84S0VF8TSMH0T6D4K848-2026-03-31-T01

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

Key to icons


		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.

		Audited information Denotes information in the risk and remuneration reports that forms part of the Group's audited annual financial statements.

		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 integrated 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.

		Strategic report The operational and strategic overview section together with the financial review section (sections 1 and 2 of this report respectively, and together, the strategic report) provide an overview of our strategic position, performance during the financial year and outlook for the business. These should be read in conjunction with the sections referenced below which elaborate on the aspects highlighted in the strategic report: • The risk management section in section 3 of this report which provides a description of the principal risks and uncertainties facing the company; and • The Investec Group's 2026 sustainability report on our website which highlights the sustainability, economic, social and environmental considerations.

		Integrating sustainability Indicates where we have incorporated sustainability content, aims and ambitions.

Feedback

We value feedback and invite questions and comments on

our reporting. To give feedback please contact our Investor

Relations division.

For queries regarding information in this document:

Investor relations

Tel:(27) 11 291 0178

(44) 20 7597 5546

Email:investorrelations@investec.com


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



01	Strategic focus	CONTENTS	Investec Bank plc Annual Financial Statements 2026

CONTENTS


01	Operational and strategic overview	Sections 01 to 02 comprise our Strategic Report
		Our business at a glance	4
		Our operational footprint	6
		Overview of the Investec Group’s and Investec Bank plc’s organisational structure	8
		Evolving our strategic intent	9
		Our performance at a glance	11
		Stakeholder engagement (Section 172 statement)	16

02	Financial review	Salient features	29
		Financial review	30
		Divisional review	34

03	Risk management and governance	Risk management approach and framework	44
		Year in review from a risk perspective	45
		Principal risks	47
		Corporate governance	62
		Directors’ report	92


04	Remuneration report	Remuneration report	99
04	Remuneration report

05	Annual financial statements	Independent auditor’s report to the members of Investec Bank plc	111
		Consolidated income statement	123
		Consolidated statement of total comprehensive income	124
		Balance sheets	125
		Cash flow statements	127
		Statements of changes in equity	128
		Accounting policies	132
		Notes to the financial statements	148
		Notes to risk and capital management	240

06	Sustainability statement	Introduction	290
		ESRS 2: General information	290
		ESRS E: Environment	312
		ESRS S: Social	324
		ESRS G: Governance	338
		Directors’ Responsibilities Statement for Sustainability	346
		Independent Practitioners Limited Assurance Report on the Sustainability Report	347
		Appendix	350

		Alternative performance measures	354
		Definitions	355
		Glossary	356
		Credit ratings	358
		Corporate information	359



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

Operational and

strategic overview

Our purpose is to create enduring worth.

This underpins who we are and how we create

long-term sustainable value. This section provides

an overview of Investec Bank plc.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

IN THIS SECTION



4	Our business at a glance


5	Our key business highlights


6	Investec’s operational footprint


8	Overview of the Investec Group’s and Investec Bank plc’s organisational structure


9	Evolving our strategic intent


10	Overview of the activities of Investec Bank plc


11	Our performance at a glance


16	Stakeholder engagement (Section 172 statement)



01	Operational and strategic overview	Investec Bank 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.



			Investec Group’s 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 and 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 Bank plc Annual Financial Statements 2026

OUR KEY BUSINESS HIGHLIGHTS



Our responsibility

Our purpose to ‘create enduring worth’ is inseparable from being a sustainable business – it 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 wellbeing 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



Investec Group’s 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 Bank plc Annual Financial Statements 2026

INVESTEC’S OPERATIONAL FOOTPRINT

Investec Group’s

international

footprint

Since inception, Investec has

expanded through a combination

of substantial organic growth and

a series of strategic acquisitions.

Our focus today is on growth in

our chosen markets.


l	Countries in which we operate


	Wealth & Investment Activities

	Private Client Banking Activities

	Business & Commercial Banking / Corporate Banking Activities

	Corporate & Investment Banking Activities

USA^{^}

Energy and Infrastructure Finance,

Fund Solutions, Aviation Finance

and Institutional Equities business

providing research and sales

activities

Ireland^{^}

Treasury Risk Solutions and

Institutional Equities business

United Kingdom^{^}

Corporate, institutional and private

client banking activities

Wealth management services

offered through our long-term

strategic partnership with

Rathbones

Continental Europe^{^}

Investment banking activities

including M&A advisory and

corporate lending

Channel Islands^{^}

Private banking, lending and

treasury services to private clients

and financial intermediaries

Custody and Execution-only

services through our independent

nominee company

Wealth management services

offered through our long-term

strategic partnership with

Rathbones

^ Geographies where Investec Bank plc operates



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

INVESTEC’S OPERATIONAL FOOTPRINT CONTINUED

South Africa

Commercial, corporate, institutional

and private client banking activities

Wealth and investment

management services with the

ability to leverage off the global

platform

Switzerland^{^}

Private banking and Wealth

management services offered to

private clients, family offices, trusts

and corporate service providers

Corporate lending activities

Dubai International

Finance Centre (DIFC)

Advisory and arranging services in

private banking, wealth and

investment management, as well

as corporate and investment

banking

Mauritius

Corporate, institutional and private

client banking activities

Wealth management services

India^{^}

Institutional equities business

providing research, sales and

trading activities

Sales desk located in Singapore for

Indian equities to Singaporean

institutional investors

Merchant banking business

connecting Indian companies with

domestic and international

investors

Investment management services

in structured credit and other

products



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OVERVIEW OF THE INVESTEC GROUP’S AND INVESTEC BANK PLC’S ORGANISATIONAL STRUCTURE

Investec Bank plc (IBP) is the main banking subsidiary of Investec plc .

During July 2002, Investec Group Limited (since renamed Investec Limited) implemented a dual listed companies (DLC) structure

and listed its offshore business on the London Stock Exchange (LSE).

In terms of our DLC structure, Investec Limited is the holding company of the Investec Group’s businesses in Southern Africa, and

Investec plc is the holding company of Investec Group’s non-Southern African businesses. Investec Limited is listed on the

Johannesburg Stock Exchange Limited (JSE) South Africa (since 1986) and Investec plc on the LSE (since 2002).

All references in this report to the Bank, IBP or the Group relate to Investec Bank plc and its subsidiaries, 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.

Our DLC structure and main operating subsidiaries and associates




	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% unless otherwise stated.

Salient features of the DLC structure

• Investec plc and Investec Limited are separate legal entities and have separate 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 Bank plc Annual Financial Statements 2026

EVOLVING OUR STRATEGIC INTENT

Evolving our

strategic intent

Over the past six years, we have

successfully simplified and focused

our business, delivering a structural

improvement in returns and strengthening

the quality of earnings. Building on this

foundation, we are entering the next phase:

scaling the business through sustainable

growth to 2030 and beyond.

Capital allocation discipline

Deliver a truly client-centred

single organisation

A disciplined approach to

capital allocation ensures

we prioritise high returns,

scalable opportunities while

balancing shareholder

returns, reinvestment and

strong capital levels.

Operating as a

more integrated

organisation enables

us to deliver the full

breadth of Investec’s

capabilities to every

client, providing a

seamless experience

across all products

and geographies.

Deliver a truly

client-centred

single organisation

Capital allocation

discipline

Three key

objectives

Growth

initiatives

Underpinned by our Digital Transformation Programme

Enabling Investec to scale more efficiently, reduce complexity

and deepen the client experience - supporting sustainable

growth.

Growth initiatives

Growing existing client

franchises

We remain focused on growing our

core client franchises, through

disciplined and targeted expansion

across key businesses. Our aim is to

increase market share and deepen

specialisation within established

franchises, strengthening both scale

and capability.

Corporate mid-market

We are building a differentiated,

high-touch banking proposition in

a fast-growing and underserved

segment with attractive growth and

return dynamics.

Private client

We are scaling our integrated wealth

and banking proposition to grow

discretionary assets, deepen client

relationships and increase high-

quality, recurring revenue.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OVERVIEW OF THE ACTIVITIES OF INVESTEC BANK 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 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 products and services in the corporate mid-market,

bespoke solutions to high net worth (HNW) 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


	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 >£3 million net asset value (NAV)). 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 Bank plc Annual Financial Statements 2026

OUR PERFORMANCE AT A GLANCE

A resilient performance in an

uncertain operating environment



	Operating income
	£1.2bn
	2025: £1.2bn

		Adjusted operating profit decreased 2.1%
	£486.3mn
	2025: £496.8 million

	Earnings attributable to equity holders decreased 3.6%
	£353.2mn
	2025: £366.4 million

• Investec Bank plc (IBP) delivered a

resilient performance in a volatile and

lower-rate environment, where our

underlying franchise momentum was

counterbalanced by margin

compression and continued strategic

investment

• We are executing the next phase of our

growth strategy, scaling our Private

Client franchise, accelerating our

transactional banking capabilities, and

expanding both our mid-market

advisory proposition and our

Alternative Investment Management

platform. These initiatives will drive

client acquisition, deepen client

relationships, and underpin sustainable

future growth

• Revenue decreased slightly on prior

year; as strong growth in net fee and

commission income, generated from

our Investment Banking lending and

advisory activities, was offset by lower

net interest income and lower income

from balance sheet management and

other trading activities. Investment

income and Customer flow trading

income both contributed positively to

revenue

• Operating costs increased by 1.6%.

Fixed operating cost growth reflects

continued and accelerated investment

in our Private Client and Corporate

mid-market growth initiatives, strategic

and regulatory projects to transform

the business and enable future growth,

as well as inflationary pressures.

Variable remuneration decreased

relative to the prior year

• Net core loans grew by 5.9% since

31 March 2025 driven by growth

across our diversified corporate loan

book, particularly Fund Solutions,

Direct Lending, and Real Estate, as well

as strong growth in the residential

mortgage portfolio

• ECL impairment charges totalled

£97.3 million, resulting in a credit loss

ratio of 57bps (2025: 60bps). The

increase in ECL impairment charges

was predominantly driven by Stage 3

ECL charges on certain exposures.

Overall asset quality of the book

remained stable

• In the current year IBP has equity

accounted £80.9 million

(FY2025: 69.1 million) being IBP’s share

of Rathbones’ post-tax underlying

profit attributable to shareholders for

their year ended 31 December 2025 of

£177.4 million

• Funds under Management (FUM) from

the Wealth and Investment business in

Switzerland increased to £3.3 billion at

31 March 2026 (2025: £2.7 billion)

• Taken together, IBP reported

an adjusted operating profit of

£486.3 million for the year (2025:

£496.8 million).



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OUR PERFORMANCE AT A GLANCE CONTINUED

Financial performance



	Adjusted operating profit decreased 2.1%		2026 £ 486.3mn
	Adjusted operating profit decreased 2.1%		2025 £496.8mn



	Cost to income ratio		2026 51.0%
	Cost to income ratio		2025 50.2%



	Credit loss ratio		2026 57bps
	Credit loss ratio		2025 60bps

Diversified business model


	Contribution of adjusted operating profit
%

2026


	Specialist Banking			Wealth & Investment

Continued growth of our key earnings drivers



	Customer accounts (deposits) increased 4.5% to £ 22.5 billion



	Core loans increased 5.9% to £17.8 billion


Customer accounts (deposits) and loans
£’billion	Percentage


	Net core loans (LHS)


	Customer deposits (LHS)

2026


		Loan to deposit ratio (RHS)
		Loan to deposit ratio (RHS)



	Funds under management increased 23.2% to £3.3 billion reflecting £491 million additional FUM from a strategic acquisition in September 2025 as well as favourable market movements		Rathbones* FUMA of £113.6 billion at 31 March 2026 * Rathbones is a long-term strategic associate of Investec Bank plc.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OUR PERFORMANCE AT A GLANCE CONTINUED

Strong and improved annuity base


Total operating income^
£’million	Percentage


	Net interest income
	Trading income


	Net fees and commission income
	Other operating income/(loss)

2026


		Investment and associate income
		Annuity income* as a % of total operating income
		Annuity income* as a % of total operating income

*Where annuity income is net interest income and annuity fees.

^ Operating income on the face of the income statement adjusted for amortisation of acquired intangibles and acquisition related and integration costs within associate.



	Revenue was driven by strong growth in fee and commission income generated from our Investment Banking lending and advisory activities. This was offset by lower net interest income and lower trading income from balance sheet management and other trading activities.

Expected credit loss (ECL) impairment charges

£’million

2026

Adjusted operating profit – Wealth & Investment

£’million

2026



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OUR PERFORMANCE AT A GLANCE CONTINUED


	Revenue growth was slightly behind cost growth, resulting in negative jaws


		Period-on-period % change in revenue
		Period-on-period % change in revenue

2026


		Period-on-period % change in costs
		Period-on-period % change in costs



	Growth in operating costs reflects continued and accelerated investment in our growth initiatives, strategic and regulatory projects to transform the business and enable future growth, as well as inflationary pressure. Variable remuneration decreased relative to the prior year.


Default and core loans
£’billion	Percentage


	Net core loans (LHS)


		Credit loss ratio (RHS)
		Credit loss ratio (RHS)

2026


		Net default loans before collateral as a % of net core loans/Stage 3 exposure net of ECL as a % of net core loans subject to ECL (RHS)

Adjusted operating profit – Specialist Banking

£’million

2026



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

OUR PERFORMANCE AT A GLANCE CONTINUED

Maintained a sound balance sheet

The involvement of executive management ensures stringent management of risk, capital and liquidity as set out below.

Capital management



	Capital and leverage ratios remain sound, ahead of internal targets and regulatory requirements. Investec Bank plc calculates capital requirements using the standardised approach under the Basel III framework, thus our risk-weighted assets represent a large portion of our total assets. We are comfortable with our Common Equity Tier 1 (CET1) ratio at 13.3% given our solid capital-light revenues, and with the leverage ratio at 9.5% .

Capital ratios


	31 March 2026*	31 March 2025*
Common Equity Tier 1 ratio**	13.3%	13.6%
Tier 1 ratio**	15.0%	15.4%
Total Capital ratio**	18.6%	19.2%
Leverage ratio**	9.5%	10.5%

*The capital adequacy and leverage disclosures for Investec Bank plc include the deduction of foreseeable charges and dividends. These disclosures differ from the

disclosures included in the Investec Group’s year-end results booklet 2026, which follow our normal basis of presentation and do not include this deduction. Investec

Bank plc CET1 ratio would be 64bps (31 March 2025: 37bps) and leverage ratio 40bps (31 March 2025: 25 bps) higher, on this basis.

**31 March 2025 CET1, Tier 1, total capital and leverage ratios are 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.


	Note: Refer to pages 280 to 284 for further details.

A well-established liquidity management philosophy remains in place



	Continued to focus on:
	• Maintaining a high level of readily available, high-quality liquid assets targeting a minimum cash to customer deposit ratio of 25%, with the year-end ratio at 41.6% • Diversifying funding sources • Maintaining an appropriate mix of term funding • Maintaining low reliance on wholesale funding • Benefitting from a growing retail deposit franchise and recording an increase in customer deposits.	Liquidity remained strong with cash and near cash balances amounting to £9.4 billion (2025: £9.1 billion). Average cash balances remained high as we maintained a conservative position. We exceeded the minimum regulatory requirements for the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). The Bank’s loan to deposit ratio was 79.0% (2025: 78.0%).

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



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT

Listening to

and engaging

with our

stakeholders

Strong stakeholder relationships

are essential to the creation of

enduring worth.

We engage with stakeholders on

an ongoing basis to understand

their needs and perspectives.

Insights from these engagements

are incorporated into management

processes and are considered by

the Board in its oversight and

decision-making.

As a wholly-owned subsidiary of Investec

plc, we engage with stakeholders both

directly and, where appropriate, through

broader Investec Group platforms, including

investor relations, digital channels and

sustainability initiatives.

The Board recognises the importance of

understanding and responding to the diverse needs

and expectations of the Investec Bank plc’s (IBP)

stakeholders in delivering sustainable long-term

value. The Board is committed to providing

meaningful, transparent, timely and accurate financial

and non-financial information to primary stakeholders,

enabling them to make meaningful assessments and

informed investment decisions.

In order to achieve these outcomes, the Board

addresses material matters of significant interest and

concern, highlighting key risks to which the business

is exposed and actions taken to mitigate them.

IBP is a wholly-owned subsidiary of Investec plc (refer

to operational structure on page 8) and as such has

one shareholder. The Investec Bank plc Board

communicates regularly with the Board of Investec

plc. Certain IBP engagements with its stakeholders

are performed on an Investec Group basis such as

maintenance of its website, investor relations activity

and environmental, social and governance (ESG)

engagement.

Section 172(1) statement

This section of the strategic report describes how

the directors have had regard to the matters set

out in Section 172(1), and forms the directors’

statement required under the Companies Act

2006. This statement also provides details of how

the directors have engaged with and had regard

to the interests of our key stakeholders.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our clients

How we engage

• Ongoing relationship management by senior management and client

relationship teams

• Regular updates to the Investec Bank plc Board on client conduct, service and

risk themes

• Multi‑channel engagement including digital platforms, client events and industry

forums

• Participation in industry and client‑focused events.

Value created in FY2026

• Successfully closed the second Private Debt Fund (PDF II) and launched our

inaugural Senior Debt Fund (SDF I)

• Expansion and enhancement of product offerings, including the launch of the

Investec Save 1‑Year Fixed Rate Cash ISA, and continued development of

transactional capabilities

• Sustained client growth across key segments

• Continued investment in platforms and technology to support improved client

experience and service delivery

• Continued external recognition across private, corporate and investment

banking franchises.

At Investec, we are all

about partnerships,

striving to build deep

and long-lasting

relationships with our

clients.

What they care about

• Ethical conduct, fair treatment and

transparency

• Reliable service delivery and

consistent execution

• Speed, certainty and predictability

of funding and transactions

• High‑quality digital functionality and

client experience

• Data privacy, cyber security and

regulatory compliance

• Access to specialist banking

expertise and tailored solutions

Material topics

• Business conduct and ethics

• Climate change (including

sustainable and transition finance)

• Transparency and disclosure

• Data privacy and cyber security



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our people*

How we engage

• Board-level representation of workforce perspectives through a designated

Non‑Executive Director

• Ongoing communication from UK and Group executive leadership through town

halls and digital platforms

• Structured employee listening programme, including feedback sessions and

culture dialogues

• Ongoing learning, development and leadership programmes supporting career

growth and capability building

• Regular performance discussions and structured engagement processes.

Value created in FY2026

• Increased our paid paternity leave entitlement in the UK from two weeks to a

total of 16 weeks paid leave

• Launched two new diversity networks in the UK, including a Working Parents

network and an Ability network supporting inclusion across parental

responsibilities, physical and less visible disabilities, mental health and

neurodiversity

• Featured in the Financial Times Best Employers 2026 list

• Enhanced learning resources focused on artificial intelligence and sustainability

• Continued investment in leadership and capability development.

Our culture is the core of

our organisation. We

recognise that enabling

an engaged and diverse

workforce that is deeply

skilled and culturally

embedded is essential

for our success.

What they care about

• Engagement, wellbeing and safe

working conditions

• Fair reward, performance

management and career

progression

• Inclusion, diversity and equal

treatment

• Learning, development and

future‑skills readiness

• Ethical culture and leadership

• Protection of personal data and

cyber security

Material topics

• Business conduct and ethics

• Employee wellbeing (working

conditions)

• Equal treatment and opportunities

for all

• Data privacy and cyber security

*includes permanent employees, temporary employees and contractors.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our investors

How we engage

• Regular engagement with Executive Directors, senior management and Investor

Relations

• Non‑deal and deal‑related investor roadshows in the UK and Europe

• Timely market announcements and regulatory disclosures

• Dedicated investor relations website and direct communications.

Value created in FY2026

• Successfully completed a €500 million Senior issuance in June 2025, resulting in

an oversubscribed order book of €745 million with participation from over 40

investors

• Engaged with 10 debt investors in the UK and Europe in November, for a non-

deal debt roadshow.

We engage with debt

investors who hold

instruments in Investec

Bank plc.

What they care about

• Financial performance and balance

sheet resilience

• Liquidity, capital strength and

prudent risk management

• Transparency and consistency of

disclosures

• Sustainability strategy and climate

risk management

• Governance and executive

oversight

Material topics

• Business conduct and ethics

• Climate change (including

sustainable and transition finance)

• Employee wellbeing (working

conditions)

• Equal treatment and opportunities

for all

• Transparency and disclosure

• Data privacy and cyber security



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our communities

How we engage

• Regular engagement with UK community partners and charities

• Staff volunteering across education, entrepreneurship and environmental

programmes

• Collaboration with governments, universities, NGOs and beneficiary

communities

• Transparent reporting through dedicated community platforms.

Value created in FY2026

• Achieved £2.1 million community spend on education, learnerships,

entrepreneurship and job creation, as well as the environment and other

philanthropy initiatives (2025: £1.9 million)

• Funded four social enterprises through the Investec Beyond Business

programme with £24,000 each

• £60,000 provided to a Beyond Business alumnus to support business growth

• Supported 2 854 Arrival learners since inception (2025: 2 812 learners)

• Supported education, entrepreneurship and environmental initiatives across

multiple geographies, including the UK, Channel Islands, Ireland, India and

Switzerland.

Our commitment to

societal contribution,

diversity and nurturing

entrepreneurship informs

our community support,

focused on education,

entrepreneurship and

the environment.

What they care about

• Sustainable financial and

non‑financial support

• Access to education and

employability pathways

• Skills development, job creation

and entrepreneurship support

• Long‑term programme

sustainability and measurable

impact

• Meaningful employee volunteerism

• Environmental protection and

community resilience

Material topics

• Climate change (including

sustainable and transition finance)



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our government

and regulators

How we engage

• Regular engagement between the Investec Bank plc Chair, Board members and

UK regulators

• Ongoing supervisory interactions with the Prudential Regulation Authority and

FCA

• Participation in UK Finance, AFME and other industry working groups

• Attendance at regulatory conferences and policy forums.

Value created in FY2026

• Received regulatory approval to acquire London Investment Management

Limited, establishing UK advisory capability

• Received regulatory approval to acquire a loan book from Brown Shipley & Co

Limited

• Received approval for the appointment of Vivek Ahuja as Chair of Investec Bank

plc

• The FCA has awarded a green rating for our Consumer Duty Board Reporting.

We maintain continuous

engagement with

government and

regulators in our key

markets to ensure our

business adapts to

evolving regulatory

requirements.

What they care about

• Regulatory and legal compliance

and transparency

• Retail Customers receiving ‘Good

Outcomes’ in accordance with the

Consumer Duty

• Financial stability, prudential

soundness and risk management

• Market conduct, client protection

and financial crime prevention

• Data privacy, cyber security and

operational resilience

• Climate change, sustainability and

transition planning

• Contribution to policy development

and responsible industry conduct

Material topics

• Business conduct and ethics

• Climate change (including

sustainable and transition finance)

• Equal treatment and opportunities

for all

• Transparency and disclosure

• Data privacy and cyber security



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our sustainability

and climate-

focussed industry

bodies and analysts

How we engage

• Publication of sustainability and climate disclosures within the Investec Bank plc

Annual Report

• Engagement through the Investec Group sustainability websites and analyst

briefings

• Participation in UK and international sustainability forums and initiatives

• The Investec Bank plc CE is a member of the UN GISD Alliance

• Collaboration with clients on transition finance and data quality.

Value created in FY2026

• In the first year of the Investec Group’s five-year target to facilitate £18 billion,

towards which IBP aims to contribute £14.9 billion, we facilitated £2.6 billion of

sustainable and transition finance, supporting our clients and contributing to

positive environmental and social outcomes

• Continued progress in aligning our portfolios:

– Proportion of renewables in our energy lending portfolio increased to 80.92%

from 73.97%

• Continued to enhance the quality, accuracy and coverage of our Scope 3

financed emissions data.

We engage with

sustainability experts

and collaborate with our

clients to actively

support a just transition

to a low-carbon,

sustainable economy.

What they care about

• Progress and credible delivery of

sustainable and transition finance

• Transparency, quality and

consistency of sustainability-

related disclosures

• Climate transition planning and

delivery

• Biodiversity, ecosystems and

environmental impact

• Governance, incentives and

remuneration alignment

• Alignment of sustainability with

long-term value creation

Material topics

• Climate change (including

sustainable and transition finance)

• Transparency and disclosure

• Biodiversity and ecosystems



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Our suppliers

How we engage

• Engagement through procurement, onboarding and contract management

processes

• Structured oversight across the supplier lifecycle, including risk-calibrated due

diligence and performance monitoring

• Regular interaction with critical suppliers through service reviews and SLA

monitoring

• Coordinated oversight across Procurement, Risk, Sustainability and business

units.

Value created in FY2026

• Enhanced third‑party risk management through improved analytics and

monitoring tools

• Strengthened supplier oversight via structured service reviews and SLA tracking

• Enhanced resilience assessments and proactive risk identification and mitigation

• Further integration of ESG criteria into supplier onboarding and reviews

• Streamlined and risk-calibrated due diligence processes.

We collaborate with

suppliers and sub-

contractors and expect

them to be resilient as

well as operate and

behave ethically and in

an environmentally and

socially responsible

manner.

What they care about

• Fair, transparent and competitive

procurement processes

• Responsible and prompt payment

practices

• Clear expectations around

compliance, onboarding

requirements and ongoing

oversight

• Long‑term, collaborative

relationships built on trust and

partnership

• Alignment with environmental,

social and ethical business

standards

Material topics

• Business conduct and ethics

• Data privacy and cyber security



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED

Here we outline the principal decisions taken by the Board

during the year and their impact on our stakeholders.



	1		Strategic direction

Context

Building on the Investec Group upgraded financial

targets published in FY2024, the Investec Group

and Investec Bank plc executive team embarked

on the articulation of a clear path to achieving the

upper end of the Bank’s return target ranges.

During FY2025 the Board oversaw the

development and presentation of a credible and

executable plan to advance returns to the upper

end of the target range by financial year ending

31 March 2030. This included focusing on

specific growth initiatives that represent a natural

evolution of the business model, aimed at

enhancing and broadening the client offering,

strengthening competitive positioning and

increasing market share.

In May 2025, management committed to

providing detailed updates on its core growth

areas, reinforcing its focus on disciplined

execution, and long-term growth in alignment

with its purpose of creating enduring worth.

Stakeholders considered in the decision:


	Our clients			Our people

How were stakeholder interests considered?

