	(21 572)
Net other permanent differences	3 670	(7 839)
Bank surcharge	2 623	3 558
Capital gains – non-taxable/covered by losses	(3 759)	(6 481)
Movement in unrecognised trading losses	(1 319)	(3 920)
Change in tax rate	(15)	462
Total taxation charge as per income statement	73 339	74 058
Other comprehensive income taxation effects
Gains on realisation of debt instruments at FVOCI recycled through the income statement	2 171	(166)
Pre-taxation	3 079	(230)
Taxation effect	(908)	64
Fair value movements on debt and equity instruments at FVOCI taken directly to other comprehensive income	77 083	(30 679)
Pre-taxation	76 962	(33 264)
Taxation effect	121	2 585
Cash flow hedges reserves	(8 931)	(11 259)
Pre-taxation	(12 404)	(15 637)
Taxation effect	3 473	4 378
Statement of changes in equity taxation effects
Additional Tier 1 capital	(36 750)	(38 357)
Pre-taxation	(36 750)	(38 357)
Taxation effect	—	—
Share-based payment adjustment	6 956	(559)
Pre-taxation	—	—
Taxation effect	6 956	(559)

* Includes Pillar 2 top-up tax of £3.5 million (2025: £4.5 million)

Global Minimum Tax

Pillar Two legislation has been enacted in certain jurisdictions the Group operates. The Group is in scope of the 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 tax charge of the Group includes £3.5 million (2025: £4.5 million) of Pillar Two income taxes relating to these

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.

101



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

10 . Dividends


	2026		2025
For the year to 31 March £’000	Pence per share	Total	Pence per share	Total
Ordinary dividend
Final dividend for prior year	20.0	62 349	19.0	56 073
Interim dividend for current year	17.5	55 330	16.5	47 828
Total dividend attributable to ordinary shareholders	37.5	117 679	35.5	103 901

The directors have proposed a final dividend in respect of the financial year ended 31 March 2026 of 21.0 pence per ordinary share

( 31 March 2025 : 20.0 pence).

This will be paid as follows:

• For Investec plc non-South African shareholders, through a dividend paid by Investec p lc of 21.0 pence per ordinary share

• For Investec plc South African shareholders, through a dividend payment on the SA DAS share of 21.0 pence per ordinary share.

The final dividend to shareholders on the register at the close of business on 21 August 2026 is subject to the approval of the

members of Investec plc at the annual general meeting which is scheduled to take place on 6 August 2026 and, if approved, will

be paid on 15 September 2026 .


	2026			2025
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	28.55	532.26	815	31.34	559.65	896
Interim dividend for current year	26.20	511.89	752	30.92	558.87	884
Total dividend attributable to perpetual preference shareholders recognised in current financial year	54.75	1 044.15	1 567	62.26	1 118.52	1 780

The directors have declared a final dividend in respect of the financial year ended 31 March 2026 of 24.21920 pence (Investec plc

shares traded on the JSE Limited) and 24.21920 pence (Investec plc shares traded on the Channel Island Stock Exchange), and

488.85959 cents per Rand-denominated perpetual preference share. The final Sterling dividend will be payable on

4 September 2026 to shareholders on the register at the close of business on 21 August 2026. The final Rand dividend will be

payable on 26 August 2026 to shareholders on the register at the close of business on 21 August 2026.


For the year to 31 March	2026	2025
£’000	2026	2025
Dividend attributable to Other Additional Tier 1 securities	36 750	38 357

The £350 000 000 Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities were issued on 28 February 2024

and pay a distribution rate of 10.5% per annum semi-annually.

The dividend is shown gross of UK corporation tax.

102



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

11 . Analysis of income and impairments by category of financial instrument


	At fair value through profit or loss		At fair value through comprehensive income
For the year to 31 March	Mandatory	Designated at inception	Debt instruments with a dual business model
£’000	Mandatory	Designated at inception	Debt instruments with a dual business model
2026
Interest income	125 405	—	252 965
Interest expense	(34 525)	—	—
Fee and commission income	19 164	—	—
Fee and commission expense	—	—	—
Investment income	28 619	—	(3 078)
Share of post-taxation profit of associates and joint venture holdings	—	—	—
Trading income/(loss) arising from
– customer flow	97 461	—	—
– balance sheet management and other trading activities	10 408	—	—
Other operating income	—	—	—
Total operating income/(expense) before expected credit loss	246 532	—	249 887
Expected credit loss impairments charges	—	—	5 077
Operating income/(expense)	246 532	—	254 964


For the year to 31 March	Mandatory*	Designated at inception	Debt instruments with a dual business model
£’000	Mandatory*	Designated at inception	Debt instruments with a dual business model
2025
Interest income ^{^}	144 030	—	235 290
Interest expense ^{^}	(67 699)	—	—
Fee and commission income	18 621	—	—
Fee and commission expense	—	—	—
Investment income	49 346	(60)	228
Share of post-taxation profit of associates and joint venture holdings	—	—	—
Trading income/(loss) arising from
– customer flow	93 859	—	—
– balance sheet management and other trading activities	15 565	—	—
Other operating income	—	—	—
Total operating income/(expense) before expected credit loss	253 722	(60)	235 518
Expected credit loss impairments charges	—	—	(9 886)
Operating income/(expense)	253 722	(60)	225 632

*Historically, the Group has split fair value through profit and loss assets and liabilities into trading and non-trading, as defined by regulatory rules for the trading book

and banking book requirements, respectively, other than derivatives, which were all classified as trading. Given recent changes in regulations and that within the

business, the Group no longer uses this disclosure, the columns have been combined.

103



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NOTES TO THE FINANCIAL STATEMENTS CONTINUED


At fair value through comprehensive income
Equity instruments	Amortised cost	Non-financial instruments	Other fee income and expenses	Total
Equity instruments	Amortised cost	Non-financial instruments	Other fee income and expenses	Total

—	1 356 583	13	—	1 734 966
—	(971 015)	(8 150)	—	(1 013 690)
—	91 247	—	117 923	228 334
—	(2 860)	—	(18 629)	(21 489)
11 907	(6 726)	30 767	—	61 489
—	—	60 283	—	60 283

—	(5 967)	—	—	91 494
—	(4 378)	—	—	6 030
—	1 924	1	18 853	20 778
11 907	458 808	82 914	118 147	1 168 195
—	(101 982)	—	(457)	(97 362)
11 907	356 826	82 914	117 690	1 070 833


Equity instruments	Amortised cost	Non-financial instruments	Other fee income and expenses	Total
Equity instruments	Amortised cost	Non-financial instruments	Other fee income and expenses	Total

—	1 577 107	3 673	—	1 960 100
—	(1 108 039)	(9 709)	—	(1 185 447)
—	80 870	—	95 252	194 743
—	(2 953)	—	(10 958)	(13 911)
10 962	1 022	(8 780)	—	52 718
—	—	40 921	—	40 921

—	(8 317)	—	—	85 542
—	(1 329)	—	—	14 236
—	2 595	(41)	3 210	5 764
10 962	540 956	26 064	87 504	1 154 666
—	(88 258)	—	1 104	(97 040)
10 962	452 698	26 064	88 608	1 057 626

104



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

12 . Analysis of financial assets and liabilities by category of financial instruments


	At fair value through profit or loss		At fair value through comprehensive income
At 31 March 2026	Mandatory	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory	Designated at initial recognition	Debt instrument with dual business model
Assets
Cash and balances at central banks	—	—	—
Loans and advances to banks	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	—	—	—
Sovereign debt securities	259	—	1 680 799
Bank debt securities	—	—	473 920
Other debt securities	41 909	—	8 753
Derivative financial instruments	354 121	—	—
Securities arising from trading activities	44 723	—	—
Loans and advances to customers	808 998	—	2 668 677
Fair value adjustment for asset portfolio hedged risk	(20 507)	—	—
Other loans and advances	—	—	—
Investment portfolio	202 838	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	8 199	—	—
Property and equipment	—	—	—
Goodwill	—	—	—
Software	—	—	—
	1 440 540	—	4 832 149
Liabilities
Deposits by banks	—	—	—
Derivative financial instruments	419 205	—	—
Other trading liabilities	19 409	—	—
Repurchase agreements and cash collateral on securities lent	—	—	—
Customer accounts (deposits)	—	—	—
Fair value adjustment for liability portfolio hedged risk	(10 395)	—	—
Debt securities in issue	—	—	—
Current taxation liabilities	—	—	—
Other liabilities	—	—	—
	428 219	—	—
Subordinated liabilities	—	—	—
	428 219	—	—

For more information on hedges, please refer to note 47 on pages 141 to 145.

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED


At fair value through comprehensive income
Equity instruments	Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Equity instruments	Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total

—	—	3 173 756	—	3 173 756
—	—	801 104	—	801 104
—	—	1 884 699	—	1 884 699
—	1 681 058	2 007 080	—	3 688 138
—	473 920	—	—	473 920
—	50 662	1 067 089	—	1 117 751
—	354 121	—	—	354 121
—	44 723	—	—	44 723
—	3 477 675	14 325 978	—	17 803 653
—	(20 507)	—	—	(20 507)
—	—	114 438	—	114 438
211 542	414 380	—	—	414 380
—	—	—	851 867	851 867
—	—	—	80 309	80 309
—	—	—	72 671	72 671
—	8 199	734 452	164 547	907 198
—	—	—	149 630	149 630
—	—	—	75 700	75 700
—	—	—	12 458	12 458
211 542	6 484 231	24 108 596	1 407 182	32 000 009

—	—	902 678	—	902 678
—	419 205	—	—	419 205
—	19 409	—	—	19 409
—	—	1 065 587	—	1 065 587
—	—	22 467 743	—	22 467 743
—	(10 395)	—	—	(10 395)
—	—	1 413 031	—	1 413 031
—	—	—	9 264	9 264
—	—	962 846	315 831	1 278 677
—	428 219	26 811 885	325 095	27 565 199
—	—	697 632	—	697 632
—	428 219	27 509 517	325 095	28 262 831

106



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

12. Analysis of financial assets and liabilities by category of financial instruments

(continued)


	At fair value through profit or loss		At fair value through comprehensive income
At 31 March 2025	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
Assets
Cash and balances at central banks	—	—	—
Loans and advances to banks	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	56 413	—	—
Sovereign debt securities	—	—	1 335 652
Bank debt securities	—	—	324 179
Other debt securities	49 736	—	8 777
Derivative financial instruments	299 281	—	—
Securities arising from trading activities	149 912	—	—
Loans and advances to customers	571 929	—	2 005 308
Other loans and advances	—	—	—
Investment portfolio	213 260	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	4 336	—	—
Property and equipment	—	—	—
Goodwill	—	—	—
Software	—	—	—
	1 344 867	—	3 673 916
Liabilities
Deposits by banks	—	—	—
Derivative financial instruments	274 791	—	—
Other trading liabilities	16 242	—	—
Repurchase agreements and cash collateral on securities lent	—	—	—
Customer accounts (deposits)	—	—	—
Debt securities in issue	—	—	—
Current taxation liabilities	—	—	—
Other liabilities	—	—	—
	291 033	—	—
Subordinated liabilities	—	—	—
	291 033	—	—

*Historically, the Group has split fair value through profit and loss assets and liabilities into trading and non-trading, as defined by regulatory rules for the trading book

and banking book requirements, respectively, other than derivatives, which were all classified as trading. Given recent changes in regulations and that within the

business, the Group no longer uses this disclosure, the columns have been combined.

For more information on hedges, please refer to note 47 on pages 141 to 145 .

107



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED


At fair value through comprehensive income
Equity instruments	Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Equity instruments	Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total

—	—	4 191 750	—	4 191 750
—	—	860 267	—	860 267
—	56 413	1 584 352	—	1 640 765
—	1 335 652	1 189 050	—	2 524 702
—	324 179	—	—	324 179
—	58 513	712 209	—	770 722
—	299 281	—	—	299 281
—	149 912	—	—	149 912
—	2 577 237	14 236 486	—	16 813 723
—	—	139 212	—	139 212
134 330	347 590	—	—	347 590
—	—	—	832 141	832 141
—	—	—	25 382	25 382
—	—	—	120 918	120 918
—	4 336	349 568	298 239	652 143
—	—	—	58 940	58 940
—	—	—	67 520	67 520
—	—	—	4 742	4 742
134 330	5 153 113	23 262 894	1 407 882	29 823 889

—	—	1 477 568	—	1 477 568
—	274 791	—	—	274 791
—	16 242	—	—	16 242
—	—	178 202	—	178 202
—	—	21 455 855	—	21 455 855
—	—	1 301 802	—	1 301 802
—	—	—	9 023	9 023
—	—	548 617	390 342	938 959
—	291 033	24 962 044	399 365	25 652 442
—	—	682 218	—	682 218
—	291 033	25 644 262	399 365	26 334 660

108



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13 . 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 2026	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Assets
Sovereign debt securities	1 681 058	1 681 058	—	—
Bank debt securities	473 920	473 920	—	—
Other debt securities	50 662	8 753	3 945	37 964
Derivative financial instruments	354 121	—	352 747	1 374
Securities arising from trading activities	44 723	44 723	—	—
Loans and advances to customers*	3 477 675	—	34 682	3 442 993
Fair value adjustment for asset portfolio hedged risk	(20 507)		(20 507)
Investment portfolio	414 380	211 545	730	202 105
Other assets	8 199	3 782	—	4 417
	6 484 231	2 423 781	371 597	3 688 853
Liabilities
Derivative financial instruments	419 205	—	418 671	534
Other trading liabilities	19 409	19 409	—	—
Fair value adjustment for liability portfolio hedged risk	(10 395)	—	(10 395)	—
	428 219	19 409	408 276	534
Net assets at fair value	6 056 012	2 404 372	(36 679)	3 688 319

*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 year there were no transfers between level 1 and level 2.

109



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. Fair value hierarchy (continued)


		Fair value category
At 31 March 2025	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Assets
Reverse repurchase agreements and cash collateral on securities borrowed	56 413	—	56 413	—
Sovereign debt securities	1 335 652	1 335 652	—	—
Bank debt securities	324 179	324 179	—	—
Other debt securities	58 513	8 777	2 050	47 686
Derivative financial instruments	299 281	—	292 929	6 352
Securities arising from trading activities	149 912	149 912	—	—
Loans and advances to customers*	2 577 237	—	45 099	2 532 138
Investment portfolio	347 590	135 264	962	211 364
Other assets	4 336	4 336	—	—
	5 153 113	1 958 120	397 453	2 797 540
Liabilities
Derivative financial instruments	274 791	—	273 964	827
Other trading liabilities	16 242	16 242	—	—
	291 033	16 242	273 964	827
Net assets at fair value	4 862 080	1 941 878	123 489	2 796 713

*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 prior year there were no transfers between level 1 and level 2.

110



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13 . 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	Investment portfolio	Loans and advances to customers	Other securitised assets	Other balance sheet assets ¹	Total
Assets
Balance as at 1 April 2024	244 975	2 042 150	66 702	70 184	2 424 011
Net gains/(losses) in the income statement^	23 975	209 554	724	2 132	236 385
Interest income	—	210 079	—	3 357	213 436
Investment income	23 975	(525)	724	(531)	23 643
Trading income/(loss) arising from customer flow	—	—	—	(694)	(694)
Gains or (losses) in the statement of comprehensive income	—	19 118	—	—	19 118
Purchases	20 506	3 201 706	—	5 478	3 227 690
Sales	(9 876)	(1 166 693)	—	(421)	(1 176 990)
Transfer to associated undertakings and joint venture holdings	(34 497)	—	—	—	(34 497)
Settlements	(30 111)	(1 730 700)	(8 403)	(16 306)	(1 785 520)
Deconsolidated of subsidiaries	—	—	(59 023)	(1 998)	(61 021)
Transfers out of level 3	—	(1 825)	—	—	(1 825)
Foreign exchange adjustments	(3 608)	(41 172)	—	(5 031)	(49 811)
Balance as at 31 March 2025	211 364	2 532 138	—	54 038	2 797 540

Net gains/(losses) in the income statement^	10 926	228 416	—	(570)	238 772
Interest income	—	234 915	—	3 978	238 893
Investment income	10 926	(6 499)	—	(3 071)	1 356
Trading income/(loss) arising from customer flow	—	—	—	(1 477)	(1 477)
Gains or (losses) in the statement of comprehensive income	—	(7 715)	—	—	(7 715)
Purchases and originations	7 043	4 574 655	—	35 643	4 617 341
Sales	(14 029)	(1 116 954)	—	(21 002)	(1 151 985)
Settlements	(4 328)	(2 801 536)	—	(20 899)	(2 826 763)
Transfers out of level 3	(9 335)	—	—	—	(9 335)
Foreign exchange adjustments	464	33 989	—	(3 455)	30 998
Balance as at 31 March 2026	202 105	3 442 993	—	43 755	3 688 853

1.Comprises of other debt securities, derivative financial instruments and securities arising from trading.

^The line ‘net gains/(losses) recognised in the income statement’ has been disaggregated in the current year, with comparatives re-presented accordingly.

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.

During the year ended 31 March 2026, investment portfolio assets of £9.3 million (31 March 2025: £0 million) were transferred from

Level 3 to Level 2 due to the use of broker‑observable valuation inputs. In the prior year, loans and advances to customers of

£1.8 million were transferred from Level 3 to Level 2, due to the valuation methodologies being reviewed and broker inputs being

used to determine the fair value.

111



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. Fair value hierarchy (continued)


For the year to	Liabilities arising on securitisation of other assets	Derivative financial instruments	Total
£’000	Liabilities arising on securitisation of other assets	Derivative financial instruments	Total
Liabilities
Balance as at 1 April 2024	71 751	934	72 685
Net (gains)/losses in the income statement^	311	29	340
Investment income	311	(19)	292
Trading income/(loss) arising from customer flow	—	48	48
Settlements	(7 638)	—	(7 638)
Deconsolidation of subsidiaries	(64 424)	(136)	(64 560)
Balance as at 31 March 2025	—	827	827
Gains or (losses) In the income statement	—	(293)	(293)
Trading income/(loss) arising from customer flow	—	(293)	(293)
Balance as at 31 March 2026	—	534	534

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	Total	Realised	Unrealised
2026
Total gains or (losses) included in the income statement for the year
Interest income	238 893	206 808	32 085
Investment income	1 356	(6 913)	8 269
Trading income/(loss) arising from customer flow	(1 184)	664	(1 848)
	239 065	200 559	38 506
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	(3 172)	(3 172)	—
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income	(7 715)	—	(7 715)
	(10 887)	(3 172)	(7 715)
2025
Total gains or (losses) included in the income statement for the year
Interest income	213 436	187 033	26 403
Investment income	23 351	(10 284)	33 635
Trading income/(loss) arising from customer flow	(742)	—	(742)
	236 045	176 749	59 296
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	268	268	—
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income	19 118	—	19 118
	19 386	268	19 118

112



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. 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 2026 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


Bank debt securities		Discounted cash flow model		Discount rates


Other debt securities		Discounted cash flow model Externally sourced price		Discount rates Broker quotes


Derivative financial instruments and fair value adjustment for asset portfolio hedged risk		Industry standard derivatives pricing models		Discount rate Volatilities Underlying spot and forward prices Credit curves


Securities arising from trading activities		Discounted cash flow model		Discount rate Credit curves


Investment portfolio		Discounted cash flow model Net asset value model Comparable quoted inputs		Discount rate and net assets Discount rate and fund unit price


Loans and advances to customers		Discounted cash flow model		Yield curves Broker quotes Credit curves

Liabilities

Derivative financial instruments and fair value adjustment for liability portfolio hedged risk		Industry standard derivative pricing models		Discount rate Volatilities Underlying spot and forward prices Credit curves


Debt securities in issue		Discounted cash flow model Industry standard derivative pricing models		Discount rate Risk-free rate Volatilities Forex forward points and spot rates Interest rate swap curves Credit curves

113



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. 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 following table shows the sensitivity of these fair values to reasonably

possible alternative assumptions, determined at a transactional level. Reasonable possible changes are determined depending on

the nature of the instrument, for example, for credit related inputs, this is a one rating grade movement up or down. In other

instances, the extent of a reasonable change is based on market experience.


At 31 March 2026	Balance sheet value £’000	Valuation technique	Significant unobservable input	Range of unobservable input used	Favourable changes £’000	Unfavourable changes £’000
Assets
Other debt securities	37 964		Potential impact on income statement		1 286	(1 663)
		Discounted cash flows	Credit spreads	0.47% - 1.27%	53	(89)
		Underlying asset value	Underlying asset value	^^	892	(1 408)
		Other	Other	^	341	(166)

Derivative financial instruments	1 374		Potential impact on income statement		788	—
		Other	Other	^	788	—

Investment portfolio	202 105		Potential impact on income statement		23 459	(45 677)
		Price earnings	EBITDA multiple	7.89x - 8.5x	5 048	(7 775)
		Price earnings	EBITDA multiple	3.4x	572	(1 144)
		EBITDA multiple	Change in EBITDA	17.5% - 25%	3 282	(6 271)
		Discounted cash flow	Discount rate	10% - 15%	130	(261)
		Net asset value	Underlying asset value	^^	4 339	(10 174)
		Net asset value	Discount rate	20% - 30%	3 630	(7 260)
		Other	Discount rate	10%	3 732	(7 466)
		Other	Other	^	2 726	(5 326)

Loans and advances to customers	3 442 993		Potential impact on income statement		12 359	(17 755)
		Discounted cash flow	Credit spreads	0.13% - 4.01%	8 526	(13 232)
		Discounted cash flow	Discount rate	10.0%	876	(1 529)
		Net asset value	Underlying asset value	^^	2 957	(2 994)
			Potential impact on other comprehensive income		17 071	(27 257)
		Discounted cash flows	Credit spreads	0.14% - 4.43%	17 071	(27 257)

Other assets	4 417		Potential impact on income statement		2 062	(794)
		Discounted cash flows	Cash flow adjustments	47.71% CPR	1 673	(467)
		Underlying asset value	Underlying asset value	^^	389	(327)

Total level 3 assets	3 688 853				57 025	(93 146)
Liabilities
Derivative financial instruments	534		Potential impact on income statement		(50)	—
		Other	Other	^	(50)	—

Total level 3 liabilities	534				(50)	—
Net level 3 assets	3 688 319				56 975	(93 146)

^The valuation sensitivity has been assessed by adjusting various inputs such as net asset value and probability of recovery 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.

114



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. Fair value hierarchy (continued)


At 31 March 2025	Balance sheet value £’000	Principle valuation technique	Significant unobservable input	Range of unobservable input used	Favourable changes £’000	Unfavourable changes £’000
Assets
Other debt securities	47 686		Potential impact on income statement		1 918	(3 213)
		Discounted cash flows	Credit spreads	0.36% - 1.5%	57	(105)
		Discounted cash flows	Cash flow adjustments	CPR 13.94%	256	(164)
		Underlying asset value	Underlying asset value	^^	1 361	(2 700)
		Other	Other	^	244	(244)

Derivative financial instruments	6 352		Potential impact on income statement		1 058	(702)
Derivative financial instruments		Option pricing model	Volatilities	7.5% - 16.95%	—	(1)
		Underlying asset value	Underlying asset value	^^	1	(3)
		Other	Other	^	1 057	(698)

Investment portfolio	211 364		Potential impact on income statement		25 512	(50 819)
		Price earnings	Price earnings multiple	1.6x - 7.5x	5 662	(10 660)
		Price earnings	Change in EBITDA	3.3x - 7.8x	2 768	(5 502)
		Discounted cash flows	Discount rate	10% - 15%	4 446	(8 314)
		Underlying asset value	Underlying asset value	^^	9 320	(18 487)
		Other	Other	^	3 316	(7 856)

Loans and advances to customers	2 532 138		Potential impact on income statement		10 221	(18 713)
Loans and advances to customers		Discounted cash flows	Credit spreads	0.14% - 4.65%	6 263	(14 212)
		Discounted cash flows	Credit spreads	37.3%	1 557	(1 557)
		Price earnings	Price earnings multiple	4.5x	675	(1 101)
		Underlying asset value	Underlying asset value	^^	1 726	(1 843)
			Potential impact on other comprehensive income		17 712	(32 737)
		Discounted cash flows	Credit spreads	0.16% - 5.72%	17 712	(32 737)

Total level 3 assets	2 797 540				56 421	(106 184)
Liabilities
Derivative financial instruments	827		Potential impact on income statement		(12)	—
		Other	Other	^	(12)	—

Total level 3 liabilities	827				(12)	—
Net level 3 assets	2 796 713				56 409	(106 184)

^The valuation sensitivity has been assessed by adjusting various inputs such as net asset value and probability of recovery 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.