The Investec Group Board has continued its engagement with

shareholders and investors mainly through one-on-one

dialogue, conferences, and results presentations, and

endeavours to incorporate shareholder feedback in

its oversight of strategic execution. Investor input emphasised

the importance of clearly communicating the timeline for

delivering growth initiatives, as well as disclosing measurable

key performance indicators (KPIs) and targets to enable

progress tracking. This was taken into account in the Board’s

review of the initiatives and informed the decision to

articulate, both internally and externally, the strategic

rationale, client value proposition, business model and

targeted market share ambitions for FY2030.

The Board also considered the perspective of employees,

ensuring that the evolution of the Group’s strategy

incorporates internal input, and is appropriately communicated

at all levels of the Group’s operations.

Outcomes

The Board has overseen the development of

clear, measurable KPIs for each growth

initiative. The Group provided detailed updates

on its Corporate mid-market growth initiatives

on 20 November 2025 and on its Private Client

growth initiatives on 21 May 2026, setting out

the strategic rationale, financial ambitions and

key execution milestones. These disclosures

have enhanced both internal alignment and

external understanding of the Group’s growth

priorities and the pathway to achieving its

FY2030 targets. The Board will continue to

monitor progress against these initiatives and

KPIs, ensuring disciplined execution while

remaining responsive to changes in the external

environment.



01	Operational and strategic overview	Investec Bank plc Annual Financial Statements 2026

STAKEHOLDER ENGAGEMENT CONTINUED



	2		Non-executive succession

Context

During the year, the Board undertook a process to

appoint a new Chair of the Investec Bank plc (IBP)

Board, following John Reizenstein stepping down

as Chair, effective 29 January 2026. This decision

was critical to ensuring continuity of independent

leadership, strong governance, and sustained

stakeholder confidence.

Stakeholders considered in the decision:


	Our regulators			Our investors			Our people

How were stakeholder interests considered?

To ensure a transparent and well-governed process,

the Board developed detailed candidate specifications

aligned to anticipated Board requirements,

underpinned by continuous review of Board

composition, skills and future needs.

Consideration was given to expectations regarding

independence, experience and fitness and propriety,

including alignment with regulatory frameworks, as well

as the need to maintain strong governance, market

confidence and effective oversight of strategy and risk.

In line with established succession planning processes,

the Board balanced the need for continuity and

institutional knowledge with the importance of

maintaining independence and introducing

complementary skills and perspectives.

This approach aligns with the Board’s commitment to

diversity and inclusivity, ensuring an unbiased selection

process that prioritises varied backgrounds and

perspectives to reflect and serve the diverse interests

of stakeholders.

Outcomes

Following a formal and rigorous selection process,

Vivek Ahuja was appointed as Chair of the IBP Board

and Chair of the IBP Nomination Committee effective

20 March 2026.

Having been appointed to the Board of Investec Bank

plc in March 2025, Vivek brings extensive international

financial services experience across banking and

private equity, further enhancing the Board’s expertise

and strategic capabilities. His appointment supports

effective oversight of strategy, risk and capital

allocation.

Vivek stepped down from membership of the IBP Audit

Committee, with effect from 29 January 2026, to

ensure governance clarity and independence.

The Bank remains committed to continuously reviewing

Board composition and recruitment priorities to ensure

an appropriate balance of skills, experience and

perspectives, supporting ongoing Board effectiveness

and alignment with the Bank’s strategic objectives.



01	Operational and strategic overview	Investec Bank 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.



02	Financial review	Investec Bank plc Annual Financial Statements 2026

Financial

review

We have delivered a resilient financial performance in

an uncertain operating environment. This section

contains a review of Investec Bank plc’s results.



02	Financial review	Investec Bank plc Annual Financial Statements 2026

IN THIS SECTION



29	Salient features


30	Financial review


34	Divisional review



02	Financial review	Investec Bank plc Annual Financial Statements 2026

SALIENT FEATURES


	31 March 2026	31 March 2025	% change
Income statement and selected returns for IBP
Earnings attributable to equity holders (£’000)	353 196	366 419	(3.6%)
Adjusted operating profit (£’000)^^	486 258	496 823	(2.1%)
Operating costs (£’000)	607 310	597 719	1.6%
Cost to income ratio^^^	51.0%	50.2%
Return on average assets ^*	1.2%	1.3%
Return on average risk weighted assets ^*	1.8%	2.0%
Net interest income as a % of operating income^**	61.5%	66.3%
Non-interest income as a % of operating income^**	38.5%	33.7%
Annuity income as a % of total operating income^**	66.1%	69.3%

	31 March 2026	31 March 2025	% change
Balance sheet
Total assets (£’million)	31 828	29 734	7.0%
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)	22 535	21 555	4.5%
Funds under management (£’million)	3 315	2 691	23.2%
Gearing ratio (total assets to equity)	8.2x	8.1x
Level 3 (fair value assets) as a % of total assets	11.6%	9.4%
Core loans to equity ratio	4.6x	4.6x
Loans and advances to customers as a % of customer deposits	79.0%	78.0%
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%	2.7%

Other regulatory ratios
LCR (IBP solo basis)	348%	418%
NSFR (IBP solo basis)	140%	144%

Capital and leverage ^{^}
Total Capital ratio	18.6%	19.2%
Tier 1 ratio	15.0%	15.4%
Common Equity Tier 1 ratio	13.3%	13.6%
Leverage ratio	9.5%	10.5%

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

**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.

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

^^Refer to page 148 for calculation.

^^^Refer to page 354 for calculation.



02	Financial review	Investec Bank plc Annual Financial Statements 2026

FINANCIAL REVIEW

Overview

Investec Bank plc’s adjusted operating profit decreased by 2.1% to £486.3 million for the year ended 31 March 2026

(2025: £496.8 million). This reflects a resilient performanc e in a volatile and lower-rate environment, where underlying franchise

momentum was counterbalanced by margin compression and continued strategic investment.

Income statement analysis

The overview that follows will highlight the main reasons for the variance in the major category line items on the face of the income

statement during the year under review.

Operating income^

Operating income of £1 191.3 million was flat on the prior year. The various components of operating income are analysed below.


£’000	31 March 2026	% of total income	31 March 2025	% of total income	% change
Net interest income	733 205	61.5%	790 461	66.3%	(7.2%)
Net fee and commission income	206 645	17.3%	180 476	15.1%	14.5%
Investment income	42 880	3.6%	41 811	3.5%	2.6%
Share of post-taxation profit of associates and joint venture holdings	89 862	7.5%	72 380	6.1%	24.2%
Trading income/(loss) arising from
– customer flow	91 494	7.7%	85 542	7.2%	7.0%
– balance sheet management and other trading activities	6 013	0.5%	14 248	1.2%	(57.8%)
Other operating income	21 173	1.9%	6 676	0.6%	>100%
Operating income	1 191 272	100.0%	1 191 594	100.0%	0.0%

^ 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.

The following table sets out information on total operating income by division for the year under review:


£’000	31 March 2026	% of total income	31 March 2025	% of total income	% change
Wealth & Investment	100 112	8.4%	87 657	7.4%	14.2%
Private Banking	80 801	6.8%	100 570	8.4%	(19.7%)
Corporate, Investment Banking and Other	1 010 359	84.8%	1 003 367	84.2%	0.7%
Total operating income	1 191 272	100.0%	1 191 594	100.0%	0.0%


% of total operating income
31 March 2026 £ 1 191.3 million total operating income		31 March 2025 £ 1 191.6 million total operating income


Net interest income	61.5%	Net interest income	66.3%
Net fee and commission income	17.3%	Net fee and commission income	15.1%
Investment income	3.6%	Investment income	3.5%
Share of post-taxation profit of associates and joint venture holdings	7.5%	Share of post-taxation profit of associates and joint venture holdings	6.1%
Trading income arising from customer flow	7.7%	Trading income arising from customer flow	7.2%
Trading income arising from balance sheet management and other trading activities	0.5%	Trading income arising from balance sheet management and other trading activities	1.2%
Other operating income	1.9%	Other operating income	0.6%



02	Financial review	Investec Bank plc Annual Financial Statements 2026

FINANCIAL REVIEW CONTINUED

Net interest income

Net interest income decreased by 7.2% to £733.2 million (2025: £790.5 million). The benefit of a larger average loan book was

offset by the impact of lower average interest rates and margin compression from competitive pricing.


	For a further analysis of interest received and interest paid refer to page 150 .

Net fee and commission income

Net fee and commission income increased by 14.5% to £206.6 million (2025: £180.5 million). This is reflective of higher

arrangement fees generated across our investment banking lending franchises, including strong deal activity in our Aviation

franchise.


	For a further analysis of net fee and commission income refer to page 150 .

Investment income

Investment income of £42.9 million (2025: £41.8 million) was largely driven by net realised fair value movements from equity

investments and higher dividend income.


	For a further analysis of investment income refer to page 151 .

Share of post-taxation profit of associates and joint venture holdings

Share of post-tax operating profit of associates and joint venture holdings amounted to £89.9 million (2025: £72.4 million) primarily

comprising Investec Bank plc’s share of Rathbones’ post-tax underlying profit attributable to shareholders of £177.4 million for their

year ended 31 December 2025 which amounts to £76.6 million (2025: £69.1 million). We have accrued earnings at an average

effective interest of 43.15% for the year, taking into consideration the elimination of treasury shares held within Rathbones Group

and the impact of the Rathbones share buyback in the current year. In prior years, the consideration of treasury shares had not

been applied and earnings were accrued at 41.25%, as such an additional £4.3 million has been recognised in 1H2026 to account

for the differential.

Trading income

Trading income from customer flow increased to £91.5 million (2025: £85.5 million), underpinned by increased facilitation client

hedging activity by our Treasury Risk Solutions business.

Trading income from balance sheet management and other trading activities decreased to £6.0 million (2025: £14.2 million)

reflecting current period movements in hedging instruments used to manage the balance sheet.

Other operating income

Other operating income mainly reflects an insurance recovery from a previously written-off exposure.

Expected credit loss impairment charges

Total ECL impairment charges totalled £97.3 million (2025: £97.0 million), resulting in a credit loss ratio of 57bps (2025: 60bps).

ECL impairment charges in the current year were largely driven by Stage 3 ECL charges on certain exposures. We have seen no

evidence of trend deterioration in the overall credit quality of our books.

Stage 3 exposures remained stable at 3.4% of gross loans subject to ECL (2025: 3.4%). We have seen a reduction in exposures

migrating into Stage 3.


	Refer to pages 244 for further information on asset quality and page 245 for a breakdown of the expected credit loss impairment charges.



02	Financial review	Investec Bank plc Annual Financial Statements 2026

FINANCIAL REVIEW CONTINUED

Operating costs

Operating costs increased by 1.6% to £607.3 million (2025: £597.7 million). Fixed operating cost growth reflects continued

accelerated investment in our Private Client and Corporate mid-market growth initiatives, strategic and regulatory projects to

transform the business and enable future growth, as well as inflationary pressure. Variable remuneration decreased relative to the

prior year. Based on the Motor Finance scheme as currently proposed, the Group has concluded that its existing £30 million

provision, covering both redress and associated operational costs, remains appropriate based on information currently available

and our estimate of a potential response rate. The cost to income ratio amounted to 51.0% (2025: 50.2%).

The various components of operating costs are analysed below:


£’000	31 March 2026	% of operating costs	31 March 2025	% of operating costs	% change
Staff costs (including directors' remuneration)	411 795	67.8%	419 115	70.1%	(1.7%)
Premises expenses (including depreciation)	29 193	4.8%	27 156	4.5%	7.5%
Equipment expenses (excluding depreciation)	56 898	9.4%	48 152	8.1%	18.2%
Business expenses	92 307	15.2%	84 002	14.1%	9.9%
Marketing expenses	14 516	2.4%	13 129	2.2%	10.6%
Depreciation, amortisation and impairment of equipment and intangibles	2 601	0.4%	6 165	1.0%	(57.8%)
Operating costs	607 310	100.0%	597 719	100.0%	1.6%

The following table sets out information on operating costs by division for the year under review:


£’000	31 March 2026	% of operating costs	31 March 2025	% of operating costs	% change
Wealth & Investment	19 064	3.1%	15 366	2.5%	24.1%
Private Banking	44 245	7.3%	47 860	8.0%	(7.6%)
Corporate, Investment Banking and Other	544 001	89.6%	534 493	89.4%	1.8%
Operating costs	607 310	100.0%	597 719	100.0%	1.6%


% of operating costs
31 March 2026 £607.3 million total operating costs		31 March 2025 £597.7 million total operating costs


Staff costs	67.8%	Staff costs	70.1%
Business expenses	15.2%	Business expenses	14.1%
Equipment expenses (excluding depreciation)	9.4%	Equipment expenses (excluding depreciation)	8.1%
Premises expenses (including depreciation)	4.8%	Premises expenses (including depreciation)	4.5%
Marketing expenses	2.4%	Marketing expenses	2.2%
Depreciation, amortisation and impairment of equipment and intangibles	0.4%	Depreciation, amortisation and impairment of equipment and intangibles	1.0%



02	Financial review	Investec Bank plc Annual Financial Statements 2026

FINANCIAL REVIEW CONTINUED

Adjusted operating profit

As a result of the foregoing factors, adjusted operating profit decreased by 2.1% from £496.8 million to £486.3 million.

Taxation on operating profit before acquired intangibles and strategic actions

The effective operational tax rate increased from 19.6% to 23.1%. For further details on the statutory effective operational tax rate,

refer to page 157.


£'000	2026	2025	31 March 2026	31 March 2025	% change
Taxation on operating profit before acquired intangibles and strategic actions	23.1%	19.6%	87 619	80 222	9.2%

Balance sheet analysis

Since 31 March 2025:

• Total equity increased by 5.3% to £3.9 billion (2025: £3.7 billion), as a result of the increase in retained income

• Total assets increased by 7.0% to £31.8 billion (2025: £29.7 billion); driven primarily by loan book growth of 5.9% as well as an

increase in cash and near cash balances from £9.1 billion to £9.4 billion

• Total liabilities increased by 7.3% to £28.0 billion (2025: £26.1 billion); driven primarily by an increase in customer accounts

(deposits) and an increase in Repurchase agreements and cash collateral on securities lent. Refer not note 19 on page 189 for

further information.



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

SPECIALIST BANKING OVERVIEW



	Ruth Leas, Business Head

	Awards
	Named ‘Best Performing Bank’ in the UK in The Banker’s Top 1000 World Banks 2025
	Featured in the Financial Times’ 2026 UK’s Best Employers list
	Ruth Leas named in Financial News’ list of Top 100 Women in Finance




	Adjusted operating profit		Net core loans		Cost to income		Credit loss ratio
£405.2mn (2025: £424.5 mn)		£17.8bn (2025: £16.8bn )		53.9% (2025: 52.8% )		0.57% (2025: 0.60% )

Performance overview

• Adjusted operating profit decreased by 4.6% to £405.2 million (2025: £424.5 million ) r eflecting a resilient performance in a

volatile and lower-rate environment, where underlying franchise momentum was counterbalanced by margin compression and

continued strategic investment

• Net core loans grew by 5.9% to £17.8 billion driven by growth across our diversified corporate loan book, particularly in our Fund

Solutions, Direct Lending, and Real Estate portfolios, as well as strong growth in the residential mortgage portfolio

• Operating income decreased by 1.2%. Strong growth in net fee and commission income, generated from investment banking

lending and advisory activities, together with positive contributions from investment income and client flow trading income, was

offset by lower net interest income and reduced balance sheet management and other trading income

• The cost to income ratio was 53.9% (2025: 52.8% ). Total operating costs increased by 1.0%. Fixed costs growth was driven by

investment in technology and strategic projects to enable future growth, as well as inflationary pressure. Variable remuneration

decreased relative to the prior year

• ECL impairment charges totalled £97.4 million, resulting in a credit loss ratio of 0.57% (2025: 0.60%), in line with guidance. The slight

increase in ECL charges in the current year was largely driven by Stage 3 ECL charges on certain exposures. Overall asset quality

remained sound supported by our diversified loan book and robust credit risk management

• The Bank maintained strong capital and liquidity levels and we are well positioned to navigate an uncertain macro-economic

environment and pursue long-term growth. We are investing strategically in both our Private and Corporate transactional banking

capabilities to complement our existing core specialisations.

Income statement


£’000	31 March 2026	31 March 2025	Variance	% change
Net interest income	727 076	783 080	(56 004)	(7.2%)
Net fee and commission income	195 207	171 106	24 101	14.1%
Investment income	42 877	41 810	1 067	2.6%
Share of post-taxation profit of associates and joint venture holdings	8 965	3 233	5 732	>100.0%
Trading income arising from
– customer flow	89 808	83 750	6 058	7.2%
– balance sheet management and other trading activities	6 052	14 282	(8 230)	(57.6%)
Other operating income	21 173	6 676	14 497	>100.0%
Operating income	1 091 158	1 103 937	(12 779)	(1.2%)
Expected credit loss impairment charges	(97 355)	(97 024)	(331)	0.3%
Operating income after expected credit loss impairment charges	993 803	1 006 913	(13 110)	(1.3%)
Operating costs	(588 246)	(582 353)	(5 893)	1.0%
Operating profit before goodwill, acquired intangibles and strategic actions	405 557	424 560	(19 003)	(4.5%)
Loss attributable to non-controlling interests	(355)	(12)	(343)	—
Adjusted operating profit	405 202	424 548	(19 346)	(4.6%)



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

SPECIALIST BANKING OVERVIEW CONTINUED



	Enhanced collaboration through our commitment to ‘One Investec’ A key strategic differentiator is our connected client ecosystem, which delivers a coordinated and holistic approach to addressing our clients’ personal and business banking needs. Our business activities are structured around target client groups, enabling us to bring all of Investec that is relevant to each and every client and to foster meaningful and long-lasting relationships. In the corporate mid-market, our breadth of capabilities and solution-oriented approach sets us apart. In the Private Client market, our exceptional levels of service attract high net worth individuals underserved by traditional high street and private banks. We remain committed to deepening our existing client relationships, expanding our client networks to connect like- minded clients across Investec and identifying ‘One Investec’ opportunities that will enhance our scale and relevance across our connected client ecosystem.		In FY2026 In line with our objective to increase connectivity, there has been a significant drive to cultivate collaboration between our Corporate and Private Client groups. Our Private C lient group referred 209 opportunities to our Corporate Client group in the current period (FY2025: 215). Our Corporate Client group referred 341 opportunities to our Private Client group (FY2025: 220). We have also seen consistent collaboration within the Corporate Client group with referrals between teams increasing to 574 from 555 in FY2025. Going forward We are evolving our strategic partnership with Rathbones to an integrated assets-under-advice approach. Investec will lead client relationship and advice, with Rathbones providing investment capabilities alongside Wealth & Investment International. This supports our strategy to deliver a unified Banking and Wealth proposition on a single platform.

Diversified loan book by risk category: Core loans

£17.8 billion


Mar ‘26	Mar ‘25


Corporate and other lending		51%	51%
	Asset finance	16%	16%
	Corporate and acquisition finance	12%	13%
	Fund finance	10%	9%
	Energy and infrastructure finance	4%	4%
	Other corporate and financial institutions and governments	4%	4%
	Aviation finance	3%	3%
	Asset-based lending	2%	2%
Lending collateralised by property		14%	14%
	Commercial real estate	10%	9%
	Residential real estate	4%	5%
High net worth and other private client lending		35%	35%
	Mortgages	32%	31%
	Other high net worth lending	3%	4%

Highlights: Sustainability

• As part of our commitment to achieving net zero by 2050,

Investec Group set a five-year target to facilitate £18 billion

of sustainable and transition finance by 2030 — towards

which our UK business aims to contribute £14.9 billion. In this

first year of measuring progress towards our target, we are

pleased to report £2.6 billion in sustainable and transition

finance facilitation

• We supported the financing of the UK’s largest battery

energy storage project, which will transform a former coal-

fired site into a clean energy hub that will supply power to

c.785,000 homes and directly support the UK’s net zero

ambitions

• We provided a technology company with financing facilities

where, on meeting key performance targets on emission

reduction and DEI training, the interest rate chargeable will

be reduced

• We introduced new decarbonisation and client engagement

targets, including a 20–45% emissions intensity reduction in

power generation by 2030, and engagement with 95% of

qualifying UK and US oil and gas clients by 2029.

Highlights: Belonging, inclusion and diversity (BID)

• We have increased our paid paternity leave entitlement from

two weeks to a total of 16 weeks paid leave

• At 31 March 2026, we had 40% female representation in our

General Management Forum, exceeding our Women in

Finance Charter target of 35%

• We have exceeded the targets outlined in our Board Diversity

Policy of 40% female representation. As at March 2026, 44%

of the Investec Bank plc Board were female and 33% were

people of colour

• We have recently launched two new diversity networks which

include a Working Parents network, aimed at supporting the

unique challenges that come with balancing work and

parenting, and an Ability network that champions inclusion

across physical and less visible disabilities, mental health and

neurodiversity

• Our leadership development planning prioritises targeted

development pathways for high-potential talent from under-

represented groups to accelerate readiness for critical

leadership roles.



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

PRIVATE BANKING

Our Private Banking activities focus on providing bespoke solutions underpinned by in-depth knowledge and

understanding of our clients’ personal and business aspirations and goals, supported by a broad private banking

offering. We understand that every client is an individual, and that they are typically active wealth creators with

complex financial needs. Our proposition is aligned with a clearly defined target client base and a market

opportunity to address an underserved part of the UK market. This segment 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.

Performance overview

• Adjusted operating profit for the year amounted to £32.5 million (FY2025: £47.1 million), primarily reflecting lower net interest

income where solid growth in the average loan book was offset by lower average interest rates. This was partially offset by a

7.6% decrease in operating costs

• The residential mortgage lending book reported positive growth of 10.3% since March 2025, a solid performance,

notwithstanding the macro-economic uncertainty.



	Loans and advances to customers
	£’billion

5.6

Mar

2026



		Banking (primarily mortgages)



	Loan book growth:
	• The loan book grew 8.5% since March 2025 amidst a challenging macro backdrop, demonstrating the strength of our value proposition and active client engagement • While the wider prime Central London market remains subdued amid elevated interest rates and ongoing macro-economic uncertainty, our residential mortgage activity has shown an uplift, reflecting steady momentum despite challenging conditions • Credit underwriting standards continue to be maintained whilst growing the book in a competitive market.
	Note: In addition to the loan book shown above, our Channel Islands business had c.£591mn (31 Mar 2025: £532mn) of mortgages as at 31 March 2026.



	UK HNW client acquisition

8 188

Mar

2026



		UK HNW clients



	Continued success in client acquisition:
	• We acquired 1 128 gross new clients over the period, in part driven by referrals from existing Investec clients • Aligned to our ‘One Investec’ approach, this offering serves as a valuable client acquisition tool for the wider UK Bank and strategic partnership with Rathbones Group. Our clients have an average income of £700 000+ and average net asset value (NAV) of £12 million (well above our quantitative criteria) • HNW mortgage lending is focused on targeting clients in established areas (London and the South East) with recourse to the individual and high level of cash equity contributions into transactions.
	Note: In addition to these client figures, our Channel Islands business has 1 202 HNW clients (31 March 2025: 1 138). This brings our total number of HNW clients to 9 390 (31 March 2025: 8 663).

Awards won in the past year



Ryan Tholet, Head of Private Clients UK, featured in the Spear’s 500 Power List	Winner: Overall Private Bank Investec Bank (Channel Islands)	Private Banker of the Year: Emily Dawson
Spear’s 500 Power List	WealthBriefing Channel Islands Awards 2025	Citywealth IFC Awards 2026



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

PRIVATE BANKING CONTINUED

Income statement analysis and key income drivers


£’000	31 March 2026	31 March 2025	Variance	% change
Net interest income	76 528	96 639	(20 111)	(20.8%)
Net fee and commission income	1 068	960	108	11.3%
Trading income arising from
– customer flow	3 144	3 018	126	4.2%
– balance sheet management and other trading activities	61	(47)	108	>100.0%
Operating income	80 801	100 570	(19 769)	(19.7%)
Expected credit loss impairment charges	(4 036)	(5 582)	1 546	27.7%
Operating income after expected credit loss impairment charges	76 765	94 988	(18 223)	(19.2%)
Operating costs	(44 245)	(47 860)	3 615	7.6%
Adjusted operating profit/(loss)	32 520	47 128	(14 608)	(31.0%)
Key income drivers
Cost to income ratio	54.8%	47.6%
Growth in loans and advances to customers	8.5%	3.7%
Growth in risk-weighted assets	5.7%	4.8%

Overview of financial performance:

• Net interest income declined by 20.8%; growth in average lending balances was offset by the effects of declining interest rates,

margin compression from competitive asset pricing and a change in the risk profile of the book to lower loan-to-value (LTV)

lending

• ECL impairment charges for the year decreased to £4.0 million (FY2025: £5.6 million) driven by lower portfolio impairments

relative to the prior year. Asset quality remained solid with exposures well covered by collateral, as reflected in the low coverage

ratios. Refer to page 249 for further information on the Group's asset quality

• Total operating costs decreased by £3.6 million or 7.6%. Fixed costs growth reflects continued and accelerated investment in

technology to enhance the digital experience for clients and drive efficiency to enable future growth, as well as inflationary

pressure. This was offset by variable remuneration which decreased relative to the prior year.

Strategy execution

• We have continued to progress in executing our HNW client acquisition strategy, delivering steady growth in core client numbers

despite subdued market activity. The UK Private Bank has scaled from c.4 200 clients in FY2020 to c.8 200 clients in FY2026,

demonstrating the strength of our proposition and the effectiveness of targeted acquisition and relationship-led origination

• This HNW client activity is increasingly embedded within the broader ‘One Investec’ ecosystem, reinforcing our differentiated

client-centric model. We continue to generate a consistent flow of internal referrals to the Corporate Client group, supporting

deeper client entrenchment and an expanding share of wallet across the Group

• Investec’s international proposition remains a key differentiator, particularly for South African Private Banking clients seeking UK

and offshore banking solutions. The UK platform continues to act as a gateway into the wider Group ecosystem, supporting

cross‑border client needs and reinforcing the Group’s international Private Client franchise

• The strategic partnership with Rathbones continues to enhance the UK Private Client value proposition across banking and

wealth management services, with referrals from the UK Private Bank positively contributing to net new funds under

management during the year

• Strategic investment programmes are progressing as planned, including the build-out of Private Client transactional banking

capabilities, supporting the evolution of the UK Private Bank toward a full‑service, primary banking relationship for HNW clients.