115



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. 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 relates 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.

116



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

14 . Fair value of financial instruments at amortised cost


					Level within the fair value hierarchy
At 31 March 2026	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	Carrying amount	Fair value approximates carrying amount			Level 1	Level 2	Level 3
Assets
Cash and balances at central banks	3 173 756	3 173 756	—	—	—	—	—
Loans and advances to banks	801 104	801 104	—	—	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	1 884 699	1 552 902	331 797	332 104	—	332 104	—
Sovereign debt securities	2 007 080	938 497	1 068 583	1 067 118	1 067 118	—	—
Other debt securities	1 067 089	136 509	930 580	916 477	—	916 477	—
Loans and advances to customers	14 325 978	589 657	13 736 321	13 773 763	—	980 971	12 792 792
Other loans and advances	114 438	114 438	—	—	—	—	—
Other assets	734 452	734 452	—	—	—	—	—
	24 108 596	8 041 315	16 067 281	16 089 462
Liabilities
Deposits by banks	902 678	221 008	681 670	684 211	—	684 211	—
Repurchase agreements and cash collateral on securities lent	1 065 587	1 065 587	—	—	—	—	—
Customer accounts (deposits)	22 467 743	12 769 790	9 697 953	9 627 072	—	9 627 072	—
Debt securities in issue	1 413 031	1 194	1 411 837	1 427 452	1 406 120	21 332	—
Other liabilities	962 846	962 846	—	—	—	—	—
Subordinated liabilities	697 632	—	697 632	722 815	722 815	—	—
	27 509 517	15 020 425	12 489 092	12 461 550

For the year ended 31 March 2026 , 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.

117



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

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


					Level within the fair value hierarchy
At 31 March 2025	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	Carrying amount	Fair value approximates carrying amount			Level 1	Level 2	Level 3
Assets
Cash and balances at central banks	4 191 750	4 191 750	—	—	—	—	—
Loans and advances to banks	860 267	860 267	—	—	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	1 584 352	1 318 407	265 945	266 404	—	266 404	—
Sovereign debt securities	1 189 050	421 866	767 184	767 504	767 504	—	—
Other debt securities	712 209	75 979	636 230	629 936	—	629 936	—
Loans and advances to customers	14 236 486	564 094	13 672 392	13 643 949	—	1 006 893	12 637 056
Other loans and advances	139 212	91 024	48 188	48 164	—	48 164	—
Other assets	349 568	349 568	—	—	—	—	—
	23 262 894	7 872 955	15 389 939	15 355 957
Liabilities
Deposits by banks	1 477 568	201 160	1 276 408	1 282 354	—	1 282 354	—
Repurchase agreements and cash collateral on securities lent	178 202	178 202	—	—	—	—	—
Customer accounts (deposits)	21 455 855	13 473 780	7 982 075	7 949 847	—	7 949 847	—
Debt securities in issue	1 301 802	1 194	1 300 608	1 308 371	1 176 693	131 678	—
Other liabilities	548 617	547 935	682	189	—	—	189
Subordinated liabilities	682 218	—	682 218	712 548	712 548	—	—
	25 644 262	14 402 271	11 241 991	11 253 309

For the year ended 31 March 2025, there were insignificant disposals of financial instruments measured at amortised cost.

118



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

14 . 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:


	Valuation basis/techniques	Main inputs
Assets

Loans and advances to banks	Discounted cash flow model	Yield curve


Reverse repurchase agreements and cash collateral on securities borrowed	Discounted cash flow model	Yield curve Discount rates


Other debt securities	Discounted cash flow model Externally sourced price	Yield curve Externally sourced price


Loans and advances to customers	Discounted cash flow model	Yield curve Credit spread Discount rates


Other loans and advances	Discounted cash flow model	Credit spread Discount rates


Sovereign debt	Externally sourced price	Externally sourced price

Liabilities

Deposits by banks	Discounted cash flow model	Yield curve Credit spread Discount rates


Repurchase agreements and cash collateral on securities lent	Discounted cash flow model	Yield curve Credit spread Discount rates


Customer accounts (deposits)	Discounted cash flow model	Yield curve Credit spread Discount rates


Debt securities in issue	Discounted cash flow model Externally sourced price	Yield curve Externally sourced price

119



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

15 . Cash and balances at central banks


At 31 March	2026	2025
£’000	2026	2025
Gross cash and balances at central banks	3 173 756	4 191 750
Expected credit loss	—	—
Net cash and balances at central banks	3 173 756	4 191 750
The country risk of cash and bank balances at central banks lies in the following geographies:
United Kingdom	3 158 938	4 175 093
Europe (excluding UK)	14 818	16 657
	3 173 756	4 191 750

16 . Loans and advances to banks


At 31 March	2026		2025
£’000	2026		2025
Gross loans and advances to banks	801 166		860 297
Expected credit loss	(62)		(30)
Net loans and advances to banks	801 104		860 267
The country risk of loans and advances to banks lies in the following geographies:
North America	101 736	9 5 4 6 2	95 462
Asia	10 492		8 474
Europe (excluding UK)	373 469		408 603
United Kingdom	307 583		327 036
Other	355		473
South Africa	2 016		2 671
Australia	5 453		17 548
	801 104		860 267

17 . Reverse repurchase agreements and cash collateral on securities borrowed and

repurchase agreements and cash collateral on securities lent


At 31 March	2026	2025
£’000	2026	2025
Assets
Gross reverse repurchase agreements and cash collateral on securities borrowed	1 884 714	1 640 780
Expected credit loss	(15)	(15)
Net reverse repurchase agreements and cash collateral on securities borrowed	1 884 699	1 640 765
Reverse repurchase agreements	1 868 712	1 630 578
Cash collateral on securities borrowed	15 987	10 187
	1 884 699	1 640 765
As part of the reverse repurchase and securities borrowing agreements the Group has received securities that it is allowed to sell or re-pledge. £16 million (2025: £10 million) has been re-sold or re- pledged to third parties in connection with financing activities or to comply with commitments under short sale transactions.
Liabilities
Repurchase agreements	1 056 564	169 708
Cash collateral on securities lent	9 023	8 494
	1 065 587	178 202

The assets transferred and not derecognised in the above repurchase agreements are fair valued at £1.096 billion (2025:

£207 million). They are pledged as security for the term of the underlying repurchase agreement.

120



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

18 . Sovereign debt securities


At 31 March	2026	2025
£’000	2026	2025
Gross sovereign debt securities	3 688 138	2 524 702
Expected credit loss	—	—
Net sovereign debt securities	3 688 138	2 524 702
The country risk of sovereign debt securities lies in the following geographies:
United Kingdom	2 330 958	1 377 860
Europe (excluding UK)*	304 531	239 778
North America	1 052 390	907 064
Asia	259	—
	3 688 138	2 524 702

*Where Europe (excluding UK) largely includes securities held in Denmark, Germany and Switzerland.

19 . Bank debt securities


At 31 March	2026	2025
£’000	2026	2025
Gross bank debt securities^	474 082	324 268
Expected credit loss^	(162)	(89)
Net bank debt securities	473 920	324 179
Bonds	473 920	324 179
	473 920	324 179
The country risk of bank debt securities lies in the following geographies:
United Kingdom	395 154	257 401
Australia	53 606	51 663
North America	25 160	15 115
	473 920	324 179

^As a result of the change in presentation of ECL on FVOCI instruments, explained on page 167, gross and ECL figures have been re-presented to incorporate ECL

recognised on bank debt securities measured at FVOCI of £89,000 at 31 March 2025.

20 . Other debt securities


At 31 March	2026	2025
£’000	2026	2025
Gross other debt securities	1 117 799	771 481
Expected credit loss	(48)	(759)
Net other debt securities	1 117 751	770 722
Bonds	50 613	69 830
Asset-backed securities	1 067 138	700 892
	1 117 751	770 722
The country risk of other debt securities lies in the following geographies:
United Kingdom	42 473	60 111
Europe (excluding UK)	120 177	91 867
North America	943 446	600 762
Asia	11 655	17 982
	1 117 751	770 722

121



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

21 . 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.


	2026			2025
At 31 March	Notional principal amounts	Positive fair value	Negative fair value	Notional principal amounts	Positive fair value	Negative fair value
£’000	Notional principal amounts	Positive fair value	Negative fair value	Notional principal amounts	Positive fair value	Negative fair value
Foreign exchange derivatives
Forward foreign exchange contracts	18 369 192	145 434	88 816	18 555 720	165 285	102 646
Currency swaps	3 242 177	6 556	31 285	1 072 690	19 525	4 873
OTC options bought and sold	2 197 818	10 148	21 719	2 412 722	12 381	15 207
	23 809 187	162 138	141 820	22 041 132	197 191	122 726
Interest rate derivatives
Caps and floors	6 781 994	23 082	22 281	8 559 624	28 420	25 442
Swaps	33 032 553	30 808	61 799	34 140 306	37 853	80 963
OTC options bought and sold	54 600	—	541	54 600	—	447
	39 869 147	53 890	84 621	42 754 530	66 273	106 852
Equity and stock index derivatives
OTC options bought and sold	42 788	190	7 037	227 044	6 032	33 337
Exchange traded futures	2 447	—	252	46 288	—	—
Exchange traded options	—	—	—	1 224 926	5 964	—
	45 235	190	7 289	1 498 258	11 996	33 337
Commodity derivatives
OTC options bought and sold	359 757	25 895	25 808	319 445	1 113	1 136
Commodity swaps and forwards	561 251	110 476	158 429	456 077	17 464	9 200
Exchange traded futures	83 428	3	4	141 479	5	—
	1 004 436	136 374	184 241	917 001	18 582	10 336
Credit derivatives	420 321	1 529	1 234	361 034	1 737	1 540
Other derivatives		—	—		3 502	—
Derivatives per balance sheet		354 121	419 205		299 281	274 791

122



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

22 . Securities arising from trading activities


At 31 March	2026	2025
£’000	2026	2025
Listed equities	44 723	149 912
	44 723	149 912

23 . Investment portfolio


At 31 March	2026	2025
£’000	2026	2025
Listed equities	211 543	135 196
Unlisted equities	199 413	212 394
Profit shares	3 424	—
	414 380	347 590


Equity instruments at FVOCI (included in listed equities)
At 31 March	2026	2025
£’000	2026	2025
Ninety One plc shares
Carrying value	211 542	134 330
Dividends recognised	11 907	10 977

24 . Loans and advances to customers and other loans and advances


At 31 March	2026	2025^
£’000	2026	2025^
Gross loans and advances to customers at amortised cost	14 515 528	14 390 276
Gross loans and advances to customers at FVOCI ^{^}	2 686 156	2 027 975
Gross loans and advances to customers subject to expected credit losses	17 201 684	16 418 251
Expected credit losses on loans and advances to customers at amortised cost and FVOCI ^{^}	(207 030)	(176 458)
Net loans and advances to customers at amortised cost and FVOCI	16 994 654	16 241 793
Loans and advances to customers at fair value through profit and loss	808 999	571 929
Net loans and advances to customers	17 803 653	16 813 723

Gross other loans and advances	114 462	139 221
Expected credit losses on other loans and advances	(24)	(9)
Net other loans and advances	114 438	139 212

^Gross and ECL figures have been re-presented to include interest in suspense of £11.6 million and ECL held against financial assets held at FVOCI of £22.6 million,

previously disclosed separately.

For further analysis on loans and advances for the Group, refer to pages 167 to 173 in the notes to risk and capital

management.

123



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

24. Loans and advances to customers and other loans and advances (continued)


At 31 March
£’000
Expected credit losses on loans and advances to customers at amortised cost ^{^}
Balance as at 1 April 2024 ^	192 460
Charge to the income statement	97 286
Reversals and recoveries recognised in the income statement	(7)
Write-offs	(118 207)
Exchange adjustments	(1 615)
Accrual of suspended interest	6 541
Balance as at 31 March 2025^	176 458
Charge to the income statement	96 849
Reversals and recoveries recognised in the income statement	(266)
Write-offs	(71 897)
Exchange adjustments	(875)
Accrual of suspended interest	6 761
Balance as at 31 March 2026	207 030
Expected credit loss on other loans and advances
Balance as at 1 April 2024	12
Charge to the income statement	6
Exchange adjustments	(9)
Balance as at 31 March 2025	9
Charge to the income statement	12
Exchange adjustments	3
Balance as at 31 March 2026	24

^ECL figures have been re-presented to include interest in suspense of £11.6 million at 31 March 2025 and £5 million at 1 April 2024 and ECL held against financial

assets held at FVOCI of £22.6 million at 31 March 2025 and £13.3 million at 1 April 2024.

Of the amounts written off in the current period within the Group, £5.2 milli on is subject to enforcement activity at the year end ( 31

March 2025 : £6.8 million).

124



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

25 . Interests in associated undertakings and joint venture holdings


At 31 March	2026	2025
£’000	2026	2025
Interests in associated undertakings and joint venture holdings consist of:
Net asset value	244 443	225 068
Goodwill and intangibles within the carrying value	607 424	607 073
Investment in associated undertakings and joint venture holdings	851 867	832 141
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	225 068	202 735
Exchange adjustments	(4 134)	(864)
Rathbones measurement period finalisation^^	—	53 369
Change in shareholding	(7 580)	—
Disposals	(1 952)	—
Transfer from investment portfolio^	—	27 835
Acquisitions of intangibles within associates	(8 171)	—
Share of post-taxation profits of associates and joint venture holdings	75 331	47 233
Share of other comprehensive income and equity of associates and joint venture holdings	7 907	(12 252)
Dividends received	(42 026)	(92 988)
At the end of the year	244 443	225 068
Analysis of the movement in goodwill and intangibles:
At the beginning of the year	607 073	654 512
Exchange adjustments	(352)	(188)
Rathbones measurement period finalisation^^	—	(47 601)
Change in shareholding	7 580	—
Acquisitions of intangibles within associates	8 171	—
Transfer from investment portfolio	—	6 662
Share of post-taxation amortisation of acquired intangibles of associates	(15 048)	(6 312)
At the end of the year	607 424	607 073

^ Historically, Investec Capital Services (India) Pvt Ltd (ICSI) has been a joint venture, accounted for at fair value and presented within the investment portfolio. As a

result of a change in strategy in relation to the investments in the prior year, it was determined that it was no longer appropriate to apply fair value accounting. The

investment has therefore been equity accounted from the date of this change.

^^Following the acquisition of Rathbones, the Group finalised the purchase price allocation in the prior year. The acquisition date fair values of identifiable assets,

liabilities, and contingent liabilities were assessed and allocated appropriately to intangible assets with the residual value being recognised as goodwill. This process

resulted in an increase in net assets of £53.4 million and a decrease in goodwill and intangibles of £47.6 million. As the impact on the financial statements was

immaterial, these were adjusted for prospectively in the prior year.

125



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

25. Interests in associated undertakings and joint venture holdings (continued)


	Rathbones Group plc
	2026	2025
Details of material associated undertakings
Summarised financial information (£’000):
Operating income	923 304	895 875
Profit after taxation	112 337	65 398
Other comprehensive income	68	(7 967)
Total comprehensive income after non-controlling interests	112 405	57 431

Total assets	5 217 232	4 290 034
Total liabilities	3 865 209	2 930 672
Net asset value	1 352 023	1 359 362
Effective interest in issued share capital	43.23%	41.25%
Our share of net asset value	584 480	560 737
Less: Goodwill and intangibles net of deferred tax per Rathbones	(375 851)	(368 604)
Add: Goodwill and Investec’s share of intangible assets net of deferred tax	601 301	600 599
Carrying value of interest – equity method ^{^}	809 930	792 732
Fair value of investment in Rathbones Group	886 313	692 126

^ The difference between the carrying value of Rathbones and the net asset value relates to intangible assets, and goodwill that was recognised in the carrying value as

a direct result of the fair value exceeding the fair value of the identifiable assets at acquisition date.

Rathbones has a statutory year end of 31 December and the Group recognises its share of earnings on a three months in arrears basis due to the

difference in reporting dates between Rathbones and the Group. The financial information presented above aligns with this reporting date. Our

share of profit of associates for the current financial year was based on an average effective 43.15% for the year. The year end effective holding

takes into account movement in treasury shares to 31 December, as well as share buybacks during the period.

126



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

26 . Deferred taxation


At 31 March	2026	2025
£’000	2026	2025
Deferred taxation assets	72 671	120 918
Net deferred taxation assets	72 671	120 918
The net deferred taxation assets arise from:
Deferred capital allowances	30 107	72 665
Income and expenditure accruals	694	138
Asset in respect of unexpired options	29 598	33 072
Unrealised fair value adjustments on financial instruments	10 581	13 284
Losses carried forward	1 329	1 397
Asset in respect of pension deficit	362	362
Net deferred taxation assets	72 671	120 918
Reconciliation of net deferred taxation assets
At the beginning of the year	120 918	119 730
Release to income statement	(46 397)	4 807
Movement directly in other comprehensive income and equity	(1 746)	(3 552)
Exchange adjustments	(104)	(67)
At the end of the year	72 671	120 918

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 £82.7 million ( 2025 : £82.7 million), capital losses carried forward of £200.6 million

(2025: £186.3 million) and excess management expenses of £2.5 million ( 2025: £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 £82.7 million trading

losses, £NIL will expire in the next four years (2025: £1 million).

27 . Other assets


At 31 March	2026	2025
£’000	2026	2025
Gross other assets	907 198	652 143
Expected credit loss	—	—
Net other assets	907 198	652 143
Financial assets
Settlement debtors	678 973	291 083
Trading initial margin	3 539	1 228
Prepayments and accruals	3 497	2 543
Other	56 642	59 050
	742 651	353 904
Scoped out of IFRS 9
Trading properties	83 890	84 704
Prepayments and accruals	28 865	27 612
Finance lease receivables	2 286	3 584
Indirect taxation assets receivable	759	773
Aircraft and aircraft related structures*	24 495	135 783
Other	24 252	45 783
	164 547	298 239
	907 198	652 143

* Future minimum lease payments of £ nil ( 2025 : £ 21 million) are due within one year.

127



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

28 . Property and equipment


At 31 March	Freehold properties	Right-of-use assets^	Leasehold improvements	Furniture and vehicles	Equipment	Operating leases*	Total
£’000	Freehold properties	Right-of-use assets^	Leasehold improvements	Furniture and vehicles	Equipment	Operating leases*	Total
2026
Cost
At the beginning of the year	—	96 928	46 783	8 217	9 004	1 072	162 004
Exchange adjustments	—	(339)	(143)	6	(124)	—	(600)
Additions	—	74 655	32 047	4 242	1 931	—	112 875
Disposals	—	(1 899)	—	(43)	(138)	(518)	(2 598)
Write-off	—	(431)	(552)	(38)	(371)	—	(1 392)
At the end of the year	—	168 914	78 135	12 384	10 302	554	270 289
Accumulated depreciation
At the beginning of the year	—	(57 589)	(31 567)	(5 380)	(7 572)	(956)	(103 064)
Exchange adjustments	—	(641)	(227)	24	(23)	—	(867)
Disposals	—	832	—	43	129	481	1 485
Depreciation and impairment charge for the year**	—	(11 459)	(6 211)	(1 221)	(701)	(13)	(19 605)
Write-off	—	431	552	38	371	—	1 392
At the end of the year	—	(68 426)	(37 453)	(6 496)	(7 796)	(488)	(120 659)
Net carrying value	—	100 488	40 682	5 888	2 506	66	149 630
2025
Cost
At the beginning of the year	36	96 930	47 099	7 818	8 465	1 296	161 644
Exchange adjustments	—	(504)	(93)	(14)	(74)	—	(685)
Additions	—	913	981	706	1 010	—	3 610
Disposals	(36)	(411)	(1 204)	(293)	(397)	(224)	(2 565)
At the end of the year	—	96 928	46 783	8 217	9 004	1 072	162 004
Accumulated depreciation
At the beginning of the year	(36)	(47 421)	(27 664)	(5 004)	(7 433)	(1 139)	(88 697)
Exchange adjustments	—	199	38	4	25	—	266
Disposals	36	180	1 138	281	294	200	2 129
Depreciation and impairment charge for the year	—	(10 547)	(5 079)	(661)	(458)	(17)	(16 762)
At the end of the year	—	(57 589)	(31 567)	(5 380)	(7 572)	(956)	(103 064)
Net carrying value	—	39 339	15 216	2 837	1 432	116	58 940

*These are assets held by the Group in circumstances where the Group is lessor.

^ Right-of-use assets primarily comprise property leases under IFRS 16 - Leases.

**Total Depreciation and impairment charge includes £1.5m (March 2025: £nil) disclosed on the income statement within Financial Impact of Strategic Actions.

128



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

29 . Goodwill


At 31 March	2026	2025
£’000	2026	2025
Cost
At the beginning of the year	98 683	99 832
Acquisition of subsidiaries	5 401	—
Exchange adjustments	2 779	(1 149)
At the end of the year	106 863	98 683
Accumulated impairments
At the beginning of the year	(31 163)	(31 163)
At the end of the year	(31 163)	(31 163)
Net carrying value	75 700	67 520
Analysis of goodwill by line of business:
Specialist Banking	75 700	67 520
Total Group	75 700	67 520

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 Investec Continental Europe Advisory (previously Capitalmind),

with goodwill of £63.0 million (2025: £54.8 million). The goodwill has been tested for impairment on the basis of the cash flow

projections for the next three years, discounted at 11.67% (2025: 12.77%) which incorporate an expected revenue growth rate of nil

in perpetuity (2025: nil). The valuation is based on value in use of the business.

A sensitivity analysis has been carried out and it has been concluded that no reasonable possible change in the key assumptions

would cause an impairment to be recognised.

Movement in goodwill

The increase in the goodwill in the current period largely arose on the acquisition of a controlling interest in Investec Advisory AG

based in Switzerland.

129



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

30 . 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	Acquired software	Internally generated software^	Total	Client relationships*	Total		Total
2026
Cost
At the beginning of the year	25 405	—	25 405	4 337	4 337		29 742
Exchange adjustments	760	—	760	39	39		799
Additions	1 707	7 037	8 744	—	—		8 744
Write off	(3 150)	—	(3 150)	(960)	(960)	—	(4 110)
At the end of the year	24 722	7 037	31 759	3 416	3 416		35 175
Accumulated amortisation and impairments
At the beginning of the year	(20 663)	—	(20 663)	(4 337)	(4 337)		(25 000)
Exchange adjustments	(748)	—	(748)	(39)	(39)		(787)
Amortisation	(1 040)	—	(1 040)	—	—		(1 040)
Write off	3 150	—	3 150	960	960		4 110
At the end of the year	(19 301)	—	(19 301)	(3 416)	(3 416)		(22 717)
Net carrying value	5 421	7 037	12 458	—	—		12 458
2025
Cost
At the beginning of the year	25 367	—	25 367	5 239	5 239		30 606
Exchange adjustments	(18)	—	(18)	(19)	(19)		(37)
Additions	1 190	—	1 190	—	—		1 190
Disposals	(1 134)	—	(1 134)	(883)	(883)		(2 017)
At the end of the year	25 405	—	25 405	4 337	4 337		29 742
Accumulated amortisation and impairments
At the beginning of the year	(20 796)	—	(20 796)	(5 239)	(5 239)		(26 035)
Exchange adjustments	18	—	18	19	19		37
Disposals	1 134	—	1 134	883	883		2 017
Amortisation	(1 019)	—	(1 019)	—	—		(1 019)
At the end of the year	(20 663)	—	(20 663)	(4 337)	(4 337)		(25 000)
Net carrying value	4 742	—	4 742	—	—		4 742

*Client relationships are acquired intangibles.

^ Additions to internally generated software in the current year relates to projects not yet brought into use.

130



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

31 . Acquisitions and disposals

There were no significant acquisitions or disposals of subsidiaries in the current year.

32 . Other trading liabilities


At 31 March	2026	2025
£’000	2026	2025
Short positions
– Equities	19 409	16 242
	19 409	16 242

33 . Customer accounts (deposits)


At 31 March	2026	2025
£’000	2026	2025
Demand	6 819 208	6 697 915
Transactional	429 404	437 022
Fixed	7 773 330	6 745 977
Notice	7 445 801	7 574 941
	22 467 743	21 455 855

34 . Debt securities in issue


At 31 March	2026	2025
£’000	2026	2025
Repayable in:
Less than three months	2 971	10 861
Three months to one year	17 918	98 562
One to five years	1 390 948	776 251
Greater than five years	1 194	416 128
	1 413 031	1 301 802
Debt securities in issue shown above comprise:
Senior unsecured notes	955 235	1 168 528
Structured notes	20 888	132 080
Redeemable preference shares	1 194	1 194
Floating rate notes	435 714	—
	1 413 031	1 301 802

35 . Other liabilities


At 31 March	2026	2025
£’000	2026	2025
Financial liabilities
Settlement liabilities	734 274	279 613
Other creditors and accruals	102 988	142 761
Other non-interest bearing liabilities	115 085	116 266
Expected credit losses on undrawn commitments and guarantees	10 499	9 977
	962 846	548 617
Scoped out of IFRS 9
Other creditors and accruals ^*	185 020	185 873
Lease liabilities	117 811	196 979
Other non-interest bearing liabilities	12 642	7 252
Indirect taxation liabilities payable	358	238
	315 831	390 342
	1 278 677	938 959

*Included in Other creditors and accruals is a provision relating to motor vehicle financing. Refer to note 44 for more details.

131



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

35 . Other liabilities (continued)

The maturity analysis of the lease liabilities is shown below:


	2026		2025
At 31 March	Undiscounted lease payments	Present value	Undiscounted lease payments	Present value
£’000	Undiscounted lease payments	Present value	Undiscounted lease payments	Present value
Lease liabilities included in other liabilities
Lease liabilities payable in:
Less than one year	14 559	13 971	161 097	156 024
One to two years	17 278	16 174	14 921	14 210
Two to three years	10 808	9 800	14 837	13 780
Three to four years	9 888	8 641	8 337	7 426
Four to five years	13 647	11 015	2 478	2 358
Later than five years	86 691	58 210	3 688	3 181
	152 871	117 811	205 358	196 979

Reconciliation from opening balance to closing balance


At 31 March
£’000
Balance as at 1 April 2024	243 951
Interest on lease liabilities	9 708
New leases	805
Repayment of lease liabilities	(53 484)
Capital repayment	(43 776)
Interest repayment	(9 708)
Remeasurement of lease liabilities	(294)
Exchange adjustments	(3 707)
Balance as at 31 March 2025	196 979
Interest on lease liabilities	8 153
New leases	22 407
Disposals	(1 983)
Deconsolidation of subsidiaries	(4)
Repayment of lease liabilities	(151 380)
Capital repayment	(143 227)
Interest repayment	(8 153)
Remeasurement of lease liabilities	49 723
Exchange adjustments	(6 084)
Balance as at 31 March 2026	117 811

Renewal options are taken into account when determining the term of the lease.

132



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

36 . Subordinated liabilities


At 31 March	2026	2025
£’000	2026	2025
Issued by Investec plc
Subordinated fixed rate reset callable medium-term notes	697 632	682 218
	697 632	682 218
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	697 632	682 218
	697 632	682 218
Reconciliation from opening balance to closing balance
At the beginning of the year	682 218	668 810
New issue	298 343	—
Redemption	(290 850)	—
Accrual of interest	42 718	41 112
Repayment of interest	(42 952)	(41 125)
Hedge accounting/amortisation of discount	8 155	13 421
At the end of the year	697 632	682 218

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 is to petition for the winding up of the issuing entity,

subject to the discretion of the Prudential Authority. 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 callable fixed rate resettable medium-term notes

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. On 2 February 2026, Investec plc bought back

£294 220 000 of these notes at a cash price of 98.85% by way of tender following the obtaining of PRA consent. The issuer may

redeem the remaining £55 780 000 of 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 their maturity date of 4

January 2032.

Subordinated callable fixed rate resettable medium-term notes

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.

Subordinated callable fixed rate resettable medium-term notes

On 30 January 2026, Investec plc issued £300 000 000 of 5.625% subordinated notes due 2036 at a discount (2036 Notes).

Interest, after the initial short-period distribution paid on 30 July 2026, is paid annually commencing on 30 July 2027 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 30 April 2031 to (and including) 30 July 2031 subject to conditions. If the option to redeem is not exercised, the notes

will be redeemed at par on the maturity date of 30 July 2036.

133



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

37 . Ordinary share capital


At 31 March	2026	2025
£’000	2026	2025
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	295 125 806	295 125 806
Buyback during the year	(4 660 807)	—
At the end of the year	290 464 999	295 125 806
Nominal value of special converting shares	£’000	£’000
At the beginning of the year	60	64
Cancellations during the year	—	(4)
At the end of the year	60	60
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.

In accordance with the Companies Act 2006 the Company does not have authorised share capital.

134



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

38 . Perpetual preference shares


At 31 March	2026	2025
£’000	2026	2025
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 (2025 : 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 (2025 : 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.

39 . Treasury shares


At 31 March	2026	2025
£’000	2026	2025
Treasury shares held by subsidiaries of Investec plc	236 585	217 070
	Number	Number
Investec plc ordinary shares held by subsidiaries	46 920 089	50 175 786
Reconciliation of treasury shares	Number	Number
At the beginning of the year	50 175 786	53 401 625
Purchase of own shares by subsidiary companies	11 215 658	8 115 826
Shares disposed of by subsidiaries	(14 471 355)	(11 341 665)
At the end of the year	46 920 089	50 175 786
Market value of treasury shares	£'000	£'000
Investec plc	269 321	240 442
	269 321	240 442

Subsidiary companies that hold treasury shares are primarily the staff share trusts that facilitate share-based awards within the

Group.

135



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

40 . Other reserves

Fair value reserve

This comprises all fair value adjustments relating to investments in debt instruments and equity investments that are subsequently

measured at FVOCI. When the debt instrument is derecognised, the cumulative gain or loss is reclassified from equity to profit or

loss. For investments in equity instruments the cumulative gain or loss is not recycled, but is reclassified to retained income within

equity on derecognition.

Cash flow hedge reserve

This comprises the effective portion of the gain or loss on hedging instruments designated as cash flow hedges.

Foreign currency reserve

This represents the cumulative foreign exchange differences that arise on the translation of an entity with a different functional

currency than the presentation currency of the parent company and adjustments for designated hedges of net investments. The

cumulative reserve relating to a subsidiary or associate company or joint venture that is disposed of is included in the determination

of profit/loss on disposal of the subsidiary, associate company or joint venture.

41 . Other Additional Tier 1 securities in issue


At 31 March	2026	2025
£’000	2026	2025
Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities	350 000	350 000

On 5 October 2017, Investec plc issued £250 million Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities at

par. These securities were perpetual and paid a distribution rate on 5 March, June, September and December, commencing from

5 December 2017. The distribution was set at 6.75% per annum until December 2024. On 1 March 2024, the Company bought back

£142 million of these securities and redeemed the remaining balance of £108 million on the first optional call date on

5 December 2024.

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.

136



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

42 . Finance lease disclosures


	2026		2025^
At 31 March	Total future minimum payments	Present value	Total future minimum payments	Present value
£’000	Total future minimum payments	Present value	Total future minimum payments	Present value
Finance lease receivables included in loans and advances to customers
Lease receivables due in:
Less than one year	303 183	287 793	274 954	261 017
One to two years	237 250	205 204	216 725	184 385
Two to three years	165 806	131 763	152 927	118 682
Three to four years	106 039	77 952	96 880	69 191
Four to five years	52 661	36 193	45 982	30 530
Later than five years	12 914	8 327	9 579	5 985
	877 853	747 232	797 047	669 790
Unearned finance income	(130 621)		(127 257)
Net investment in the lease	747 232		669 790

^ The values disclosed in the prior year were incorrectly calculated and have therefore been restated.

At 31 March 2026 , unguaranteed residual values accruing to the benefit of the Group were £8.5 million ( 2025 : £9.8 million).

Finance leases in the Group mainly relate to leases on property, equipment and motor vehicles.

Reconciliation of movement in the year


At 31 March	2026	2025^
£’000	2026	2025^
At the beginning of the year	669 790	613 809
New leases	348 972	306 783
Lease payments received	(282 886)	(280 378)
Interest on finance lease receivables	69 009	62 914
Terminations	(57 653)	(33 338)
At the end of the year	747 232	669 790

^ The values disclosed in the prior year were incorrectly calculated and have therefore been restated.


	2026		2025
At 31 March	Total future minimum payments	Present value	Total future minimum payments	Present value
£’000	Total future minimum payments	Present value	Total future minimum payments	Present value
Finance lease receivables included in other assets
Lease receivables due in:
Less than one year	1 187	1 290	1 270	1 258
One to two years	1 105	996	1 272	1 268
Two to three years	—	—	1 060	1 058
	2 292	2 286	3 602	3 584
Unearned finance income	(6)		(18)
Net investment in the lease	2 286		3 584

Included in interest income on the income statement is £69 million (2025 : £62.9 million) from finance lease receivables.

137



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

43 . Notes to the cash flow statement


At 31 March	2026	2025
£’000	2026	2025
Profit before taxation adjusted for non-cash items and other adjustments is derived as follows:
Profit before taxation	413 937	405 823
Adjustment for non-cash items included in profit before taxation:
Gain on step acquisition of a subsidiary	(2 072)	—
Depreciation of operating lease assets	14	17
Depreciation and impairment of property, equipment, software and other intangibles	20 645	21 774
Other non-cash income	(7 757)	—
Expected credit loss impairment charges	97 362	97 040
Share of post-taxation profit of associates and joint venture holdings	(60 283)	(40 921)
Dividends received from associates and joint venture holdings	42 026	92 988
Share-based payments and employee benefit liability recognised	21 299	23 733
Profit before taxation adjusted for non-cash items	525 171	600 454
Increase in operating assets
Loans and advances to banks	(629)	5 209
Reverse repurchase agreements and cash collateral on securities borrowed	(243 934)	(500 651)
Sovereign debt securities	(1 164 550)	(596 568)
Bank debt securities	(149 813)	(26 936)
Other debt securities	(345 509)	(62 795)
Derivative financial instruments	(67 244)	79 898
Securities arising from trading activities	105 189	7 420
Investment portfolio	10 337	(10 083)
Loans and advances to customers	(1 084 306)	(341 166)
Other loans and advances	24 762	(21 704)
Securitised assets	—	66 702
Other assets	(250 894)	69 895
Fair value adjustment for asset portfolio hedged risk	20 507	—
	(3 146 084)	(1 330 779)
Increase/(decrease) in operating liabilities
Deposits by banks	(574 890)	(696 737)
Derivative financial instruments	144 414	(134 464)
Other trading liabilities	3 167	(2 207)
Repurchase agreements and cash collateral on securities lent	887 385	93 111
Customer accounts	1 011 888	665 244
Debt securities in issue	111 229	28 696
Liabilities arising on securitisation of other assets	—	(71 751)
Fair value adjustment for liability portfolio hedged risk	(10 395)	—
Other liabilities	431 096	(23 752)
	2 003 894	(141 860)

138



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

44 . Commitments, contingent liabilities and provisions


At 31 March	2026	2025
£’000	2026	2025
Undrawn facilities	2 800 803	2 477 158
Guarantees^	83 647	110 143
Irrevocable letters of credit^	312 762	461 265
Commitments in scope of IFRS 9	3 197 212	3 048 566
Other commitments	59 331	65 550
	3 256 543	3 114 116

^ Guarantees and irrevocable letters of credit have been disaggregated in the current year and the prior year has been re-presented to align with risk disclosures.

Guarantees are issued by Investec Bank plc on behalf of third parties and other Group companies. The guarantees are issued as

part of the banking business.

Support is provided by Investec Bank plc to its subsidiaries where appropriate.

Expected credit losses (ECL) of £9 million (2025: £8 million) arising on undrawn facilities and £1 million (2025: £2 million) arising on

guarantees and letters of credit are reported in other liabilities. For further details refer to page 168 of the Investec Group’s 2026

risk and governance report.

In addition to guarantees, irrevocable letters of credit, credit derivative instruments, undrawn facilities and other commitments, the

Group includes in its off-balance sheet exposures for risk management purposes £75 million (2025: £72 million) of potential or

revocable exposures and similar arrangements that may arise in future, resulting in additional credit risk.

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 the 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.

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 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 and is

reassessed at each reporting date. 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.

139



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

44. Commitments, contingent liabilities and provisions (continued)

Motor finance commission review

The Investec Group (the Group) notes the FCA’s announcement on 30 March 2026 regarding the final scope of the Motor Finance

compensation scheme, following the Supreme Court judgement handed down on 1 August 2025, and has undertaken an

assessment of the implications and potential impact of the proposed redress scheme.

As previously disclosed, in determining its existing provision the Group considered a range of scenarios to reflect uncertainties in

key assumptions, including potential regulatory responses and redress outcomes. The FCA has now provided further detail on the

approach, including the products in scope, the circumstances in which inadequate disclosure may give rise to an unfair relationship,

the methodology for calculating redress, and the proposed customer engagement approach and time limits.

Based on the scheme as currently proposed, the Group has concluded that its existing provision of £30million, covering both

redress and associated operational costs, remains appropriate based on information currently available and our estimate of a

potential response rate. The ultimate financial impact could differ from these estimates as a result of customer take-up rates and

the associated impact on operational costs; however, we do not believe this will impact the overall provision materially.

The Group notes that the FCA’s scheme is subject to ongoing legal challenges which, if successful, may materially affect the

design, implementation or existence of any redress framework. Accordingly, the legal and regulatory position, as well as the nature,

extent and timing of any remediation, remain materially uncertain pending the outcome of this challenge.

45 . Pledged assets


	Carrying amount of pledged assets		Related liability
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Pledged assets
Loans and advances to banks	46 085	48 103	74 803	89 736
Sovereign debt securities	1 149 518	177 855	1 041 804	86 245
Bank debt securities	12 473	14 872	11 304	7 212
Securities arising from trading activities	9 837	9 213	8 915	8 538
Loans and advances to customers	992 237	921 737	2 441	446 966
Other loans and advances	121	501	205	935
	2 210 271	1 172 281	1 139 472	639 632

The assets pledged by the Group are strictly for the purpose of providing collateral for the counterparty. Additionally, assets

pledged for securities lending transactions amounting to £143 million (31 March 2025: £52 million) are disclosed this year. These

are not included in “sovereign debt securities” in the table above and have no related liabilities.

140



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

46 . Related party transactions


At 31 March	2026	2025
£’000	2026	2025
Balances involving directors (including key management personnel) and connected persons and companies controlled by them:
Loans	11 157	8 280
Deposits	9 495	7 361

*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.


	Investec Limited and subsidiaries
At 31 March	2026	2025
£’000	2026	2025
Balances with other related parties
Assets
Loans and advances to banks	767	1 046
Derivative financial instruments	—	1
Other loans and advances	394	125
Other assets	26 970	5 601
Liabilities
Deposits by banks	18 609	21 332
Derivative financial instruments	1	18
Customer accounts (deposits)	7 865	7 156
Debt securities in issue	—	12 772
Other liabilities	6 360	2

The above outstanding balances arose from the ordinary course of business and on substantially the same terms, including interest

rates and security, as for comparable transactions with third party counterparties.

In the normal course of business, services are rendered between Investec plc and Investec Limited entities. In the year to

31 March 2026, this resulted in a net payment to Investec Limited Group of £34 million (2025: £36 million).

During the year to 31 March 2026, interest of £0.6 million (2025: £0.6 million) was paid to entities in the Investec Limited group.

Interest of £60 700 (2025: £87 000) was received from Investec Limited group.

During the year to 31 March 2026, the Investec group paid £1.7 million (2025: £2.4 million) for services rendered in the course of

business and received £42.5 million (2025: £26.5 million) 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. No material

expected credit loss impairments have been recognised on loans to related parties for 2026 or 2025.

The below outstanding balances arose from the ordinary course of business and on substantially the same terms, including interest

rates and security, as for comparable transactions with third party counterparties.


For the year ended 31 March	2026	2025
£’000	2026	2025
Amounts due from associates	14 785	13 833

141



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47 . 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 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 hedged

items and hedging instruments. The following is a description of each category of accounting hedges achieved by the Group:

– 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 benchmark interest rates. The Group implemented macro (portfolio) hedging in the current

period to better align hedge accounting practices with the management of interest rate risk and to reduce operational burden

of micro hedging. The Group continues to use micro (one-to-one) hedging where appropriate.

– 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. To mitigate this, the Group enters into interest rate swap transactions to mitigate the

cash flow variability risk.

– Hedge of the net investment in a subsidiary: In the current year, the Group has implemented a hedge of our net investment in

Investec Continental Europe Advisory, for exposure to movements in the subsidiary’s functional currency of the Euro.

In addition, 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 190.

Where all the relevant criteria to qualify for hedging are met, hedge accounting is applied. To the extent hedging instruments are

exposed to different risks than the hedged items, this could result in hedge ineffectiveness.

Sources of ineffectiveness include the following:

– Differences in the terms of the hedged item and the hedging instrument, such as the reference interest rate, notional amounts,

maturity dates, reset/coupon or settlement dates

– If a hedging relationship becomes over-hedged, for example, if the hedged item is partially redeemed but the original hedging

instrument remains in place.

Fair value hedges

Fair value hedges - Hedging instruments


At 31 March	Description of financial instrument designated as hedging instrument	Notional value of hedging instrument	Fair value of hedging instrument - Assets	Fair value of hedging instrument - Liabilities	Change in fair value used to measure hedge ineffectiveness for the year
£’000		Notional value of hedging instrument	Fair value of hedging instrument - Assets	Fair value of hedging instrument - Liabilities
2026
Hedged assets	Interest rate swap^	2 436 034	67 738	(2 344)	(11 635)
Hedged liabilities	Interest rate swap^	5 520 303	84	(48 776)	4 141
		7 956 337	67 822	(51 120)	(7 494)
2025
Hedged assets	Interest rate swap^	2 362 156	89 938	(6 097)	(49 132)
Hedged liabilities	Interest rate swap^	4 961 982	2 158	(54 992)	46 622
		7 324 138	92 096	(61 089)	(2 510)

^This is the financial instrument designated as a hedging instrument which is included within derivative financial instruments on the balance sheet.

142



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47. Hedges (continued)

Fair value hedges - Maturity analysis of hedging instruments


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	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
2026
Asset hedging - Notionals
Sovereign debt securities	—	—	24 000	32 000	376 020	17 878	449 898
Bank debt securities	—	—	4 000	1 470	24 621	11 000	41 091
Other debt securities	—	—	—	—	8 500	—	8 500
Loans and advances to customers
Micro hedging	—	—	—	7 067	78 501	15 828	101 396
Macro portfolio hedging	5 000	122 298	86 850	258 111	1 021 855	341 035	1 835 149
	5 000	122 298	114 850	298 648	1 509 497	385 741	2 436 034
Liability hedging - Notionals							—
Customer accounts (deposits)
Micro hedging	88 307	—	—	—	50 000	—	138 307
Macro portfolio hedging	70 000	375 000	850 000	2 315 000	80 000	—	3 690 000
Debt securities in issue	—	—	—	—	986 216	—	986 216
Subordinated liabilities	—	—	—	55 780	350 000	300 000	705 780
	158 307	375 000	850 000	2 370 780	1 466 216	300 000	5 520 303
2025
Asset hedging - Notionals
Sovereign debt securities	—	—	—	8 000	275 500	29 500	313 000
Bank debt securities	—	—	—	—	5 000	—	5 000
Other debt securities	—	—	—	—	15 473	—	15 473
Loans and advances to customers
Micro hedging	1 588	—	49 955	114 680	1 507 094	355 366	2 028 683
Macro portfolio hedging	—	—	—	—	—	—	—
	1 588	—	49 955	122 680	1 803 067	384 866	2 362 156
Liability hedging - Notionals
Customer accounts (deposits)
Micro hedging	150 000	84 837	861 200	1 925 510	20 000	—	3 041 547
Macro portfolio hedging	—	—	—	—	—	—	—
Debt securities in issue	—	—	115 535	135 016	969 883	—	1 220 434
Subordinated liabilities	—	—	—	—	700 000	—	700 000
	150 000	84 837	976 735	2 060 526	1 689 883	—	4 961 981

^Historically the maturity analysis has been presented based on the hedged items, rather than hedging instruments. As a result of this change, comparatives have been

included on a consistent basis.

143



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47. Hedges (continued)

Fair value hedges - Hedged items


	2026			2025
	Carrying value	Cumulative fair value adjustments^#	Change in fair value used to measure ineffectiveness for the year^	Carrying value	Cumulative fair value adjustments^#	Change in fair value used to measure ineffectiveness for the year
At 31 March £’000	Carrying value	Cumulative fair value adjustments^#		Carrying value	Cumulative fair value adjustments^#
Assets
Sovereign debt securities	449 632	(6 513)	(2 094)	311 905	(4 419)	554
Bank debt securities	41 245	(616)	(549)	5 295	(67)	1 343
Other debt securities	8 755	(7)	(150)	15 754	143	415
Loans and advances to customers
Micro hedging	127 162	(33 729)	40 246	2 012 683	(73 976)	42 897
Macro portfolio hedging	1 832 716	(20 507)	(20 507)	—	—	—
Other assets	—	—	—	—	—	4 328
Liabilities
Customer accounts (deposits)
Micro hedging	(140 387)	(737)	764	(3 267 390)	(1 501)	(1 072)
Macro portfolio hedging	(3 730 467)	10 395	10 395	—	—	—
Debt securities in issue	(965 795)	26 977	(8 169)	(1 148 192)	35 145	(34 924)
Subordinated liabilities	(707 997)	10 365	(8 675)	(699 940)	19 041	(12 089)
Total	(3 085 136)	(14 372)	11 261	(2 769 885)	(25 634)	1 452

^#Included in 'Change in fair value used to measure hedge ineffectiveness for the year’ is a £6 million gain (2025: £12.5 million gain) due to the amortisation subsequent

to de-designation of accumulated fair value hedge adjustments related to the structural hedging programme undertaken in December 2022. Also included only in the

prior year is a £4.6 million loss relating to the reversal of the cumulative fair value adjustments recognised up to the date of the buyback of debt securities in issue.