Looking ahead

• Our strategic focus is to evolve the UK Private Bank from a predominantly lending‑led model to a comprehensive, primary bank

focused model, which includes the launch of a market standard transactional banking proposition. This evolution is central to

increasing client primacy, deepening engagement and unlocking multiple value pools across deposits, lending, transactional

banking and wealth-related revenues

• Investment in a modern transactional banking platform is a key enabler of this transition, providing clients with everyday banking

functionality, including current accounts, credit cards, multi‑currency capability and integrated digital servicing. This is expected

to materially increase the frequency of client interaction, strengthen the deposit franchise and improve the funding mix over time

• The current investment phase is expected to span approximately three years, with peak investment occurring in FY2027 ahead

of a positive inflection in returns. The combined impact of transactional banking, deeper client primacy and enhanced wealth

integration is expected to result in a meaningful contribution to Group returns from FY2029 onwards.



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

CORPORATE INVESTMENT BANKING AND OTHER

This segment 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.

Loans and advances to customers

£’billion

Performance overview

• The results reflect a good performance in varying market

conditions

12.1

• Adjusted operating profit decreased by 1.3% to

£372.7 million (FY2025: £377.4 million)

• We have continued to successfully execute client

acquisition strategies to build scale and relevance in the

markets in which we operate.

Mar

2026

Loan book growth

• The loan book increased 4.6% to £12.1 billion

• Lending activity increased across our diversified lending businesses, particularly in our Fund Solutions, Direct Lending and

Real Estate portfolios

• Our alternative investments platform has gained traction, further expanding our lending capacity through external capital

• We continue to utilise our origination and distribution capability to manage diversity and concentration of our lending portfolios and

generate additional ROTE-accretive revenue for the Group.

Awards won in the period

European Small-Cap

Direct Lending

Manager of the Year

#1 Small & Mid-Cap

Broker

#1 in Research overall

#1 in Sales

#2 in Corporate Broking

World’s Most Innovative

Bank for FX

Best Business FX

provider (second

consecutive year)

Best service from an

Asset-based Finance

Provider

Best Service from an

Invoice Finance

Provider (third

consecutive year)

Debtwire Direct Lending

Awards 2025

Extel Awards

GW Platt Foreign Exchange

Bank Awards 2026

Business Moneyfacts Awards

2025



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

CORPORATE, INVESTMENT BANKING AND OTHER CONTINUED

Income statement analysis and key income drivers


£’000	31 March 2026	31 March 2025	Variance	% change
Net interest income	650 549	686 441	(35 892)	(5.2%)
Net fee and commission income	194 140	170 146	23 994	14.1%
Investment income	42 877	41 810	1 067	2.6%
Share of post-taxation profit of associates and joint venture holdings	8 965	3 233	5 732	>100.0%
Trading income arising from
– customer flow	86 664	80 732	5 932	7.3%
– balance sheet management and other trading activities	5 991	14 329	(8 338)	(58.2%)
Other operating income	21 173	6 676	14 497	>100%
Operating income	1 010 359	1 003 367	6 992	0.7%
Expected credit loss impairment charges	(93 318)	(91 442)	(1 876)	(2.1%)
Operating income after expected credit loss impairment charges	917 041	911 925	5 116	0.6%
Operating costs	(544 001)	(534 493)	(9 508)	(1.8%)
Operating profit before goodwill, acquired intangibles and strategic actions from continuing operations	373 040	377 432	(4 392)	(1.2%)
Profit attributable to non-controlling interests	(355)	(12)	(343)	>100.0%
Adjusted operating profit	372 685	377 420	(4 735)	(1.3%)
Key income drivers
Cost to income ratio	53.9%	53.3%
Growth in loans and advances to customers	4.6%	0.5%
Growth in risk-weighted assets	6.0%	2.7%

Overview of financial performance:

• Net interest income decreased by 5.2% as the benefit of a higher average loan book was offset by lower average interest rates

and margin compression from competitive pricing. Our client acquisition strategies continue to underpin the sustained loan book

growth across diversified specialisations

• Net fee and commission income increased by 14.1% to £194.1 million, reflecting higher arrangement fees generated across our

Corporate and Investment Banking lending franchises, including strong deal activity in Aviation

• Higher investment income was mainly driven by net gains on the realisation of certain investments and other assets as well as

dividend income

• The increase in trading income from customer flow was underpinned by increased facilitation of client hedging activity by our

Treasury Risk Solutions business

• Trading income from balance sheet management and other trading activities decreased, reflecting current period movements in

hedging instruments used to manage the balance sheet

• Other operating income mainly reflects an insurance recovery from a previously written-off exposure

• ECL impairment charges increased to £93.3 million, largely driven by Stage 3 ECL charges on certain individual exposures.

Overall asset quality of the book has remained stable. Refer to page 259 for further information on the macro-economic scenarios

applied and page 244 for information on the Group's asset quality

• Operating costs increased by 1.8% to £544.0 million. The increase in fixed costs reflects investment in technology, including

investment to build corporate transactional banking capabilities and other strategic projects to enable future growth, as well as

inflationary pressures. Variable remuneration decreased relative to the prior period.



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

CORPORATE, INVESTMENT BANKING AND OTHER CONTINUED

Strategy execution

Client franchise and ‘One Investec’

• Our ‘One Investec’ approach, underpinned by our connected

client ecosystem, enables holistic solutions and new client

opportunities. Our partnership with Rathbones continues to

enhance collaboration, delivering a seamless experience for

mutual clients

• We continued to execute our client acquisition strategies to

build scale and relevance in the UK and other markets in

which we operate.

Mid-market primary banking

• We have made solid progress in building out the Corporate

Mid-market proposition, expanding lending, transactional and

FX capabilities to deliver a more complete banking offering.

Continued digitisation across key journeys, supported by

targeted senior hires, is improving client experience and

scalability, translating into client growth and increased

product utilisation.

Private markets and capital-light growth

• Our integrated private markets businesses, combining

origination, distribution and alternative asset management

capabilities, enable increased revenue contribution from

capital-light activities through the use of external capital for

larger credit underwriting. Assets under management and

administration scaled to £4.8 billion, following successful

fundraising of c.£2.3 billion during the year

• Investec Alternative Investment Management (IAIM) raised

over €600 million for its second Private Debt Fund (PDF II) at

final close in January 2026, more than double the size of the

first vintage. We also launched the inaugural Investec Senior

Debt Fund (SDF I) in partnership with Carlyle AlpInvest, a

private credit fund with approximately €400 million of

investable capital. In total, the platform secured over

€2 billion of capital partnerships and commitments during the

year, broadening our investing partners and diversifying

distribution channels.

Advisory and international footprint

• We continue to deepen our mid-market relevance through a

focused, comprehensive proposition. Direct Lending

disbursed a record €1.1 billion across 54 lending transactions

during the year. Our Asset-based Lending offering in

Continental Europe gained traction with strong deal flow

• Our European M&A Advisory business continues to scale.

During the year, we consolidated our advisory presence in

Switzerland by acquiring a majority stake in Capitalmind AG

and deepened our established footprint across France,

Germany, the Benelux and the Nordics

• Investec India continues to build a scalable, capital-light

platform, with its equities and M&A Advisory businesses

demonstrating strong market presence and contributing to

growing Group capital-light revenues.

Funding and operating leverage

• Our global capability centre in Mumbai continues to support

client-facing and business enablement functions across the

UK and South Africa, strengthening operational resilience

• We continued to expand our retail funding suite with the

launch of the Investec Save 1-Year Fixed Rate Cash ISA at a

market-leading rate, marking a significant milestone for the

platform. This broadens access to UK retail savers and

further diversifies our funding products.

Looking ahead

Operating environment and capital discipline

• While macroeconomic conditions remain uncertain, we are

well positioned to navigate volatility, supported by a strong

balance sheet and a continued focus on disciplined capital

allocation, risk management and client-centric decision-

making

• Investec plc continues its journey towards migrating its

capital management to the Internal Ratings Based (IRB)

approach.

Mid-market growth and primary banking ambition

• We see opportunity to increase market share and grow

revenue as we further develop our offering to mid-market

corporates, transitioning towards becoming a primary

banking partner for clients. Growth will be driven by

expanded transactional banking, FX and deposit capabilities,

improved product penetration, and digital enablement to

support a more seamless and scalable client experience. We

expect the full proposition to be live in the market by Q1

2027.

Capital-light and private markets growth

• We see positive growth prospects in our private markets

businesses within Investment Banking. Pipelines remain

healthy, and our M&A Advisory business is positioned for

growth, supported by increasing scale and geographic reach,

targeted sector focus, and growing contributions from the

Coverage and Origination teams

• We will continue to build out our alternative investments

platform as a core driver of capital-light growth, raising

additional third-party capital. This supports greater use of

external capital alongside our balance sheet, increasing

transaction capacity, and deepening relationships with

sponsors and institutional investors.

Continental Europe

• In Continental Europe, we will deepen the integration of our

advisory, lending and hedging capabilities to deliver a more

connected client ecosystem. Selective expansion into

adjacent geographies and sectors will further enhance this

positioning over time.

Connectivity, capability and digital enablement

• Enhancing connectivity across Corporate & Investment

Banking remains a priority, linking coverage, product and

geography more effectively to improve cross-sell, increase

share of wallet and deliver a more coordinated client

approach

• Our global capability centre will continue to increase in

strategic importance, supporting execution capacity, access

to specialist capabilities and improved cost efficiency,

particularly across analytics, client lifecycle management and

operational support

• Digital transformation remains a key enabler across the

franchise. Continued investment in data, cloud infrastructure

and AI capabilities will enhance client experience, improve

decision-making, and drive operational efficiency, enabling

disciplined and sustainable scaling.



02	Financial review	UK and Other	Investec Bank plc Annual Financial Statements 2026

WEALTH AND INVESTMENT



	UK’s leading discretionary wealth manager with c.£113.6bn FUMA		Scale and operating efficiencies to power future growth

It has always been central to Investec’s strategy to provide a coordinated banking and wealth management offering. Prior to the

combination with Rathbones, IW&I UK was consistently one of the leading private client wealth managers in the UK and a highly

respected franchise in the industry.

On 23 September 2023 an all-share combination of IW&I UK and Rathbones was completed, resulting in the Investec Group owning

a 41.25% economic interest in the combined Rathbones Group, and creating the UK’s leading discretionary wealth manager.

Rathbones Group reported FUMA of £113.6 billion as at 31 March 2026.

The combination brought together two reputable UK wealth management businesses with closely aligned cultures and operating

models and established a long-term, strategic partnership which enhances the client proposition across banking and wealth

management services for both groups. The combination represents a significant value-creation trajectory for all stakeholders.

In the current and prior year the Group's investment in Rathbones has been equity accounted for and recognised as an associate.

Income statement analysis and key income drivers


£’000	31 March 2026	31 March 2025	Variance	% change
Share of post-taxation profit of associates and joint venture holdings	80 898	69 147	11 751	17.0%
Adjusted operating profit	80 898	69 147	11 751	17.0%
Share of integration costs incurred by Rathbones	(14 531)	(27 987)
Equity-accounted amortisation of acquired intangibles^	(15 048)	(6 313)
Profit after tax	51 319	34 847

The financial year under review

The current financial year consists of the Group’s share of Rathbones’ post‑tax underlying profit attributable to shareholders of

£177.4 million for their year ended 31 December 2025 which amounts to £76.6 million (FY2025: £69.1 million). We have accrued

earnings at 43.15%, being the average effective interest rate taken into consideration the elimination of treasury shares held within

Rathbones Group and the Rathbones share buyback in the current year. In prior years, the consideration of treasury shares had not

been applied and earnings were accrued at 41.25%, as such an additional £4.3 million has been recognised in 1H2026 to account

for the differential.

Investec holds c.44.5 million Rathbones shares (ordinary and convertible), unchanged since completion of the combination.

Rathbones announced the successful completion of the planned IW&I UK client and asset migration during the current financial

year, establishing a strong foundation for realising the full benefits of the combined organisation going forward. Rathbones reported

synergies of £76 million for the year ended 31 December 2025, well ahead of the original £60 million target.

As we approach three years post the combination with IW&I UK and Rathbones, we are evolving our strategic partnership from a

referral‑based model to an integrated assets‑under‑advice model. Investec will now lead the client relationship and advice, with

Rathbones providing underlying investment capabilities, alongside Wealth & Investment International. This is aligned to the Group's

strategy to deliver a unified Banking and Wealth proposition via a single platform, enabling holistic advice and seamless digital

delivery.

Investec Bank (Switzerland) AG (IBSAG)

IBSAG, which houses our Swiss wealth business, is a wholly-owned subsidiary of Investec Bank plc. IBSAG generated revenue of

£19.2 million in the current year (2025: £18.5 million), an adjusted operating profit of £0.2 million (2025: £3.1 million ) and reported

funds under management of £3.3 billion (2025: £2.7 billion). Following a strategic review in 2022, our Swiss wealth business has

been earmarked to play a key role in the Investec Group’s strategic expansion of its international wealth services. As a result further

information regarding this business can be found in the Investec Group’s Southern African Wealth & Investment division in the

Group’s integrated report.



03	Risk management and governance	Investec Bank 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 and Corporate Governance

disclosures.



03	Risk management and governance	Investec Bank plc Annual Financial Statements 2026

IN THIS SECTION



44	Risk management


44	Risk management approach and framework


45	Year in review from a risk perspective


47	Principal risks


62	Corporate Governance


62	Chair’s introduction


64	Director Biographies


67	Compliance with the UK Corporate Governance Code


69	Board and executive roles


71	Board activities


75	IBP Nomination Committee report


79	IBP Audit Committee report


87	IBP Board Risk and Capital Committee report


92	Directors’ report



03	Risk management and governance	Investec Bank plc Annual Financial Statements 2026

RISK MANAGEMENT APPROACH AND FRAMEWORK

Information provided in this section of the annual report is

prepared on an Investec Bank plc (IBP) consolidated basis

unless otherwise stated.

P hilosophy and a pproach to risk

management

The Bank'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 IBP Board Risk and Capital Committee (IBP BRCC)

(comprising both executive and non-executive directors) is the

Board mandated committee to monitor and oversee risk. IBP

BRCC meets four to six times per annum and recommends the

overall risk appetite 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.

Risk management operates within an integrated geographical

and divisional structure, in line with our management approach,

ensuring that the appropriate processes are used to address all

risks across the Bank. 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 Bank’s strategy

and allow the Bank to operate within its risk appetite tolerance.

Risk management objectives are to:

• Ensure adherence to our risk management culture

• Support the long-term sustainability of the Bank 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 Bank 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 Bank,

covering all legal entities and jurisdictions

• Establish and convene appropriate risk committees, as

mandated by the relevant Boards

• Resource risk teams suitably and with appropriate expertise

and facilitate operating independence

• Provide the IBP Board reasonable assurance that the risks the

Bank 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 a Bank level, as shown in the diagram below. These

committees and forums operate together with risk management

and are mandated by the IBP Board. Any matters relevant to IBP

are communicated to the Bank, in part, through having one or

more directors of Investec Group as members of the Board

committees of the Bank.

IBP Board of Directors

IBP

Nomination

Committee

IBP

Remuneration

Committee

IBP Audit

Committee

IBP Board

Risk and

Capital

Committee

(IBP BRCC)

IBP Reward

Committee

IBP Impairment

Decision

Committee

IBP Risk and

Controls

Forum

IBP Executive

Risk

Committee

(IBP ERC)

IBP Credit

Committees

IBP Capital

Committee

IBP

Review

Executive Risk

Review Forum

(IBP Review

ERRF)

IBP

Models Forum

IBP

Product

Governance

Forum

IBP

Market Risk

Forum

IBP

Asset and

Liability

Committee

IBP

Policies

Review

Committee

IBP

New Product

and Initiative

Forum

IBP Executive

Investment

Committee



03	Risk management and governance	Investec Bank 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 the Bank’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 Bank 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 Bank has

performed strongly and is well positioned to benefit from

emerging opportunities.

The Bank 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 79.0% ( 31 March 2025:

78.0% ). The Bank 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 41.6% of customer

deposits (31 March 2025: 42.2%). At 31 March 2026, on an IBP

solo basis, the Liquidity Coverage ratio (LCR) was 348% and

Net Stable Funding ratio (NSFR) was 140%, 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 Bank’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

Bank 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 Bank’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 Bank’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.



03	Risk management and governance	Investec Bank plc Annual Financial Statements 2026

YEAR IN REVIEW FROM A RISK PERSPECTIVE CONTINUED

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 258 .

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 continue to manage down our investment

portfolio exposure in line with our objective of optimising capital

allocation, reducing income volatility and aligning the business

with our client franchises. The investment portfolio on the

balance sheet reduced by 4.5% over the year under review to

£202 million at 31 March 2026 (31 March 2025: £212 million).

The Bank continued to maintain a sound balance sheet with a

low gearing ratio of 8.2 times and a core loans to equity ratio of

4.6 times at 31 March 2026.

The Bank maintained a sound capital position, well in excess of

minimum regulatory requirements, with a Common Equity Tier 1

(CET1) ratio of 13.3% (31 March 2025: 13.6%) and a leverage

ratio of 9.5% (31 March 2025: 10.5%). The Bank 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 continues its journey

towards migrating its capital measurement to the Internal

Ratings Based (IRB) approach.

Non-financial risks that arise through the Bank'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 Bank

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 Bank operates in a legal and regulatory environment that

exposes it to litigation risks. As a result, the Bank is involved in

disputes and legal proceedings which arise in the ordinary

course of business. The Bank 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 Bank 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 Bank 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

Bank’s stress testing scenarios (including ‘bottom-up’ and

reverse stress testing analyses) on its business. The Board has

concluded that the Bank 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

Bank would continue to maintain adequate liquidity and capital

balances to support the continued operation of the Bank.

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.



03	Risk management and governance	Investec Bank 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.

Risk appetite

The Bank 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

framework and statement set out the Board’s mandated risk

appetite. The risk appetite framework acts as a guide to

determine the acceptable risk profile of the Bank while keeping

in line with the Investec Group’s risk appetite parameters. The

risk appetite statement ensures that limits/targets are applied

and monitored across all key operating jurisdictions and legal

entities.

The risk appetite framework is a function of business strategy,

budget and capital processes, our stress testing reviews and

the regulatory and economic environment in which the Bank is

operating. The risk appetite framework is 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

IBP BRCC and Board as well as the DLC BRCC and DLC Board.

In the section that follows, the Bank's high-level summary of

overall risk appetite and positioning has been detailed against

the respective principal risks.

Three levels of defence

The Bank 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 Bank’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 Bank’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 Bank'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 Bank’s control and are

considered in our capital plans, stress testing analyses and

budget processes, where applicable.

The Bank’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. A fundamental part of

the stress testing process is a full and comprehensive analysis

of the Bank’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 Bank’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 Bank. Reverse stress tests are

conducted to stress the Bank’s business plan to failure and

consider a broad variety of extreme and remote events. These

processes allow the Bank to proactively identify underlying risks

and manage them accordingly.



03	Risk management and governance	Investec Bank 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 Bank 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
Link to strategy and opportunities		• 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 Bank’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 IBP 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 Bank’s main operating geography and where we have operations, a branch or local banking subsidiary. The Bank 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 240 to 257.

		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 Bank currently remains within all tolerance levels given the current weakened economic environment. The credit loss ratio was calculated at 0.57% for 31 March 2026 ( 0.60% : 31 March 2025 ). 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 appetite 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 355.



03	Risk management and governance	Investec Bank 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 Bank’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
Link to strategy and opportunities		• 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 Bank’s own footprint on the environment and is based on a responsibility to the broader economy, environment and society • The Bank 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 Investec Group ERC. The main objectives of the committee are to coordinate sustainability-related efforts across geographies and businesses • 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.


More information
	Read more on pages 241 , 262 to 263 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.



03	Risk management and governance	Investec Bank 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 Bank’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
Link to strategy and opportunities		• 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 264 .
	Read more on page 264 .	Risk appetite and tolerance metric We have moderate appetite for investment risk, and set a risk tolerance of less than 27.5% of CET1 capital for our unlisted principal investment portfolio.	Positioning as of 31 March 2026 Our unlisted investment portfolio amounted to £ 199 million, representing 7.4% 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
Link to strategy and opportunities		• 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 266 to 269 .

		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 as of 31 March 2026 We met these internal limits; one-day 95% VaR was £ 0.2 million at 31 March 2026 .



03	Risk management and governance	Investec Bank 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 Bank 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
Link to strategy and opportunities		• Our banking entity in the UK is ring-fenced from the Investec Group's banking entity in South Africa and is required to meet the UK regulatory liquidity requirements • Each geographic entity 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 Bank maintains 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 Bank 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 team independently monitors 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 270 to 276 .


		Risk appetite and tolerance metric The Bank 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 as of 31 March 2026 Total cash and near cash balances amounted to £ 9.4 billion at year end, representing 41.6% of customer deposits.



03	Risk management and governance	Investec Bank 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
Link to strategy and opportunities		• 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 275 to 276 .

		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 Bank's risk appetite framework as a proportion of capital and net interest income in order to limit volatility.	Positioning at 31 March 2026 The Bank 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 Bank does not have sufficient capital to meet regulatory requirements, to absorb potential losses, or that capital is inefficiently deployed across the Bank


Link to strategy and opportunities		Monitoring and mitigation activities
Link to strategy and opportunities		• The Bank undertakes an approach to capital management that 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 IBP Capital Committee (mandated by IBP BRCC) is responsible for 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 prepared at the consolidated Investec plc level and incorporates the Bank (solo-consolidation basis)*. The document is reviewed by the IBP, PLC and DLC Capital Committees before being recommended for approval to the IBP BRCC, DLC BRCC and the IBP and DLC Boards.



Further information
	Read more on pages 280 to 284 .

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

*IBP applies the provisions laid down in article 9 of the CRR (solo-consolidation waiver) and therefore includes Investec Investments (UK) Limited in the solo-

consolidation basis.



03	Risk management and governance	Investec Bank 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 Bank'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
Link to strategy and opportunities		• 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 the Board and from regular, clear communication with Investec Group shareholders, customers and all stakeholders • The Investec Group has a disclosure and market communications policy which is reviewed and approved annually by the Investec 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
Link to strategy and opportunities		• Bank strategy is directed towards generating and sustaining a diversified income base for the Bank • 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 4 to 15 , pages 30 to 41 , 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% .



03	Risk management and governance	Investec Bank 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
Link to strategy and opportunities		• IBP 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 Bank. These operational risk sub-types are addressed in specific, detailed risk policies and procedures, but are included within the operational risk management framework and are reported and monitored within the operational risk appetite. These sub-types include: – Business disruption risk – Conduct risk (including Consumer Duty) – Data management risk – Financial crime risk – Fraud risk – Legal risk – Model risk – People risk – Physical security and safety risk – Processing and execution risk – Regulatory and compliance risk – Financial reporting and tax risk – Technology risk (including cyber risk) – Third party risk • The Bank maintains insurance to cover key insurable risks.



Further information
	Read more on pages 277 and 278 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 Operational risk exposures and losses continue to be monitored 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
Link to strategy and opportunities		• IBP 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 277 and 278 .



03	Risk management and governance	Investec Bank 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 Bank


Link to strategy and opportunities		Monitoring and mitigation activities
Link to strategy and opportunities		• IBP’s conduct risk approach is underpinned by our values and philosophy, ensuring that the Bank 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 Bank 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 277 , 278 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 Bank’s proprietary data


Link to strategy and opportunities		Monitoring and mitigation activities
Link to strategy and opportunities		• 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 Bank • 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 277 and 278 .



03	Risk management and governance	Investec Bank 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
Link to strategy and opportunities		• Comprehensive financial crime risk management framework is maintained to prevent, detect and respond to financial crime risks across all jurisdictions in which the Bank 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 Bank’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 Bank’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 IBP BRCC.



Further information
	Read more on pages 277 , 278 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
Link to strategy and opportunities		Financial reporting risk • Governance over key accounting and financial reporting policies and procedures is maintained by the technical accounting team with material matters escalated to the IBP 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 • IBP’s control environment for the management and mitigation of tax risk includes a formalised tax strategy, framework, policy and processes • The Bank 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 Bank operates • The Bank 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 277 , 278 and page 87 of the Investec Group's 2026 risk and governance report.



03	Risk management and governance	Investec Bank 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 Bank


Link to strategy and opportunities		Monitoring and mitigation activities
Link to strategy and opportunities		• The Bank 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 Bank • 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 277 and 278 .



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
Link to strategy and opportunities		• 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 Board may, at their discretion, constitute dedicated committees to deal with specific legal matters.



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



03	Risk management and governance	Investec Bank 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 Bank’s reputation


Link to strategy and opportunities		Monitoring and mitigation activities
Link to strategy and opportunities		• The Bank 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 277 and 278 .



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
Link to strategy and opportunities		• 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.



Operational risk – Physical security and safety risk		The risk associated with the potential or actual impact to the Bank 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
Link to strategy and opportunities		• 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 277 and 278 .



03	Risk management and governance	Investec Bank 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 – 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
Link to strategy and opportunities		• The Bank 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 Bank 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 277 and 278 .



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
Link to strategy and opportunities		• The Bank 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 Bank implements the required processes, practices and policies to adhere to applicable legislation and/or regulation and professional standards.



Further information
	Read more on pages 277 , 278 and pages 88 to 90 of the Investec Group's 2026 risk and governance report.



03	Risk management and governance	Investec Bank 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
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 Bank’s technology environment Monitoring and mitigation activities • The Bank 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 Bank’s cyber capabilities are benchmarked against industry peers and informed by external cyber rating platforms to support ongoing improvement • The Bank 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 pages 277 and 278 .



03	Risk management and governance	Investec Bank 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
Link to strategy and opportunities		• 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 Bank, 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 Bank 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 Bank 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 277 and 278 .

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 92 .



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

CHAIR'S INTRODUCTION


		Vivek Ahuja Chair
		The Bank has delivered a resilient performance in a more demanding environment, while continuing to invest for long-term growth and strengthen the alignment of activities across the Group

Introduction

The year under review has been one of disciplined execution

against a more demanding external backdrop. The Board’s

focus has remained firmly on the safe and sustainable delivery

of the Bank’s strategy, the strength of its capital, liquidity and

risk profile, and effective oversight of the matters most material

to the Bank’s long-term performance.

John Reizenstein stepped down as Chair during the year

following a formal Chair succession process, concluding his

tenure on 29 January 2026. Following receipt of regulatory

approval, I assumed the role of Chair on 20 March 2026. The

Board thanks John for his contribution during his tenure.

Continuity in governance, oversight and strategic direction has

been maintained throughout the transition.

This report sets out how the Board has discharged its

responsibilities over the period — its oversight of performance,

strategy and risk, the priorities it has progressed during the

year, its engagement with stakeholders, and its assessment of

its own effectiveness.

Performance

The Bank delivered a resilient financial performance against a

challenging macroeconomic backdrop, characterised by modest

UK growth, easing but still elevated inflation, a normalising

interest rate cycle and continued geopolitical tension. Operating

performance has been supported by the strength and diversity

of the Bank’s client franchises, with growth in fee income,

customer-flow trading and the contribution from associates

helping to offset the impact of lower net interest income as the

interest rate environment normalised.

The Bank has continued to invest for long-term growth, with

sustained momentum in lending and customer deposit

gathering supporting its diversified client franchises. Capital and

liquidity positions remained strong, and credit quality continued

to be sound. This outcome is a testament to our people, the

strength of the Bank’s client franchises and to management’s

measured approach in navigating margin pressures, while

maintaining cost discipline, strong liquidity and conservative

capital buffers, alongside continued investment in the Bank’s

strategic priorities.


	Further detail on the Bank’s financial performance is set out on pages 11 to 15.

Board leadership and culture

The Board’s role is to ensure the Bank is governed effectively,

operates within a clear risk framework, and delivers sustainable

outcomes for its clients, its people, its shareholders and the

wider stakeholders it serves. Throughout the year, the Non-

Executive Directors have exercised independent oversight and

provided constructive challenge to management on strategy,

performance, risk, controls and culture.

The tone set by the Board continues to reflect Investec’s

purpose, culture and values, and its long-standing commitment

to client-centricity, integrity and disciplined growth. The Board

has reinforced its expectation that these values are embedded

consistently across the Group and reflected in how the Bank

operates as a cohesive global organisation, and has supported

the continued strengthening of alignment, collaboration and

consistency across the Group.

Board priorities and areas of focus

During the year, the Board’s work has centred on the disciplined

delivery of strategy, the oversight of financial performance and

risk, and the effective progression of a substantive governance

and regulatory agenda. The Board has supported management

in investing for long-term growth, including the continued

development of the Bank’s client franchises and progression of

key growth initiatives across Corporate Mid-Market and Private

Client, while maintaining close scrutiny of margin pressures,

revenue visibility and capital allocation in the context of a

normalising rate cycle.

In a more uncertain external environment, the Board has

remained focused on the Bank’s resilience, maintaining strong

capital and liquidity positions and overseeing progress towards

the Internal Ratings Based (IRB) approach. It has also overseen

key regulatory programmes, including resolvability and

operational resilience, alongside the ongoing implementation of

Provision 29 of the UK Corporate Governance Code 2024 (the

Code).



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

CHAIR'S INTRODUCTION CONTINUED

The Board has continued to oversee progress in technology

modernisation and enhancements to management information,

to strengthen operational resilience and to support sound,

evidence-based decision-making at both Board and executive

level. Organisational effectiveness has remained a focus

throughout, including succession planning at Board and

executive level, the alignment of activities across the Group,

and the orderly Chair succession itself.


	Read more on the Bank’s strategy on page 9.


	Read more on our financial performance on pages 11 to 15.


	Read more on the Nomination Committee on page 75 to 78.


	Read our Section 172(1) statement on pages 16 to 25.

Implementation of the UK Corporate

Governance Code 2024

The Board has dedicated significant time during the year to

preparing the Bank for the revised Code, with particular focus

on enhancing the Bank’s risk management and internal control

framework in anticipation of the requirements of Provision 29.

This work has formed part of the Board’s broader consideration

of effective governance, accountability and oversight under the

revised Code. It remains ongoing, and the Board continues to

monitor delivery against the implementation plan to ensure the

Bank is well positioned to meet the new requirements when

they become applicable.


	Further detail on the Board’s oversight of internal controls and the preparatory work undertaken during the year is set out on page 68.


	Read more detail of key regulatory projects in the Board Risk and Capital Committee report on pages 87 to 91.

Stakeholder engagement

The Board remains committed to the Bank’s responsibilities to

its stakeholders and the importance of operating in line with

Investec’s purpose, culture and values. These principles

underpin how the Bank engages with its stakeholders and

support the long-term relationships and sustainable outcomes

that are central to the Bank’s strategy.

During the year, the Board has continued to oversee how these

principles are embedded in decision-making and reflected in

the way the Bank supports its clients, develops and engages its

people, and conducts its business responsibly. This reflects

Investec’s long-standing philosophy of operating as a purpose-

led organisation, with a clear recognition that its success is

closely linked to the broader environment in which it operates.

Engagement with the Bank’s regulators, including the Prudential

Regulation Authority and the Financial Conduct Authority, has

been maintained throughout the year by the Committee Chairs

and Executive Directors - supporting transparency, forward

visibility of supervisory priorities and constructive dialogue with

the Bank’s principal regulators.

Board performance and effectiveness

Delivering on the responsibilities and priorities described above

requires an effective and well-functioning Board. The Board has

therefore continued to assess its performance and

effectiveness during the year.

During the year, the Board undertook an internally facilitated

evaluation of its performance, following on from the externally

facilitated review completed in the prior year. This approach

reflects the Board’s established evaluation cycle, under which

an externally led review is conducted at least every three years,

consistent with the requirements of the Code.

The Board concluded that it was operating effectively. The

review identified opportunities to deepen strategic debate,

strengthen oversight of growth initiatives and continue Board

development. An action plan has been agreed and will be

monitored throughout the year.


	Further detail is set out in the Nomination Committee report on pages 75 and 78.

Looking ahead

Looking ahead, the Board remains focused on supporting

disciplined growth and sustainable returns, while preserving the

Bank’s strong capital and liquidity position. In an evolving

economic and regulatory environment, this will require

continued careful oversight of balance sheet strength, capital

allocation and risk, with a clear emphasis on long-term value

creation.

The Board will also oversee the phased implementation of the

Code, including further enhancement of the Bank’s risk

management and internal control framework in preparation for

Provision 29. Maintaining a robust and proportionate control

environment, capable of responding to emerging risks, will

remain a key priority.

Operational and technological resilience will continue to be

areas of focus, supported by ongoing investment in technology

modernisation, data and reporting capabilities, and the

resilience of critical services. These efforts are intended to

support the Bank’s growth ambitions and the experience of its

clients and its people.

The Board will continue to prioritise succession planning and

Board capability, ensuring that the composition of the Board

and executive leadership evolves in line with the Bank’s

strategic direction and operating environment. This includes a

continued focus on skills, experience and diversity to support

effective challenge and decision-making.

The Board remains confident in the Bank’s strategy, culture and

leadership. The Board and I thank our people for their continued

dedication, and our stakeholders for their ongoing trust and

support.

Vivek Ahuja

Chair

12 June 2026



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

DIRECTOR BIOGRAPHIES

Who we are

Biographies of our current directors are

outlined below, including their relevant

skills and experience, key external

appointments and any appointments

to Board committees.


Committee membership key
		IBP Board Risk and Capital Committee
	B

		IBP Nomination Committee
	N

		IBP Remuneration Committee
	R

		IBP Audit Committee
	A

		Denotes Committee Chair

Henrietta

Baldock

Independent

Non-Executive Director

Director of DLC Board, Chair of DLC

Remuneration Committee and member of

DLC BRCC and DLC Nomdac

Age

Nationality

British

Qualifications

BSc (Hons)

Date of appointment

10 February 2021

Relevant skills and experience

Henrietta has extensive knowledge of the financial services

sector, through her 25 years’ experience in investment banking,

including as Chair of the European Financial Institutions team at

Bank of America Merrill Lynch, where she advised many boards

on a number of significant transactions. In 2021, Henrietta was

appointed Chair of Investec Wealth & Investment (UK), a position

she held until the completion of the all-share combination with

Rathbones in September 2023. Following this, Henrietta was

appointed to the Rathbones Group plc Board. Henrietta’s

industry experience demonstrates her valuable strategic and

transformation advisory skills. Henrietta will be appointed Chair

of Investec Group with effect from 6 August 2026, succeeding

Philip Hourquebie.

External appointments

Legal and General Assurance Society Limited, Legal and

General Group plc and Rathbones Group plc

Vivek

Ahuja

Chair

Director of DLC Board, member of DLC

Remuneration Committee and DLC BRCC

Age

Nationality

Singaporean

Qualifications

FCA (ICAEW), BCom

Date of appointment

5 March 2025

Relevant skills and experience

Vivek is the Chair of Investec Bank plc. He has a strong

international banking background with a deep understanding

of finance, strategy, M&A, business and operational

transformation, risk management, and corporate governance.

He also has experience in corporate, institutional and

investment banking, consumer, and private banking as well as

private equity. Vivek is a qualified accountant who has held

senior financial roles culminating in Deputy Group CFO at

Standard Chartered plc and was also CEO at Terra Firma,

a European private equity firm. He is an experienced

Non-Executive Director and is Senior Independent Director

and Chair of the Audit and Risk Committee at PZ Cussons plc,

Independent Non-Executive Director and Chair of the Audit

and Risk Committee at Aberdeen Group plc. He was also

Independent Non-Executive Director and Chair of the Risk

Committee of NatWest Markets plc where he served for over

six years.

External appointments

PZ Cussons plc, Aberdeen Group plc and Ebury Partners

Limited



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

DIRECTOR BIOGRAPHIES CONTINUED

David

Germain

Independent

Non-Executive Director

Age

Nationality

British

Qualifications

FBCS, CITP, FIET

Date of appointment

15 September 2020

Relevant skills and experience

David has extensive technology, operations and

transformation experience in financial services. He was

previously Group Chief Information Officer (CIO) for QBE

Limited, Group, UK & International CIO for RSA Limited where

he had oversight of significant and complex information

technology (IT) transformation projects and has previously

held a number of other leadership roles, including Head of

Technology, Operations and Product at the Royal Bank of

Scotland Corporate and Private Banking, COO/CAO at

Deutsche Bank Capital Markets, Chief Operating Officer

(COO) at Close Brothers Retail and EMEA CIO at GE Capital.

External appointments

External member of the University of Cambridge Audit

Committee, Great Ormond Street Hospital Charity, Arkle

Finance (a subsidiary of Wetherbys Bank), Cynozure and

Sickle Cell Society

Paul

Seward

Independent

Non-Executive Director

Age

Nationality

British

Qualifications

BSc (Hons) (Mathematics)

Date of appointment

1 April 2019

Relevant skills and experience

Paul has comprehensive experience of strategy and risk

governance in financial services having held a number of

senior executive roles including Chief Risk Officer (CRO) at

HSBC UK, as well as having held a number of Non-Executive

Directorships including M&S Bank, HSBC Asset Finance,

HSBC Life (UK) Limited and Axis Bank UK Limited. Paul was

also a Trustee and Chair of the Audit and Risk Committee of

the HSBC plc pension fund.

External appointments

None

Lesley

Watkins

Independent

Non-Executive Director

Age

Nationality

British

Qualifications

BSc (Hons) (Mathematics), FCA

Date of appointment

13 November 2018

Relevant skills and experience

Lesley has long-standing knowledge of audit and assurance

and regulatory reporting having worked at PwC and

subsequently as Finance Director of private equity firm,

Calculus Capital Limited. She also has significant experience

of governance and strategy in financial services, having been

a Managing Director at UBS and Deutsche Bank as well as a

Non-Executive Director and Audit Chair at the Competition

Commission, Panmure Gordon & Co plc, Game Digital plc and

Braemar plc.

External appointments

Chaucer Syndicates Limited, Chaucer Insurance

Company Designated Activity Company and Great Lakes

Insurance UK Limited

Marlé

van der Walt

Executive Director,

IBP Finance Director

Age

Nationality

South African

Qualifications

BAcc (cum laude), BAcc (Hons)

(cum laude), CA(SA), Program for

Leadership Development at

Harvard Business School (HBS)

and Alumni

Date of appointment

20 September 2022

Relevant skills and experience

Marlé has more than 25 years’ experience in the financial services

industry and has deep technical expertise across various areas,

including finance, capital, model development, operations, risk,

audit and implementing complex projects. She has played a key

role in significantly enhancing financial performance, implementing

strategic projects, encouraging technological progress and

streamlining of systems at the bank over her 16 plus years. Marlé

started her career in South Africa at PwC and worked at various

Big four banks in South Africa before joining Investec in 2010 as

the Chief Internal Auditor. She was then the CFO for the Specialist

Bank in South Africa during which she also served on the Investec

Bank Limited Board as Financial Director. Marlé was appointed as

Finance Director in September 2022 with overarching

responsibility for Finance (including Capital) and Operations.

External appointments

None



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

DIRECTOR BIOGRAPHIES CONTINUED

Fani

Titi

Executive Director,

Group CE

Director of DLC Board and member of

DLC BRCC

Age

Nationality

South African

Qualifications

BSc Hons (cum laude),

MA, MBA

Date of appointment

3 August 2011

Relevant skills and experience

Fani was appointed joint Chief Executive Officer (CEO) of

Investec Group on 1 October 2018 and sole Group Chief

Executive on 16 March 2020. Prior to that Fani chaired the

Investec Group Board between November 2011 and May

2018, and was a member of the Investec Group Board since

January 2004. Prior to joining Investec, Fani was a private

equity professional with the private equity groups the Tiso

Group and Kagiso Trust Investments. Fani brings extensive

banking and commercial expertise to the Board.

External appointments

BUD Group Holdings Proprietary Limited and GH Media

Group Proprietary Limited.

Kevin

McKenna

Executive Director,

IBP CRO

Age

Nationality

Irish

Qualifications

BCom, BAcc, CA(SA)

Date of appointment

10 May 2012

Relevant skills and experience

Kevin has substantial strategic, financial, operational and risk

experience. He is a qualified accountant and previously

worked as the COO of ING Baring’s South Africa before joining

Investec as Finance Director for Investec Securities in 2000.

He was appointed as COO for the Treasury and Specialised

Finance/Corporate and Investment Banking division in

South Africa before moving with this role to London in 2006.

Kevin was appointed as COO for Investec Bank plc in 2011.

He was appointed as an Executive Director in 2012 and

became CRO in 2019.

External appointments

None

Ruth

Leas

Executive Director,

IBP CEO

Age

Nationality

British

Qualifications

BA(Hons) (Economics) (cum

laude), MPhil (Cantab)

Date of appointment

27 July 2016

Relevant skills and experience

Ruth has deep knowledge of Investec and banking having joined

Investec in South Africa in 1998, and then moving to the UK in

2002. Ruth spent 10 years in client-facing roles in derivative

structuring and sales, credit derivatives and structured credit.

When in London, Ruth was appointed co-head of US Principal

Finance in 2004. Ruth’s other roles over the years include Credit,

Head of UK Investor Relations and Head of Risk Management.

She was appointed as an Executive Director of Investec Bank

plc in 2016 before becoming CRO of the Bank in 2017. Ruth was

appointed as Investec Bank plc’s CEO in 2019. Prior to Investec,

Ruth was treasury economist for Gencor SA Limited, and took up

this role after winning the Gencor-Chairman’s scholarship to

study at Cambridge University. In November 2024, Ruth was

awarded the Freedom of the City of London, in recognition of

her leadership of Investec Bank plc as well as the leading role

she plays in the industry, as well as acknowledging the strong

ties between South Africa and London.

External appointments

Member of UN Global Investors for Sustainable Development

(UN GISD), Member of Cambridge Judge Business School

Advisory Board, Member of CityUK Business Council



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

COMPLIANCE WITH THE UK CORPORATE GOVERNANCE CODE

The UK Corporate Governance Code 2024 (2024 Code) applied to the Bank for the financial year ended 31 March 2026, with the

exception of Provision 29 which applies to the Bank’s financial year which begins on 1 April 2026. The Bank will report against

Provision 29 of the 2024 Code in its annual report and accounts for the year ending 31 March 2027. Provision 29 of the UK

Corporate Governance Code 2018 (2018 Code) applied to the financial year ended 31 March 2026. The Board confirms that the

Bank applied the principles and complied with the relevant provisions of the 2024 Code, together with Provision 29 of the 2018

Code, throughout the financial year, with the exception of Provision 12 (Senior Independent Director), for which an explanation is

provided. The table below is designed to help stakeholders evaluate how this has been achieved. A copy of the 2024 Code is

publicly available on the Financial Reporting Council’s website: www.frc.org.uk.



	Board leadership and Company purpose
	A. An effective entrepreneurial Board, collectively accountable for the long-term sustainable success of the Bank, generating value for shareholders and contributing to wider society (see pages 64 to 66 for directors’ biographies) B. Purpose, values and strategy are aligned with culture, which is promoted by the Board. Further details are available on page 4 C. In line with Principle C of the 2024 Code, governance reporting focusses on the Board’s decisions, and the outcomes of those decisions in the context of the Bank’s strategy and objectives. The Board does not depart from the Code’s provisions. However, if it were to do so, it would provide a clear explanation		D. Engagement with the Bank’s stakeholders is effective and encourages their participation (see pages 16 to 25 for more information) E. Workforce policies and practices are consistent with the Bank’s purpose and values and support its long-term sustainable success, and are overseen by the Board. The workforce is able to raise matters of concern, with the responsibility for whistleblowing arrangements being assigned to the IBP Audit Committee (see page 79)


	Division of responsibilities
	F. The Chair has overall responsibility for the leadership of the Board and for ensuring its effectiveness in all aspects of its operations. Chair responsibilities are detailed on page 69 G. The Board comprises an appropriate combination of Non- Executive and Executive Directors (see page 76). There is a clear division of responsibilities between the Chair and CEO (see page 69)		H. Non-Executive Directors are advised of time commitments prior to appointment. The time commitments of the directors are considered by the Board on appointment, and annually thereafter. External appointments, which may affect existing time commitments, must be agreed with the Chair, and prior approval must be obtained before taking on any new external appointments I. The Company Secretary ensures access to correct policies, processes, information, time and resources for effective functioning of the Board


	Composition, succession and evaluation
	J. There is a procedure for Board appointments and succession plans for Board and senior management which recognises merit and promotes diversity, inclusion and equal opportunity (see page 75) K. There is a combination of skills, experience and knowledge across the Board and the Board Committees. Independence, tenure and membership are regularly considered (see pages 75 to 78)		L. The annual performance review of the Board and the individual directors considers its performance, composition, diversity and how effectively members work together. Individual director reviews consider whether each director continues to contribute effectively (see pages 75 to 78)



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

COMPLIANCE WITH THE UK CORPORATE GOVERNANCE CODE CONTINUED



	Audit, risks and internal controls
	M. Policies and procedures are in place to ensure the independence and effectiveness of internal and external audit functions. The Board assures the integrity of the Bank's financial and narrative statements (see pages 92 to 96) N. The Board presents a fair, balanced and understandable assessment of the Bank’s position and prospects (see page 96)		O. Procedures are established to manage risk, oversee the internal control framework, and determine the nature and extent of principal risks the Bank is willing to take, supporting long-term strategic objectives (see page 44). In anticipation of the strengthened requirements of Provision 29 of the 2024 Code, the Board has undertaken a structured programme to enhance the Group’s risk management and internal control framework. During the year, the Board, supported by the Audit Committee, reviewed the design and operating effectiveness of key controls across financial reporting, operational and compliance processes, and initiated enhancements to align with a more formalised material controls framework. This included the identification and mapping of material controls, improvements to documentation standards, and the implementation of more consistent testing and monitoring processes. Preparatory work remains ongoing, with further refinement of the control framework and testing approach planned ahead of the Provision’s effective date, to support the Board’s future declaration on the effectiveness of material controls (see page 72)


	Remuneration
	P. The Bank offers a competitive, performance-driven and fair reward package to all employees. Executive remuneration is aligned to the Bank’s purpose, values and strategic objectives. The Remuneration Committee has embedded the 2024 Code’s expectations in respect of remuneration, with clear transparency on how remuneration structures and outcomes support long-term sustainable success (see remuneration report, page 98)		Q. Executive and senior management remuneration is determined through a transparent and formal procedure, overseen by the Remuneration Committee. No director is involved in deciding their own remuneration, and the Committee ensures decisions are made independently and in line with the 2024 Code’s governance expectations (see remuneration report, page 98) R. The remuneration policy seeks to ensure all remuneration decisions made by directors fully consider the wider circumstances as appropriate, including, but not limited to, the Bank and individual performance (read more from page 104). Consistent with provision 38 of the 2024 Code, the annual remuneration report provides clear disclosure of malus and clawback provisions, including the circumstances in which they may be applied, the period for which they apply and whether they were exercised during the year (read more from page 106)

Non-compliance with Provision 12

The Board recognises the requirement for a Senior Independent Director (SID). The Nomination Committee reaffirmed its decision

not to appoint one and has provided an explanation in accordance with the ‘comply or explain’ framework of the 2024 Code.

While the Board notes the Code requirement for a SID, it is satisfied that appropriate and effective alternative arrangements are in

place, consistent with the Group’s governance structure and culture. It is noted that under the Code, the key responsibilities of the

SID are to provide a sounding board for the Chair, to serve as an intermediary for the other directors and shareholders, and to

appraise the Chair’s performance. Given the structure of the Investec Group, in particular the cross-directorships between the

Boards and committees and our culture, we believe that there are sufficient communication channels open for directors. There are

existing communication channels available to the Bank Chair from a sounding board perspective, and for other directors and the

shareholders and the Investec Group, from an intermediary perspective. This further aligns with the process adopted by the Investec

Group’s other principal subsidiaries, which do not have SIDs. The assessment of the Chair’s performance will be conducted by the

Chair of the Investec Group.



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

BOARD AND EXECUTIVE ROLES

The key governance roles and responsibilities of the Board are outlined below:


Chair	Chief Executive	Chief Risk Officer
• Leads the effective operation and governance of the Board • Sets agendas which support efficient and balanced decision-making • Ensures effective Board relationships and a culture that supports constructive discussion, challenge and debate • Together with the Investec Group Chair, leads the development of and monitors the effective implementation of policies and procedures for the induction, training and professional development of all Board members • Oversees the evaluation of the performance of the Board collectively, and non-executive Board members individually, and contributes to the evaluation of the performance of the Executive Directors • Ensures that the Board sets the tone from the top, regarding culture • Serves as a senior interface with regulators on behalf of the Bank.	• Leads and manages the Bank within the authorities delegated by the Board • Proposes and directs the delivery of strategy as agreed by the Board • Develops and recommends business plans, policies, strategies and objectives for consideration by the Board, taking into consideration business, economic political, technological, sustainability and political trends that may affect the operations of the Bank • Ensures the Bank’s culture is embedded and perpetuated across the organisation • Develops and supports the growth of all the Bank’s businesses • Monitors and manages the day-to-day operational requirements and administration of the Bank • Manages the Bank’s risk appetite.	• Responsible for the effective management of risk within the Bank • Ensures that the Bank’s risk management, conduct and governance processes and procedures are effective • Provides the Board with updates on the Bank’s risk management, conduct and governance processes • Manages within the Bank’s risk appetite.

Non-Executive Director	Company Secretary	Finance Director
• Brings unique perspectives to the boardroom to facilitate constructive dialogue on proposals • Constructively challenges and contributes to the development of the Group’s strategy • Monitors the performance of management against their agreed strategic goals • Oversees the effectiveness of internal controls and the integrity of financial reporting • Reviews succession planning for the Board and management • Oversees the management of risk as set out in the risk management framework • Oversees the remuneration of the Executive Directors and the Bank's employees.	• Maintains the flow of information to the Board and its committees and ensures compliance with Board procedures • Ensures and keeps the Board updated on corporate governance developments • Facilitates a programme for the induction and ongoing development of directors • Provides advice, services and support to all directors as and when required.	• Leads and manages the finance function • Provides the Board with updates on the Bank’s financial performance • Provides strategic and financial guidance to ensure the Bank’s financial objectives and commitments are met • Oversees the financial management of the Bank including financial planning, capital, cash flow and management reporting • Develops all necessary policies and procedures to ensure the sound financial management and control of the Bank’s business.



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

BOARD COMPOSITION

Gender diversity


	Male	56%
	Female	44%

Age


	50-59	67%
	60-70	33%

Ethnicity


	White British or other White	67.0%
	Black / African / Black British	22.0%
	Asian / Asian British	11.0%


Board skills Collective view of the skills, experience and knowledge of our current non-executive directors.
	Advanced		Intermediate
Denotes deep experience		Denotes good experience

Skills

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 their range of skills, the

Board also values the innate differences in

approach and thinking styles, which results from

their varied backgrounds and experiences. This is

covered more fully in the individual biographies

across pages 64 to 66.

The skills matrix captures the key skills of our

directors, and is used by the IBP Nomination

Committee in its annual assessment of the

individual suitability of each director and the

collective suitability of the Board. During the year,

the IBP Nomination Committee, on conducting its

assessment, confirmed that it was satisfied that

each of the individual directors and the Board

collectively were suitable. The skills matrix would

continue to evolve to ensure that the skills required

in order to support the Bank’s strategy are present

on the Board.

The Board and IBP Nomination Committee also

consider the skills matrix when reviewing the

succession plans for the Board and believe that the

Board’s skills are appropriate.



	Financial services/ Industry knowledge				Client experience



	Technology/Digital				Audit/Finance



	Governance				Regulatory/ Government



	Risk management				Strategic thinking



	Sustainability

Attendance at Board meetings


Meetings held in 2025/26
Members	Meetings attended	Eligible to attend
John Reizenstein (former Chair)¹	6	6
Vivek Ahuja²	6	7
Henrietta Baldock	7	7
David Germain	7	7
Ruth Leas	7	7
Kevin McKenna	7	7
Paul Seward	7	7
Fani Titi	6	7
Marlé van der Walt	7	7
Lesley Watkins	7	7

1.John Reizenstein stepped down as Chair of the Investec Bank plc Board

and as a Non-Executive Director on 29 January 2026.

2.Vivek Ahuja was appointed as Chair designate on 29 January 2026

subject to regulatory approval.

3.Where a director is unable to attend a meeting, they receive papers in

advance and have the opportunity to provide comments to the Chair.

4.In addition to the meetings held, there was an additional Board strategy

day in October 2025 which was attended by the Board at that time as

well as the IBP Executive Committee and other senior executives from

key jurisdictions.