^Included in ‘Cumulative fair value adjustments’ for loans and advances to customers is a loss of £32 million related to micro hedging activities that have ceased. In

addition, there is a £1.2 million cumulative loss (2025: £6.4 million loss) for hedged items ceasing to be adjusted for fair value gains or losses related to the structural

hedging programme.

The changes in the fair value on the hedged item and hedging instruments are included in ‘balance sheet management and other

trading income’ in the income statement. These hedges resulted in a net amount of ineffectiveness of a loss of £2.2 million (2025:

£9 million loss).

In circumstances where the hedged item has been de-designated but remains on balance sheet, i.e. as part of the structural

hedging programme, any accumulated fair value hedge adjustments are recognised in the income statement over the remaining life

of the hedged item.

The following table discloses the average interest rate of the hedging instrument included in the fair value hedging relationships.


	2026		2025
	Average GBP rate	Average foreign currency rate	Average GBP rate	Average foreign currency rate
Interest rate swaps – Assets	3.01%	4.05%	2.70%	2.74%
Interest rate swaps – Liabilities	3.52%	2.39%	3.72%	1.72%

144



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47 . 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.

Cash flow hedges - Hedging instruments and ineffectiveness


	2026
	Notional	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		Asset	Liability
£’000		Asset	Liability
Interest rate risk
Interest rate swaps ^#	750 000	—	(3 421)	(3 469)	(3 552)	83
	750 000	—	(3 421)	(3 469)	(3 552)	83


	2025
	Notional	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		Asset	Liability
£’000		Asset	Liability
Interest rate risk
Interest rate swaps ^#	350 000	—	(208)	(3 938)	(3 913)	(25)
	350 000	—	(208)	(3 938)	(3 913)	(25)

*Hedge ineffectiveness is included in the income statement within trading income arising from balance sheet management and other trading activities.

^# All included within derivative financial instruments on the balance sheet.

Cash flow hedges - Hedged items


	2026
At 31 March	Change in fair value used for calculating hedge ineffectiveness	Balance in reserve for continuing hedges	Balance in reserve where hedge accounting is no longer applied
£’000		Balance in reserve for continuing hedges
Loans and advances to customers	3 552	(3 620)	112
Deposits by banks	—	—	—
Total as at 31 March 2026	3 552	(3 620)	112


	2025
At 31 March	Change in fair value used for calculating hedge ineffectiveness	Balance in reserve for continuing hedges	Balance in reserve where hedge accounting is no longer applied
£’000		Balance in reserve for continuing hedges
Loans and advances to customers	3 632	(68)	163
Deposits by banks	281	—	8 800
Total as at 31 March 2025	3 913	(68)	8 963

145



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47 . Hedges (continued)

Impact of cash flow hedges on profit and loss and other comprehensive income


	Income/(Expense)
At 31 March	2026	2025
£’000	2026	2025
Cash flow hedge reserve balance as at 1 April	6 405	17 664
Net impact on other comprehensive income:	(8 931)	(11 259)
Adjustment recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments	(3 552)	(3 913)
Gain reclassified to income statement when hedged item affected net profit for de- designated relationships	(8 852)	(11 724)
Taxation charge relating to cash flow hedges	3 473	4 378
Cash flow hedge reserve balance as at 31 March	(2 526)	6 405
Closing balance is comprised of:
Cash flow hedge reserve before taxation	(3 508)	8 896
Deferred taxation	982	(2 491)
Cash flow hedge reserve as at 31 March	(2 526)	6 405

Cash flow hedges - Maturity analysis of hedging instruments


	Up to one month to six months	Six months to one year	One to five years	Greater than five years	Total
At 31 March £’000	Up to one month to six months	Six months to one year	One to five years	Greater than five years	Total
2026
Asset hedging - Notionals
Loans and advances to customers	—	300 000	450 000	—	750 000
2025
Asset hedging - Notionals
Loans and advances to customers	—	—	350 000	—	350 000

During the current financial year, forecasted future cash flows that were hedge accounted in previous periods are now no longer

expected to occur due to the repayment of our BOE TFSME. As a result of this, £7.7 million has been reclassified to the income

statement, and is included in the £8.9 million release above.

The following tables disclose the average interest rate of the hedging instrument included in the cash flow hedging relationships.


	2026	2025
	Average GBP rate	Average GBP rate
Interest rate swaps	3.97%	3.95%

Hedges of net investments

In the current year, the Group implemented hedging of its net investment in Investec Continental Europe Advisory (previously

Capitalmind), resulting in an additional balance of £2.1 million debit in the foreign currency reserve.

146



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

48 . Liquidity analysis of financial liabilities based on undiscounted cash flows


At 31 March	Carrying value	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	Carrying value	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
2026
Liabilities
Deposits by banks	902 678	210 561	8 753	3 175	6 507	16 771	704 341	—	950 108
Derivative financial instruments	419 205	587	72 741	102 178	69 812	84 968	58 070	23 821	412 177
Derivative financial instruments – held for trading		268	—	—	—	—	—	—	268
Derivative financial instruments – held for hedging risk		319	72 741	102 178	69 812	84 968	58 070	23 821	411 909
Other trading liabilities	19 409	19 409	—	—	—	—	—	—	19 409
Repurchase agreements and cash collateral on securities lent	1 065 587	9 090	752 298	304 199	—	—	—	—	1 065 587
Customer accounts (deposits)	22 467 743	7 360 275	1 232 437	5 930 231	3 313 202	3 387 434	1 320 365	—	22 543 944
Fair value adjustment for portfolio hedged risk	(10 395)								n/a
Debt securities in issue	1 413 031	—	71	6 651	17 489	37 175	1 547 663	1 194	1 610 243
Other liabilities	962 846	103 425	736 049	26 662	12 025	49 680	43 014	1 550	972 405
Subordinated liabilities	697 632	—	—	—	8 368	33 402	222 931	890 304	1 155 005
Total on-balance sheet liabilities	27 937 736	7 703 347	2 802 349	6 373 096	3 427 403	3 609 430	3 896 384	916 869	28 728 878
Letters of credit and financial guarantees	—	250 300	—	—	3 787	1 462	140 297	563	396 409
Commitments	—	1 724 806	46 378	3 278	25 571	103 749	884 827	145 337	2 933 946
Total liabilities	27 937 736	9 678 453	2 848 727	6 376 374	3 456 761	3 714 641	4 921 508	1 062 769	32 059 233

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 186 and note 35 for the liquidity disclosures relating

to lease liabilities.

147



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED


At 31 March	Carrying value	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	Carrying value	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
2025
Liabilities
Deposits by banks	1 477 568	188 434	9 784	2 968	15 327	725 509	598 848	—	1 540 870	(2 331 228)
Derivative financial instruments	274 791	4 654	28 960	57 468	49 077	62 353	80 708	22 351	305 571	(446 656)
Derivative financial instruments – held for trading		52	—	—	—	—	—	—	52	(757)
Derivative financial instruments – held for hedging risk		4 602	28 960	57 468	49 077	62 353	80 708	22 351	305 519	(445 899)
Other trading liabilities	16 242	16 242	—	—	—	—	—	—	16 242	(18 449)
Repurchase agreements and cash collateral on securities lent	178 202	8 538	169 664	—	—	—	—	—	178 202	(85 091)
Customer accounts (deposits)	21 455 855	7 246 647	1 205 890	6 067 181	3 569 085	2 392 714	1 196 538	—	21 678 055	(21 139 702)
Debt securities in issue	1 301 802	—	1 799	9 898	21 940	106 105	908 748	434 770	1 483 260	(1 433 545)
Liabilities arising on securitisation of other assets	—	—	—	—	—	—	—	—	—	(91 977)
Other liabilities	548 617	53 130	317 131	38 571	11 087	66 879	59 208	2 611	548 617	(594 305)
Subordinated liabilities	682 218	—	—	—	—	41 125	164 500	814 188	1 019 813	(1 060 938)
Total on-balance sheet liabilities	25 935 295	7 517 645	1 733 228	6 176 086	3 666 516	3 394 685	3 008 550	1 273 920	26 770 630	(27 201 891)
Letters of credit and financial guarantees^	—	315 552	—	—	—	6 805	243 464	5 587	571 408	575 272
Commitments^	—	1 442 572	63 957	28 899	18 162	46 237	886 319	128 312	2 614 458	2 438 913
Total liabilities	25 935 295	9 275 769	1 797 185	6 204 985	3 684 678	3 447 727	4 138 333	1 407 819	29 956 496	30 216 076

^The amounts were incorrectly bucketed in the prior period and have been re-bucketed to reflect the earliest possible date on which these may be called.

148



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

49 . Principal subsidiaries, associated companies and joint venture holdings –

Investec plc


			Effective interest
	Principal activity	Country of incorporation	2026	2025
At 31 March	Principal activity	Country of incorporation	2026	2025
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 Capitalmind Investment Limited	Non-trading	England and Wales	100%	100%
Investec Continental Europe Advisory BV	Non-trading	Netherlands	60%	60%
Investec Advisory SAS	Advisory services	France	60%	60%
Investec Advisory GmbH & Co. KG	Advisory services	Germany	60%	60%
Investec Advisory B.V	Advisory services	Netherlands	60%	60%
Investec Advisory AG	Advisory services	Switzerland	36%	—
Investec Advisory A/S	Advisory services	Denmark	60%	—
Investec International Private Office Limited	Financial services	United Kingdom	100%	—

Investec share trusts

As a result of being able to appoint the Trustees and the purpose of the trusts being the remuneration of the Group’s staff, the

Group consolidates the following share trusts, which facilitate share‑based awards on behalf of the Group: The Investec Plc Jersey

Trust Number 1.

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 25 .

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 205 to 209.

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
Temese Funding 2 plc		Securitised receivables
Gresham Leasing One Limited^		Aircraft related
KF Turbo Leasing Limited		Dormant Company
Zebra Aviation Limited		Aircraft leasing
Zebra Capital II Limited		Structured note issuance related
SDFI GP S.á r.l.		Fund management entity

^ During the year, the Group liquidated a residual tranche holding in Gresham Leasing One Limited structured entity which subsequently resulted in the deconsolidation

of the SPV and its related assets and liabilities.

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 180.

149



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

49 . 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 195 to 197.

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 17 and 52.

150



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

49. 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 2026	Line on the balance sheet	Carrying value £'000	Maximum exposure to loss	Income earned from structured entity	£'000
£’000	Line on the balance sheet	Carrying value £'000	Maximum exposure to loss	Income earned from structured entity	£'000
Aircraft investment funds	Investment portfolio	13 816	Limited to the carrying value	Investment income	4 802


At 31 March 2025	Line on the balance sheet	Carrying value £'000	Maximum exposure to loss	Income earned from structured entity	£'000
£’000	Line on the balance sheet	Carrying value £'000	Maximum exposure to loss	Income earned from structured entity	£'000
Aircraft investment funds	Investment portfolio	22 082	Limited to the carrying value	Investment income	2 180

151



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

50 . 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 74 to 87 .

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 2026	Investment fund	Debt fund	Aircraft leasing structure	Total
£’000	Investment fund	Debt fund	Aircraft leasing structure	Total
Derivatives assets (fair value through profit and loss)	—	—	155	155
Loans and advances (fair value through profit and loss)	—	—	10 660	10 660
Loans and advances - Amortised cost	839	—	—	839
Investment portfolio (fair value through profit and loss)	17 947	12 740	1 066	31 753
Other debt securities (fair value through profit and loss)	—	17 259	—	17 259
Total assets	18 786	29 999	11 881	60 666
Other liabilities (fair value through profit and loss)	—	—	—	—
Total liabilities	—	—	—	—
Off-balance sheet commitments	1 132	34 663	2 499	38 294
Maximum exposure at 31 March 2026	19 918	64 662	14 380	98 960


At 31 March 2025	^Investment fund	Debt fund	Aircraft leasing structure	Total
£’000	^Investment fund	Debt fund	Aircraft leasing structure	Total
Derivatives assets (fair value through profit and loss)	—	—	92	92
Loans and advances (fair value through profit and loss)	—	—	11 011	11 011
Loans and advances (amortised cost)	9 493	—	—	9 493
Investment portfolio (fair value through profit and loss)	23 911	5 083	1 091	30 085
Other debt securities (fair value through profit and loss)	—	26 819	—	26 819
Total assets	33 404	31 902	12 194	77 500
Other liabilities (fair value through profit and loss)	—	—	—	—
Total liabilities	—	—	—	—
Off-balance sheet commitments	—	40 397	2 556	42 953
Maximum exposure at 31 March 2025	33 404	72 299	14 750	120 453

^The prior year disclosure for balance in Investment fund has been corrected to present the values under ‘Investment fund’ as this was omitted.

152



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

50 . 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 180.

153



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

51 . 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 financial assets/ liabilities reported on the balance sheet	Financial instruments (including non- cash collateral)	Cash collateral	Net amount
£’000	Gross amounts	Amounts offset		Financial instruments (including non- cash collateral)	Cash collateral	Net amount
2026
Assets
Reverse repurchase agreements and cash collateral on securities borrowed	1 884 699	—	1 884 699	(1 863 936)	(20 715)	48
Derivative financial instruments	788 941	(434 820)	354 121	(106 874)	(176 321)	70 926
Liabilities
Derivative financial instruments	723 344	(304 139)	419 205	(106 874)	(38 489)	273 842
Repurchase agreements and cash collateral on securities lent	1 065 587	—	1 065 587	(1 065 654)	—	—
Other liabilities	1 093 527	(130 681)	962 846	—	—	962 846


	Amounts subject to enforceable netting arrangements
	Effects of offsetting on-balance sheet			Related amounts not offset*
At 31 March	Gross amounts	Amounts offset ¹	Net financial assets/ liabilities reported on the balance sheet	Financial instruments (including non- cash collateral)	Cash collateral	Net amount
£’000	Gross amounts	Amounts offset ¹		Financial instruments (including non- cash collateral)	Cash collateral	Net amount
2025
Assets
Reverse repurchase agreements and cash collateral on securities borrowed	1 640 765	—	1 640 765	(1 606 223)	(34 542)	—
Derivative financial instruments	919 030	(619 749)	299 281	(116 383)	(113 709)	69 189
Liabilities
Derivative financial instruments	783 108	(508 317)	274 791	(116 383)	(37 815)	120 593
Repurchase agreements and cash collateral on securities lent	178 202	—	178 202	(176 831)	(522)	849
Other liabilities^#	660 049	(111 432)	548 617	—	—	548 617

*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.

^#Certain variation margin accounts that qualify in full for offsetting were previously shown against other assets, but have been re-presented to be shown against other

liabilities as this better reflects the net position at the reporting date.

1Amounts offset for derivative financial assets and derivative financial liabilities represent variation margin received and paid on exchange traded/centrally cleared

derivatives and the netting of long and short derivative balances against clients with enforceable netting arrangements.

2Financial instruments (including non-cash collateral) include financial collateral whether recognised or unrecognised.

154



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

52 . 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.


	2026		2025
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	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
Loans and advances to customers	914 155	—	1 657 927	—
Loans and advances to banks	45 362	—	95 626	—
	959 517	—	1 753 553	—

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 17 .

53 . Events after the reporting date

There have been no significant events subsequent to the reporting date that would require adjustment to or disclosure in the

financial statements. 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 2026 of any conditions which existed at the balance sheet date to reliably estimate any

adjustments to these ECL provisions.

155



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT

54 . Credit risk

Credit risk originates primarily from three types of transactions

giving rise to credit and counterparty exposures:

• 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 forming counterparty

exposures):

– 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 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, assess and escalate any material risks

falling outside of this definition.

Risk governance structure

To manage, measure, monitor and mitigate credit 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 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.


	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 the majority

of our loans 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.

156



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	Concentration risk

Concentration risk, with respect to credit 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 .

Concentration risk can also exist where portfolio loan maturities

are clustered to 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.

Credit 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.


	Country risk

Country risk, with respect to credit 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 and where

we have operations, a branch or local banking subsidiary. The

Group will tolerate exposures to other countries where we have

developed a local understanding and capability or we are

facilitating a transaction for a client.

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 limited 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 Organisation for Economic Co-

operation and Development (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

We assess sustainability risk as part of the credit or investment

committee’s evaluation of lending or investment decisions. All

credit and investment transactions with exposure to high-risk

industries go through a sustainability screening process. Where

the transaction is classified as high-risk, a sustainability

screening is required prior to the credit committee where risks

and opportunities are identified to assist the credit committee

in their decision-making process. Where risks are identified,

mitigating actions need to be included. Sustainability

considerations are implicit in our values, culture and code of

conduct and are applied as part of our day to day decision

making. In particular, the following factors are considered when

a transaction is evaluated and approved or declined based on

sustainability considerations:

• Governance matters (including corruption, fraud

and controversies)

• Environmental impacts (including climate, nature degradation

and animal welfare)

• Social injustice (including human rights, diversity, inclusion

and modern slavery, community displacement and health and

safety risks)

• Ethical considerations (including human rights and

modern slavery)

• Macro-economic impacts (including poverty, growth, and

unemployment).

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 with

high concerns.


	Refer to page 177 for further detail.


	Stress testing

The 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 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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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

Risk management and measurement

Fundamental principles employed in the management and

measurement of credit 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)

• 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 risk 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 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.


	Nature of activities

Credit 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 risk is

through core loans and advances, which reflects client-

driven lending activities to private and corporate clients and

account for almost all ECL allowances across our portfolio,

which are detailed on pages 159 to 166

• Treasury function: there are also certain exposures, outside

of core loans and advances, where we assume credit risk.

These arise from treasury investments in high-quality liquid

assets (HQLA), 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 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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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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. A strong

emphasis is placed on proven income and cash flows

generated by the clients and risk is managed through

assessment of the ability of clients to meet their payment

obligations and/or tangible assets provided in support of their

obligations. 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. In addition, the following characteristics

of the property are 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 receipt 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.

159



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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	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 are flat as a proportion of the book at 3.4%, in line with 31 March 2025. Stage 3 exposures remain diversified

across multiple asset classes and provisions are individually assessed.

Stage 2 exposures have decreased to £1 266 million or 7.4% of gross core loans subject to ECL at 31 March 2026 (£1 331 million or

8.1% at 31 March 2025) as underlying portfolios continue to perform.


£’million	31 March 2026	31 March 2025^
Gross core loans	18 011	16 990
Gross core loans at FVPL	809	572
Gross core loans subject to ECL ^*	17 202	16 418
Stage 1	15 354	14 524
Stage 2	1 266	1 331
of which past due greater than 30 days	31	60
Stage 3	582	563
ECL	(207)	(176)
Stage 1	(37)	(34)
Stage 2	(28)	(31)
Stage 3	(142)	(111)
Coverage ratio
Stage 1	0.24%	0.23%
Stage 2	2.2%	2.3%
Stage 3	24.4%	19.7%
Credit loss ratio	0.57%	0.60%
ECL impairment charges on core loans	(97)	(97)
Average gross core loans subject to ECL	16 810	16 270
An analysis of Stage 3 gross core loans subject to ECL
Stage 3 net of ECL	440	452
Aggregate collateral and other credit enhancements on Stage 3	461	455
Stage 3 as a % of gross core loans subject to ECL	3.4%	3.4%
Stage 3 net of ECL as a % of net core loans subject to ECL	2.6%	2.8%

Note: Our exposure (net of ECL) to the Legacy portfolio has reduced from £ 27 million at 31 March 2025 to £ 24 million at 31 March 2026 . These Legacy assets are

predominantly reported in Stage 3. These assets have been significantly provided for and coverage remains high at 47.7%.

*Refer to definitions on page 212 .


	An analysis of gross core loans by country of exposure


31 March 2026		31 March 2025^{^}
£18 011 million		£16 990 million


United Kingdom	82.6%	United Kingdom	83.5%
Europe (excluding UK)	10.6%	Europe (excluding UK)	10.0%
North America	4.4%	North America	4.4%
Asia	2.0%	Asia	1.7%
Other	0.4%	Other	0.4%

^ Re-presented as detailed on page 167.

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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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 2025 to 31 March 2026.

The transfers between stages of gross core loans indicate the impact of stage transfers upon the gross exposure and associated

opening ECL.

The reduction in Stage 2 exposures since 31 March 2025 reflected increased repayments and settlements, together with

migrations into Stage 3.

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, sell-downs as well as Stage 3 exposures

and related ECLs that have been written off.

The ECL impact of changes to risk parameters and models during the year relate to the adjustment of model changes to more

effectively calculate probability of default (PD) reflective of the current experience in the economic environment. 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 2025.


	Stage 1		Stage 2		Stage 3		Total
£’million	Gross exposure	ECL	Gross exposure	ECL	Gross exposure	ECL	Gross exposure	ECL
At 31 March 2025^	14 524	(34)	1 331	(31)	563	(111)	16 418	(176)
Lending collateralised by property at 31 March 2025^	1 910	(5)	248	(3)	165	(31)	2 323	(39)
Transfer from Stage 1	(69)	—	69	—	—	—	—	—
Transfer from Stage 2	47	(1)	(96)	2	49	(1)	—	—
Transfer from Stage 3	—	—	—	—	—	—	—	—
ECL remeasurement arising from transfer of stage	—	—	—	—	—	(1)	—	(1)
New lending net of repayments (includes assets written off)	227	1	(92)	—	(60)	(6)	75	(5)
Changes to risk parameters and models	—	(2)	—	—	—	—	—	(2)
Foreign exchange and other	—	—	—	—	—	—	—	—
Lending collateralised by property at 31 March 2026	2 115	(7)	129	(1)	154	(39)	2 398	(47)
HNW and other private client lending at 31 March 2025	5 409	(9)	222	(1)	195	(19)	5 826	(29)
Transfer from Stage 1	(104)	—	77	—	27	—	—	—
Transfer from Stage 2	15	—	(36)	—	21	—	—	—
Transfer from Stage 3	—	—	25	—	(25)	—	—	—
ECL remeasurement arising from transfer of stage	—	—	—	—	—	(2)	—	(2)
New lending net of repayments (includes assets written off)	543	1	(101)	—	(32)	(5)	410	(4)
Changes to risk parameters and models	—	—	—	—	—	—	—	—
Foreign exchange and other	2	1	—	—	2	—	4	1
HNW and other private client lending at 31 March 2026	5 865	(7)	187	(1)	188	(26)	6 240	(34)
Corporate and other lending at 31 March 2025^	7 205	(20)	861	(27)	203	(61)	8 269	(108)
Transfer from Stage 1	(539)	2	506	(2)	33	—	—	—
Transfer from Stage 2	111	(2)	(265)	7	154	(5)	—	—
Transfer from Stage 3	—	—	1	—	(1)	—	—	—
ECL remeasurement arising from transfer of stage	—	2	—	(8)	—	(42)	—	(48)
New lending net of repayments (includes assets written off)	574	(3)	(157)	4	(154)	32	263	33
Changes to risk parameters and models	—	(2)	—	—	—	1	—	(1)
Foreign exchange and other	23	—	4	—	5	(2)	32	(2)
Corporate and other lending at 31 March 2026	7 374	(23)	950	(26)	240	(77)	8 564	(126)
At 31 March 2026	15 354	(37)	1 266	(28)	582	(142)	17 202	(207)

^ Re-presented as detailed on page 167.