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

BOARD ACTIVITIES

Strategy

Strategic initiatives

The Board oversaw the delivery of the Bank’s strategic

priorities, including the continued development of its client

franchises and growth initiatives across core markets, while

maintaining close scrutiny of performance across the

business, with particular attention to margin pressures,

revenue visibility and capital allocation.

What we

did in

2025/26

The following pages outline the key

topics reviewed, monitored,

considered and debated by the Board

in 2025/26. Board meeting discussions

are structured to allow for strategic

discussions, consideration of key risks

and monitoring of the Bank’s culture

with the agenda being agreed in

advance by the Chair, in conjunction

with the CEO and the Company

Secretary.

Financial

Budget

The Board considered performance versus the 2025/26 budget.

The Board approved the budget for the year ending 31 March

2027, recognising the continuation of investment required to

deliver strategic initiatives. The Board discussed key assumptions

and delivery risks, the need to maintain capital discipline in a

competitive and margin‑pressured environment, and the

importance of supporting long‑term growth through continued

investment while preserving a diversified and resilient revenue

base.

Going concern and viability statement

The Board reviewed in detail and approved the Going Concern

and Viability Statements, following rigorous assessment of the

underlying assumptions, financial forecasts and stress-testing

scenarios.

In reaching its conclusions, the Board considered the Bank’s

capital and liquidity position, projected profitability, principal risks

and severe but plausible downside scenarios, drawing on analysis

presented by management and challenged by the Audit and Risk

Committees. The Board satisfied itself that the forecasts were

appropriately prudent, that sensitivities had been robustly

modelled, and that mitigating actions were credible and within

management’s control.

Through this process, the Board ensured that the Going Concern

and Viability Statements are supported by a sound evidential

basis and provide transparent assurance to shareholders and

other stakeholders regarding the Bank’s resilience, financial

sustainability and long-term prospects.

Results

The Board reviewed and approved the full year results.



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

BOARD ACTIVITIES CONTINUED

Governance

Committee reporting

The Board receives detailed written reports

from the Chairs of each Board Committee and

the DLC Social and Ethics Committee as part of

its formal assurance framework. While certain

responsibilities are delegated to committees to

enable focused and technically informed

consideration, accountability remains with the

Board. Structured reporting ensures the Board

retains clear line of sight over matters

considered under delegated authority,

including key judgements, areas of debate,

decisions taken and issues escalated for

further consideration. This reporting also

supports compliance with the UK Corporate

Governance Code 2024 (the Code), which

requires Boards to ensure that delegated

matters are subject to robust oversight and

that committee outputs are clearly

communicated to enable effective Board

governance.

The committees are composed of Non-

Executive Directors with relevant expertise

and, where appropriate, recent and sector-

specific experience in areas such as audit,

financial reporting, risk management,

regulatory compliance, remuneration and

conduct. Their detailed scrutiny

strengthens the quality of analysis and

challenge applied to complex matters

before they are brought to the Board.

Through this layered governance model -

specialist committee review followed by

Board oversight - the Bank promotes

robust decision-making, reinforces

accountability and ensures significant

matters are subject to appropriate

expertise, challenge and collective

consideration in the interests of

stakeholders.

Risk and assurance

Risk profile

The Board reviewed and debated the overall risk

profile, particularly the principal risks, emerging

risks and risk appetite. The Board approved the

risk appetite ensuring there was adequate

diversification, reducing concentration and

country risk while enabling the Bank to achieve

its strategic objective of growth. The Board

continued to monitor and challenge the risk

profile of the Bank, responding to the ongoing

macro-economic environment by focusing on the

key financial risks, in particular liquidity, market

risk and credit quality.

Risk management

In line with the Board’s ongoing responsibilities under the Code, the Board undertook a comprehensive review of the Bank’s risk management

systems, including financial, operational and compliance controls. The Board assessed the robustness and effectiveness of the Bank’s key internal

control systems, ensuring that they are designed and operated to identify, manage and mitigate risks appropriately. This process included regular

monitoring and evaluation to ensure controls remain fit for purpose in a changing risk environment, providing assurance that the Bank is able to

respond effectively to emerging risks and maintain sound governance standards.

Provision 29 of the 2024 UK Corporate Governance Code will apply to the Bank’s annual report for the financial year ending 31 March 2027. This

requirement will therefore first be reported against in the Bank’s next annual report, covering FY27. During the year under review, the Board

commenced a structured implementation programme to ensure full compliance with the new requirements, including preparing for the enhanced

Board declaration on the effectiveness of risk management and internal control systems. The Board retains overall accountability for the

programme. The Audit Committee and Risk Committee have played a central role in overseeing delivery, including reviewing the project plan,

monitoring progress against key milestones and challenging management’s assessment of control effectiveness, assurance mapping and

documentation standards. The Committees have provided regular updates to the Board to ensure collective oversight and alignment as the

programme progresses towards FY27 readiness.

External advisers have been engaged to support the Board in benchmarking the Bank’s framework against emerging market practice, assessing the

maturity of existing controls, and advising on evidencing the effectiveness review in a manner consistent with regulatory and investor

expectations.

In March 2026, Directors participated in a dedicated development session focused on the practical implications of Provision 29, including the

scope of the Board declaration, the evidential threshold required, and the interaction with existing ICAAP, ILAAP, recovery and resolution, and

internal audit assurance processes. This session was designed to ensure the Board is fully equipped to discharge its responsibilities and to provide

a robust and defensible effectiveness statement in the 2027 annual report.

The implementation programme is intended not only to achieve technical compliance, but to strengthen the Bank’s control environment, clarify

accountability and enhance transparency. By formalising the Board’s assessment of control effectiveness, the Bank reinforces disciplined risk

management, supports resilient decision-making and provides greater assurance to shareholders, customers, regulators and employees that risks

are being identified and managed in a structured and proportionate manner. This work also supports the Board’s oversight of a consistent,

evidence‑based view of control effectiveness across the Bank, enhancing the quality of governance, decision‑making and stakeholder confidence.



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

BOARD ACTIVITIES CONTINUED

Risk and assurance continued

Matters reserved for the Board

The Board approved the Schedule of Matters Reserved

for the Board following a comprehensive review.

Board performance review

This year’s Board performance review was conducted

internally, with the findings and resulting actions

discussed by the Board. This followed the externally

facilitated review undertaken in the previous financial

year, ensuring continued compliance with the UK

Corporate Governance Code requirement to

commission an independent review at least once every

three years. The Board gained comfort that it remained

appropriately constituted with the necessary skills and

knowledge. The Board also reviewed progress made

against the action plan for 2025/26.

Last year, the Board performance review was

conducted by an independent external facilitator, in line

with the UK Corporate Governance Code requirement

that FTSE-listed companies undertake an externally

facilitated evaluation at least every three years. The

externally led review concluded that the Board and its

committees were operating effectively, with

constructive challenge, appropriate oversight of

strategy and risk, and strong engagement across the

governance framework.

Building on that externally facilitated assessment,

this year’s review was conducted internally. The

internal evaluation revisited themes identified in the

prior year, assessed progress against agreed actions

and considered the continued effectiveness of the

Board, its committees and individual directors. The

outcomes were discussed in detail by the Board, and

a refreshed action plan was agreed to further

enhance performance. Progress against this plan will

be monitored throughout the year.

Regular performance reviews are a key component of

sound governance. They provide a structured

opportunity for reflection, continuous improvement

and calibration of Board composition, information

flows and decision-making processes against the

Bank’s evolving strategy and risk profile. By

undertaking both independent and internal

evaluations on a cyclical basis, the Board strengthens

accountability, reinforces high standards of

governance and supports better decision-making in

the interests of shareholders and wider stakeholders.


	Read more on page 75.


Regulatory matters
Regulatory matters
Projects
The Board reviewed the progress of key regulatory projects including the transition to the Internal Ratings Based (IRB) approach, Resolvability Assessment Framework (RAF) and the Minimum Requirement for own funds and Eligible Liabilities (MREL) requirements. The transition to the IRB approach is intended to enhance the risk sensitivity of the Bank’s capital framework by aligning regulatory capital requirements more closely to the underlying credit risk profile of our portfolios, thereby improving capital efficiency, strengthening risk management discipline and supporting sustainable, risk-adjusted growth. By progressing this programme, the Bank is positioning itself to deploy capital more effectively and compete more efficiently in core markets, improving long-term balance sheet resilience.





The Board maintained oversight of the Bank’s resolvability programme in line with the Bank of England’s RAF and associated MREL requirements. The objective of this framework is to demonstrate that, should recovery actions prove insufficient in a severe stress scenario, the Bank could be stabilised or resolved in an orderly manner while continuing to provide critical services to customers and the market. Progress in this area strengthens the Bank’s ability to manage severe but plausible stress events without disrupting clients or wider market functioning. Through the maintenance of adequate MREL resources and credible operational resolution capabilities, the Bank seeks to ensure that losses would be absorbed by shareholders and eligible creditors rather than depositors or taxpayers. The programme therefore enhances financial stability, strengthens market confidence and supports the long-term protection of stakeholders by embedding resolution preparedness into the Bank’s capital, funding and operational planning. This work ensures the Bank meets evolving regulatory expectations while underpinning trust in its ability to operate safely, protect clients and continue delivering services under a range of economic and market conditions.



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

BOARD ACTIVITIES CONTINUED


Regulatory matters continued
Regulatory matters continued
Regulatory interaction
There was regular interaction with the PRA and FCA through participation in reviews and discussing proposed changes within the Bank including the Board's approach to succession planning. Ongoing dialogue with our regulators provides constructive challenge and early insight into evolving supervisory themes, allowing the Board to address potential risks before they crystallise. This engagement enhances transparency, supports sound decision-making and reinforces the Bank’s resilience in the interests of customers, investors and the wider financial system.

Regulatory documents

The Board reviewed, challenged and approved key regulatory documents, including the Management

Responsibilities Map, the CASS attestation, the Contingency Funding and Recovery Plan and Resolution Pack

(CFRP), Individual Liquidity Adequacy Assessment Process (ILAAP) and Internal Capital Adequacy Assessment

Process (ICAAP). In doing so, the Board satisfied itself that regulatory responsibilities are clearly allocated, capital

and liquidity remain resilient under severe but plausible stress scenarios, and credible recovery and resolution

arrangements are in place to protect clients, depositors and the stability of the financial system. The Board

monitored the FCA’s Consumer Duty review, noting a “green” outcome and agreeing that a designated Consumer

Duty Champion was no longer required. A green rating is significant as it evidences that the Bank’s frameworks,

monitoring and customer‑outcome processes meet regulatory expectations, providing assurance that good

customer outcomes are consistently being delivered.


	Read more on page 89.

Purpose

Investec’s purpose is to create enduring worth for

clients, colleagues and communities by building a

values‑driven, people‑centred organisation. Our purpose

continues to shape our culture, leadership and

workforce priorities, including our focus on engagement,

inclusion and developing the capabilities needed for the

future, such as AI‑enabled skills and strong leadership

succession planning.

Culture and values

The Board maintained active oversight of organisational culture and its alignment

with the Group’s purpose and values, recognising that a strong, purpose-led

culture underpins sustainable performance and responsible decision-making.

Through regular reporting from the Head of People and Organisation, alongside

structured and regular workforce engagement insights, the Board assessed

cultural indicators, challenged management where appropriate, and evaluated

whether behaviours and outcomes were consistent with the Bank’s stated

commitments.

In considering the implications of artificial intelligence and broader organisational

change, the Board evaluated the impact on workforce capability, engagement

and future skills requirements, ensuring that transformation initiatives were

supported by robust people strategies and that change was delivered in a way

that upheld the Bank’s values and long-term responsibilities.

The Board reviewed enhancements to performance management rigour and

leadership development frameworks, with a focus on strengthening

accountability, capability and leadership behaviours aligned to the Bank’s

purpose. This oversight supports improved execution, stronger risk awareness

and a more consistent employee experience, contributing to better outcomes for

customers, colleagues, regulators and shareholders.

People strategy, leadership and succession

Succession planning remained a core governance

priority. The Board conducted structured reviews of

Executive Director and senior leadership pipelines,

assessing bench strength, diversity and readiness to

ensure leadership continuity and resilience. This

forward-looking approach supports long-term strategic

delivery and protects stakeholder interests by ensuring

the Bank is led by capable, values-driven leaders.

Non-Executive and Board succession

The Board oversaw the arrangements for Board

succession planning with John Reizenstein stepping

down as Chair of Investec Bank plc and as Non-

Executive Director of the Bank with effect from

29 January 2026. Following an extensive process,

the Board approved the appointment of Vivek Ahuja

as Chair designate of Investec Bank plc on

29 January 2026, with formal regulatory approval

granted on 20 March 2026.


	Read more on page 75.



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

IBP NOMINATION COMMITTEE REPORT


		Vivek Ahuja Chair of IBP Nomination Committee
		Vivek Ahuja Chair of IBP Nomination Committee
		“We are committed to ensuring that the Board has the right skills, knowledge and experience to operate efficiently and promote the long-term success of the Bank.”

Introduction

I am pleased to present my first report as Chair of the IBP

Nomination Committee (the Committee) for the financial year

ended 31 March 2026.

I would like to thank John Reizenstein for his leadership of both

the Board and the Committee during his tenure as Chair.

Succession planning

Succession planning, at both Board level and across key senior

leadership roles, continued to be a principal area of focus. The

Committee’s work in this area includes both medium-term

planning, including the orderly refreshing of the Board, its

committees and senior leadership and long-term planning –

looking ahead to the skills that might be required in the future.

The Committee’s primary area of focus was succession planning

for the Chair, together with forward planning for the Chair roles

on the IBP Audit and IBP Board Risk and Capital Committees, as

the incumbents approach the end of their respective nine-year

tenures in 2027 and 2028.

In overseeing succession, the Committee applied and complied

with the principles of the 2024 UK Corporate Governance Code

(2024 UK Code) as well as the recommendations made within

the Parker and FTSE Women Leaders Review.

Board performance

Last year, the Board performance review was conducted by an

independent external facilitator, in line with the 2024 UK Code

that FTSE-listed companies undertake an externally facilitated

evaluation at least every three years. The externally led review

concluded that the Board and its committees were operating

effectively, with constructive challenge, appropriate oversight

of strategy and risk, and strong engagement across the

governance framework.

This year’s review was conducted internally building on the prior

externally facilitated assessment. The internal evaluation

revisited themes identified in the prior year, assessed progress

against agreed actions and considered the continued

effectiveness of the Board, its committees and individual

directors. The outcomes were discussed in detail by the Board,

and a refreshed action plan was agreed to further enhance

performance. Progress against this plan will be monitored

throughout the year.

Regular performance reviews are a key component of sound

governance. They provide a structured opportunity for

reflection, continuous improvement and calibration of Board

composition, information flows and decision-making processes

against the Bank’s evolving strategy and risk profile. By

undertaking both independent and internal evaluations on a

cyclical basis, the Board strengthens accountability, reinforces

high standards of governance and supports better decision-

making in the interests of shareholders and wider stakeholders.

Roles and responsibilities

The role of the Committee is to keep the Board's composition,

skills, experience, knowledge, independence and succession

arrangements under review, and to ensure that appropriate

procedures are in place for nominating and evaluating all

directors.

The Committee reports to the Board on how it discharges its

responsibilities, and makes appropriate recommendations.

Board diversity

The Committee ensured that the Board considered diversity

when reviewing the Board and Board committee composition

and its succession planning. The Committee remained

committed to selecting the best candidates based upon skills

and experience, and focused on ensuring diversity within the

Board and management team. Due regard is given to gender,

ethnicity and social background, as well as diversity of thought.



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

IBP NOMINATION COMMITTEE REPORT CONTINUED

Role of the Chair

The Chair of the Committee meets regularly with the executives

of the Bank. The Chair also has interactions with the Heads of

People and Organisation, Risk and Compliance in order to

maintain up-to-date knowledge and keep abreast of

commercial, regulatory and legislative developments. These

interactions are an essential part of the role.

Committee composition, attendance,

skills and experience

The Committee comprises an Independent Non-Executive

Director together with the Group Chair and the Bank Chair, both

of whom were independent on appointment.

The Committee’s composition is designed to provide the

breadth of experience necessary for the members to properly

consider the issues presented to them.

The Chief Executive of the Bank is invited to attend meetings as

appropriate.



Meetings held in 2025/26
Members¹	Member since	Meetings attended	Eligible to attend
Vivek Ahuja (Chair)²	20 Mar 2026	1	1
John Reizenstein (former Chair)³	1 July 2024	4	5
Philip Hourquebie	5 Aug 2021	6	6
Lesley Watkins	1 Feb 2023	6	6

1. Where a director is unable to attend a meeting, they receive papers in

advance and have the opportunity to provide comments to the Chair.

2. Vivek Ahuja was appointed as Chair designate of the Committee on

29 January 2026 subject to regulatory approval. Regulatory approval

was granted on 20 March 2026.

3. John Reizenstein stepped down as Chair of the Committee on

29 January 2026.

Looking ahead

In 2026/27, the Committee will continue to review the

composition of the Board and its committees with regard to

those non-executive directors approaching their nine-year

anniversaries. In doing so, the Committee will take into

consideration the Bank’s strategy and evolving market

conditions while being mindful of all aspects of diversity,

including gender, ethnicity, skills, experience and knowledge.

The Committee will focus on the executive and non-executive

succession plans and governance enhancements under the

2024 UK Code and will continue to monitor compliance with

this. The Committee will also oversee the implementation of the

Board performance action plan.

Vivek Ahuja

Chair, IBP Nomination Committee

12 June 2026



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

IBP NOMINATION COMMITTEE REPORT CONTINUED

What we did in 2025/26

Succession planning

Succession planning remains a core priority and is considered

through the lens of resilience, disciplined growth and talent

development.

Non-executive succession

One of the key mandates undertaken by the Committee

during the year in respect of Non-Executive Director

succession planning was the appointment of a successor to

John Reizenstein, who stepped down as Chair and Independent

Non-Executive Director of the IBP Board on 29 January 2026.

Succession planning for this role formed part of the

Committee’s ongoing governance responsibilities, ensuring

continuity of independent leadership and effective Board

oversight.

The Committee conducted a rigorous and structured selection

process, informed by a clearly defined role specification aligned

to the Bank’s strategic priorities, regulatory environment and

risk profile. Following comprehensive consideration and

interviews, the Committee recommended to the Board that

Vivek Ahuja be appointed as Chair of the IBP Board and Chair of

the Committee. Following receipt of regulatory approval, Vivek’s

appointment to both roles is effective from 20 March 2026.

Pursuant to the 2024 UK Code, John Reizenstein was not

involved in the discussions regarding his successor.

Vivek brings extensive financial services experience at both

executive and non-executive level. His executive career

includes senior leadership roles within complex, regulated

financial institutions, providing deep expertise in strategy,

capital allocation, risk management and governance. In addition,

he has significant Non-Executive Director experience across

listed and regulated entities, with a strong track record of

independent oversight, constructive challenge and effective

boardroom leadership. Vivek stepped down from membership

of the IBP Audit Committee with effect from 29 January 2026,

ensuring continued clarity of roles and appropriate governance

balance.

Additionally, the Committee reviewed the tenure profile of the

Board, noting the upcoming nine-year milestones of the Chairs

of the BRCC and Audit Committees. A forward-looking

assessment of skills and experience was undertaken to

determine future requirements, considering:

• The Bank’s strategy of disciplined growth

• Evolving regulatory expectations

• Capital and risk developments, including the transition to IRB

The Committee agreed to commence an orderly refreshment

process and to appoint an independent search firm to support

future appointments.

Executive succession and talent development

Executive succession planning was considered in the context of

the Bank’s broader people strategy and leadership development

framework.

A comprehensive bottom-up review of the executive leadership

pipeline was undertaken, including:

• Assessment of critical roles and succession coverage

• Evaluation of readiness levels and development plans

• Targeted leadership development initiatives, including formal

education, rotational exposure and expanded responsibilities

• Benchmarking against market capabilities where appropriate.

Selective external hiring will continue to be considered where

this enhances capability, supports disciplined growth and

complements internal development.

Diversity within the leadership pipeline remains an important

focus area, and the Committee continues to challenge

management to ensure that development opportunities support

broader representation over time.

The Committee also received updates on senior management

appointments and the continued strengthening of the People &

Organisation function within Investec Bank plc.

Board performance

The Board performance review provides an opportunity for the

Board to consider ways of identifying greater efficiencies,

maximising strengths and highlighting potential areas of further

development, to enable the Board to continue to enhance its

own performance.

Last year the review was conducted by an independent

external facilitator, Fidelio Partners and found that, overall, the

Board, its committees and each of the directors were effective.

It also highlighted certain areas of focus that would further

improve effectiveness, which were considered by the Board

and an action plan was agreed. The principal action items

identified from the 2024 review were: (i) further enhance ways

in which the Board can contribute to strategy and oversee

progress against strategic objectives; (ii) ensure that at Board

and committee level there is scope to focus on the key risks

facing the business, and the opportunity to challenge the risks;

(iii) enhance the way in which the Board gains assurance that

the culture is embedded in Board learning; and (iv) maintain

Board oversight of the executive pipeline and succession

planning initiatives to offer more deliberate development

pathways within Investec Bank plc. The Committee is pleased

to report that the actions identified to address the findings were

completed throughout the year.



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

IBP NOMINATION COMMITTEE REPORT CONTINUED

This year the Board performance review was conducted

internally. There were four stages:

Stage 1: The Committee, with the assistance of the Company

Secretary, prepared a self-assessment questionnaire, which

was distributed to all the directors for completion. The

questionnaire sought the directors’ views on a range of topics

including performance and effectiveness of the Board and its

committees, composition, strategy and, culture.

Stage 2: The Chair held one-on-one meetings with each of the

directors to discuss the responses and to provide the

opportunity to raise any other matters.

Stage 3: A report was prepared, based on the results of the

questionnaire and the meetings held. The draft report was

discussed with the Chair, whose feedback was incorporated

into a final discussion paper including the proposed action plan.

Stage 4: The final report was presented to the Board in March

2026, following its consideration by the Committee.

The review identified that the Board, its committees and the

individual directors were performing effectively. The Board was

perceived to be strong with a diverse composition, a good

overall dynamic and a record of providing diligent oversight.

The performance of the previous Chair was also assessed

through a process led by the Group Chair, Philip Hourquebie,

who gathered feedback from non-executive directors. The

evaluation concluded that the Chair performed effectively.

Recommended enhancements were considered by the

Committee and the Board and an appropriate action plan was

agreed, with the Board noting that the Committee would

monitor the implementation.

The action plan for 2026/27 includes:

• Strengthening the quality of Board discussions by reshaping

business updates to focus on strategic priorities, key risks

and forward‑looking issues, enabling more effective challenge

and decision‑making

• Enhancing director capability and oversight through the

introduction of an annual Directors’ Development deep‑dive

on material subsidiaries, supporting a more holistic

understanding of the Bank’s operating environment

• Improving transparency and comparability of performance by

redesigning the CFO report to provide clearer insight into key

performance drivers across business lines

• Increasing confidence in remuneration governance by

providing greater visibility to non‑members of the IBP

Remuneration Committee on how performance and reward

outcomes are determined.

Board composition

The Committee has continued to review the composition of the

Board and its committees with particular regard to the breadth

of skills, knowledge and experience, as well as diversity of

members. The Committee keeps under review and

consideration the balance of non-executive and executive

directors, tenure and diversity, including gender balance.

The composition of the Board can be seen in the directors’

report on page 92.

In terms of key considerations, as at the date of this report:

• 44% of the Board are female

• 33% of the Board are Black, Asian and Minority Ethnic

• 56% of the Board are non-executive directors

• 50% of the Board are independent non-executive directors

(excluding the Chair)

• All non-executive directors have served on the Board for less

than nine years.

Board suitability

As part of the annual review process, a suitability assessment of

the Board was undertaken in July 2025 to provide assurance

that its composition remained appropriate and aligned with

internal procedures and regulatory guidance. The Committee

reviewed the outcomes of this assessment during the financial

year.

A skills matrix has been developed for the annual assessment

of the individual suitability of each director and the collective

suitability of the Board. There were no matters of concern

raised and the Committee was satisfied that all non-executive

directors remained independent in character and judgement.

The review provided the Committee with assurance that the

composition of the Board was appropriate to support the Bank’s

strategy. This matrix is being developed to consider the

emerging skills and requirements the Bank will need on the

Board in the coming years.

Conflict of interest

Each director has a duty to disclose any actual or potential

conflict of interest, as defined by law, for consideration and

approval if appropriate by the Board. Additionally, the Board and

its committees consider conflicts of interest at the beginning of

every meeting.

Diversity

New appointments are made on merit, taking account of the

specific skills and experience, independence and knowledge

needed to ensure a rounded Board and the diverse benefits

each candidate can bring.

The Committee maintains the Board Diversity and Inclusion

Policy, which sets out the approach to the diversity of the Board

and provides a high-level indication of its approach to diversity

for senior management roles. There are also measurable

objectives, including but not limited to aspiring to meet the

recommendations of the FTSE Women Leaders Review and the

Parker Review. The Bank has also signed up to the HM Treasury

Women in Finance Charter and the Race at Work Charter.

Diversity will remain an area of focus when considering any

succession plans.

For further information on the Bank’s broader approach to

belonging, inclusion and diversity please refer to the Investec

Group’s 2026 sustainability report which is published and made

available on our website www.investec.com



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

IBP AUDIT COMMITTEE REPORT


		Lesley Watkins Chair of the IBP Audit Committee
		The Committee has continued to monitor enhancements to the Bank's internal control framework in the light of new legal and regulatory requirements and to oversee the Bank's financial reporting in a year of increased geopolitical uncertainty.

Introduction

I am pleased to present the report of the IBP Audit Committee

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

The Committee continued its focus on the key accounting

judgements, providing challenge to management when

required. This work underpins transparent and robust financial

reporting, supporting informed decision‑making and the

Group’s focus on investing for long‑term growth. Of particular

note were the assumptions underpinning the expected credit

loss (ECL) calculations and models, including forward-looking

macro-economic scenarios and weightings. The valuations of

level 3 instruments were subject to scrutiny and challenge,

reflecting increased subjectivity in the current geopolitical

environment and a number of technical accounting matters in

the financial year were debated with management and Deloitte

including the accounting treatment of acquisitions relating to

the Bank’s operations in Switzerland, certain aviation

transactions and the treatment of technology and restructuring

costs. The Committee also reviewed the use of alternative

profit measures, the findings raised by Deloitte and other

judgemental items in the financial statements.

The Committee considered the impact of heightened

geopolitical tensions in the Middle East on the Bank’s financial

reporting judgements, including ECLs, valuations, and going

concern and liquidity assumptions. The Committee reviewed

management’s scenario analysis, challenged the

reasonableness of key assumptions and sensitivities, and

concluded that the related disclosures appropriately reflected

the current level of uncertainty.

During the year, the FCA published its redress scheme relating

to motor vehicle finance. As previously advised, the Bank has

an exposure to this industry through the Mann Island business

and the Committee debated the appropriateness of the Bank’s

provision. Following the FCA’s final announcement on the

industry-wide motor finance commission redress scheme in

March 2026, management reassessed the financial impact

across all in-scope agreements. The Committee challenged

management’s assumptions underpinning this provision, and

was satisfied that it remains appropriate, reflecting updated

assumptions on eligibility, redress methodology, take-up rates

and operational costs. 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.

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. Accordingly, the

Committee reviewed the adequacy and clarity of disclosures

on this matter to ensure that the uncertainty had been

appropriately reflected.

Further details of the key accounting issues considered by the

Committee are set out on the following pages.

The Committee oversaw work in relation to Provision 29 of the

FRC’s UK Corporate Governance Code 2024 (the Code), which

introduces a future Board declaration on the effectiveness of

material controls. Although the declaration will not apply until

the financial year ending 31 March 2027, the Committee has

supported early implementation activity, including

management updates on the controls framework, work to

identify material controls, and director training delivered

with Ernst & Young.

The Committee received regular reports from Internal Audit on

the delivery of key regulatory programmes, including the

Resolvability Assessment Framework (RAF) and the Internal

Ratings Based (IRB) model programme, providing independent

assurance over progress, governance and control

effectiveness. Reports were also received on regulatory

reporting. During the year, the Committee also participated in

joint sessions with the DLC Audit Committee, which included

the evaluation of internal and external audit effectiveness and

presentations on the increasing use of data analytics across

the audit and risk environment, developments in ECL

modelling, and progress made to incorporate climate‑related

risk considerations within the Bank’s models. These sessions

supported effective oversight, consistency of approach across

the Investec Group, and the Committee’s understanding of

emerging modelling and data‑driven risks, reflecting Investec’s

operation as a globally connected group rather than a

segmented or isolated entity.



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

IBP AUDIT COMMITTEE REPORT CONTINUED

The Committee also reviewed the output of the internal audit

plan with a focus on ensuring the timely remediation of

findings. The Committee received assurance that the control

environment remained fit for purpose and that the risk and

control consciousness within the Bank continued to improve.

Further details of the internal control issues considered by the

Committee are set out on the following pages.

The Committee considered its obligations under the Code and

under the FRC Audit Committees and the External Audit

Minimum Standards.

Based on the work undertaken during the year, the Committee

was satisfied that the key accounting judgements applied

were appropriate, the external audit was effective and

independent, and that the financial statements present a fair,

balanced and understandable view.

How the Audit Committee works

The Committee exercises authority delegated by the Investec

Bank plc Board in accordance with the Code, the Companies

Act 2006 and applicable PRA and FCA requirements. The IBP

Audit Committee’s principal responsibilities are to:

• Monitor the integrity of the Bank’s financial reporting and

satisfy itself, having regard to any issues raised by the

external auditor, as to the appropriateness of management’s

accounting policies and practices

• Assess that any significant financial judgements,

assumptions or estimates made and the disclosures

recommended by management are appropriate and whether

overall the annual report, taken as a whole, is fair, balanced

and understandable; and provides the information necessary

for stakeholders to assess the Bank’s position and

performance, business model and strategy

• Review the effectiveness of the Bank’s key internal controls,

including internal financial controls

• Monitor the activities and performance of the internal and

external auditors (including monitoring their independence

and objectivity)

• Oversee the relationship with the Bank’s external auditor

• Review and monitor the effectiveness of the Bank’s

whistleblowing policies and procedures.

Composition, meeting attendance, and interaction

with Investec Group

In accordance with the Code, the Committee entirely

comprises independent non-executive directors who meet

predetermined skills, competency and experience

requirements as determined by the IBP Nomination

Committee.

Members’ continuing independence, as well as their required

skills, competencies and experience is assessed annually. The

Committee’s composition and experience enable robust

challenge of management and auditors.

The CEO and Finance Director of the Bank attend meetings on

a regular basis but are not members. Other Bank directors may

also attend by invitation. The Head of Risk, Head of Internal

Audit, the external auditor and the Company Secretary also

attend meetings on a regular basis.

The Committee meets alone with the external auditor and,

separately, with the Head of Internal Audit. Committee

members also meet periodically with management and the

Heads of Internal Audit, Operational and IT risk, and Finance as

well as the lead external audit partner and senior management

in order to keep knowledge up to date, and to keep abreast of

commercial developments and challenges facing the business.

The Chair of the Committee is also a member of the IBP BRCC

and, similarly, the Chair of IBP BRCC, Paul Seward, is a

member of this Committee. This reciprocity of membership

helps to ensure interaction between these two committees

and a coordinated consideration of the Bank's risks and

internal controls where they overlap in relation to both financial

risks and non-financial risks, reflecting the holistic oversight of

risk at Board level.

The Committee reports formally to the Board.

Diane Radley Chair of the DLC Audit Committees, is also a

member of this Committee. This appointment reflects the dual-

listed structure of the Investec Group in which Investec Bank

plc is the principal banking subsidiary in the UK and the parent

company of other material overseas subsidiaries. The

representation of the Investec Group Audit Committee Chair

ensures that key audit matters for the Bank and its subsidiaries

are visible at the Investec Group level, and likewise that key

audit matters and matters of mutual interest for the Investec

Group and Investec Bank plc are communicated and

addressed, where applicable, in the Bank and its subsidiaries.



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

IBP AUDIT COMMITTEE REPORT CONTINUED

Vivek Ahuja stepped down as a member of the Audit Committee

following his appointment as Chair designate to the Investec

Bank plc Board on 29 January 2026, subject to regulatory

approval that was granted on 20 March 2026. I would like to

thank Vivek for his contribution to the Committee.



Members	Member since	Eligible to attend ¹	Attended
Lesley Watkins (Chair)	13 Nov 2018	5	5
Paul Seward	1 Apr 2019	5	5
Diane Radley	8 Aug 2024	5	5
VIvek Ahuja¹	5 Mar 2025	4	4

1.Vivek Ahuja stepped down from the Committee on 29 January 2026

following his appointment as Chair designate of the Board, subject to

regulatory approval that was granted on 20 March 2026.

External audit

Deloitte LLP (Deloitte) continued in the role as external auditor

for the audit of the financial year ended 31 March 2026.

The Committee continually assesses the effectiveness,

objectivity and independence of the external auditors at formal

Committee meetings, during private meetings with Deloitte and

through discussions with key executive stakeholders. In

assessing effectiveness, the Committee considered the quality

of audit planning, the robustness of challenge, sector expertise,

and the auditor’s interaction with management and the

Committee. The Committee considers the relationship with the

auditor to be working well and remains satisfied with its

effectiveness. The Committee monitored whether the level of

non-audit fees could impact the independence of the auditors

having regard to the nature of the services rendered and the

fees paid as a proportion of the overall audit fee. The Committee

was satisfied that the quantity and type of non-audit work

undertaken throughout the year did not impair the independence

of Deloitte.


	Further details regarding audit fees paid are provided in note 7 of the annual financial statements.

Looking ahead

The Committee will continue to assess changes in the business

environment and understand the implications of these on

accounting requirements and internal controls, while maintaining

a consistent, joined-up approach across Investec to support

long-term value creation. The Committee will also review and

challenge the adequacy of the internal audit plan and budget, as

well as the combined assurance coverage plan, to ensure

adequate oversight of the control environment. In addition, the

Committee will continue to receive assurance from internal audit

in relation to key regulatory projects including RAF and IRB.

Furthermore, the Committee will continue to monitor and

challenge progress against the Board‑approved implementation

programme for Provision 29 of the Code and will focus on the

testing of material controls to support the Board’s future

declaration, ahead of the March 2027 deadline.

Lesley Watkins

Chair

12 June 2026



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

IBP AUDIT COMMITTEE REPORT CONTINUED

Significant matters

Significant matters are those that in the view of the IBP Audit Committee:

• Required significant focus from the Committee

• Were considered significant or material in nature requiring exercise of judgement

• In relation to the 2026 annual report and financial statements, were otherwise considered to be subjective from an accounting or

auditing perspective.


	Significant matters relating to the 2026 financial statements		What we did
	Expected credit loss (ECL) assessment The appropriateness of the allowance for ECLs is highly subjective and judgemental. The impact of the geopolitical environment and the resultant economic impacts in the geographies in which the business operates have resulted in key judgements and assumptions being made during the current year. The work conducted in terms of ECL is carried out in conjunction with the BRCC.		• Reviewed and challenged the appropriateness of the forward-looking macro-economic scenarios and assumptions (including the probability weights applied to each scenario and the sensitivity of each) used in credit models and the impact of these on forecast ECL • Challenged the level of ECL and the assumptions used to calculate the ECL provisions held • Assessed ECL experienced against forecasts and peers and considered whether the level of ECL was appropriate. Particular focus was given to exposures which were specifically affected by a higher inflation and higher interest rate economic environment • Evaluated the IFRS 9 disclosures for relevance and compliance with IFRS • Concluded that the allowance for ECLs, the assumptions and related IFRS 9 disclosures, were appropriate.

	Valuation of fair value instruments with higher risk characteristics and associated income For level 3 instruments, such as unlisted investments in private equity businesses, fair value loans and large bespoke derivative structures and structured products, there is a large degree of subjectivity and judgement surrounding the inputs to the valuations.		• Received reports on the material investments including an analysis of the key judgements and assumptions applied and challenged where appropriate • Received reports on and considered the valuation of financial instruments with higher risk characteristics • 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 – fair value of exposures in industries affected by the effects of the high inflationary, high interest rate environment, geopolitical instability and conflicts – the appropriateness of the IFRS 13 disclosures on fair value • Concluded that material investments had been appropriately valued.



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

IBP AUDIT COMMITTEE REPORT CONTINUED


	Significant matters relating to the 2026 financial statements (continued)		What we did
	Uncertain tax, contingent liabilities and other legal matters		• Considered potential legal and uncertain tax matters and contingent liabilities with a view to ensuring appropriate accounting treatment in the financial statements • Evaluated the appropriateness of the accounting and disclosures regarding the investigation by the Office of the Public Prosecutor in Cologne, claims by the German Federal Tax Office in Bonn, and the potential related civil claims. This was conducted via closed sessions with executive management and external audit, where the Committee considered the feedback as received from external and internal legal counsel and the probability of the outcomes. Refer to note 42 of the annual financial statements • Received updates from Group Legal on uncertain tax, legal and regulatory matters, enabling the Audit Committee to probe and consider them and evaluate the basis and appropriateness of the accounting treatment and disclosure • Analysed the judgements and estimates made and discussed the potential range of outcomes that might arise to determine the liability, if any, for uncertain tax positions as required by the International Financial Reporting Interpretations Committee (IFRIC) 23 • Concluded that the IAS 37 accounting treatment and the overall disclosure in the financial statements was appropriate having conferred with and received confirmation from the external auditors on the overall treatment.

	Conduct risk provisions Determining the expected costs of remediation required, as a result of the FCA’s industry-wide review of historical motor finance commission arrangements requires, management judgement.		• Reviewed the approach to estimating the costs of remediation based on the FCA redress scheme and the appropriate provision • Considered the disclosure of this matter made in the annual financial statements - refer to note 42 of the annual financial statements • Concluded that the level of provisions was appropriate and satisfactorily disclosed.

	Going concern and viability statement		• Considered the Bank’s profitability, Board-approved budgets and capital plans through to June 2029, liquidity, operational risk and contingent liabilities • Recommended the approval of the going concern and the viability statement assumptions underlying the financial statements to the Investec Bank plc Board.


	Technology, information security and cyber and data management controls impacting financial reporting		• Received and reviewed reports from external auditors in respect of IT systems, cyber security and controls impacting financial reporting • Received regular reports from internal audit on the effectiveness of IT controls tested as part of the internal audit process.



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

IBP AUDIT COMMITTEE REPORT CONTINUED


	Significant matters relating to the 2025 financial statements (continued)		What we did
	Fair, balanced and understandable reporting The Bank is required to ensure that its external reporting is fair, balanced and understandable, and whether it provides the information necessary for stakeholders to assess the Bank’s position and performance, business model and strategy.		• Met with senior management to gain assurance that the processes underlying the compilation of the annual financial statements were appropriate • Conducted an in-depth, critical review, of the annual financial statements, including the accounting policies used, alternative profit measures presented and, where necessary, agreed amendments to disclosure • Considered the accounting treatment for more complex matters including the acquisition of a majority interest in Investec Advisory AG, the acquisition by Investec Bank (Switzerland) AG of assets under management and an associated mortgage loan book, certain aviation transactions and the treatment of fluctuations in the Bank’s ownership of Rathbones as a result of share buybacks. • Reviewed the accounting treatment of other key judgements • Assessed disclosure controls and procedures • Considered in particular the disclosures relating to climate change and CSRD • Confirmed that management had reported on and evidenced the basis on which representations to the external auditors were made • Obtained input and assurance from the external auditors and considered the level of, and conclusion on, the summary of audit differences • Considered post-balance-sheet events and determined that they were non-adjusting in terms of the IAS 10 requirements • Concluded that the processes underlying the preparation of the annual report and financial statements for the year ended 31 March 2026 were appropriate in ensuring that those statements were fair, balanced and understandable.

	External audit		• Managed the Bank’s relationship with the external auditor • Met with key members of the Deloitte audit team to discuss and then approve the 2025/26 audit plan, fees and agree key areas of focus • Assessed regular reports from Deloitte on the progress of the 2025/26 audit and material accounting and control issues identified • Discussed Deloitte’s feedback on the Bank’s critical accounting estimates and judgements • Discussed Deloitte’s report on certain control areas, including IT and the control environment, ahead of the 2026 financial year end • Assessed the performance, independence and objectivity of the external auditors. This included consideration of FRC reviews • Concluded that the external audit was effective and that the external auditors remained independent and objective throughout the financial year • Pre-approved all non-audit services provided by external audit and confirmed the services to be within the approved non-audit services policy.

	Sustainability including climate risk		• Reviewed reporting and disclosures • Reviewed the CSRD disclosures required in the annual report of Investec Bank plc • Reviewed the scope of the external assurance provided on the sustainability reporting and disclosures.



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

IBP AUDIT COMMITTEE REPORT CONTINUED


	Other significant matters		What we did
	Internal controls and the business control environment		• Received regular reports from internal audit on Investec Bank plc and subsidiaries within the Committee’s terms of reference. Based on this reporting, evaluated the impact of evolving risk, including operational risk, on the internal control environment, including IT, data and cyber security, third-party and outsourcing arrangements, and the operation of controls supporting financial reporting • 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 time frames. Particular attention was paid to the effectiveness of IT general controls and controls impacting financial reporting as well as privileged access management and the risk of data leakage • Evaluated reports on the internal control environment from the internal and external auditors • Assessed reports on individual businesses and functions on their control environment, discussed identified control failures and closely monitored the status of remediation plans • Requested confirmation from management regarding the remediation of issues identified, including the time frames and accountability for remediation • Reviewed the results of the Combined Assurance coverage plan to assess the results of actual coverage and conclusions • Reviewed the internal and external CASS assurance reports on client money and assets and recommended for approval of the CASS attestations to the Board • The Committee’s oversight of the internal control environment during the year also informed and supported management’s programme to strengthen the Bank’s internal controls framework in preparation for future compliance with Provision 29 of the Code • Monitored management’s approach to preparing for the requirements, including reviewing reports commissioned from external advisers • Reviewed and challenged the completeness and appropriateness of the material controls identified, as well as the proposed approach to ongoing monitoring and reporting, to be undertaken in conjunction with IBP BRCC.



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

IBP AUDIT COMMITTEE REPORT CONTINUED


	Other significant matters (continued)		What we did
	Internal audit		• Agreed the internal audit plan taking into account the risk assessment, methodology and resourcing • Approved the internal audit budget • Monitored the delivery of the agreed plan and the use of data analytics • Received regular reports from internal audit of all significant issues identified • Received regular updates of the assurance work being conducted in relation to the RAF and IRB projects • Tracked the levels of high and moderate risk findings and monitored the related remediation plans • Met with the Head of internal audit, without management being present, to discuss any issues arising • Monitored the skill set, independence and objectivity of internal audit and considered succession and resource planning. The Committee confirmed it was satisfied that Internal Audit had the appropriate resources to adequately complete the internal audit plan and any additional reviews as deemed necessary • Monitored the remediation of findings from the external quality assessment of internal audit conducted in 2025 • Received an opinion from internal audit on the effectiveness of the internal controls and the risk management framework, as part of the year-end sign-off process • Monitored audit quality in relation to internal audit reviewing the methodology, process and skills • Reviewed the effectiveness and impact of the internal audit function. • Reviewed and approved the Internal Audit Charter ahead of final approval by the Group Audit Committee • Approved the purpose and mandate of the internal audit function as outlined within the Internal Audit Charter • Continued to monitor alignment to the Global Internal Audit Standards and the Internal Audit Code of Practice Principles which became effective in January 2025.

	Whistleblowing		• Received and considered reports from management on the Bank's whistleblowing arrangements • Reviewed the reports to ensure there were arrangements in place that colleagues could use to report concerns about inappropriate and unacceptable practices, in confidence and anonymously without fear of retaliation. Ensured that there was proportionate and independent investigation of such matters or appropriate follow-up • Considered the independence and effectiveness of the Bank’s policies and procedures on whistleblowing • Concluded that the Bank’s whistleblowing policies and procedures were independent and effective, and recommended the Investec Bank plc Whistleblowing Policy to the Board for approval.



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

IBP BOARD RISK AND CAPITAL COMMITTEE



		Paul Seward Chair of IBP BRCC
		The Committee has provided robust oversight of the Bank’s risk profile and is satisfied that its risk and control frameworks are effective and aligned with regulatory expectations.

Introduction

I am pleased to present the report on how the IBP BRCC (the

Committee) has discharged its responsibilities during the year.

The Committee continues to monitor and challenge the risk

profile of the Bank with particular focus on its evolving financial

and non-financial risk profile through a period of heightened

regulatory activity, continued macro-economic uncertainty and

material change across the business. This oversight supports

the Bank’s focus on investing for long‑term growth while

maintaining a prudent and resilient risk profile. During the

period under review, the Committee oversaw the Bank’s risk

position as inflation remained above target, interest rate

reductions moderated and pressures across credit markets

persisted. The Committee continued to challenge management

over credit quality, liquidity positioning and market-risk

exposures, noting that financial risk metrics remained strong

throughout the year.

Due to the heightened geopolitical uncertainty, the Committee

undertook dynamic reviews of certain risk exposures during the

year. This included out‑of‑cycle deep‑dive sessions, outside the

Committee’s usual forward work plan, to consider emerging

risks and potential impacts. In particular, the Committee

received detailed analysis on the potential implications of tariff

developments and trade-related measures, as well as focused

updates on the evolving situation in the Middle East and the

possible consequences for the Bank’s risk profile. These

discussions supported the Committee’s ongoing oversight of

emerging risks and the resilience of the Bank’s risk management

framework, within the context of Investec operating as a

globally connected group.

The Committee monitored closely the industry-wide Motor

finance review, receiving regular updates on evolving FCA

proposals, provision adequacy and data-validation activity,

consistent with the Committee’s responsibilities to monitor

emerging conduct and regulatory risk.

A number of key regulatory projects are underway and

remained a major area of Committee focus. The Committee

received regulatory updates on the Internal Ratings Based (IRB)

programme and maintained oversight of management’s delivery

approach, resourcing and prioritisation, monitoring actions to

support ongoing alignment with PRA expectations. The

Committee also received regulatory updates on Basel 3.1 and

maintained oversight of management’s readiness activities,

including approving the proposed assurance to support

regulatory submissions and implementation readiness. Another

key project is the requirement to apply a Resolvability

Assessment Framework (RAF) and meet the Minimum

Requirement for own funds and Eligible Liabilities (MREL) . The

Committee received quarterly updates on RAF delivery,

including preparations for the Bank’s recovery and resolvability

assessments, the associated changes proposed under the

amended DLC Sharing Agreement, and transition planning for

MREL, which commenced on 1 January 2026. The Committee

noted that the key milestones achieved as planned and the

external assurance provided positive feedback on programme

maturity and governance arrangements.

In terms of non-financial risks, the Committee oversaw

continued embedding of the Bank’s Consumer Duty obligations.

Management information has evolved and is frequently

reviewed and challenged by the Committee. Following the

FCA’s review, the Consumer Duty report was given a green

rating, providing external confirmation that the Bank’s approach

was operating as intended. The Committee continued to

monitor good client outcomes, stable complaint trends and

improvements to the Bank’s vulnerable client framework and

customer journey enhancements across Private Client,

Transactional Banking and Investec Save.

Operational resilience remains a key area of focus and the

Committee devoted significant time to cyber security, data

governance and third-party risk. This included oversight of the

Simulated Targeted Attack and Response – Financial Services

(STAR‑FS) assessment, and the Committee monitored

management’s progress in delivering the remediation plan. The

Committee also reviewed enhancements to privileged-access

management, cloud-provider concentration risk and the

governance of emerging risks, including the responsible use of

AI, with a focus on business enablement, risk management,

people capability and governance.

Fraud risk remains heightened, driven in part by increasing

prevalence of AI-enabled threats, and the Committee monitored

enhancements to fraud-prevention controls and financial crime

tooling in response.



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

IBP BOARD RISK AND CAPITAL MANAGEMENT REPORT CONTINUED

Role of the Committee

The role of the Committee is to review, on behalf of the Board,

the range of risks facing the business. The Committee

performs this function by considering the risk reports

presented and by assessing whether management’s actions,

controls and forward-looking plans remain appropriate,

proportionate and effective.

The Committee is an essential part of the Bank's governance

framework. The Board has delegated the oversight of the

Bank's risk framework to ensure it is appropriate to the size,

scale and nature of the Bank's activities and able to effectively

manage the material risks to which it is exposed. Acting as the

most senior Risk Management Committee of the Bank, the

Committee reviewed and challenged the Bank’s risk appetite

and key risk frameworks, including stress tests, and

considered and recommended for approval critical risk

documents, including the ICAAP, ILAAP and CFRP. The

Committee is responsible for ensuring material risks are

identified, monitored and mitigated, and that the resources

allocated to the risk management functions remain adequate

for effectively managing the Bank's risk exposures. The

Committee also provides oversight of the Bank’s compliance

function, including the review of regular reporting from the

Compliance Officer and from the Risk and Controls Forum, and

approval of the annual Compliance Monitoring Programme.

The Committee reports to the Board on how it discharges its

responsibilities and provides appropriate recommendations to

the Board.

Role of the Chair

The role of the Chair of the IBP BRCC includes regular

engagement with senior executives across the Bank and with

the Chair of the DLC BRCC. The Chair meets regularly with risk

functions, Compliance, Head of Finance and Operations and

Head of IT to maintain up-to-date knowledge and stay abreast

of commercial, regulatory and legislative developments, and

challenges facing the business.

Composition and attendance

The Committee is composed solely of independent non-

executive directors, with membership designed to provide the

breadth of risk expertise and commercial acumen it needs to

fulfil its responsibilities. The Chair of the DLC BRCC is a

member of the Committee to ensure interconnection between

the Bank and its parent.



Meetings held in 2025/26
Members	Member since	Attended	Eligible to attend ¹
Paul Seward (Chair)	1 Apr 2019	7	7
David Germain	5 Nov 2020	7	7
Vanessa Olver	4 Aug 2022	7	7
Lesley Watkins	18 Jan 2019	7	7
John Reizenstein¹	1 Apr 2024	6	6
Vivek Ahuja	5 Mar 2025	7	7

1.John Reizenstein stepped down from the Board and BRCC on

29 January 2026.

Looking ahead

The Committee will continue to monitor overall levels of risk

within the business as a result of the Bank’s accelerated

growth strategy and macro‑economic factors.

With the continued uncertainty over the direction of inflation

and interest rates, and the potential of further macro-

economic shocks, the Committee will continue to assess the

impact on clients, credit portfolios, collateral valuations and the

Bank’s funding strategy. The Committee will also ensure that

liquidity and capital buffers remain strong and above

regulatory and internal thresholds.

In terms of non‑financial risks, fraud, IT, cyber security, data

and third‑party risk will continue to be areas of focus. The

Committee will continue to monitor remediation of STAR‑FS

actions, assessment of cloud concentration dependencies and

enhancements to AI governance, including the use of AI across

the business, associated risks and controls, accountability

arrangements and overall governance.

Progress continues to be made on embedding the Bank’s ESG

and climate risk approach. This will include ongoing oversight

of the Bank’s Sustainable & Transition Finance Framework,

including progress toward the 2030 targets and the updated

sustainability risk appetite. Monitoring will also include the

FCA’s consultation on motor‑finance redress and the

associated data, modelling and operational implications for

the Bank.

The period ahead will be characterised by enhanced oversight

of regulatory projects, including the continued IRB migration,

development of RAF and preparation for phased MREL

transition.

The Committee expects increased supervisory attention in

2026 in areas such as cyber testing, operational resilience,

resolution capabilities and Pillar 2 data and assurance

requirements.

The Committee remains committed to strong, transparent and

forward‑looking risk oversight. Through rigorous challenge and

close engagement with management, we have ensured that

the Bank’s risk, control and governance frameworks remain

robust, responsive to regulatory expectations and resilient to

an evolving risk environment. This enables Investec to operate

as a cohesive global group while investing responsibly for

long‑term growth. The Committee will continue to focus on

emerging risks, operational and cyber resilience, and major

regulatory programmes to support the Bank’s ability to operate

safely, serve clients effectively and deliver long‑term,

sustainable value.