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03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	Stage 1		Stage 2		Stage 3		Total
£’million	Gross exposure	ECL	Gross exposure	ECL	Gross exposure	ECL	Gross exposure	ECL
At 31 March 2024^	14 185	(43)	1 395	(33)	541	(116)	16 121	(192)
Lending collateralised by property at 31 March 2024^	2 155	(10)	168	(3)	148	(39)	2 471	(52)
Transfer from Stage 1	(160)	1	147	(1)	13	—	—	—
Transfer from Stage 2	12	—	(69)	1	57	(1)	—	—
Transfer from Stage 3	—	—	—	—	—	—	—	—
ECL remeasurement arising from transfer of stage	—	—	—	—	—	—	—	—
New lending net of repayments (includes assets written off)	(97)	4	2	—	(53)	9	(148)	13
Changes to risk parameters and models	—	—	—	—	—	—	—	—
Foreign exchange and other	—	—	—	—	—	—
Lending collateralised by property at 31 March 2025^	1 910	(5)	248	(3)	165	(31)	2 323	(39)
HNW and other private client lending at 31 March 2024	5 263	(6)	260	(1)	170	(16)	5 693	(23)
Transfer from Stage 1	(148)	—	88	—	60	—	—	—
Transfer from Stage 2	57	—	(83)	—	26	—	—	—
Transfer from Stage 3	—	—	19	—	(19)	—	—	—
ECL remeasurement arising from transfer of stage	—	—	—	—	—	(1)	—	(1)
New lending net of repayments (includes assets written off)	239	(1)	(62)	—	(42)	(2)	135	(3)
Changes to risk parameters and models	—	(2)	—	—	—	—	—	(2)
Foreign exchange and other	(2)	—	—	—	—	—	(2)	—
HNW and other private client lending at 31 March 2025	5 409	(9)	222	(1)	195	(19)	5 826	(29)
Corporate and other lending at 31 March 2024^	6 767	(27)	967	(29)	223	(61)	7 957	(117)
Transfer from Stage 1	(468)	3	431	(3)	37	—	—	—
Transfer from Stage 2	272	(4)	(344)	9	72	(5)	—	—
Transfer from Stage 3	1	—	11	(1)	(12)	1	—	—
ECL remeasurement arising from transfer of stage	—	3	—	(9)	—	(13)	—	(19)
New lending net of repayments (includes assets written off)	666	(2)	(198)	2	(116)	16	352	16
Changes to risk parameters and models	—	7	—	4	—	—	—	11
Foreign exchange and other	(33)	—	(6)	—	(1)	1	(40)	1
Corporate and other lending at 31 March 2025^	7 205	(20)	861	(27)	203	(61)	8 269	(108)
At 31 March 2025^	14 524	(34)	1 331	(31)	563	(111)	16 418	(176)

^ Re-presented as detailed on page 167.

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03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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 2026 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 2026	IB01-IB12	IB13-IB19	IB20-IB25	Stage 3	Total
£’million	IB01-IB12	IB13-IB19	IB20-IB25	Stage 3	Total
Gross core loans subject to ECL	5 187	10 600	833	582	17 202
Stage 1	5 080	9 791	483	—	15 354
Stage 2	107	809	350	—	1 266
Stage 3	—	—	—	582	582
ECL	(5)	(44)	(16)	(142)	(207)
Stage 1	(4)	(31)	(2)	—	(37)
Stage 2	(1)	(13)	(14)	—	(28)
Stage 3	—	—	—	(142)	(142)
Coverage ratio	0.1%	0.4%	1.9%	24.4%	1.2%


At 31 March 2025^	IB01-IB12	IB13-IB19	IB20-IB25	Stage 3	Total
£’million	IB01-IB12	IB13-IB19	IB20-IB25	Stage 3	Total
Gross core loans subject to ECL	7 102	8 373	380	563	16 418
Stage 1	6 967	7 528	29	—	14 524
Stage 2	135	845	351	—	1 331
Stage 3	—	—	—	563	563
ECL	(5)	(42)	(18)	(111)	(176)
Stage 1	(5)	(28)	(1)	—	(34)
Stage 2	—	(14)	(17)	—	(31)
Stage 3	—	—	—	(111)	(111)
Coverage ratio	0.1%	0.5%	4.7%	19.7%	1.1%

For all other financial instruments including other financial assets (which include exposures to highly rated international banks and

corporate bonds) subject to credit risk, the Group applies credit ratings in line with its credit policies. 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.

^Re-presented as detailed on page 167.

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03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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

Lending collateralised by property totalled £2.5 billion or 13.9%

of net core loans at 31 March 2026, 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. Property collateralised assets are almost entirely

located in the UK.

Underwriting criteria remains conservative and we are

committed to following a client-centric approach to lending,

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 2026
Commercial real estate	1 458	(5)	111	(1)	83	(18)	1 652	(24)	78	1 730
Commercial real estate – investment	1 154	(4)	98	(1)	73	(16)	1 325	(21)	76	1 401
Commercial real estate – development	293	(1)	—	—	10	(2)	303	(3)	2	305
Commercial vacant land and planning	11	—	13	—	—	—	24	—	—	24
Residential real estate	657	(2)	18	—	71	(21)	746	(23)	53	799
Residential real estate – investment	420	(1)	—	—	31	(4)	451	(5)	53	504
Residential real estate – development	224	(1)	18	—	15	(1)	257	(2)	—	257
Residential vacant land and planning	13	—	—	—	25	(16)	38	(16)	—	38
Total lending collateralised by property	2 115	(7)	129	(1)	154	(39)	2 398	(47)	131	2 529
Coverage ratio		0.33%		0.8%		25.3%		2.0%
At 31 March 2025^
Commercial real estate	1 251	(4)	219	(3)	73	(9)	1 543	(16)	45	1 588
Commercial real estate – investment	1 043	(4)	125	(2)	73	(9)	1 241	(15)	34	1 275
Commercial real estate – development	207	—	88	(1)	—	—	295	(1)	11	306
Commercial vacant land and planning	1	—	6	—	—	—	7	—	—	7
Residential real estate	659	(1)	29	—	92	(22)	780	(23)	5	785
Residential real estate – investment	381	(1)	13	—	46	(3)	440	(4)	5	445
Residential real estate – development	264	—	8	—	18	(2)	290	(2)	—	290
Residential vacant land and planning	14	—	8	—	28	(17)	50	(17)	—	50
Total lending collateralised by property	1 910	(5)	248	(3)	165	(31)	2 323	(39)	50	2 373
Coverage ratio		0.26%		1.2%		18.8%		1.7%

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

^Re-presented as detailed on page 167.

164



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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

High net worth and other private client lending totalled

£6.2 billion or 35.0% of net core loans at 31 March 2026.

There was growth in mortgages of 10.3% in the year to

31 March 2026.

Growth in this area has been achieved with strong adherence to

our lending criteria. Weighted average LTVs on mortgages is

65%.


	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 2026
Mortgages	5 374	(6)	156	(1)	119	(12)	5 649	(19)	26	5 675
Other high net worth lending	491	(1)	31	—	69	(14)	591	(15)	7	598
Total high net worth and other private client lending	5 865	(7)	187	(1)	188	(26)	6 240	(34)	33	6 273
Coverage ratio		0.12%		0.5%		13.8%		0.5%
At 31 March 2025
Mortgages	4 833	(8)	151	(1)	135	(7)	5 119	(16)	26	5 145
Other high net worth lending	576	(1)	71	—	60	(12)	707	(13)	9	716
Total high net worth and other private client lending	5 409	(9)	222	(1)	195	(19)	5 826	(29)	35	5 861
Coverage ratio		0.17%		0.5%		9.7%		0.5%

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03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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 Vehicle 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, usually 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 5.0% from £8.6 billion

at 31 March 2025 to £9.1 billion or 51.0% of net core loans at 31

March 2026. There has been diversified growth across multiple

corporate and other lending asset classes including fund

finance, small ticket asset finance, asset-based lending,

corporate and acquisition finance and aviation 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.

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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	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 2026
Corporate and acquisition finance	1 816	(7)	225	(8)	93	(43)	2 134	(58)	115	2 249
Asset-based lending	259	(1)	59	(1)	43	(4)	361	(6)	—	361
Fund finance	1 765	(2)	18	—	—	—	1 783	(2)	51	1 834
Other corporate and financial institutions and governments	692	(2)	40	(1)	4	(1)	736	(4)	21	757
Small ticket asset finance	1 311	(7)	429	(8)	28	(14)	1 768	(29)	—	1 768
Motor finance	956	(3)	119	(7)	34	(11)	1 109	(21)	—	1 109
Aviation finance	93	—	—	—	—	—	93	—	427	520
Energy and infrastructure finance	482	(1)	60	(1)	38	(4)	580	(6)	31	611
Total corporate and other lending	7 374	(23)	950	(26)	240	(77)	8 564	(126)	645	9 209
Coverage ratio		0.31%		2.7%		32.1%		1.5%
At 31 March 2025^
Corporate and acquisition finance	1 733	(6)	230	(9)	77	(17)	2 040	(32)	112	2 152
Asset-based lending	208	(1)	143	(3)	—	—	351	(4)	—	351
Fund finance	1 467	(1)	30	—	—	—	1 497	(1)	68	1 565
Other corporate and financial institutions and governments	670	(2)	57	(2)	32	(16)	759	(20)	4	763
Small ticket asset finance	1 433	(6)	199	(7)	23	(11)	1 655	(24)	—	1 655
Motor finance	994	(2)	97	(4)	29	(12)	1 120	(18)	—	1 120
Aviation finance	175	—	7	—	—	—	182	—	279	461
Energy and infrastructure finance	525	(2)	98	(2)	42	(5)	665	(9)	24	689
Total corporate and other lending	7 205	(20)	861	(27)	203	(61)	8 269	(108)	487	8 756
Coverage ratio		0.28%		3.1%		30.0%		1.3%

^Re-presented as detailed on page 167.

167



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

The tables that follow provide further analysis of the Group’s gross credit and counterparty exposures. Total gross credit and

counterparty exposures do not take into consideration risk mitigating factors such as collateral, financial guarantees and

instruments that create an economic hedge.

An analysis of gross credit and counterparty exposures

Gross credit and counterparty exposure totalled £ 33.3 billion at 31 March 2026 (31 March 2025: £31.1 billion). Cash and near cash

balances amounted to £ 9.4 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 99% of overall ECLs.

An analysis of gross credit and counterparty exposures


£’million	31 March 2026	31 March 2025*
Cash and balances at central banks	3 174	4 192
Loans and advances to banks	801	860
Reverse repurchase agreements and cash collateral on securities borrowed	1 885	1 641
Sovereign debt securities	3 688	2 525
Bank debt securities	474	324
Other debt securities	1 118	772
Derivative financial instruments	354	288
Securities arising from trading activities	—	1
Loans and advances to customers	18 011	16 990
Other loans and advances	114	139
Other assets	59	28
Total on-balance sheet exposures	29 678	27 760
Guarantees	82	108
Committed facilities related to loans and advances to customers	2 801	2 477
Contingent liabilities, letters of credit and other	716	800
Total off-balance sheet exposures	3 599	3 385
Total gross credit and counterparty exposures	33 277	31 145

*Re-presented as detailed on page 167.

Re-presentation of gross and ECL values

Prior period gross and ECL values have been re-presented in line with changes to management’s approach to measuring credit risk

metrics. Gross and ECL values at 31 March 2025 have increased by £34 million for ‘loans and advances to customers’ with no

change to the income statement or balance sheet. These increases were due to:

• Adjustments relating to suspended interest: In prior periods, Stage 3 gross loans and advances were presented net of

suspended interest in management’s credit risk metrics with the adjustment for suspended interest disclosed separately in the

footnotes. The presentation has been amended such that the suspended interest against a Stage 3 exposure is now included

within the ECL allowance instead of being netted off the gross amount. This adjustment does not change the net carrying value

as shown on the balance sheet

• Adjustments relating to FVOCI: The gross and ECL values of financial assets held at FVOCI were presented, either in footnotes

or in supplementary tables. Going forward, gross values will all be presented consistently at the fair value of the instruments

increased by ECL values. This adjustment does not change the carrying value, being the fair value, as shown on the balance

sheet.

As a result of these re-presentations gross core loans and ECLs are £16 990 million and £176 million as at 31 March 2025 (31 March

2024: £16 121 million and £192 million respectively).

168



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

A further analysis of gross credit and counterparty exposures

The table below indicates the asset class (on the face of the consolidated balance sheet) in which credit and counterparty

exposures are reflected. Not all assets included in the balance sheet bear credit risk.


At 31 March 2026	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	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
Cash and balances at central banks	3 174	—	3 174	—	—	3 174
Loans and advances to banks	801	—	801	—	—	801
Reverse repurchase agreements and cash collateral on securities borrowed	1 885	—	1 885	—	—	1 885
Sovereign debt securities	3 688	—	3 688	—	—	3 688
Bank debt securities	474	—	474	—	—	474
Other debt securities	1 118	42	1 076	—	—	1 118
Derivative financial instruments	354	354	—	—	—	354
Securities arising from trading activities	—	—	—	—	45	45
Loans and advances to customers	18 011	809	17 202	(207)	—	17 804
Fair value adjustment for asset portfolio hedged risk	—	—	—	—	(21)	(21)
Other loans and advances	114	—	114	—	—	114
Other securitised assets	—	—	—	—	—	—
Investment portfolio	—	—	—	—	414*	414
Interest in associated undertakings and joint venture holdings	—	—	—	—	852	852
Current taxation assets	—	—	—	—	80	80
Deferred taxation assets	—	—	—	—	73	73
Other assets	59	—	59	—	848^	907
Property and equipment	—	—	—	—	150	150
Goodwill	—	—	—	—	76	76
Software	—	—	—	—	12	12
Total on-balance sheet exposures	29 678	1 205	28 473	(207)	2 529	32 000
Guarantees	82	—	82	—	—	82
Committed facilities related to loans and advances to customers	2 801	126	2 675	(9)	—	2 792
Contingent liabilities, letters of credit and other ^{^^}	716	409	307	(1)	135	850
Total off-balance sheet exposures	3 599	535	3 064	(10)	135	3 724
Total exposures	33 277	1 740	31 537	(217)	2 664	35 724

*Relates to exposures that are classified as investment risk.

^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 the notional exposure to credit risk resulting from credit derivative instruments of £403 million.

Note: The above numbers may not cast due to rounding.

169



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

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


At 31 March 2025ˆ	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	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
Cash and balances at central banks	4 192	—	4 192	—	—	4 192
Loans and advances to banks	860	—	860	—	—	860
Reverse repurchase agreements and cash collateral on securities borrowed	1 641	56	1 585	—	—	1 641
Sovereign debt securities	2 525	—	2 525	—	—	2 525
Bank debt securities	324	—	324	—	—	324
Other debt securities	772	50	722	(1)	—	771
Derivative financial instruments	288	288	—	—	11	299
Securities arising from trading activities	1	1	—	—	149	150
Loans and advances to customers	16 990	572	16 418	(176)	—	16 814
Other loans and advances	139	—	139	—	—	139
Other securitised assets	—	—	—	—	—	—
Investment portfolio	—	—	—	—	348*	348
Interest in associated undertakings and joint venture holdings	—	—	—	—	832	832
Current taxation assets	—	—	—	—	25	25
Deferred taxation assets	—	—	—	—	121	121
Other assets	28	—	28	—	624**	652
Property and equipment	—	—	—	—	59	59
Goodwill	—	—	—	—	68	68
Software	—	—	—	—	5	5
Total on-balance sheet exposures	27 760	967	26 793	(177)	2 241	29 824
Guarantees	108	—	108	—	—	108
Committed facilities related to loans and advances to customers	2 477	165	2 312	(8)	—	2 469
Contingent liabilities, letters of credit and other ^#	800	349	451	(2)	139	937
Total off-balance sheet exposures	3 385	514	2 871	(10)	139	3 514
Total exposures	31 145	1 481	29 664	(187)	2 380	33 338

*Relates to exposures that are classified as investment risk.

**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 the notional exposure to credit risk resulting from credit derivative instruments of £339 million.

^Re-presented as detailed on page 167.

170



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	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	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
At 31 March 2026
Cash and balances at central banks	—	—	—	—	3 174	—	—
Loans and advances to banks	—	—	—	—	—	—	801
Reverse repurchase agreements and cash collateral on securities borrowed	—	—	—	—	—	—	1 885
Sovereign debt securities	—	—	—	—	3 650	—	38
Bank debt securities	—	—	—	—	—	—	474
Other debt securities	—	—	—	7	3	7	1 076
Derivative financial instruments	—	—	—	9	—	6	301
Securities arising from trading activities	—	—	—	—	—	—	—
Loans and advances to customers	6 273	2 529	33	838	345	916	2 533
Other loans and advances	—	—	—	—	—	—	114
Other securitised assets	—	—	—	—	—	—	—
Other assets	—	—	—	—	—	—	50
Total on-balance sheet exposures	6 273	2 529	33	854	7 172	929	7 272
Guarantees	13	1	—	—	—	—	65
Committed facilities related to loans and advances to customers	268	352	—	436	68	113	978
Contingent liabilities, letters of credit and other	24	—	—	126	—	—	546
Total off-balance sheet exposures	305	353	—	562	68	113	1 589
Total gross credit and counterparty exposures	6 578	2 882	33	1 416	7 240	1 042	8 861
At 31 March 2025^{^}
Cash and balances at central banks	—	—	—	—	4 192	—	—
Loans and advances to banks	—	—	—	—	—	—	860
Reverse repurchase agreements and cash collateral on securities borrowed	—	—	—	—	—	—	1 641
Sovereign debt securities	—	—	—	—	2 366	—	159
Bank debt securities	—	—	—	—	—	—	324
Other debt securities	—	—	—	—	2	15	689
Derivative financial instruments	—	2	1	10	1	16	216
Securities arising from trading activities	—	—	—	—	—	—	1
Loans and advances to customers	5 861	2 373	20	851	288	914	2 461
Other loans and advances	—	—	—	—	—	—	139
Other securitised assets	—	—	—	—	—	—	—
Other assets	—	—	—	—	—	—	26
Total on-balance sheet exposures	5 861	2 375	21	861	6 849	945	6 516
Guarantees	14	—	—	—	—	—	73
Committed facilities related to loans and advances to customers	226	371	—	493	47	94	762
Contingent liabilities, letters of credit and other	39	—	—	237	—	—	484
Total off-balance sheet exposures	279	371	—	730	47	94	1 319
Total gross credit and counterparty exposures	6 140	2 746	21	1 591	6 896	1 039	7 835

^Re-presented as detailed on page 167.

171



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


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
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

—	—	—	—	—	—	—	—	—	—	3 174
—	—	—	—	—	—	—	—	—	—	801
—	—	—	—	—	—	—	—	—	—	1 885
—	—	—	—	—	—	—	—	—	—	3 688
—	—	—	—	—	—	—	—	—	—	474
—	—	—	7	—	—	—	18	—	—	1 118
9	6	3	—	—	6	—	9	—	5	354
—	—	—	—	—	—	—	—	—	—	—
287	916	192	—	113	5	118	1 064	1 109	740	18 011
—	—	—	—	—	—	—	—	—	—	114
—	—	—	—	—	—	—	—	—	—	—
—	—	—	—	—	—	—	8	—	1	59
296	922	195	7	113	11	118	1 099	1 109	746	29 678
—	—	—	—	3	—	—	—	—	—	82
10	255	20	—	4	—	—	61	—	236	2 801
—	13	—	—	—	—	—	1	—	6	716
10	268	20	—	7	—	—	62	—	242	3 599
306	1 190	215	7	120	11	118	1 161	1 109	988	33 277

—	—	—	—	—	—	—	—	—	—	4 192
—	—	—	—	—	—	—	—	—	—	860
—	—	—	—	—	—	—	—	—	—	1 641
—	—	—	—	—	—	—	—	—	—	2 525
—	—	—	—	—	—	—	—	—	—	324
—	—	—	39	—	—	—	27	—	—	772
10	10	1	—	1	—	—	15	—	5	288
—	—	—	—	—	—	—	—	—	—	1
290	830	159	—	121	4	109	891	1 120	698	16 990
—	—	—	—	—	—	—	—	—	—	139
—	—	—	—	—	—	—	—	—	—	—
—	—	—	—	—	—	—	—	—	2	28
300	840	160	39	122	4	109	933	1 120	705	27 760
—	—	—	—	3	—	—	18	—	—	108
15	194	1	—	8	—	2	97	—	167	2 477
—	39	—	—	—	—	—	1	—	—	800
15	233	1	—	11	—	2	116	—	167	3 385
315	1 073	161	39	133	4	111	1 049	1 120	872	31 145

172



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED


	Gross credit and counterparty exposures by residual contractual maturity


At 31 March 2026	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	Up to three months	Three to six months	Six months to one year	One to five years	Five to 10 years	>10 years	Total
Cash and balances at central banks	3 174	—	—	—	—	—	3 174
Loans and advances to banks	801	—	—	—	—	—	801
Reverse repurchase agreements and cash collateral on securities borrowed	1 553	316	16	—	—	—	1 885
Sovereign debt securities	1 547	1 367	194	536	44	—	3 688
Bank debt securities	27	10	59	367	11	—	474
Other debt securities	11	—	4	68	224	811	1 118
Derivative financial instruments	111	64	96	75	4	4	354
Securities arising from trading activities	—	—	—	—	—	—	—
Loans and advances to customers	1 586	1 235	2 421	8 998	2 102	1 669	18 011
Other loans and advances	—	—	—	50	64	—	114
Other securitised assets	—	—	—	—	—	—	—
Other assets	50	—	—	9	—	—	59
Total on-balance sheet exposures	8 860	2 992	2 790	10 103	2 449	2 484	29 678
Guarantees	78	—	3	—	1	—	82
Committed facilities related to loans and advances to customers	91	157	398	1 616	524	15	2 801
Contingent liabilities, letters of credit and other	497	4	72	142	—	1	716
Total off-balance sheet exposures	666	161	473	1 758	525	16	3 599
Total gross credit and counterparty exposures	9 526	3 153	3 263	11 861	2 974	2 500	33 277

173



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

55 . Additional credit risk information

Credit risk classification and provisioning policy

IFRS 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 79 and 80.

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 162 .

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 80.

Key judgements at 31 March 2026

Key judgemental areas under IFRS 9 are subject to robust

governance processes. At 31 March 2026, 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.

The recalibration of models in preparation for IRB adoption,

together with adjustments to address known model

implementation deficiencies, resulted in an increase in ECL of

£3.7 million during the year. This was offset by the full release

of the management overlay (31 March 2025: £3.7 million), which

had previously been maintained to capture uncertainty in the

models’ predictive capability.

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 total reported ECL at 31 March 2026 amounted to £217

million (31 March 2025: £187 million). 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.


At 31 March 2026	(Increased) /decreased change in reported ECL
At 31 March 2026	(Increased) /decreased change in reported ECL
Base case (100%)	9.4
Severe downside 1 (100%)	(30.8)
Downside 2 (100%)	(6.5)


At 31 March 2025	(Increased)/ decreased change in reported ECL
At 31 March 2025	£’million
Base case (100%)	9.1
Downside 1 - trade war (100%)	(26.5)
Downside 2 - global synchronised downturn (100%)	(16.8)

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Forward-looking macro-economic scenarios

The measurement of ECL 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 in light of the current

macro-economic environment, the composition of the downside

scenarios has been updated to incorporate severe downside 1,

which is an AI and private credit based scenario, replacing the

previous downside 2 - global synchronised downturn scenario.

Downside 2 is an inflation scenario focusing on the Middle East

and an energy price shock, which replaces the downside 1 -

trade war scenario.

In addition to the assessment of the macro-economic scenarios

themselves, scenario weightings are also reviewed taking into

account the latest economic developments and the associated

risks to the outlook. Prominent risks at the start of the year included

concerns over AI, via company valuations and spending, issues

surfacing in the private credit space, and the possible re-

emergence of inflationary pressures, via geopolitical developments.