Paul Seward

Chair

12 June 2026



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

IBP BOARD RISK AND CAPITAL MANAGEMENT REPORT CONTINUED

Committee activities


	Area of focus		Conclusions and actions
	Regulatory matters and projects Consideration of key risk documents, the impact of regulatory developments and projects established to implement change effectively.		Throughout the period, the Committee concluded that management maintained effective control over key regulatory programmes and took timely actions to remain aligned with the expectations of the PRA and FCA. This included: • Financial governance: Reviewed and challenged the ICAAP, ILAAP, CFRP and Resolution Pack, including alignment to the Bank’s risk appetite and strategy, and recommended them for approval by the Board • IRB programme: The Committee monitored the reset and subsequent acceleration of the IRB programme, emphasising strengthened governance, clearer ownership of workstreams and enhanced data remediation. Detailed updates were received on model development, IFRS 9 validation and the introduction of a more robust model identification and tiering framework. The Committee challenged areas of red and amber rating and supported the use of co‑sourced expertise to ensure progress remained aligned with regulatory expectations • RAF: The RAF programme consistently reported a ‘green’ overall status, with all quarterly milestones achieved. The Committee considered progress across FiR, OCIR, valuation, governance and restructuring workstreams, and welcomed positive external assurance feedback from Alvarez & Marsal. The Committee also oversaw preparations for the PRA’s 2026 recovery and resolvability reviews, ensuring the programme remained adequately resourced and embedded • Basel 3.1: The Committee received updates on the Bank’s Basel 3.1 implementation and approved the assurance approach to support data submissions and readiness for go- live • Regulatory horizon scanning and compliance developments: The Committee received briefings on the Mansion House and Leeds Reforms, potential SMCR changes, and regulatory expectations around Consumer Duty, operational resilience and financial crime. Updates on South Africa’s FATF grey listing remediation were reviewed, with appropriate action plans confirmed. The Committee monitored enhancements to the trade surveillance framework, including the implementation of NASDAQ SMARTS • Motor Finance Commission Review: The Committee maintained close oversight of FCA developments and received updates at each meeting including on monitoring of data validation activity, evolving provision scenarios and complaint levels.



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

IBP BOARD RISK AND CAPITAL MANAGEMENT REPORT CONTINUED


	Area of focus		Conclusions and actions
	Financial risk management of the Bank Consideration of the key financial risks and the controls in place to mitigate and effectively manage the risks faced by the Bank.		The Committee continued to review the Bank’s financial risk profile, ensuring it maintained prudent levels of liquidity, capital and credit risk appetite in line with regulatory standards and requirements. The Committee was satisfied that financial risks were being managed within appetite throughout the period, despite ongoing macro‑economic uncertainty. Financial risk oversight included: • Liquidity and funding: Monitored the Bank’s robust liquidity and capital buffers, including preparation for TFSME repayment and the successful Tier 2 issuance. The structural hedge position was reviewed regularly, with the Committee noting its contribution to rate‑risk mitigation • Capital: Reviewed CET1 trends across the period and noted PRA permission for interim profits recognition and Tier 2 replacement, with ratios remaining above internal and regulatory thresholds • Credit risk: Reviewed credit growth trends, increases in Stage 2 exposures, and stabilisation of new defaults, challenging management on potential forward‑looking risks. Regular deep‑dives were conducted into Stage 3 exposures, non‑performing asset strategies and recovery processes. The Committee noted the credit loss ratio remained toward the upper end of guidance but acceptable given external conditions. Oversight extended to US tariff impacts and PRA Dear CRO thematic review findings, particularly regarding private equity‑related financing • Investment and portfolio risk: Monitored progress on reducing concentrations in the investment portfolio and reviewed any risk implications of exit strategies • Motor Finance: Reviewed higher‑than‑expected voluntary termination losses and monitored the provision strategy ahead of FCA redress consultation outcomes • Climate and ESG risk: Reviewed the Bank’s ESG risk approach, including climate exposure assessments and the Sustainable and Transition Finance Framework. The updated sustainability risk appetite was endorsed.



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

IBP BOARD RISK AND CAPITAL MANAGEMENT REPORT CONTINUED


	Area of focus		Conclusions and actions
	Non-financial risk management of the Bank Consideration of the key controls and processes to ensure that they were appropriate and effective to manage the material non-financial risks faced by the Bank.		The Committee oversaw the Bank’s non‑financial risk environment throughout the year, placing emphasis on operational resilience, cyber security, data governance and third‑party risk. Key areas of focus included: • Operational risk and control environment: Reviewed operational losses, which remained low with no emerging trends, and monitored enhancements to the operational risk appetite including AI‑related risk, data accuracy and data protection thresholds • Cyber security and resilience: Received detailed updates on cyber security and IT resilience, including the Bank’s IT strategy and the STAR‑FS penetration test results. Remediation actions and PRA engagement were monitored closely, and cyber resilience remains a standing agenda item • Third‑party/outsourcing risk: Received reports and actively monitored third-party providers, including concentration risk in cloud service providers, high‑risk acceptances, resilience and progress on exit‑strategy testing. The Committee emphasised resilience and continuity in all material outsourced relationships • Fraud and financial crime: Given the rise of AI‑enabled fraud, the Committee reviewed enhancements to fraud prevention controls, including biometric identity verification and staff training programmes. Monitored financial crime systems and reviewed implementation of new transaction monitoring tooling and FATF‑related actions for South African clients. Received financial crime updates and, in accordance with its mandate, received the MLRO report • Consumer Duty and conduct risk: Received updates confirming good client outcomes, stable complaint levels (aside from motor finance), and improved frameworks for identifying vulnerable clients. Operational improvements across onboarding, client journeys, and end‑to‑end processing were noted. Received and challenged the Compliance Monitoring Plan • Risk and controls: Reviewed updates covering all non- financial risks from the Risk and Controls Forum, which highlighted material themes and control issues where applicable.



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

DIRECTORS' REPORT

The directors present their directors’ report and financial

statements for the year ended 31 March 2026.

The Company has chosen, in accordance with

Section 414C(11) of the UK Companies Act, to include certain

matters in its strategic report which are incorporated into this

report by reference as follows:

• An indication of likely future developments in the business

of the Company and its subsidiaries (throughout our

strategic report)

• Our risk management objectives and policies in relation to

the use of financial instruments, page 44

• A statement as to material events since 31 March 2026,

page 236

• Our approach to employee matters, including the

employment and support of disabled persons, is set out on

page 16. Workforce diversity metrics are provided in the

ESRS S1 Own Workforce disclosures on pages 324 to 331,

with additional information available in the Investec Group

Sustainability Report available on our website

www.investec.com

• Stakeholder engagement (including employees and others),

page 16

• Details of charitable activities including any donations,

page 16

• Statement of corporate governance arrangements, pages

62 to 96.

Investec Bank plc applies the UK Corporate Governance Code

2024, noting that certain provisions, including Provision 29

relating to internal controls, apply for reporting periods

beginning on or after 1 January 2027.

Results and dividends

The results for the year are shown on page 27. Movements in

reserves are shown in the reconciliation of equity on page 129

of the financial statements. An interim dividend of £70 million

for the period ended 30 September 2025 was paid on 28

November 2025 following the Board’s consideration of the

Bank’s capital position, liquidity profile and risk appetite, and

having regard to its duties of the Companies Act 2006. On 19

May 2026 the Board declared that a dividend of £125 million

for the period ended 31 March 2026 be paid on 12 June 2026.

UK Corporate Governance Code 2024 –

Provision 29

During the year, the Board began planning for the

implementation of Provision 29 of the UK Corporate

Governance Code 2024 (the Code), which introduces

enhanced expectations relating to the monitoring and review

of internal controls. The Audit Committee oversaw preparatory

work, which introduces a future Board declaration on the

effectiveness of risk management and internal controls.

Although the declaration will not apply until the financial year

ending 31 March 2027, the Committee has supported early

implementation activity, including management updates on the

control’s framework, work to identify material controls, and

director training delivered with Ernst & Young.

Directors

The names of the persons who were directors during the

financial year are set out in the table below. Biographical details

of directors appointed as at the date of this report are set out on

pages 64 to 66.

In line with the Code, the Board continued to review its

composition, ensuring an appropriate balance of skills,

experience and independence, and having regard to succession

planning and the future skills and experience required to support

the Bank’s strategy and regulatory environment.


	Appointed
John Reizenstein¹	2 Apr 2024
David Germain	15 Sep 2020
Fani Titi	3 Aug 2011
Henrietta Baldock	10 Feb 2021
Vivek Ahuja	5 Mar 2025
Kevin McKenna	10 May 2012
Lesley Watkins	13 Nov 2018
Marlé van der Walt	20 Sep 2022
Paul Seward	1 Apr 2019
Ruth Leas	27 Jul 2016

1.John Reizenstein stepped down as Chair of the Investec Bank plc Board and

as Non-Executive Director on 29 January 2026.

Corporate Sustainability Reporting

Directive

Investec Bank plc has opted to present its Sustainability

Statement, as mandated by the Transparency (Directive

2004/109/EC) Regulations 2007 (as amended), in a dedicated

section of this report in Section 6, which forms a fundamental

part of the director’s report. This Sustainability Statement has

been prepared in accordance with the European Sustainability

Reporting Standards (ESRS) and in compliance with the

requirements of the EU Taxonomy Regulation. The

Sustainability Statement also reflects the Bank’s progress on

climate risk management and transition planning, consistent

with emerging UK Sustainability Disclosure Standards and PRA

Supervisory Statement SS3/19.

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 Bank’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 Bank’s

auditor is aware of that information. This confirmation is given

pursuant to Section 418 of the Companies Act 2006 and

should be interpreted in accordance with and subject to those

provisions.

Deloitte LLP has indicated its willingness to continue external

auditors and a resolution proposing their re-appointment as

auditors will be submitted to the annual general meeting. The

Audit Committee also assessed the auditor’s independence,

challenge and professional scepticism in accordance with the

Code.



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

DIRECTORS' REPORT CONTINUED

Going concern statement

In adopting the going concern basis for preparing the

consolidated financial statements, the directors have

considered the Bank’s business activities, objectives and

strategy, principal risks and uncertainties in achieving its

objectives, and performance which are set out in the strategic

report. The directors have performed a robust assessment of

the Bank’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 the above consideration, the

directors confirm that they have a reasonable expectation that

the Bank 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 93) and a

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

assessment of Investec Bank 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 Bank 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 Bank 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 47

onwards, with further detail provided in the Investec plc

(Investec Bank 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.

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 Bank 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 Bank plc

is also required to meet regulatory standards with respect to

capital and liquidity. In terms of these requirements, Investec

Bank plc is required to stress its capital and liquidity positions

under a number of severe stress conditions. IBP’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 Bank 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

Bank plc is required to be fully self-funded. The Bank currently

has £9.4 billion in cash and near cash assets as at 31 March

2026, representing 41.6% of customer deposits.



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

DIRECTORS' REPORT CONTINUED

Investec Bank 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

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 house-building 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 Bank 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 Bank 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 Bank 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 Bank 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.



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

DIRECTORS' REPORT CONTINUED

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 Bank 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 IBP has sufficient liquidity and capital to

continue as a going concern and meet regulatory liquidity and

capital requirements.

Investec plc, parent company of Investec Bank 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 Bank 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 Investec Bank plc’s

viability:

• Pages 4 to 41 which show a strategic and financial overview

of the business

• Pages 47 to 61 which provide detail on the principal and

emerging risks the Bank faces and the processes in place to

assist Investec Bank plc in mitigating its principal risks

• Page 44 which provides an overview of Investec Bank plc’s

approach to risk management

• Pages 47, 241, 266, 280 and 281 which highlight

information on Investec Bank plc’s various stress testing

processes

• Pages 270 to 276 which specifically focus on Investec Bank

plc’s philosophy and approach to liquidity management

• Page 279 which provides detail on the recovery and

resolution plan

• Pages 280 to 284 which explain Investec Bank plc’s capital

management framework.

This forward‐looking viability statement made by the Board is

based on information and knowledge of Investec Bank plc 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 IBP’s control

that could cause Investec Bank plc’s actual results,

performance or achievements in the markets in which it

operates to differ from those anticipated.



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

DIRECTORS' REPORT CONTINUED

Events after the reporting date

The directors confirm that they have considered all material

events up to the date of approval of this report.


	Refer to note 52 of the annual financial statements.

Directors’ responsibility statement

The following statement, which should be read in conjunction

with the auditor’s report set out on pages 111 to 122,

distinguishes for its shareholder 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 Bank’s financial statements in accordance with

applicable United Kingdom law and regulations.

Company law requires the directors to prepare financial

statements for each financial year. Under that law the

directors have elected to prepare the financial statements in

accordance with International Financial Reporting Standards

(IFRS) in conformity with the Companies Act 2006. Under

company law, the directors must not approve the Group

financial statements unless they are satisfied that they give a

true and fair view of the state of affairs of the Group and the

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

Company for that period.

In preparing these 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 is insufficient to enable users

to understand the impact of particular transactions, other

events and conditions on the Bank’s financial position and

financial performance

• In respect of the Bank financial statements, state whether

IFRS in conformity with the Companies Act 2006 and IFRS

adopted pursuant to Regulation(EC) No. 1606/2002 as it

applies in the European Union have been followed, subject

to any material departures disclosed and explained in the

financial statements

• In respect of the parent company’s financial statements,

state whether IFRS is in conformity with the Companies Act

2006, 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 Bank will not

continue in business.

The directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the Bank’s

transactions and disclose with reasonable accuracy at any

time the financial position of the Bank and enable them to

ensure that the Bank’s financial statements comply with the

Companies Act 2006. They are also responsible for

safeguarding the assets of the Bank 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 responsible for the maintenance and

integrity of the corporate and financial information included on

the Company’s website.

The directors confirm, to the best of their knowledge:

• That the consolidated financial statements, prepared in

accordance with IFRS in conformity with the Companies Act

2006 and IFRS adopted pursuant to Regulation(EC)

No.1606/2002 as it applies in the European Union, give a

true and fair view of the assets, liabilities, financial position

and profit of the parent company and undertakings included

in the consolidation taken as a whole

• That the annual report, including the strategic report (being

section 1 and 2 of the annual report), includes a fair review

of the development and performance of the business and

the position of the Bank, together with a description of the

principal risks and uncertainties that they face

• That they consider the annual report, taken as a whole, is

fair, balanced and understandable and provides the

information necessary for shareholders to assess the Bank’s

position, performance, business model and strategy.

The strategic report, directors’ report and the financial

statements of the Bank, were approved by the Board of

Directors on 12 June 2026.

Signed on behalf of the board



Ruth Leas Chief Executive 12 June 2026	Vivek Ahuja Chair 12 June 2026



04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

Remuneration

report



04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

IN THIS SECTION



99	Remuneration report



04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

REMUNERATION REPORT



		Henrietta Baldock Chair of the IBP Remuneration Committee

		The Bank delivered a resilient performance during the year, reflecting the strength of our diversified client franchises in a volatile and lower-rate environment. We remain confident in the performance and strength of the business and the dedication of our people



Henrietta Baldock 12 June 2026
Meetings held in 2025/26
	Member since	Eligible to attend	Attended
Henrietta Baldock (Chair)	5 August 2021	5	5
Lesley Watkins	20 May 2019	5	5
John Reizenstein¹	2 April 2024	4	4
Vivek Ahuja	5 March 2025	5	5
1. John Reizenstein stepped downs as an IBP committee member on 29 January 2026

Key achievements in 2026
• Considered and approved the proposed 2026 remuneration approach for executive directors, senior management, Material Risk Takers (MRTs), control function employees and other employees • Approved the variable remuneration spend and overall remuneration approach for the financial year ended 31 March 2026 • Reviewed and approved the objectives for each executive director • Reviewed the diversity implications of the remuneration philosophy, policy and structures, including the diversity pay gap figures • Considered the interaction between culture and reward and the potential implications thereof	• Reviewed the non-standard remuneration structures within Investec Bank plc • Regularly considered external legislative and regulatory developments, including the Remuneration Reform published in October 2025, which focus on the remuneration for MRTs and implemented the changes with immediate effect. • Regularly considered the application of malus and/or clawback • Reviewed key new hires and exits, including the remuneration outcomes for leavers

Areas of focus in 2027
• Consider and approve the remuneration framework and objectives for the Chief Executive, in the context of the Group Executive Team framework • Consider and approve the remuneration framework and objectives for the IBP Executive Committee • Consider the belonging, inclusion and diversity implications of the remuneration philosophy, policy and frameworks including equal pay and the diversity pay gaps • Consider how our remuneration philosophy, policy, practices and approach support and align with our Sustainability initiatives, Group strategy and culture	• Continue to regularly consider the application of malus and/or clawback • Consider the alignment of remuneration policies and practices for all employees with the Chief Executive and executive team • Consider the risk implications of our remuneration policies and frameworks

100



04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

REMUNERATION REPORT CONTINUED

Introduction

It is my pleasure to present the remuneration report for the year

ended 31 March 2026, which describes the approach to

remuneration at the Bank.

The IBP Remuneration Committee has responsibility for

remuneration within the Bank and ensures compliance with

applicable legislation and governance requirements of the

jurisdictions within which the Bank operates, including its

obligations as an independent bank regulated by the UK

Prudential Regulation Authority (PRA) and Financial Conduct

Authority (FCA). While the IBP Remuneration Committee is

responsible for remuneration within the Bank, it reports key

items up to both the IBP Board and the DLC Remuneration

Committee.

Before we turn to look in more detail at key aspects of our

remuneration, I would like to reflect on the IBP Remuneration

Committee’s responsibilities, achievements and challenges

encountered over the past year, and to consider the key areas

of focus for the IBP Remuneration Committee in the year ahead.

Role of the Chair

The role of the Chair of the IBP Remuneration Committee

requires regular meetings with the Executives of the Bank. The

Chair also has interactions with internal and external specialist

advisers and with the Heads of Reward, People & Organisation,

Compliance and Risk, in order to keep knowledge up to date,

and to keep abreast of commercial, regulatory and legislative

developments and challenges facing the business. These

interactions are an essential part of the role of the Chair of the

IBP Remuneration Committee.

Composition

I served as Chair of the IBP Remuneration Committee and the

other members of the Committee were Lesley Watkins,

Vivek Ahuja and John Reizenstein. Lesley, Vivek and I served

for the full year, John stepped down on 29 January 2026.

The IBP Remuneration Committee is composed of independent

non-executive directors, with membership designed to provide

the breadth of experience necessary for the members to

consider the issues that are presented to the IBP Remuneration

Committee.

I also served as Chair of the DLC Remuneration Committee for

the full year. This has enhanced the interconnection between

the IBP Remuneration Committee and the DLC Remuneration

Committee.

Committee responsibilities

The IBP Remuneration Committee is responsible for considering

the remuneration arrangements of the executive directors,

senior employees including MRTs, and that of the wider

workforce of the Bank. The remuneration framework,

performance measures and metrics for the IBP Chief Executive

Ruth Leas, who is a Person Discharging Managerial

Responsibilities (PDMR) of the Investec Group, are determined

by the DLC Remuneration Committee following consultation

with the IBP Remuneration Committee. The annual remuneration

for the Chief Executive is then reviewed by the IBP

Remuneration Committee, with a recommendation provided to

the DLC Remuneration Committee.

The IBP Remuneration Committee receives reports from the IBP

Reward Committee, which has been mandated to oversee the

reward framework for Investec Bank plc employees, and act as

the Malus and Clawback Committee to apply the Bank’s policy

in this regard.

The membership of the Remuneration Committee comprised

independent non-executive directors.

Any matters relevant to the Bank were communicated to the

Bank, in part, through having the Chair of the DLC Remuneration

Committee, myself, as the Chair of the IBP Remuneration

Committee.

The IBP Remuneration Committee reviews and recommends the

remuneration for the executive directors and senior employees

of the Bank to the DLC Remuneration Committee. The policy on

remuneration packages for non-executive directors is agreed

and determined by the Investec Group Board.

The past year in focus

The past year was another challenging year for the IBP

Remuneration Committee, with consideration to the application

of regulatory changes. The Committee ensured they focused on

balancing the interests of various stakeholders in considering

the approach to remuneration, in particular variable

remuneration payouts.

As outlined in the corporate governance section, the Board and

the IBP Remuneration Committee have a strong focus on

culture. It has been frequently documented, including by our

regulators, that remuneration structures and practices can and

do have a significant impact on the culture within organisations.

Therefore this potential effect has a significant bearing on the

approach and deliberations of the IBP Remuneration Committee

when reviewing remuneration processes and practices within

the Bank.

David Germain is the designated Non-Executive Director for

workforce engagement for the Bank. Activities during the year

have included culture dialogues, diversity and inclusion

programmes, talent programmes, town halls, and question and

answer sessions.

A quarterly workforce engagement synthesis meeting is also

held with David as the designated Non-Executive Director for

workforce engagement for the Board of Investec Bank plc to

ensure that the matters of interest to our people are considered

across the Group.

The IBP Remuneration Committee also oversaw the details and

publication of the Bank’s annual pay gap report, which includes

the ethnicity pay gap.


	Refer to the pay gap report published on the Investec website for full details .

The IBP Remuneration Committee is committed to ensuring

further improvement in the future. In addition, the Bank is a

signatory to the Women in Finance Charter, and in doing so has

committed to, among other items, linking the pay of senior

executives to delivery against the set targets. We exceeded our

2022 Charter Targets and have targets set for 2027, full details

are disclosed on our website.

Throughout the year, the IBP Remuneration Committee

reviewed the proposed approach to variable remuneration for

the financial year ending 31 March 2026 and agreed the final

approach in May 2026.

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REMUNERATION REPORT CONTINUED

We are confident that the approach taken has enabled us to

invest in appropriate strategic initiatives, reward those who

performed strongly, retain our key people and further

strengthen the alignment with the Bank, the Group and our

shareholder.

Performance and outcomes for the year

The Bank delivered a resilient performance during the year,

reflecting the strength of our diversified client franchises in a

volatile and lower-rate environment.

There was strong revenue growth across our key client

franchises as we continued to successfully execute our client

acquisition strategies to build scale and relevance in the UK and

other markets in which we operate.

Variable remuneration for the 2026 year was calculated using

the standard Economic Value Added (EVA) calculation.

Investec Bank plc reported an adjusted operating profit of

£486.3 million for the year, our people have delivered a strong

performance and have been rewarded accordingly. We

considered the needs of all of our stakeholders, including our

shareholder, when determining the remuneration spend for the

year. We agreed the following principles to guide our approach:

• Ensure we are rewarding for performance

• Protect our business (so we have a sustainable, viable

business in the long term)

• Ensure we retain those individuals who are deemed key to

the future strategy of the business

• Mitigate flight risk and potential impact to the franchise

• Account for external factors, including the views of our

shareholder and regulators

• Ensure we are sensitive to and supportive of the communities

in which we operate.

Changes in remuneration regulations

The PRA and FCA published a joint consultation paper in

November 2024 on changes to regulatory remuneration

requirements in the UK. In October 2025 the final regulatory

position was published, with changes intended to simplify UK

bank pay rules. The committee welcomes the changes and

simplification, therefore the changes were implemented with

immediate effect.

Looking ahead

We remain confident in the performance and strength of our

business, the dedication of our people and the optimised scale,

resilience and technology within the business.

The IBP Remuneration Committee will continue to focus in the

coming year on our remuneration practices, with particular

attention being given to ensuring that our philosophy, policy

and approach support and align with our culture, and our

approach to belonging, inclusion and diversity.

With effect from October 2023 the UK PRA and FCA provided

flexibility to permit firms, including Investec, to set maximum

ratios between variable and fixed pay for MRTs as they

consider to be appropriate, no longer limited to a ratio of 2:1.

The variable to fixed pay maximum ratio(s) for UK MRTs will be set

by the IBP Remuneration Committee from time to time taking into

account market practice, applicable rules and guidance from the

UK PRA and FCA, enabling Investec to reduce fixed pay costs over

time and increase the amount of pay subject to performance. The

MRT variable to fixed pay maximum ratio for the 2025/26 year was

5:1. MRTs of Investec’s EU entities or branches will remain subject

to the ratio of 2:1 for as long as the relevant EU regulations continue

to be in place.

The IBP Remuneration Committee believes that the Bank’s

approach to executive remuneration is designed to incentivise

exceptional performance from its Executives and employees,

and ensure they are rewarded appropriately for performance.

The Bank is also focused on ensuring that its approach to

reward is fair in all aspects, and that all stakeholders are taken

into account when determining how executives and employees

are rewarded.

The IBP Remuneration Committee considers that there is strong

alignment between the Bank’s remuneration structure and the

Bank’s stakeholders, especially with vesting periods of share

awards granted to employees which generally vest over five

years.

Conclusion

The IBP Remuneration Committee has had another positive

year. We are confident that the steps we have taken have

allowed us to effectively reward our people who have

performed strongly, retain our key people and ensure strong

alignment with the Bank, the Group and our shareholder.

Henrietta Baldock

Chair, IBP Remuneration Committee

12 June 2026

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04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

REMUNERATION REPORT CONTINUED

Remuneration overview

Inside this section

Remuneration philosophy and approach for all employees

Remuneration policy

Variable remuneration

Other remuneration structures

Governance

Directors’ emoluments

Key Management Personnel

Remuneration philosophy and approach

for all employees

Our remuneration approach is designed to foster an exceptional

performance culture that enables an entrepreneurial spirit as

well as a strong sense of ownership. We use remuneration to

help attract and retain culturally aligned, smart, innovative and

talented people who adhere and subscribe to our culture, risk

appetite, values and philosophies, and to recognise and drive

out of the ordinary performance.

The Bank’s remuneration levers work to:

• Provide a sense of security, so people feel free to innovate,

challenge and influence

• Motivate people to deliver exceptional performance

• Give people a sense of ownership, so they feel invested in

the organisation.

Our remuneration approach reflects our culture; it is an honest

and challenging process that is tailored to individual roles and

acknowledges personal and team contributions. We reward

people for the contribution they make through payment of a

fixed package, variable performance bonus and ownership

through a share incentive scheme. We strive to provide a

working environment that stimulates extraordinary performance

so that executive directors and employees may be positive

contributors to our clients, our communities and the Group.

When determining levels of variable remuneration, the Bank

considers the overall level of performance, culture and risk

events in the year. The proportion of variable to fixed

remuneration is carefully monitored to ensure compliance with

regulatory requirements. All incentives are subject to the Bank’s

performance adjustment policy. This provides the Bank with the

ability to reduce, revoke or recover variable remuneration in

respect of a risk, control or conduct issue, event or behaviour.

Given IBP executive directors’ and additional senior Bank

executive incentives are deferred for up to five years, the Bank

does not believe that the incentive structures inadvertently

motivate irresponsible or short-term behaviour.