Consequently, severe downside 1 scenario was allocated a 15%

weight, while downside 2 scenario was allocated a 30% weight.

The risks to economic activity remain skewed to the downside, with

the downside weighting biased towards downside 2, given the

escalating war in Iran and an energy price shock.

The base case assumes that the onset of the Iranian conflict

clouds the global economic outlook, given the sharp rise in

energy prices. In the UK, annual GDP growth is forecast at 0.8%

for 2026, representing a 0.4% deterioration relative to pre-

conflict estimates, reflecting an assumption of a short conflict

and energy prices trending towards pre-war levels. Activity is

expected to recover towards the end of 2026 and into 2027,

with the pace of growth anticipated to strengthen to 1.8%. CPI

inflation is assumed to rise through mid-2026, peaking at 3.5%

before moderating to 3.3% by year end and returning to the 2%

target by the fourth quarter of 2027. Near term inflation

pressures are expected to result in a pause in the Bank of

England (BoE) path of gradual easing, with Bank rate held at

3.75% throughout 2026 before interest rate cuts resume in

2027, ending the year at 3.0%. Globally, economic growth slows

modestly to 3.0% in 2026, on account of the effects of the war,

before recovering in 2027 and returning to trend levels of

around 3.5% over the medium term. Advanced economies are

projected to grow modestly, with the US expected to

outperform with average annual growth of 2% while China’s

GDP growth averages 4.5% over the medium term. As with the

UK, global monetary policy is anticipated to return to more

neutral levels.

Severe downside 1 scenario assumes that equity markets

experience a significant repricing in AI technology companies,

triggering sharp falls in equities, with the FTSE 100 falling 56%.

This shock spreads across asset classes and prompts an

unwinding of a period of compressed risk premiums (GBP high-

yield credit spreads widen by 1 525bps), permeating the private

credit space. The financial market shock feeds through to the

real economy, with UK GDP contracting by c.5% and UK real

estate values falling by 15%. Central banks are assumed to

respond aggressively to the demand shock through rate cuts and

renewed quantitative easing with the BoE cutting the Bank rate

to a low of 0.25%. Given the expedited policy response and the

absence of a lasting impact on lending, the economy is expected

to recover relatively quickly, regaining its pre-crisis peak in GDP

within two years. The shock is global in nature, with the US

particularly affected by a sharp fall in AI investment (GDP

contracting 5.7%), while Euro area output declines by 4.1% and

global GDP by 2.9%. Interest rates in the UK, US and EU are

assumed to be cut to close to zero.

Downside 2 scenario envisages a significant escalation in the

Iranian conflict, pushing oil prices to USD150/bbl and natural

gas prices to 200p/therm, with prices remaining elevated for a

prolonged period. In the UK, CPI inflation is assumed to peak at

6.0% and average 4.4% over the five-year projection horizon. In

response, the BoE tightens monetary policy, with Bank Rate

rising to 5.50% in the first quarter of 2027, before easing

towards the end of the scenario horizon. The economy endures

a seven-quarter recession, with GDP contracting by 3.1% peak

to trough. Unemployment rises to a peak of 7.9%, which

combined with higher interest rates contributes to a 17% fall in

house prices. The energy price shock is global, pushing inflation

sharply higher and prompting interest rate increases from other

major central banks. The Federal Reserve is assumed to increase

interest rates by 175bps and the ECB by 150bps. The US and Euro

area economies experience recessions of 2.7% and 2.5%,

respectively, while global GDP growth contracts by 1.8%.

In the upside case, UK economic activity proves more resilient,

and the pace of recovery is more robust, as stronger

confidence and lower interest rates prompt a pickup in

investment. Over the scenario horizon productivity growth is

expected to support stronger economic growth, with medium-

term GDP growth averaging 2% p.a. Growth is also stronger

globally, although the US is expected to outperform, supported

by AI investment. Inflation pressures ease, and monetary policy

is assumed to normalise to neutral more quickly.

The graph below shows the forecasted UK GDP under each

macro-economic scenario applied at 31 March 2026. UK GDP

Forecast


	£’billion


	Upside			Base case
	Upside			Base case
	Severe downside 1			Downside 2
	Severe downside 1			Downside 2

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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 2026 average 2026 – 2031				At 31 March 2025 average 2025 – 2030
Macro-economic scenarios	Upside	Base case	Severe downside 1	Downside 2	Upside	Base case	Downside 1 trade war	Downside 2 global synchronised downturn
Macro-economic scenarios	%	%	%	%	%	%	%	%
UK
GDP growth	2.1	1.5	0.7	(0.3)	2.1	1.7	0.4	0.4
Unemployment rate	4.5	4.8	5.8	7.2	4.1	4.7	6.7	6.8
CPI inflation	2.0	2.3	1.2	4.4	2.0	2.1	2.7	1.6
House price growth	4.6	3.5	(0.1)	(3.3)	3.6	2.9	(2.3)	(0.9)
BoE – Bank rate (end year)	3.0	3.1	1.4	5.0	3.0	3.1	3.9	1.7
Euro area
GDP growth	1.9	1.5	1.1	(0.1)	2.0	1.3	0.3	0.2
US
GDP growth	2.7	2.0	1.0	0.2	2.4	1.9	0.6	0.6
Scenario weightings	10	45	15	30	10	60	20	10

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 2026.


Base case %	Financial years
Base case %	2026/2027	2027/2028	2028/2029	2029/2030	2030/2031
UK
GDP growth	1.0	1.9	1.6	1.6	1.6
Unemployment rate	5.2	5.0	4.6	4.6	4.6
CPI inflation	3.2	2.1	2.0	2.0	2.0
House price growth	1.6	5.7	3.8	3.3	3.2
BoE – Bank rate (end year)	3.5	3.0	3.0	3.0	3.0
Euro area
GDP growth	1.1	1.8	1.5	1.4	1.5
US
GDP growth	1.9	2.1	2.1	2.0	2.0

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The following table outlines the extreme point forecast for each economic factor across the scenarios as at 31 March 2026.

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 the lowest

quarterly level of GDP, house price growth (year on year). For Bank rate and CPI inflation the most extreme point listed, is the

lowest level in severe downside 1 scenario and the highest in downside 2 scenario.


Five-year extreme points At 31 March 2026	Upside	Baseline: Base case five–year average	Severe downside 1	Downside 2
Five-year extreme points At 31 March 2026	%	%	%	%
UK
GDP growth	2.6	1.5	(5.6)	(2.6)
Unemployment rate	4.4	4.8	7.8	7.9
CPI inflation	2.0	2.3	0.6	6.0
House price growth	5.6	3.5	(13.7)	(8.7)
BoE – Bank rate (end year)	3.0	3.1	0.3	5.5
Euro area
GDP growth	2.0	1.5	(3.8)	(2.1)
US
GDP growth	2.8	2.0	(5.2)	(2.4)

The following table outlines the extreme point forecast for each economic factor across the scenarios as at 31 March 2025.

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 the 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 – trade war scenario and the lowest in downside 2 – global synchronised downturn scenario.


Five-year extreme points At 31 March 2025	Upside	Baseline: Base case five–year average	Downside 1 trade war	Downside 2 global synchronised downturn
Five-year extreme points At 31 March 2025	%	%	%	%
UK
GDP growth	2.9	1.7	(3.0)	(4.1)
Unemployment rate	3.8	4.7	8.5	8.0
CPI inflation	2.0	2.1	4.7	0.8
House price growth	5.7	2.9	(25.5)	(18.0)
BoE – Bank rate (end year)	3.0	3.1	5.5	0.8
Euro area
GDP growth	2.2	1.3	(3.4)	(4.7)
US
GDP growth	2.6	1.9	(4.0)	(4.2)

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56 . Sustainability risk

Investec’s sustainability strategy is aligned to the UN

Sustainable Development Goals (SDGs) and is anchored around

two focus areas: addressing climate change and supporting

socioeconomic progress. These focus areas are supported by

the following:

• 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)

• Reduced inequalities (SDG 10)

• Sustainable cities and communities (SDG 11)

• Climate action (SDG 13).

Risk governance structure

The Investec Group’s DLC Executive Sustainability Committee,

mandated by the Investec Group’s executive directors, reports

relevant matters to the DLC SEC, DLC BRCC and Investec Group

ERC. The main objectives of the committee are to align and

integrate sustainability activities across the organisation while

focusing on business opportunities and escalating significant

matters for consideration. The committee provides feedback to

the DLC SEC on current and emerging sustainability matters

and identifies relevant external factors that could negatively

impact the organisation's reputation, while also considering

Investec’s impact on people and planet, reflecting a double

materiality perspective.

Risk management and measurement

We integrate sustainability considerations into our daily

operations and credit and investment decision-making

processes, and we adopt a precautionary approach to managing

sustainability risks within our decision-making frameworks.

Sustainability-related risks are embedded within the Group’s

risk management framework and are considered alongside

other financial and non-financial risks. They arise primarily

through our lending and investment portfolios, as well as

operational activities and value chain relationships with

suppliers, clients and counterparties, and are reflected in the

risk appetite framework.

We encourage our clients to adopt and adhere to best

practices and standards regarding sustainability matters, as

well as to report on their sustainability performance and impact

where appropriate. Additionally, our due diligence processes

are embedded in our operations, with transparency maintained

via disclosures to our stakeholders and regulators. We believe

that one of the most significant socio-economic and

environmental impacts we can achieve is through partnering

with our clients and stakeholders to foster a cleaner, more

resilient, and inclusive world.

We use various tools and frameworks to assess the

sustainability performance and impact of our clients and

transactions, including 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.

Our strategy for managing and measuring sustainability risk

is ultimately informed by our consideration of Investec’s

supporting SDGs.

Supporting socioeconomic progress

The Group is committed to promoting inclusive socioeconomic

development within our operations, communities, and business

activities. We recognise the importance of fostering an inclusive

environment that promotes equal opportunities for all

individuals .

Within our own operations

The Group is dedicated to cultivating a purposeful and inclusive

culture, which we achieve through our workplace environment

and the Investec experience.

Furthermore, we recognise that no single business can address

the myriad socio-economic needs present in society.

Therefore, our focus is directed towards education and

learnerships, entrepreneurship and job creation, environmental

sustainability, and philanthropy.

In principle, we are committed to:

• Encouraging a sense of belonging for all people, irrespective

of difference

• Focusing on creating education and learnership opportunities

within our communities

• Creating jobs for young people through quality work

experience placements.

At 12 June 2026 we had 55% representation of women and

45% of minority ethnic diversity, as defined by the UK listing

rule, on the Board.

We continue to improve our gender pay gap in the UK, with a

mean hourly pay gap of 17.1%, and we voluntarily disclose our

ethnicity pay gap.

Our community initiatives form the cornerstone of our

commitment to creating enduring worth, reinforcing our

overarching goal of fostering corporate responsibility. We are

currently in the process of developing a comprehensive social

impact strategy and framework to consolidate and enhance our

community initiatives.

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 inequalities. Investec

prioritises the development of the mid-market sector, a crucial

driver of job creation and economic growth.

The Investec Group’s Sustainable and Transition Finance

Classification Framework and associated target drive financing

for commercial activities that support social outcomes (as well

as environmental outcomes), most of which are in pursuit of

supporting socioeconomic progress.

In principle, we will not engage in activities:

• that do not respect human rights and 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.

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NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

Investec places significant importance on addressing modern

slavery according to the UK Modern Slavery Act 2015. This

extends to screening third parties' modern slavery policies at

the time of onboarding.

The considerations outlined above are integrated into the

sustainability screening processes applied across our business

activities. Transactions are classified as high, medium, or low

risk in accordance with the European Bank for Reconstruction

and Development (EBRD) classification using the International

Finance Corporation (IFC) guidelines. Those identified in high-

risk industries undergo a comprehensive screening process

conducted by the Group Sustainability team. The assessment

of a transaction’s social impact may include evaluating policies

related to human rights, health and safety, and modern slavery,

as well as adherence to Minimum Social Safeguards.

Addressing climate change

Our environmental policy and climate change statement reflect

our commitment to achieving a net-zero carbon economy by

2050. In addition, our biodiversity statement reinforces our

dedication to safeguarding the natural environment. We

acknowledge the interconnectedness of climate change and

biodiversity loss, as well as the exposure of our business and

operational activities to various climate and nature-related

risks. The Group positively impacts biodiversity through

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 into our lending and investment decisions

• We have a Group environmental and climate change

statement that guides credit decision-making from a

sustainability perspective

• We support the key provisions of the Equator Principles (EP).

Transactio ns that fall within the scope of the Equator

Principles in non-designated countries are assessed in line

with the applicable EP requirements

• 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.

Climate risk, a key component of sustainability risk, is becoming

increasingly material for banks. In our assessments of the

impact of climate change on our business, we consider both

physical risks and transition risks. While we continue to

integrate climate risk considerations into our risk management

frameworks, we also recognise the commercial opportunities

that climate action presents.

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

Investec’s pathway to net-zero comprises three channels of

impact:

• Meeting our fossil fuel exposure commitments

• Driving sustainable and transition finance activities

• Influencing and advocating for our clients and suppliers to

effectively pursue decarbonisation.

As part of our commitment to achieving net zero by 2050, the

Investec Group announced a target last year to facilitate £18

billion of sustainable and transition finance by FY2030.

Furthermore we have set sector-specific decarbonisation

targets as part of our Phase I transition plan. This includes a

20% to 45% reduction in power generation emissions intensity

by FY2030 and engagement with at least 85% of qualifying oil

and gas clients by FY2029 to support credible transition

pathways.


	Refer to our 2026 Integrated Sustainability Report for more information.

Within our own operations

We embrace our responsibility to understand and manage our

carbon footprint. We have upheld our commitment to carbon

neutrality in our direct operational emissions for the eighth

consecutive financial year by sourcing 100% of our Scope 2

energy consumption from renewable energy sources through

the purchase of Renewable Energy Certificates. We have

offset the remaining unavoidable residual emissions of 82% at

31 March 2026 (31 March 2025: 91% ) by acquiring verified,

high-quality carbon credits. Climate risk assessments are

conducted in accordance with the requirements of the BoE .

Within our lending and investment activities

We acknowledge that one of the widest and most impactful

influences we can have on the environment is to manage and

reduce the carbon emissions associated with our business

activities, particularly within our lending and investment

portfolios (Scope 3 financed activities). As such, we continue to

work with the PCAF to measure our financed emissions and are

actively enhancing data collection efforts and refining

assumptions for the Scope 3 emissions calculations.

As part of the sustainability screening process, the assessment

of a transaction’s environmental impact may include evaluating

policies related to the environment, waste management, and

rehabilitation, as well as environmental impact assessments.

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57. Investment risk

Overview

investment risk in the banking book comprises 1.6% of total

assets at 31 March 2026 . 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 clients 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:

• Track record and credibility of management

• Attractiveness of the industry and the positioning therein

• Valuation/pricing fundamentals

• Sustainability analyses

• Exit possibilities and timing thereof

• 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.9.3% shareholding in Ninety One.

Risk management and measurement

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.

An investment committee exists in the UK which provide

oversight to regions where we assume investment risk.

Risk appetite targets and limits are set to manage our exposure

to 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 actively managed

and investments are spread across geographies and industries.

Valuation and sensitivity assumptions and

accounting methodologies


	For a description of our valuation principles and methodologies refer to pages 77 to 84 and pages 108 to 115 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 92 .

Analysis of investments


£’million	On-balance sheet value of investments 31 March 2026	On-balance sheet value of investments 31 March 2025
Category	On-balance sheet value of investments 31 March 2026	On-balance sheet value of investments 31 March 2025
Unlisted investments	199	213
Listed equities	—	1
Ninety One	212	134
Warrants and profit shares	3	4
Trading properties	84	85
Total	498	437

Note: IW&I UK was previously 100% consolidated in the Group. The Group's investment in Rathbones is 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.

An analysis of unlisted investments, listed equities, warrants and profit shares

31 March 2026

£202 million


	Finance and insurance	61.3%
	Retailers and wholesalers	9.9%
	Electricity, gas and water (utility services)	7.8%
	Transport	7.4%
	Other	5.1%
	Business services	3.6%
	Real estate	2.5%
	Leisure, entertainment and tourism	2.4%

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	58 . 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, an analysis by risk-weightings has been provided

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 £1 134 million at

31 March 2026 (31 March 2025: £813 million), all of which are

AAA and AA rated.


	For a description of the accounting principles applied to securitisation exposures, refer to page 82.

Risk management and measurement

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 terms of our analysis of our credit risk, exposures arising from

securitisation/structured credit activities reflect only those

exposures to which we consider ourselves to be at risk. ‘Other

loans and advances’ refer to exposures that do not relate to the

Group’s core loan activity.


Nature of exposure/activity	31 March 2026 £’million	31 March 2025 £’million	Balance sheet and credit risk classification
Structured credit (gross exposure)	1 175	838	Other debt securities and other loans and advances
<40% RWA	1 111	797
>40% RWA	64	41

Analysis of gross structured credit exposure


£’million	AAA	AA	A	BBB	BB	B and below	Total rated	Total unrated	Total
US corporate loans	914	80	—	—	—	—	994	41	1 035
UK RMBS	4	3	—	—	—	—	7	—	7
European corporate loans	79	54	—	—	—	—	133	—	133
Total at 31 March 2026	997	137	—	—	—	—	1 134	41	1 175
<40% RWA	997	73	—	—	—	—	1 070	41	1 111
>40% RWA	—	64	—	—	—	—	64	—	64
Total at 31 March 2025	656	157	—	—	—	—	813	25	838

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59 . Market risk in the trading book

Overview

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 unmatched principal positions resulting from market

making, underwriting and facilitation of client business in the

foreign exchange, interest rate, equity, credit and commodity

markets.


	Year in review

The year in review has been characterised by an increase in

geopolitical tensions and buoyant equity markets, which

reached all-time highs. Following a series of interest rate cuts

over 2024 and 2025, the UK, US and European central banks

held interest rates at their recent meetings, as growth slowed

and unemployment began to rise. Equity markets rallied over

the year, with the FTSE100 and FTSE250 ending +19% and +9%

respectively at 31 March 2026 (having peaked in February at

+27% and +22%). The Iranian conflict led to market volatility,

with interest rates rising across the curve, driven by inflation

fears, and equity markets falling from their highs. The

structured products book is now de-minimis with all remaining

products due to roll off by April 2027.

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 consistently moderate.

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 market risk appetite limits defined by the

IBP and DLC BRCCs as well as IBP and DLC Boards. 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.


	Risk management

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.

Risk measurement

A number of quantitative measures are used to monitor and

limit exposure to traded market risk. These measures include:

• Value at Risk (VaR), expected shortfall (ES) and stressed VaR

(sVaR) as portfolio measures of market risk exposure

• Scenario analysis, stress tests and tools based on extreme

value theory (EVT) that measure the potential impact of

extreme market moves on portfolio values

• 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 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.

The VaR model is subject to inherent limitations, including

reliance on historical data and limited sensitivity to tail risk. As a

result, a suite of complementary measures such as ES and

stress testing are used to assess tail risk. Furthermore, as part

of the model validation process, any identified shortcomings

are assessed to ensure they have an immaterial impact, while

any material limitations would be identified and remedied either

through model enhancements or additional controls.

Backtesting acts as a further check to ensure that the VaR

measure sufficiently covers losses at the applicable percentile.

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Value at Risk (VaR)

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, including 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 2026				31 March 2025
95% one-day VaR	Year end	Average	High	Low	Year end	Average	High	Low
£’000	Year end	Average	High	Low	Year end	Average	High	Low
Interest rates	40	15	40	9	19	30	43	19
Foreign exchange	15	13	62	4	16	10	34	3
Equities	179	165	246	114	154	170	309	94
Commodities	19	4	20	1	4	4	9	2
Credit	1	26	59	—	—	8	38	—
Consolidated*	167	161	275	110	155	172	327	95

*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 (ES)

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 2026	31 March 2025
£’000	31 March 2026	31 March 2025
Interest rates	61	29
Foreign exchange	24	22
Equities	315	199
Commodities	28	5
Credit	2	—
Consolidated*	292	203

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

Stressed VaR (sVaR)

The sVaR measure 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 2026	31 March 2025
99% one-day sVaR	1 264	1 019

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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 2026 was lower

than for the year ended 31 March 2025 . Using clean profit

and loss data for backtesting resulted in two exceptions over

the period at the 99% confidence level, i.e. where the loss was

greater than the 99% one-day VaR, which is in line with the two

to three exceptions expected at this confidence level.


99% one-day VaR backtesting (£)


	99% one-day VaR			Clean P/L

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	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 193 days out of a total of 253 days in the trading business. The average daily clean

profit and loss generated for the year to 31 March 2026 was £70 575 ( 31 March 2025: £ 72 098).

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 contract for differences, 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 121 .

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	60. Balance sheet risk

Overview

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.

Risk management

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 assess balance sheet exposures and market conditions

to develop strategies for risk mitigation. 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.

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.

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.

Liquidity risk

Overview

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.

Risk management and measurement

A suite 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 also perform reverse stress tests to identify business model

vulnerabilities, testing ‘tail risks’ that can be missed in normal

stress tests.

Additionally, the Group maintains a contingency funding plan

outlining actions to be taken in a liquidity stress. These plans

ensure the Group can meet cash‑flow commitments during

market disruption or bank‑specific events while minimising

long‑term business impacts.

The plans are tested internally to assess the Group’s readiness

and ability to adequately contain a liquidity stress.


	Further information on recovery and resolution planning can be found on page 194 .

To protect against potential shocks, we hold a liquidity buffer in

the form of cash, unencumbered HQLA (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 market. 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 2025 to 31 March 2026 average cash and near cash

balances over the period amounted to £8.9 billion.

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Liquidity mismatch

The following tables show the contractual and behavioural

liquidity gaps.

The contractual liquidity tables record all assets and liabilities

with the underlying contractual maturity with earlier redemption

options on capital instruments at the discretion of the Group

reflected based on market expected exercise dates.

For the behavioural liquidity gap, we adjust contractual

maturities to reflect expected behaviour of assets and liabilities.

Key adjustments include:

• Liquidity buffer: HQLA are assumed to be monetised

immediately in a stress scenario as Central‑bank‑eligible

regulatory liquid assets are treated as ‘on demand’.

• Customer deposits: Behavioural modelling based on

historical observations identifies core deposits that remain

stable beyond their contractual maturities and therefore

provide structural liquidity.

Contractual liquidity at 31 March 2026


£’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	3 961	14	—	—	—	—	—	3 975
Investment/trading assets	609	1 014	1 796	1 775	377	1 105	2 154	8 830
Securitised assets	—	—	—	—	—	—	—	—
Advances	163	563	780	1 195	2 367	9 020	3 830	17 918
Other assets excluded above	29	694	39	17	90	238	170	1 277
Assets	4 762	2 285	2 615	2 987	2 834	10 363	6 154	32 000
Deposits – banks	(178)	(38)	—	—	(3)	(684)	—	(903)
Deposits – non-banks	(7 311)	(1 458)	(5 749)	(3 278)	(3 370)	(1 302)	—	(22 468)
Negotiable paper	(1)	—	(3)	(4)	(20)	(1 385)	—	(1 413)
Securitised liabilities	—	—	—	—	—	—	—	—
Investment/trading liabilities	(278)	(565)	(373)	(49)	(132)	(75)	(32)	(1 504)
Subordinated liabilities	—	—	—	—	(50)	(350)	(298)	(698)
Other liabilities excluded above	(16)	(857)	(50)	(5)	(147)	(105)	(97)	(1 277)
Liabilities	(7 784)	(2 918)	(6 175)	(3 336)	(3 722)	(3 901)	(427)	(28 263)
Total equity	—	—	—	—	—	—	(3 737)	(3 737)
Contractual liquidity gap	(3 022)	(633)	(3 560)	(349)	(888)	6 462	1 990	—
Cumulative liquidity gap	(3 022)	(3 655)	(7 215)	(7 564)	(8 452)	(1 990)	—

Behavioural liquidity at 31 March 2026


£’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	4 393	(1 172)	(4 574)	(1 767)	(1 032)	2 358	1 794	—
Cumulative	4 393	3 221	(1 353)	(3 120)	(4 152)	(1 794)	—

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Contractual liquidity at 31 March 2025


£’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	5 032	20	—	—	—	—	—	5 052
Investment/trading assets	476	923	1 161	1 213	289	947	1 881	6 890
Securitised assets	—	—	—	—	—	—	—	—
Advances	193	623	650	1 296	1 938	8 901	3 352	16 953
Other assets excluded above^{^}	4	347	37	45	150	266	80	929
Assets	5 705	1 913	1 848	2 554	2 377	10 114	5 313	29 824
Deposits – banks	(189)	—	—	—	(705)	(584)	—	(1 478)
Deposits – non-banks	(7 192)	(1 340)	(5 976)	(3 492)	(2 304)	(1 148)	(4)	(21 456)
Negotiable paper	(2)	(1)	(13)	(17)	(84)	(1 185)	—	(1 302)
Securitised liabilities	—	—	—	—	—	—	—	—
Investment/trading liabilities	(98)	(125)	(43)	(26)	(53)	(88)	(36)	(469)
Subordinated liabilities	—	—	—	—	(41)	(641)	—	(682)
Other liabilities excluded above	(244)	(161)	(178)	(57)	(144)	(143)	(21)	(948)
Liabilities	(7 725)	(1 627)	(6 210)	(3 592)	(3 331)	(3 789)	(61)	(26 335)
Total equity	—	—	—	—	—	—	(3 489)	(3 489)
Contractual liquidity gap	(2 020)	286	(4 362)	(1 038)	(954)	6 325	1 763	—
Cumulative liquidity gap	(2 020)	(1 734)	(6 096)	(7 134)	(8 088)	(1 763)	—

^‘Other assets excluded above’ have been restated to include £55 million of Goodwill within the ‘> five years’ contractual maturity category, which was previously

reported within ‘Demand’.

Behavioural liquidity at 31 March 2025


£’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	5 271	(209)	(5 583)	(2 060)	(1 038)	1 942	1 677	—
Cumulative	5 271	5 062	(521)	(2 581)	(3 619)	(1 677)	—

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Funding strategy

Overview

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 engagements. 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.

Funding continues to be raised through a mix of customer

liabilities diversified by customer type, currency, channel and

tenor, avoiding reliance on any particular source 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 periods of market volatility and increased competition

for deposits.

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.

Funding consists primarily of customer deposits, with loans and

advances to customers as a percentage of customer deposits

at 79.2% at 31 March 2026 ( 31 March 2025: 78.4%). This

deposit base is predominantly focused on a highly diversified

mix of retail customers and a range of products with reliance on

term and notice deposits rather than demand deposits. A new

fixed term ISA product for retail customers was launched in the

year and has since seen strong growth. Deposits grew by 4.7%

over the year from £21.5 billion to £22.5 billion at 31 March

2026. Deposit granularity 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 £120 000, in the event

that a financial institution is unable to meet its financial

obligations.

As at 31 March 2026, the preferred resolution strategy for

Investec in the UK is bail-in with a single point of entry at

Investec plc. The current external requirement is equal to

Investec plc’s minimum capital requirements. IBP, as a material

subsidiary, has an internal MREL requirement which is also

currently equal to its minimum capital requirements.

The MREL transition commenced on 1 January 2026 in a

phased manner with end-state MREL being applied from 1

January 2032. Wholesale issuance during the year in review

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

and support the MREL transition. 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.

The UK Bank repaid £0.7 billion of drawings under the BoE

Term Funding Scheme with additional incentives for Small and

Medium Enterprises (TFSME) during the year. As at 31 March

2026, the UK Bank had minimal remaining drawings

outstanding.

Looking forward, the focus remains on maintaining a strong

liquidity position while supporting planned asset growth.

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 both Investec plc and Investec Bank plc’s stable

credit ratings.


	Refer to page 25 for further detail on credit ratings.

Cash and near cash trend

£’million

Mar

2026


Central bank cash placements and other HQLA	Cash	Near cash
Central bank cash placements and other HQLA

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An analysis of cash and near cash at 31 March 2026		Customer accounts (deposits) by type at 31 March 2026
£9 379 million		£22 468 million


Central bank cash placements and other HQLA	80.8%	Individuals	62.6%
Cash	11.5%	Other financial institutions and corporates	32.0%
Near cash	7.7%	Small business	5.4%

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 support central bank liquidity facilities.

Further disclosures on encumbered and unencumbered assets can be found within the Investec plc Pillar 3 document.


	On page 119 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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	Interest rate risk in the banking book (IRRBB)

Overview

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

earnings and economic value of equity in accordance with the

Board-approved risk appetite.

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.

Risk management and measurement

Each banking entity has its own Board-approved IRRBB

appetite, covering both income 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. Where

possible, Treasury further mitigates any residual risk 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 £2.1 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 overall interest rate 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.

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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. Economic value

sensitivity and stress testing to macro-economic movements or

changes in the yield curve measures the impact of interest rate

shocks on net present value, based on discounted asset and

liability cashflows. Economic value measures have the

advantage that all future cash flows are considered and

therefore assess the risk beyond the earnings horizon.

Net interest income sensitivity

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 action.


£’million	31 March 2026	31 March 2025
25bps down	(8.2)	(9.3)
25bps up	7.0	7.9

Economic value (EV) sensitivity

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 action. This

sensitivity effect would only have a negligible direct impact on

our equity.


£’million	31 March 2026	31 March 2025
200bps down	(1.0)	(5.8)
200bps up	(10.2)	(8.2)

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 HQLA 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 at31 March

2026 the LCR was 349% for Investec plc and 348% 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 2026 was

141% for Investec plc and 140% 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

The BCBS standards for IRRBB recommend that the risk is

assessed as part of the Bank’s capital requirements, while also

outlining six prescribed shock scenarios, and recommending

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.

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	61 . Operational risk

Overview

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.

Risk management and measurement

The operational risk governance structures form an integral part

of the operational risk management framework.

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.

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.

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.

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.

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.

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.

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Year in review

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 regularly exercised through

rigorous testing against severe but plausible scenarios

• Significant planning and testing have been performed to ensure

recovery time objectives and impact tolerances are achievable

and mitigate against client harm and maintain overall

operational soundness and safety

• We remain actively involved with key industry regulatory

bodies, participating in relevant discussions, testing exercises

and initiatives

• Investec remains committed to upholding global regulatory

requirements for operational resilience, whilst delivering value

to our stakeholders.

Information security and cyber risk

• Information and cyber security remained a key focus for the

Group, amid the increasingly dynamic and sophisticated threat

environment

• The use of AI by threat actors continued to increase, including

more advanced social engineering, impersonation, and

deepfake-enabled fraud. The Group strengthened prevention,

detection, and response capabilities, supported by enhanced

employee awareness

• Heightened geopolitical uncertainty and its potential impact on

the cyber threat landscape were actively monitored. Scenario-

based simulations and independent testing were conducted to

assess the effectiveness of cyber defences and incident

response capabilities

• The Group maintained a strong cyber security posture

throughout the year, supported by ongoing investment in

security capabilities, monitoring and governance, and continued

to be rated favourably relative to industry peers.

Technology risk

• The Group continued to progress major technology

modernisation and digital transformation initiatives, increasing

the pace of change across core platforms and infrastructure.

Risk management focused on maintaining stability, resilience,

and control as change was delivered

• Operational resilience was a key area of focus, with enhanced

monitoring, incident management and recovery capabilities

supporting the timely identification and resolution of disruptions

across critical services, including cloud-based and third-party

services. This remained particularly important given the

financial sector’s growing dependence on a concentrated set of

technology and cloud providers

• Technology and security risk management continued to be

shaped by increasing regulatory expectations, including

growing complexity across jurisdictions and greater

convergence across related risk disciplines

• Rapid advances in digital technologies, particularly generative

AI, were closely monitored. The Group continued to strengthen

governance and risk management to support the responsible

and secure adoption of AI, alongside ongoing improvements in

data governance and management.

Third party risk

• As the Group continued to progress its strategic modernisation

initiatives and cloud-first approach, reliance on third-party

providers continued to increase. Focus remained on managing

the associated operational, resilience and security risks, while

improving exit readiness for critical arrangements

• Governance and oversight of outsourced and third-party

arrangements were strengthened during the year, supported by

enhanced due diligence, committee oversight, and continuous

monitoring practices aligned to evolving regulatory

expectations

• Concentration risk remained a key area of focus, reflecting

growing dependence on a relatively concentrated set of

technology and cloud providers. Globally significant disruptions

at major providers were observed during the year, highlighting

the broader ripple effects that provider issues can have across

the sector

• Understanding fourth party and supply-chain dependencies

became increasingly important during the year, including where

key third parties operate, how services are delivered and where

material dependencies may create exposure to country and

geopolitical risks

• The growing use of AI by third parties was closely monitored,

with consideration given to the potential implications for data

security, model integrity, and regulatory compliance.

Processing and execution risk

• Processing and execution risks identified through internal risk

event monitoring remain a significant operational risk theme

due to the frequency and monetary impact of reported

operational risk loss events

• Loss events have been observed across various processes,

predominantly resulting from factors such as unintentional

human error, ineffective change management, inadequate

process design, and insufficient management oversight

• Operational risk loss events are thoroughly investigated and

appropriate actions are taken to improve controls

• Despite the Group'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.

External fraud risk

• During the year the Group remained focused on increasing

stringent fraud prevention and detection controls which are

enhanced on an ongoing basis in response to increased fraud

losses due to existing and emerging modus operandi

• An increase in Phishing, Vishing, Smishing and Business Email

Compromise fraud has been noted during the year, indicating a

shift in tactics used by perpetrators.

• Card not present fraud remains the largest category of fraud

affecting the Group

• Ongoing collaboration with the industry assists with improving

fraud prevention and facilitates the recovery of misappropriated

funds. Both internal and external awareness campaigns have

contributed to a reduction in certain fraud types.

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 86 to 90 of the Investec Group's 2026 risk and governance report for additional information regarding regulatory and compliance risk, reputational risk, legal risk, and financial reporting and tax risk.

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	62. Recovery and resolution planning

The purpose of the recovery plan is 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:

• 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

• Integrates with existing contingency planning

• Run externally facilitated simulations or fire drill 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 that were required to be implemented prior to the UK

leaving the EU.

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 rules 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 80% 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. In the UK, the contingency funding

plan is included in the recovery plan and details the actions that

can be taken in the event of a liquidity stress.

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. The resolution pack contains essential

information that enables regulators to understand the firm’s

structure, operations and potential resolution strategies.

The BoE confirmed in a letter dated 19 December 2025 that the

preferred resolution strategy for Investec plc would remain as

bail-in, with Investec plc and IBP as a material subsidiary,

subject to a binding MREL requirement. The MREL transition

commenced 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 of 31 March 2026, the interim MREL requirement (including

the combined buffer requirement) for Investec plc is 12.4%,

comprising 8% of Pillar 1 minimum requirement, 0.52% Pillar 2A

requirement and 3.9% combined buffer requirement (2.5%

Capital Conservation Buffer and 1.4% Countercyclical Capital

Buffer). Given that the same CET1 resources cannot be used to

meet both MREL requirements and capital buffers

simultaneously, compliance is assessed against a combined

measure of MREL requirements and combined buffer

requirements.

Based on 31 March 2026 RWAs, the estimated end-state MREL

requirement (including the combined buffer requirement) at

January 2032 for Investec plc would be 20.9%, comprising 2 x

(8% Pillar 1 minimum requirement plus 0.52% Pillar 2A

requirement) and 3.9% combined buffer requirement.

As a bail-in firm, Investec plc has come into scope of the BoE’s

RAF and will be required to achieve the three resolvability

outcomes by 1 July 2027. Investec plc is committed to ensuring

its resolution capabilities meet the required regulatory

standards.

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63 . Capital management and allocation

The content presented within this section is unaudited unless denoted with the following

Overview

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.

Investec plc applies the Standardised Approach to calculate credit risk and counterparty credit risk (CCR), 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.

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.

A summary of capital adequacy and leverage ratios


	31 March 2026*	31 March 2025*
Common Equity Tier 1 ratio**	12.6%	12.3%
Tier 1 ratio**	14.3%	14.1%
Total Capital ratio**	17.9%	17.8%
Risk weighted assets (£'million)**	20 380	19 221
Leverage exposure measure (£'million)	32 021	28 089
Leverage ratio**	9.1%	9.6%

*The capital adequacy and leverage disclosures for Investec plc include 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 2026, which follow our normal basis of presentation and do not

include this deduction. Investec plc’s CET1 ratio would be 37bps (31 March 2025: 33bps) and the leverage ratio 24bps (31 March 2025: 23bps) higher, on this basis.

**The March 2025 CET1, Tier 1, total capital and leverage ratios, and risk weighted assets (RWAs) have been calculated applying the IFRS 9 transitional arrangements.

Effective from 1 April 2025, IFRS 9 transitional arrangements ceased to apply, with all subsequent ratios presented on a fully loaded basis.

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.

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.

Capital 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.

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Capital plans are prepared and presented to the Capital

Committees on a frequent 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.

Year in 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 2026, the CET1 ratio increased to 12.6% from

12.3% at 31 March 2025. CET1 capital increased by £211 million

to £2.6 billion, mainly as a result of CET1 capital generation of

£340 million through profit after taxation, as well as a net

increase in other comprehensive income of £66 million (which

includes the fair value increase in our investment in Ninety One

of £77 million), an increase of £52 million in the share-based

payment adjustments and an £8 million increase in equity

movements in associates and joint ventures. These increases

are partially offset by:

• Dividends paid to ordinary shareholders and Additional Tier 1

security holders of £156 million

• A £62 million increase in the treasury shares deduction

• The reversal of gains attributable to non-financial entities

outside the regulatory scope of consolidation, partially offset

by gains arising from proportionally consolidated associates

of £20 million

• An increase in the foreseeable dividends and charges

deduction of £13 million.

RWAs increased by 6.0% or £1.2 billion to £20.4 billion over the

period, predominantly within credit risk and operational risk

RWAs.

Credit risk RWAs, which includes equity risk, increased by

£948 million. The increase mainly reflects asset growth across

several areas, including Fund Finance, Growth and Acquisition

Finance, Private Clients, Real Estate and Credit Investments. A

further increase of £94 million, driven by asset growth, is

attributable to our holding in Rathbones, which is proportionally

consolidated.

CCR RWAs (including CVA risk) decreased by £33 million

compared to 31 March 2025. The reduction in RWAs is driven by

decreases in the exposure at default across various products,

including foreign exchange contracts, equity options and interest

rate derivatives.

Market risk RWAs decreased by £75 million, driven by lower

foreign exchange option risk and collective investments

undertaking exposures.

Operational risk RWAs increased by £319 million to £2.6 billion

driven by a higher three-year average operating income.

Around two-thirds of the increase reflects IBP’s regulatory

proportional share of Rathbones, with a full three years of

Rathbones’ gross income now included in the average.

As at 31 March 2026, the Investec plc Group exceeded the

£10 billion non-UK asset threshold under the PRA’s UK leverage

ratio framework, and is therefore expected to be classified as a

Large Regulated Entity (LREQ) firm, introducing a minimum

leverage ratio requirement of 3.25% (subject to PRA confirmation).

The Group's leverage ratio decreased to 9.1% from 9.6% at

31 March 2025. Tier 1 capital increased by £211 million, due to

CET1 capital generation.

The leverage exposure measure increased by £3.9 billion,

driven by asset growth across multiple balance sheet line

items, most notably increases in sovereign debt securities of

£1.3 billion, loans and advances to customers of £1 billion,

settlement debtors of £348 million, other debt securities of

£347 million, bank debt securities of £332 million and securities

financing transactions of £293 million.

Minimum capital requirement

Investec plc’s minimum CET1 requirement at 31 March 2026 is

8.7% comprising a 4.5% Pillar 1 minimum requirement, a 2.5%

Capital Conservation Buffer (CCB), a 0.29% Pillar 2A requirement

and a 1.4% 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 2026 the UK CCyB rate is 2%.

Regulatory developments

Basel 3.1 standards

On 20 January 2026, the PRA published the final UK Basel 3.1

standards covering credit risk, operational risk, credit valuation

adjustment risk and market risk requirements. The final rules will

take effect from 1 January 2027, with the exception of the internal

model approach for market risk, which will come into effect on

1 January 2028. The PRA has also published its final policy

statement on the restatement of the remaining provision of the UK

CRR, which will also take effect on 1 January 2027.

Pillar 2A review

In May 2025, the PRA issued a consultation paper proposing

updates to the Pillar 2A methodologies and guidance. It is the

first phase of a two-stage review. The PRA previously

confirmed its intention to review the Pillar 2A methodologies in

response to the changes introduced through the PRA’s

implementation of the Basel 3.1 standards. The key changes

proposed, primarily driven by the changes to the Pillar 1 credit

risk framework are:

• Removal of the benchmarking methodology (including the

IRB benchmarks)

• Introducing two systematic methodologies to address

underestimation under Pillar 1, for exposures to central

government and central banks, regional government and

local authorities and for revolving retail exposures that are

unconditionally cancellable commitments

• Introducing the use of credit scenarios in the ICAAP.

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After the completion of the first phase, the PRA plans to

conduct a more in-depth review of individual

methodologies within Pillar 2A. The consultation closed for

comment 30 September 2025, with no final policy response

issued to date.

On 28 October 2025, the PRA released the near final policy

statement retiring the supervisory benchmarking-based

framework, moving away from the overarching

benchmarking-led approach to a more structured,

component based methodology aligned with Basel 3.1.

Subsequently on 20 January 2026 the PRA released the

final policy statement alongside the final UK Basel 3.1

standards, with no changes made to the final policy. The

changes take effect 1 January 2027.

In September 2025, the PRA relaunched the data

collection exercise, confirming it will conduct an off-cycle

review of firm-specific Pillar 2 capital requirements ahead

of the day-one implementation of Basel 3.1, with

submissions due 31 March 2026.

The review seeks to address potential double counting and

unwarranted increases or decreases in capital resulting from

RWA changes under Basel 3.1. The PRA intends to apply firm-

specific structural adjustments to Pillar 2A, where appropriate,

to ensure that overall capital requirements for SME and

infrastructure lending do not increase solely due to the removal

of the Pillar 1 supporting factors.

PRA 2026 priorities

On 15 January 2026, the PRA published its ‘Dear CEO’ letter

setting out its priorities for 2026. Key priorities remain

consistent with the prior year, notably strengthening risk

management, improving operational resilience, enhancing

financial resilience through capital and liquidity expectations,

strengthening data governance and reporting and managing

emerging technology risks. The PRA emphasised the role of

strategic risk management, focusing on the three lines of

defence. Added to this, data quality remained in focus, with the

use of skilled persons reviews to persist, should weaknesses be

identified. The PRA are also signalling that RWA accuracy is a

board-level responsibility. Firms must be able to demonstrate

strong governance, independent validation and data integrity

underpinning calculations for both the Pillar 2 reassessment

exercise and Basel 3.1 implementation.

UK leverage ratio framework

On 12 November 2025, the PRA confirmed it will increase the retail

deposit threshold to £75 billion, from £50 billion previously, with

firms’ retail deposits assessed against this threshold on a three-

year average basis. The non-UK asset threshold of £10 billion

remains unchanged. These changes took effect on

1 January 2026.

MREL

In March 2026, the PRA published a number of policy

statements and supervisory updates relating to the UK

recovery and resolution framework. This included targeted

changes to MREL reporting, streamlining certain requirements,

and an increase in the threshold for firms in scope of the

Resolution Assessment framework to £100 billion in retail

deposits, therefore reducing the number of firms in scope. The

PRA also updated its expectations for recovery planning.

Pillar 3 disclosure requirement


	The 31 March 2026 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.

198



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

Capital structure


£'million	31 March 2026*	31 March 2025*
Shareholders' Equity	3 257	3 042
Shareholders’ equity excluding non-controlling interests	3 386	3 138
Foreseeable charges and dividends	(76)	(63)
Perpetual preference share capital and share premium	(25)	(25)
Deconsolidation of special purpose entities	(28)	(8)
Non-controlling interests	—	—
Non-controlling interests per balance sheet	1	1
Non-controlling interests excluded for regulatory purposes	(1)	(1)
Regulatory adjustments to the accounting basis	(7)	(8)
Additional value adjustments	(7)	(5)
Cash flow hedging reserve	—	(6)
Adjustment under IFRS 9 transitional arrangements	—	3
Deductions	(679)	(674)
Goodwill and intangible assets net of deferred taxation	(678)	(673)
Deferred taxation assets that rely on future profitability excluding those arising from temporary difference	(1)	(1)
Common Equity Tier 1 capital**	2 571	2 360
Additional Tier 1 instruments	350	350
Tier 1 capital **	2 921	2 710
Tier 2 capital**	720	712
Tier 2 instruments^{^}	720	712
Total regulatory capital**	3 641	3 422

Risk weighted assets and capital requirements


£’million	31 March 2026*	31 March 2025*
Risk weighted assets ^**	20 380	19 221
Credit risk	16 550	15 532
Equity risk	389	459
Counterparty credit risk	426	461
Credit valuation adjustment risk	32	30
Market risk	371	446
Operational risk	2 612	2 293
Capital requirements ^**	1 630	1 538
Credit risk	1 324	1 243
Equity risk	31	37
Counterparty credit risk	34	37
Credit valuation adjustment risk	3	2
Market risk	30	36
Operational risk	208	183

Leverage


£’million	31 March 2026*	31 March 2025*
Total exposure measure	32 021	28 089
Tier 1 capital ^**	2 921	2 710
Leverage ratio**	9.1%	9.6%

*The capital adequacy and leverage disclosures for Investec plc include 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 2026, which follow our normal basis of presentation and do not

include this deduction. Investec plc’s CET1 ratio would be 37bps (31 March 2025: 33bps) and the leverage ratio 24bps (31 March 2025: 23bps) higher, on this basis.

** The March 2025 CET1, Tier 1, total capital and leverage ratios, and RWAs have been calculated applying the IFRS 9 transitional arrangements. Effective from 1 April

2025, IFRS 9 transitional arrangements ceased to apply, with all subsequent ratios presented on a fully loaded basis.

^Tier 2 instruments include £17 million of subordinated liabilities arising from the proportional consolidation of the Group's economic interest in Rathbones Group plc.

199



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

NOTES TO RISK AND CAPITAL MANAGEMENT CONTINUED

Total regulatory capital flow statement


£'million	31 March 2026	31 March 2025*
Opening Common Equity Tier 1 capital	2 360	2 237
Dividends paid to ordinary shareholders and Additional Tier 1 security holders	(156)	(144)
Profit after taxation	340	332
Foreseeable charges and dividends	(13)	(7)
Treasury shares^	(62)	(45)
Share-based payment adjustments^	52	42
Net equity impact on non-controlling interest movement	—	2
Movement in other comprehensive income	66	(50)
Cash flow hedging reserve	6	11
Net equity movements in associates and joint ventures	8	(8)
Goodwill and intangible assets (deduction net of related taxation liability)	(5)	(2)
Deferred tax that relies on future profitability (excluding those arising from temporary differences)	—	1
Deconsolidation of special purpose entities	(20)	5
IFRS 9 transitional arrangements	(3)	(17)
Other, including regulatory adjustments and other transitional arrangements	(2)	3
Closing Common Equity Tier 1 capital	2 571	2 360
Opening Additional Tier 1 capital	350	458
Redeemed capital	—	(108)
Closing Additional Tier 1 capital	350	350
Closing Tier 1 capital	2 921	2 710
Opening Tier 2 capital	712	712
Issued capital	300	—
Redeemed capital	(295)	—
Other, including regulatory adjustments and other transitional arrangements	3	—
Closing Tier 2 capital	720	712

Closing total regulatory capital	3 641	3 422

*The March 2025 CET1, Tier 1, total capital and leverage ratios, and RWAs have been calculated applying the IFRS 9 transitional arrangements. Effective from 1 April

2025, IFRS 9 transitional arrangements ceased to apply, with all subsequent ratios presented on a fully loaded basis.

^Treasury shares and share-based payment adjustments have been restated due to realised gains and losses on treasury shares, predominantly held in respect of

share schemes, being inconsistently presented between Group entities. Treasury shares are now reflected at cost and all realised gains and losses on treasury shares

recognised in retained income.

200



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

Balance sheet


At 31 March	Notes	2026	2025
£’000	Notes	2026	2025
Assets
Fixed assets
Investments in subsidiary undertakings	b	1 701 193	1 701 193
Securities and subordinated liabilities issued by subsidiary undertaking	c	1 335 816	1 302 743
Other Additional Tier 1 securities issued by subsidiary undertaking	c	350 000	350 000
Investments in listed equities^		211 542	134 330
Amounts owed by group undertakings		503 914	566 408
		4 102 465	4 054 674
Current assets
Taxation		6 086	2 124
Amounts owed by Group undertakings		2 963	—
Prepayments and accrued income		1 029	3 184
– balances with other banks		489	465
		10 567	5 773
Current liabilities
Creditors: amounts falling due within one year
Amounts owed to Group undertakings		11 622	23 235
Other liabilities		1 888	1 900
Accruals and deferred income		9 207	9 542
Net current liabilities		(12 150)	(28 904)
Creditors: amounts falling due after one year
Debt securities in issue	d	965 739	928 915
Subordinated liabilities	e	707 997	701 259
Net assets		2 416 579	2 395 596
Capital and reserves
Ordinary share capital	h	198	198
Ordinary share premium	h	555 812	555 812
Capital reserve		173	173
Fair value reserve		74 201	(3 011)
Retained earnings		1 411 401	1 467 630
Ordinary shareholders’ equity		2 041 785	2 020 802
Perpetual preference share capital and premium	h	24 794	24 794
Shareholders’ equity excluding non-controlling interests		2 066 579	2 045 596
Other Additional Tier 1 securities in issue	h	350 000	350 000
Total capital and reserves		2 416 579	2 395 596

^Investment in listed equities has been moved from current assets to fixed assets to better reflect the expected timing of realisation of these assets.

The notes on pages 202 to 209 form an integral part of the financial statements.

The Company’s profit for the year, determined in accordance with the Companies Act 2006, was £100,962,936 (2025:

£126,163,024).

The Company's distributable reserves as at 31 March 2026 were £1,485,600,550 (2025: £1,464,617,665).

Approved and authorised for issue by the Board of Directors on 12 June 2026 and signed on its behalf by:

Fani Titi

Group Chief Executive

12 June 2026

201



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

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 2024	202	555 812	173	21 548	1 488 710	2 066 445	24 794	2 091 239	458 108	2 549 347
Total comprehensive income	—	—	—	(24 559)	122 958	98 399	—	98 399	—	98 399
Cancellation of special converting shares	(4)	—	—	—		(4)	—	(4)	—	(4)
Dividends paid to perpetual preference shareholders	—	—	—	—	(1 780)	(1 780)	—	(1 780)	—	(1 780)
Dividends paid to ordinary shareholders	—	—	—	—	(103 901)	(103 901)	—	(103 901)	—	(103 901)
Dividends declared to Other Additional Tier 1 security holders	—	—	—	—	(38 357)	(38 357)	—	(38 357)	38 357	—
Dividends paid to Other Additional Tier 1 security holders	—	—	—	—	—	—	—	—	(38 357)	(38 357)
Redemption of Other Additional Tier 1 security instruments	—		—	—	—	—	—	—	(108 108)	(108 108)
At 31 March 2025	198	555 812	173	(3 011)	1 467 630	2 020 802	24 794	2 045 596	350 000	2 395 596
Total comprehensive income	—	—	—	77 212	99 767	176 979	—	176 979	—	176 979
Dividends declared to perpetual preference shareholders	—	—	—	—	(1 567)	(1 567)	1 567	—	—	—
Dividends paid to perpetual preference shareholders	—	—	—	—	—	—	(1 567)	(1 567)	—	(1 567)
Dividends paid to ordinary shareholders	—	—	—	—	(117 679)	(117 679)	—	(117 679)	—	(117 679)
Dividends declared to Other Additional Tier 1 security holders	—	—	—		(36 750)	(36 750)	—	(36 750)	36 750	—
Dividends paid to Other Additional Tier 1 security holders	—	—	—	—	—	—	—	—	(36 750)	(36 750)
At 31 March 2026	198	555 812	173	74 201	1 411 401	2 041 785	24 794	2 066 579	350 000	2 416 579

202



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

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 paragraphs 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.

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 12 June 2027, which is a

period of 12 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).

203



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

Income

Dividends income is recognised when the Group’s right to

receive payment is established. 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 on 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 other comprehensive

income.

Financial liabilities

Financial liabilities are recorded at amortised cost applying the

effective interest rate method.

b. Investments in subsidiary undertakings


At 31 March	2026	2025
£’000	2026	2025
At the beginning of the year	1 701 193	1 701 774
Disposals	—	(581)
At the end of the year	1 701 193	1 701 193

There were no indicators of impairment in respect of these investments the current period.

c. Securities issued by subsidiary

undertaking

On 4 October 2021, Investec Bank plc entered into a

£350million 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. No such redemption may be made without the

consent of the PRA. On 2 February 2026, Investec Bank plc

repaid £294.22 million Nominal of this loan following the

obtaining of PRA consent.

On 6 December 2022 Investec Bank plc entered into a

£350million 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. No such redemption may be made

without the consent of the PRA.

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%. This loan is subordinated to both depositors and

unsubordinated creditors of Investec Bank plc. 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.

204



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

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-

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.

On 19 February 2025 Investec Bank plc entered into a

€500 million senior loan with Investec plc at a fixed interest rate

of 3.625%. This loan is subordinated to both depositors and

unsubordinated creditors of Investec Bank plc. The loan

matures on 19 February 2031 and pays interest at a fixed rate

annually in arrears. The borrower may prepay the loan in full on

19 February 2030.

On 30 January 2026 Investec Bank plc entered into a

£300million loan with Investec plc at a fixed interest rate of

5.625% (2036 Loan). Interest, after the initial short period

distribution to be paid on 30 July 2026, is paid annually

commencing on 30 July 2027 and ending on the maturity date.

The loan will mature on 30 July 2036. The borrower may prepay

the loan in full on any date in the period from 30 April 2031 to

(and including) 30 July 2031. 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 European Medium Term Note

programme (‘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.

On 19 February 2025, the company issued €500 million 3.625%

Senior Unsecured Notes from its European Medium Term Note

programme (‘EMTN’). The notes mature on 19 February 2031

and pay interest at a fixed rate annually in arrears. The issuer

may redeem the notes at par on 19 February 2030.

e. Subordinated liabilities

On 4 October 2021, Investec plc issued £350 million 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 million 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.

On 30 January 2026, Investec plc issued £300million of 5.625%

subordinated notes due 2036 at a discount (2036 Notes).

Interest, after the initial short period distribution to be paid on

30 July 2026, is paid annually commencing on 30 July 2027 and

ending on the maturity date. The notes are listed on the London

Stock Exchange. The notes will be redeemed at par on

30 July 2036. The issuer may redeem the notes at par on any

date in the period from 30 April 2031 to (and including)

30 July 2031 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 10 of the

Group financial statements.

h. Share capital

Details of the company’s ordinary share capital are set out in

note 37 of the Group financial statements. Details of the

perpetual preference shares are set out in note 38 of the Group

financial statements. Details of the Other Additional Tier 1

securities are set out in note 41 of the Group financial

statements.

i. 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 2026.

205



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

j. Subsidiaries


At 31 March 2026	Principal activity	Effective 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	Investment holding company	100%
EVO 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%
Investec India Holdco Limited	Investment holding company	86.53%
Investec International Private Office Limited	Financial services	100%
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.

206



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

j. Subsidiaries (continued)


At 31 March 2026	Principal activity	Effective interest held
United Kingdom 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%
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%
Denmark Registered office: Strandvejen 125, 2900 Hellerup, Denmark
Investec Advisory A/S	Advisory services	60%
France Registered office: 151 Boulevard Haussmann, 75008 Paris, France
Investec Advisory SAS	Advisory services	60%
Registered office: 92 Avenue de Wagram, 75017, Paris, France
Villa Lara Eze SAS	Property company	100%
Germany Registered office: Sonnenberger Straße 16, 65193 Weisbaden, Germany
Investec Advisory Verwaltungs GmbH	Non-trading	60%
Investec Advisory GmbH & Co. KG	Advisory services	60%

207



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

j. Subsidiaries (continued)


At 31 March 2026	Principal activity	Effective 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%
Registered office: Aztec Group House, IFC6, The Esplanade, St. Helier, JE4 0QH, Jersey
REALIS GP Limited	Fund management activities	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%
Registered office: 13th floor, Tower 3, NESCO IT Park, NH 8, NESCO, Goregaon, Mumbai, Maharashtra 400063
Investec Global Services (India) Private Limited	ITES outsourcing	100%

208



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

j. Subsidiaries (continued)


At 31 March 2026	Principal activity	Effective interest held
Ireland Registered office: The Harcourt Building, Harcourt Street, Dublin 2, Ireland
Investec Holdings (Ireland) Limited	Holding company	100%
Investec Ireland Limited	Group Services Company	100%
Investec International Limited	Aircraft leasing services	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%
Purple Sunbird Leasing 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
Investec Continental Europe Advisory BV	Non-trading	60%
Investec Advisory 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: Tödistrasse 48, 8002 Zürich, Switzerland.
Investec Advisory AG	Advisory services	36%
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%

209



03	Annual Financial Statements	Investec plc Annual Financial Statements 2026

PARENT COMPANY ANNUAL FINANCIAL STATEMENTS CONTINUED

j. Subsidiaries (continued)

Associates and joint venture holdings


At 31 March 2026	Principal activity	Effective interest held
United Kingdom Registered office: 30 Gresham Street, London, England, EC2V 7QN
Rathbones Group Plc^{^}	Financial services	41.25%
Registered office: Capital House, Raynham Road, Bishops Stortford, Hertfordshire, CM23 5TT
CF Capital Holdings Limited	Holding company	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%
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%

^While Investec owns 41.25% of the issued ordinary shares of Rathbones, some of these shares are non-voting and therefore the Group only holds 29.9% of voting

rights. This differs from the percentage used for accounting purposes, which takes into consideration treasury shares.

210



	ALTERNATIVE PERFORMANCE MEASURES	Investec plc Annual Financial Statements 2026

ALTERNATIVE PERFORMANCE MEASURES


	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. The below information is audited unless indicated otherwise


Adjusted earnings attributable to ordinary shareholders	Earnings attributable to shareholders adjusted to remove goodwill, acquired intangibles, strategic actions, including such items within equity accounted earnings, and earnings attributable to perpetual preference shareholders and Other Additional Tier 1 security holders.
Adjusted operating profit	Profit before taxation, adjusted to remove goodwill, acquired intangibles and strategic actions, including such items within equity accounted earnings, and non-controlling interests
		Refer to calculation on page 88 for a reconciliation of these items.
Annuity income	Net interest income plus net annuity fees and commissions
		Refer to pages 91 and 92 .
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 2026	31 March 2025*
Net core loans (Loans and advances to customers per the balance sheet)	17 804	16 814
of which amortised cost and FVOCI (‘subject to ECL’)	16 995	16 242
of which FVPL	809	572
Add: ECL (against amortised cost and FVOCI loans)	207	176
Gross core loans	18 011	16 990
of which amortised cost and FVOCI (‘subject to ECL’)	17 202	16 418
of which FVPL	809	572

*Re-presented as detailed on page 167.


Cost to income ratio	Refer to calculation in the table below


£’000	31 March 2026	31 March 2025^
Operating costs (A)	637 777	631 810
Operating income per income statement	1 168 195	1 154 666
Add: Amortisation of acquired intangibles	15 048	6 312
Add: Acquisition related and integration costs of associate	14 531	27 987
Less: Profit attributable to non-controlling interests	(355)	(12)
Total (B)	1 197 419	1 188 953
Cost to income ratio (A/B)	53.3%	53.1%

The below information is unaudited


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 91 .
Return on average assets	Adjusted earnings attributable to ordinary shareholders divided by average total assets excluding assurance assets
Return on average risk weighted assets	Adjusted earnings attributable to ordinary shareholders divided by average risk weighted assets

211



	ANNEXURE	Investec plc Annual Financial Statements 2026

ANNEXURE

TCFD and CFD mapping table

As part of our commitment to transparent and decision-useful climate-related disclosures, Investec plc aligns its reporting with

both the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the mandatory requirements set

out in the UK Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (CFD).

The table below provides a clear mapping between the 11 TCFD recommended disclosures and the corresponding CFD

requirements, demonstrating how our disclosures address both voluntary and statutory expectations.


TCFD reference number	TCFD pillar	TCFD disclosure	CFD requirement	CFD reference code
1	Governance	Describe the board’s oversight of climate- related risks and opportunities	Description of the governance arrangements	G1
2	Governance	Describe management’s role in assessing and managing climate-related risks	Description of management’s role	G2
3	Strategy	Describe the climate-related risks and opportunities identified	Description of climate-related risks and opportunities	S1
4	Strategy	Describe the impact of climate-related risks and opportunities on the business	Actual and potential impact on the business model and strategy	S2
5	Strategy	Describe the resilience of the organisation’s strategy under different scenarios	Resilience of business model to climate- related scenarios	S3
6	Risk management	Describe processes for identifying climate-related risks	How climate-related risks are identified	RM1
7	Risk management	Describe processes for managing climate-related risks	How climate-related risks are managed	RM2
8	Risk management	Describe how these processes are integrated into the overall risk management	Integration into the overall risk management process	RM3
9	Metrics and targets	Disclose metrics used to assess climate- related risks and opportunities	Metrics and KPIs relevant to strategy and risk management	M1
10	Metrics and targets	Disclose Scope 1, Scope 2, and if appropriate, Scope 3 GHG emissions	GHG emissions data (Scope 1 and 2 mandatory; Scope 3)	M2
11	Metrics and targets	Describe targets used and performance against targets	Climate-related targets and progress against them	M3

212



	DEFINITIONS	Investec plc Annual Financial Statements 2026

DEFINITIONS

Cash and near cash

Comprises cash, near cash (which largely includes central bank

prepositioned collateral), and central bank cash placements and

other HQLA

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 2014 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 180 for details.

Subject to ECL

Includes financial assets held at amortised cost and FVOCI

213



	GLOSSARY	Investec plc Annual Financial Statements 2026

GLOSSARY

The following abbreviations have been used throughout this report:

AGMAnnual general meeting

ALCO Asset and Liability Committee

AT1 Additional Tier 1

BCBS Basel Committee of Banking Supervision

BCRBanking Competition Remedies Limited

BIDBelonging, Inclusion and Diversity

BoE Bank of England

BRCC Board Risk and Capital Committee

BRRDBank Recovery and Resolution Directive

BSEBotswana Stock Exchange

CAChartered Accountant

CAMCombined Assurance Matrix

CBESClimate Biennial Exploratory Scenario

CCBCapital Conservation Buffer

CCyBCountercyclical Capital Buffer

CDOCollateralised debt obligation

CDS Credit default swap

CEChief Executive

CET1Common Equity Tier 1

CFDClimate-related Financial Disclosure(s)

(UK Companies Regulations reference)

CFP Contingency Funding Plan

CLOCollateralised loan obligation

CLRCredit Loss Ratio

COOChief Operating Officer

COVIDCorona Virus Disease

CPIConsumer Price Index

CRD IVCapital Requirements Directive IV

CROChief Risk Officer

CRR Capital Requirements Regulation

CRSCommon Reporting Standard

CSA Credit Support Annex

CSRDCorporate Sustainability Reporting Directive

CVACredit valuation adjustment

DCFDiscounted cash flow

DFMDiscretionary Fund Management

DLC Dual listed company

DLC BRCC DLC Board Risk and Capital Committee

DLC ITRGCDLC IT Risk and Governance Committee

DLC NomdacDLC Nominations and Directors

Affairs Committee

DLC RemcoDLC Remuneration Committee

DLC SEC DLC Social and Ethics Committee

DMADouble Materiality Assessment

EADExposure at default

EBAEuropean Banking Authority

EBRDEuropean Bank for Reconstruction and

Development

ECEuropean Commission

ECLExpected credit loss

EIREffective interest rate

EP Equator Principles

EQAREngagement Quality Assurance Review

ERCExecutive Risk Committee

ERVExpected rental value

ES Expected shortfall

ESCExecutive Sustainability Committee

ESGEnvironmental, social and governance

EUEuropean Union

EVElectric Vehicle

EVTExtreme value theory

FATCAForeign Account Tax Compliance Act

FCA Financial Conduct Authority

FINMASwiss Financial Market Supervisory

Authority

FPCFinancial Policy Committee

FRCFinancial Reporting Council

FSCSFinancial Services Compensation Scheme

FUMFunds under management

FVOCIFair value through other comprehensive

income

FVPLFair value through profit and loss

GDPGross domestic product

GDPRGeneral Data Protection Regulation

GFSCGuernsey Financial Services Commission

GHGGreenhouse Gas

GMGuinness Mahon

GMRAGlobal Master Repurchase Agreement

GMSLAGlobal Master Securities Lending

Agreement

Group ERC Group Executive Risk Committee

GRRRMFGroup Risk Review and Reserves

Matters Forum

HNWHigh net worth

HRHuman resources

HQLAHigh quality liquid assets

IAMInvestec Asset Management Limited

IASsInternational Accounting Standards

IBLInvestec 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 ERRFIBP Review Executive Risk Review Forum

ICAAPInternal Capital Adequacy

Assessment Process

IFAIndependent Financial Adviser

IFCInternational Finance Corporation

IFRICInternational Financial Reporting

Interpretations Committee

IFRSInternational Financial Reporting Standard

IFRS S1IFRS Sustainability Disclosure Standard S1 –

General Requirements

IFRS S2IFRS Sustainability Disclosure Standard S2 –

Climate-related Disclosures

IIAInstitute of Internal Auditors

214



	GLOSSARY	Investec plc Annual Financial Statements 2026

GLOSSARY CONTINUED

ILAAP Internal Liquidity Adequacy

Assessment Process

IRBInternal Ratings Based

IROsImpacts, risks and opportunities

IRRBBInterest Rate Risk in the Banking Book

ISDAInternational Swaps and Derivatives

Association

ISSBInternational Sustainability Standards Board

ITInformation technology

IW&IIInvestec Wealth & Investment International

Group

JSEJohannesburg Stock Exchange

KPIKey performance indicator

LCRLiquidity Coverage ratio

LGDLoss given default

LHSLeft hand side

LIBOR London Inter-bank Offered Rate

LSELondon Stock Exchange

LTILong-term incentive

LTVLoan-to-value

MDRMandatory Disclosure Rules

MLROMoney Laundering Reporting Officer

MRELMinimum Requirements for Own Funds

and Eligible Liabilities

MRTMaterial Risk Taker

NCINon-controlling interests

NGFSNetwork for Greening the Financial System

NSFRNet Stable Funding ratio

NSXNamibian Stock Exchange

NZBANet-Zero Banking Alliance

OCIOther comprehensive income

ODOrganisation development

OECDOrganisation for Economic Co-operation

and Development

OTC Over the counter

PBAFPartnership for Biodiversity Accounting

Financials

PCAF Partnership for Carbon Accounting

Financials

PDProbability of default

PRAPrudential Regulation Authority

RECsRenewable energy certificates

RHS Right hand side

ROU Right of use asset

RPA technologiesRobotic Process Automation technologies

RRPRecovery Resolution Plan

RWARisk weighted asset

RFRRisk-free rate

SA-CCRStandardised Approach for measuring

Counterparty Credit Risk

S&PStandard & Poor’s

SBTi Science Based Targets initiative

SECRStreamlined Energy and Carbon Reporting

SDGsSustainable Development Goals

SICRSignificant increase in credit risk

SIPPSelf Invested Personal Pension

SME Small and Medium-sized Enterprises

SMFSenior Management Function

SMMEsSmall, Medium & Micro Enterprises

SPPISolely payments of principal and interest

SREPThe Supervisory Review and Evaluation

Process

SSPShared Socioeconomic Pathway

SSP1-2.6Shared Socioeconomic Pathway 1–2.6

SSP2-4.5Shared Socioeconomic Pathway 2–4.5

SSP3-7.0Shared Socioeconomic Pathway 3–7.0

STIShort-term incentive

sVaRStressed VaR

TCFDTask Force on Climate-related Financial

Disclosures

tCO₂eTonnes of CO₂ emissions

TFSMEBank of England Term Funding Scheme for

Small and Medium Enterprises

TPTTransition Plan Taskforce

UNUnited Nations

UN GISDUnited Nations Global Investment for

Sustainable Development

UK United Kingdom

UKLAUnited Kingdom Listing Authority

UKLRUK Listing Rules

UNUnited Nations

VaRValue at Risk

VCSVerified Carbon Standard

YESYouth Employment Service

215



	CORPORATE INFORMATION	Investec plc Annual Financial Statements 2026

CORPORATE INFORMATION

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

Registered in England

Auditors

Deloitte LLP


		Alternative performance measures We supplement our IFRS ^® 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 2026 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.

		Audited information Denotes information in the risk and remuneration reports that forms part of the Group's audited annual financial statements.



4	Our business at a glance


6	Overview of the Investec Group’s and Investec plc’s organisational structure


7	Overview of the activities of Investec plc


8	Salient features

9	Climate related disclosures



Investing for long-term

	ANNUAL REPORT 2026

	Investec plc silo (excluding Investec Limited) annual financial statements


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



01	Contents	Investec plc Annual Financial Statements 2026

CONTENTS


01	Operational and strategic overview	Our business at a glance	4
		Overview of the Investec Group’s and Investec plc’s organisational structure	6
		Overview of the activities of Investec plc	7
		Salient features	8
		Climate-related disclosures	9

02	Risk management and governance	Risk management approach and framework	24
		Year in review from a risk perspective	25
		Principal risks	27
		Investec plc Audit Committee report	42
		Directors’ report	50

03	Annual financial statements	Directors’ responsibilities	64
		Independent auditor’s report to the members of Investec plc	66
		Consolidated income statement	68
		Consolidated statement of comprehensive income	69
		Consolidated balance sheet	70
		Consolidated cash flow statement	71
		Consolidated statement of changes in equity	72
		Accounting policies	74
		Notes to the financial statements	88
		Notes to risk and capital management	155

	Parent Company annual financial statements	Balance sheet	200
		Statement of changes in shareholders’ equity	201
		Notes to the Investec plc parent company annual financial statements	202

		Alternative Performance Measures	210
		Definitions	212
		Glossary	213
		Corporate information	215


	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 5504
	(44) 20 7597 4493
Email	investorrelations@investec.com
Website	www.investec.com/en_gb /welcome-to-investec/about-us/ investor-relations.html