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OVERVIEW OF REMUNERATION FOR ALL EMPLOYEES


	Element		Operation – Bank

	Salary		• Paid monthly in cash


	Role-based Allowance		• Role-based allowances may be awarded to certain MRTs to reflect their roles and ensure an appropriate balance between fixed and variable remuneration – Paid monthly in cash – These are fixed, according to the nature of each role, and can only be amended in certain limited circumstances (e.g. a material increase in organisational responsibilities)


	Benefits and pension		• Benefits are provided, with the details depending on local market practice – Employees have access to country-specific, Company-funded benefits such as pension schemes, private medical insurance, permanent health insurance, life insurance and cash allowances – Pension and benefit levels differ globally to be competitive in different markets, and there is no single pension level across the Group – Bank executive directors have access to the same benefits as Bank employees mentioned above, being Company-funded benefits such as pension schemes, private medical insurance, permanent health insurance and life insurance


	Short-term incentive		• Discretionary performance bonuses based on business and individual performance • The amounts available to be distributed are based on the Bank-wide risk-adjusted EVA model which is, at a high level, based on revenue less risk-adjusted costs, and overall affordability • At an individual level the bonus allocations are determined based on performance against qualitative and quantitative factors. Qualitative measures include adherence to culture, including supporting belonging, inclusion and diversity, client outcomes, market context, contribution to performance and brand building, attitude displayed towards risk consciousness and effective risk management


			Non-Material Risk Takers: • For employees who are not MRTs, all bonus awards exceeding a pre determined threshold are subject to 60% deferral in respect of the portion exceeding the threshold • The deferred amount is awarded in the form of: short-term share awards vesting in three equal tranches over a period of approximately three years; or cash released in three equal tranches over a period of approximately three years • Deferred bonuses are subject to malus conditions


			Material Risk Takers: Bonus awards are subject to deferral as follows: • Where variable remuneration is less than £660,000, 40% to be deferred • Where variable remuneration is greater or equal than £660,000, 40% of the amount below £660,000 to be deferred and 60% of the amount above £660,000 to be deferred • A minimum of 50% of overall variable remuneration should be delivered in shares • The deferred elements vest over a period of four years • Up-front shares will be subject to 12 months retention period post vesting • All variable remuneration is subject to clawback • All deferred variable remuneration is subject to malus • MRTs were subject to the 5:1 maximum ratio of variable to fixed remuneration for the 2025/26 year


	Other		• Where employees in the audit, risk and compliance functions support a specific area of the business, their variable remuneration is set independently of the business area that they oversee • The non-executive directors are not eligible to participate in any of the Group’s incentive plans or to join any pension scheme. They do not receive any taxable benefits over and above reimbursement for agreed travel and subsistence

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REMUNERATION REPORT CONTINUED

Consideration of all employee remuneration

The IBP Remuneration Committee reviews changes in

remuneration arrangements in the workforce as we recognise

that all our people play an important role in the success of the

Bank. The Bank is committed to creating an inclusive working

environment and to rewarding our employees throughout

the organisation in a fair manner, and the IBP Remuneration

Committee reviews our practices around creating a fair, diverse

and inclusive working environment.

In making decisions on executive pay, the IBP Remuneration

Committee considers wider workforce remuneration and

conditions to ensure that they are aligned on an ongoing basis.

Effective from 2019 the Board appointed a designated non-

executive director to represent employees in the boardroom.

The Board believes that employees throughout the Bank should

be able to share in the success of the Bank. As such, as

outlined in the table on the prior page, in addition to the fixed

pay element, all of our employees have access to market

relevant benefits, and all employees are eligible to be

considered for an annual bonus after a short initial qualifying

period. The Board believes strongly in share ownership among

our employees and therefore all employees are, in principle,

eligible for, and many participate in, our long-term incentive

scheme.

Remuneration policy

All remuneration payable (salary, benefits and incentives) is

assessed at a Bank, business unit and individual level. This

framework seeks to balance both financial and non-financial

measures of performance to ensure that the appropriate factors

are considered prior to making awards, and that the appropriate

mix of cash and share-based awards are made.

Determination of remuneration levels for

employees

Qualitative and quantitative considerations form an integral part

of the determination of overall levels of remuneration and total

compensation for each individual.

Factors considered for overall levels of remuneration in the

Bank include:

• Financial measures of performance

– Risk-adjusted EVA model

– Affordability

• Non-financial measures of performance

– Market context

– Specific input from the risk and compliance functions.

Factors considered to determine total compensation for each

individual include:

• Financial measures of performance

– Achievement of individual targets and objectives

– Scope of responsibility and individual contributions

• Non-financial measures of performance

– Alignment and adherence to our culture and values,

including supporting belonging, inclusion and diversity

– The level of cooperation and collaboration fostered

– Development of self and others

– Attitude displayed towards risk consciousness and

effective risk management

– Adherence to internal control procedures

– Compliance with the Bank’s regulatory requirements and

relevant policies and procedures, including treating

customers fairly

– The ability to grow and develop markets and client

relationships

– Multi-year contribution to performance and brand building

– Long-term sustained performance

– Specific input from the risk and compliance functions

– Attitude and contribution to sustainability principles and

initiatives.

Remuneration levels are targeted to be commercially

competitive on the following basis:

• The most relevant competitive reference points for

remuneration levels are based on the scope of responsibility

and individual contributions made

• The IBP Remuneration Committee recognises that the Bank

operates an international business and competes with both

local and international competitors in each of our markets

• Appropriate benchmarks of industry and comparable

organisations’ remuneration practices are reviewed regularly

• While benchmarking information is utilised, it is considered

along with other relevant factors, including internal

comparators, the scope and complexity of the role and the

individual’s contribution.

Variable remuneration

All employees are eligible to be considered for a discretionary

annual bonus, subject inter alia to the factors set out above in

the section dealing with the determination of remuneration

levels. The structure of short-term incentives reflects differing

regulatory requirements for the different legal entities and also

differing competitive pressures in each distinct market in which

the Bank operates.

Variable short-term incentive

Risk-weighted returns form the basis for variable

remuneration levels in addition to other financial, non-

financial and risk factors that are considered


	In our ordinary course of business, we face a number of risks that could affect our business operations, as highlighted on page 45.

Risk management is independent from the business units and

monitors, manages and reports on the Bank’s risk to ensure it is

within the stated risk appetite, as mandated by the Board of

Directors through the IBP Board Risk and Capital Committee

(IBP BRCC). The Bank monitors and controls risk exposure

through credit, market, capital, liquidity, operational and legal

risk divisions/forums/committees.

The Bank’s central credit, investment and risk forums, IBP

Executive Risk Review Forum (Review ERRF) and IBP Executive

Risk Committee (IBP ERC) provide transaction approval

independent of the business unit on a deal-by-deal basis.

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REMUNERATION REPORT CONTINUED

EVA model: allocation of performance-related bonus pool

Our business strategy and associated risk appetite, together

with effective capital utilisation, underpin the EVA annual bonus

allocation model.

Business units share in the annual bonus pool to the extent that

they have generated a realised return on their allocated risk-

adjusted capital base in excess of their target return on equity.

Many of the potential future risks that the firm may face are

avoided through ensuring that the bonus pools are based on

actual realised risk-adjusted profits.

The bonus pools for non-operating business units (Business

Enablement) are generated by a levy payable by each business

unit on its operating profit. This bonus pool may, in some years,

be supplemented by a discretionary allocation as determined by

the executive, and agreed by the IBP Remuneration Committee.

In terms of our EVA process, if business and individual

performance goals are exceeded, the variable element of the

total remuneration package is likely to be substantially higher

than the relevant target benchmark. This ensures that overall

remuneration levels have the potential to be positioned at the

upper quartile level for superior performance, in line with our

overarching remuneration policy.

In circumstances where a business unit does not have an EVA

pool (e.g. when it incurs a loss or when it is a start-up),

the executive and IBP Remuneration Committee, with support

from the Group and the DLC Remuneration Committee, may

consider a discretionary allocation to allow for a bonus for those

staff who were expected to contribute to the longer-term

interests of that business unit or the Bank, despite the lack of

EVA profits in the short term, e.g. control functions, support

staff and key business staff.

Where employees in the Audit, Risk and Compliance functions

support a specific area of the business, their variable

remuneration is set independently of the business area that

they oversee. The level of rewards for these employees

are assessed against the overall financial performance of the

Bank; objectives based on their function; and compliance with

the various non-financial aspects referred to above.

Key elements of the bonus allocation process are set out below:

• A fixed predetermined percentage of any return in excess of

the EVA hurdle accrues to the business units’ EVA pool

• A portion of the total EVA pool is allocated towards the bonus

pool for Business Enablement

• These bonus pools are reviewed regularly by the appropriate

management and non-executive committees to ensure that

awards are only paid when it is appropriate to do so,

considering the Group-wide performance against non-

financial risk (both current and future) and compliance-based

objectives and in order to ensure that the payment of such

discretionary bonuses does not inhibit the Bank’s ability to

maintain or raise its capital levels. All users of capital operate

within a strict philosophical framework that requires

a balancing of risk and reward and that is designed to

encourage behaviour in the interests of all stakeholders as

opposed to just employees

• The EVA pools are calculated centrally by the Bank’s finance

function and are subject to audit as part of the year-end audit

process

• Once the EVA pools are finalised, line managers in each

business unit will make discretionary bonus recommendations

for each team member taking into consideration qualitative

and quantitative criteria (as mentioned above)

• Bonus recommendations are then subject to an extensive

geographic review involving the People & Organisation

function and the executive

• Thereafter, these recommendations are subject to a global

review by executive management before the IBP

Remuneration Committee and DLC Remuneration Committee

review and approval process.

Deferral of annual bonus awards: other than Material Risk

Takers within the Bank

All annual bonus awards exceeding a predetermined hurdle

level are subject to 60% deferral in respect of the portion that

exceeds the hurdle level. The deferred amount is awarded in

the form of: forfeitable share awards vesting in three equal

tranches over approximately three years; or cash released in

three equal tranches over approximately three years. Where

shares are being awarded to employees as part of the deferral

of performance bonus awards, these are referred to as short-

term share awards. These awards are made under the terms of

our existing long-term incentive plans. The entire amount of the

annual bonus that is not deferred is payable up-front in cash.

Deferral of variable remuneration awards: Material Risk

Takers within the Bank

• MRTs include senior management, risk takers, staff engaged

in certain central functions and any other employees whose

professional activities have a material impact on the Bank’s

risk profile

• Individual awards to MRTs are determined based on EVA

pools in the same manner as is applicable to all staff (as set

out above), and subject to the Bank’s remuneration policy and

governance processes (also set out above)

• Variable remuneration awards to executive directors of the

Bank (excluding executive directors who are employees of a

separately regulated firm) when variable remuneration is

greater or equal than £660,000, 40% of the amount below

£660,000 to be deferred and 60% of the amount above

£660,000 to be deferred

• All variable remuneration awards to other MRTs where total

variable remuneration is less than £660,000 are subject to

40% deferral

• A minimum of 50% of overall variable remuneration should be

delivered in shares

• The deferred elements vest over a period of up to five years

• The up-front short-term share awards vest immediately, but

are only released after a period of 12 months for all MRTs.

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REMUNERATION REPORT CONTINUED

Malus and clawback within the Bank

Employees who leave the employment of the Bank prior to the

vesting of deferred incentive awards will lose their deferred

bonus forfeitable shares other than as a result of retirement,

subject to the Bank’s normal good leaver provisions and

approval process in exceptional cases.

The deferred share and cash awards for MRTs are subject to

malus and clawback adjustments. The assessment of whether

any malus adjustment should be made to an individual’s

unvested awards will be undertaken in line with the IBP

Performance Adjustment Policy and within the following

framework:

• Where there is reasonable evidence of employee

misbehaviour

• Where the firm or business unit suffers a material failure of

risk management

• Other relevant events.

In these cases, management and the IBP Remuneration

Committee will take into account the following factors in

determining the extent (if any) to which the quantum of

deferred awards should be subject to clawback:

• The extent to which the individual had control over the

outcome

• Failure of internal control systems

• The impact of the risk profile of the relevant member of the

Bank or business unit

• Any violation of the Bank’s culture and values

• The long-term impact of the outcome on the Bank or relevant

business unit

• External factors including market conditions

• Any other relevant factors.

Specifically for short-term share awards, where profits which

were used to determine the original bonus are materially

reduced after the bonus determination, the awards will be

recalculated for such reduction and consideration will be given

to malus and/or clawback (if any) to the extent that the prior

period’s EVA pool is reduced and the extent to which it affected

each employee.

The deferred share awards of non-MRTs are subject to malus

adjustments.

Long-term incentive: share awards

The Bank has a number of share option and long-term share

incentive plans that are designed to align the interests of

employees with those of shareholder and long-term

organisational interests, and to build material share ownership

over the long term through share awards. These share option

and incentive plans are also used in appropriate circumstances

as a mechanism for retaining key talent.

Awards are made in the form of forfeitable share awards other

than for countries where the taxation of such awards is penal. In

these cases awards are made in the form of conditional awards

or market strike options.

In principle all employees are eligible for long-term incentives.

Awards are considered by the IBP Remuneration Committee

and made only in the 42-day period following the release of

Investec Group’s interim or final financial results in accordance

with the Investment Association Principles of Remuneration.

These awards comprise three elements, namely:

• ‘New starter’ awards may be awarded on a discretionary

basis to new starters and are generally linked to salary levels

• ‘General allocation’ awards are similar to new starter awards

and may be awarded on a discretionary basis to employees

who have not had any other share awards in recent years

• ‘Top-up’ awards are made at the discretion of line

management primarily to ensure multi-year performance

and long-term value generation.

All proposed long-term incentive awards are recommended by

business unit management and approved by the DLC

Remuneration Committee and the IBP Remuneration Committee

before being awarded.

Forfeitable shares for non-MRTs are subject to one-third

vesting after approximately three, four and five years, which we

believe is appropriate for our business requirements. Long-term

incentive awards to MRTs are subject to performance

conditions and vest over a period of three to five years, as

determined by regulatory requirements. The awards are

forfeited on termination, but ‘good leaver’ discretion is applied in

exceptional circumstances.

Retention is addressed through the long-term nature of awards

granted, which provides an element of ‘lock-in’ for employees

throughout the vesting period and allows for multi-year

contribution to performance and brand building.


	For further information on the share option and long- term share incentive plans in operation and in which the directors are eligible to participate, refer to the Investec Group’s 2026 Remuneration Report.

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Other remuneration structures

Guaranteed variable remuneration

Guaranteed variable remuneration comprises all forms of

remuneration whose value can be determined prior to award.

This includes, but is not limited to sign-on, buy-out and

guaranteed awards. Guaranteed variable awards will not be

awarded, paid or provided to any individual within the Bank

unless they are:

• Exceptional

• In the context of hiring new staff

• Limited to the first year of service.

The IBP Remuneration Committee is required to pre-approve

individual remuneration packages (including new joiner,

retention and severance remuneration) for the following:

• IBP executive directors, in consultation with the DLC

Remuneration Committee

• IBP PDMRs

• IBP Senior Managers as defined under the Senior Managers

and Certification Regime (SMCR).

All other forms of guaranteed remuneration above pre-

determined thresholds are reported to the IBP and DLC

Remuneration Committees.

Retention awards

The Bank only pays retention awards to serving staff in

exceptional circumstances. In all such cases, the People &

Organisation and Reward functions shall review proposed

payments to ensure that they are in line with this policy and any

other relevant regulation. Additionally, for MRTs, the IBP

Remuneration Committee shall review and approve all proposed

awards. Circumstances where the Bank will consider making

retention awards include the case of a major restructuring of

the Group or any subsidiary or one of its business units (for

instance in the start-up of a new business line, or the closure of

a business line), or where the retention of individuals is essential

to the completion of the task. A valid business case for the

retention of the individual must be presented to the IBP

Remuneration Committee in order for a retention award to be

approved. It is required that the PRA be notified prior to a

retention award being made to an MRT, and their guidance

sought on the appropriateness of retention awards for certain

other individuals.

Severance awards

Severance payments for the early termination of a contract are

at executive management’s absolute discretion and must reflect

performance achieved over time and be designed in a way that

does not reward failure. Severance payments for MRTs in the

Bank are subject to all necessary regulatory requirements, and

approval by the IBP Remuneration Committee.

Other remuneration structures

On occasion, the Bank may utilise other remuneration structures

which are not mentioned above, in certain pre-agreed

circumstances such as are required by our clients or market

practice.

Discretionary extended pension benefits policy

Extended pension payments are very rarely made and any such

proposed payments to employees upon reaching retirement are

required to be reviewed and approved by the IBP Remuneration

Committee for alignment with appropriate laws, policy and

regulation.


	Governance

Compliance and governance statement

The IBP Remuneration Report and Investec Group Remuneration

Report comply with the provisions of Schedule 8 of the Large

and Medium-sized Companies and Groups (Accounts and

Reports) (Amendment) Regulations 2008 (as amended), the UK

Corporate Governance Code, the UK Companies Act 2006, the

Rules of the UK Listing Authority, the UK Financial Conduct

Authority rules, the PRA and FCA Remuneration Code and Pillar

3 disclosure requirements.

Scope of our remuneration policy

The Bank aims to apply remuneration policies to executive

directors and employees that are largely consistent across the

Bank, but recognises that certain parts of the Bank are

governed by local regulations that may contain more onerous

requirements in certain respects.

In those cases, the higher requirements are applied to that part

of the Bank. This is relevant to Investec Bank plc and its

subsidiary companies that are subject to the PRA Remuneration

Code (as a level 2 organisation as defined therein), and in

particular in relation to MRTs. Additionally, where any aspect of

our remuneration policy contravenes local laws or regulations,

the local laws or regulations shall prevail.

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04	Remuneration report	Investec Bank plc Annual Financial Statements 2026

REMUNERATION REPORT CONTINUED

Directors’ emoluments (audited)


	2026 £’000	2025 £’000
Aggregated emoluments (excluding pension contributions)	10 477	10 643
Contributions to defined contribution scheme	147	137
	10 624	10 780
Number of directors in defined contribution scheme	4	4
Number of directors in closed defined benefits scheme	—	—

Included in aggregate director emoluments for the current year are performance awards to IBP executive directors. Performance

awards comprise £1 745 224 in up-front cash, £709 416 in up-front shares (vesting immediately and subject to 12 months’ retention

thereafter) and £171 000 in deferred short-term share awards (vesting equally over four years, subject to regulatory requirements).

Fani Titi was the highest paid director. Emoluments of the highest paid director were £3 775 756 (2025: £4 322 384) excluding

£33 810 of pension contribution to the defined contribution scheme, emoluments disclosed for Fani Titi is for services rendered as

the Executive Director of Investec Group. The performance awards of the highest paid director comprise £332 724 in up-front cash

and £617 916 in up-front shares (vesting immediately and subject to 12 months’ retention thereafter). The emoluments exclude

long-term incentives with vesting subject to achievement against future performance conditions.

All four executive directors exercised share options during the financial year; this includes Fani Titi as the highest paid director.

Fani Titi was granted shares in respect of qualifying services under a long-term incentive scheme. Please refer to the Investec

Group Remuneration Report for further details.


	Key Management Personnel (audited)

IAS 24 ‘Related party disclosures’ requires the following additional information for key management compensation.


Compensation of key management personnel	2026 £’000	2025 £’000
Short-term employee benefits	14 528	17 368
Other long-term employee benefits	7 672	7 275
Share-based payments	3 066	2 828
Total	25 266	27 471

Shareholdings, options and other securities of key management personnel


	2026	2025
Number of options held over Investec plc or Investec Limited ordinary shares under employee share schemes	7 074	7 775


	2026	2025
Number of Investec plc or Investec Limited ordinary shares held beneficially and non-beneficially	2 026	2 071

For the purposes of the UK’s Disclosure and Transparency Rules, members of the Investec Group Executive Team have been

designated as PDMR. We have defined key management personnel as the executive directors of Investec Bank plc plus those

classified as PDMRs. The PDMRs are the Directors of Investec Bank plc and Mark Currie (Investec Group Chief Risk Officer), Lesley-

Anne Gatter (Investec Group Head of People and Organisation),Marc Kahn (Investec Group Chief Strategy Officer), Abey

Mokgwatsane (Investec Group Chief Marketing Officer), Cumesh Moodliar (Chief Executive Investec Bank Limited), Nishlan Samujh

(Investec Group Finance Director), Stuart Spencer (Investec Group Chief Operations Officer) and Lyndon Subroyen (Investec Group

Head of Digital and Technology).

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

Annual

financial

statements

Our performance is a testament to the continued

execution of our strategy. This section contains

Investec Bank plc’s financial statements.

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IN THIS SECTION



111	Independent auditor’s report to the members of Investec Bank plc


123	Consolidated Income Statement


124	Consolidated Statement of Total Comprehensive Income


125	Balance Sheets


127	Cash Flow Statements


128	Statements of Changes in Equity


132	Accounting policies


148	Notes to the Financial Statements


240	Notes to risk and capital management

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Report on the audit of the financial statements

Opinion



	In our opinion: • the financial statements of Investec Bank plc (the ‘parent company’) and its subsidiaries (the ‘group’) give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 March 2026 and of the group’s profit for the year then ended; • the group financial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB); • the parent company financial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the consolidated income statement;

• the consolidated statement of total comprehensive income;

• the group and parent company balance sheets;

• the group and parent company statements of changes in equity;

• the group and parent company cash flow statements;

• the material accounting policy information; and

• the related notes 1 to 53 and 65 excluding the risk and capital management disclosures in notes 54 to 64 marked as unaudited.

The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law,

United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the IASB. The financial

reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and

United Kingdom adopted international accounting standards and as applied in accordance with the provisions of the Companies

Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our

responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements

section of our report.

We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to

listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The

non-audit services provided to the group and the parent company for the year are disclosed in note 7 to the financial statements.

We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the group or the parent

company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Summary of our audit approach



	Key audit matters			The key audit matters that we identified in the current year were: • Provision for expected credit losses (“ECL”) on loans and advances to customers • Valuation of Level 3 equity investments and associated unrealised income • Provision for regulatory and litigation matters In addition to identifying similar key audit matters to the three above, two other key audit matters were identified by the predecessor auditor and described in their audit report for the year ended 31 March 2024. In respect of these items: • The gain on the combination of Investec Wealth & Investments Limited • With Rathbones Group plc is not considered as a key audit matter in the current year, as this related to the acquisition that occurred in the prior year. • IT systems and controls impacting financial reporting is not considered to be a key audit matter as it was not one of the areas which had the most significant impact on our overall audit strategy, allocation of resources or direction of efforts of the engagement team. Within this report, key audit matters are identified as follows: Newly identified Increased level of risk Similar level of risk Decreased level of risk


	Materiality			The materiality that we used for the group financial statements was £17 million which was determined on the basis of 3.9% of profit before taxation.


	Scoping			Our audit work was performed on components which represented 98% of group’s revenue, 98% of the group’s profit before taxation and 92% of the group’s net assets.


	Significant changes in our approach			Previously included in our ‘provisions for regulatory and litigation matters’ was ‘motor commission review’. In the current year this is no longer part of our key audit matter due to the Financial Conduct Authority (“FCA”) publishing rules on 30 March 2026 for the redress scheme in PS26/3. Subject to the resolution of legal challenge, these rules establish a framework for management to estimate the likely redress exposure and therefore reduce the judgement and estimation uncertainty in the provision calculation.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the group’s and the parent 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.

In relation to the reporting on how the group has applied the UK Corporate Governance Code, we have nothing material to add or

draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of

this report.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Key audit matters

The key audit matters communicated below are matters that, in our professional judgement, were of most significance in our audit

of the financial statements of the current year and included the most significant assessed risks of material misstatement (whether

or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy;

the allocation of resources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion

thereon, and we do not provide a separate opinion on these matters.

Provision for expected credit losses (“ECL”) on loans and advances to customers



	Key audit matter description			The group had gross loans and advances to customers subject to ECL amounting to £17,202 million (2025: £16,418 million) with a total ECL provision of £207 million (2025: £176 million) as at 31 March 2026, disclosed in note 24. The estimation of ECL provisions in the group’s loan portfolios is inherently uncertain and requires significant judgements and estimates. We therefore consider this to be a key audit matter. The ECL is measured both collectively by portfolio and individually for larger exposures in Stage 3. The collective assessment of ECL requires the use of statistical models incorporating loss data and assumptions on the recoverability of customers’ outstanding balances. These models use a number of significant judgements to calculate the estimate by applying a probability of default (“PD”), exposure at default (“EAD”) and a loss given default (“LGD”), taking account of collateral held or other loss mitigants, discounted using the effective interest rate. Individually assessed provisions for Stage 3 exposures include significant judgement, including the valuation of collateral and the value and timing of other relevant cashflows in the recovery strategy. We identified three specific areas in relation to ECL that require significant management judgement or relate to assumptions to which the overall ECL provision is particularly sensitive. i. Significant increase in credit risk (“SICR”) for corporate loans: The assessment of whether there has been a significant increase in credit risk from the date of origination of the exposure to 31 March 2026 requires management judgement. There is a risk that management’s assessment of whether a SICR has occurred is inaccurate or that the SICR criteria is incorrectly applied. ii. Macro-economic scenarios: As indicated in the “key management assumptions” on page 146, the group develops a range of forward-looking probability weighted macro-economic scenarios. There is significant judgement involved in determining the probability weighting of each scenario and the assumptions and characteristics of each scenario applied. There is a risk that the probabilities are inappropriate, or that management fail to update the weightings or scenarios in a timely manner to reflect changes in the economic outlook. iii. The valuation of collateral and determination of the values and timing of other significant cash flows for individually assessed corporate Stage 3 loans: Management either employs collateral valuation experts or applies their own judgement to estimate the recoverability of collateral and other cash flows on a case-by- case basis for individually assessed loans. The use of incorrect or inappropriate assumptions in estimating these recoveries could lead to a material misstatement of the ECL. This key audit matter is discussed in the Audit Committee report on page 82. The financial statement disclosures with respect to this key audit matter are contained in the following notes or reports: • Accounting policies, “Impairment of financial assets held at amortised cost or FVOCI” and “Key management assumptions”; • Note 6, "Expected credit loss impairment charges"; • Note 24, "Loans and advances to customers and other loans and advances"; • Note 54, “Credit risk”; and • Note 55, “Additional credit risk information”.

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



	How the scope of our audit responded to the key audit matter			We performed the following audit procedures: • Obtained an understanding of the financial controls over the ECL provision, focusing on significant management assumptions and judgements within the ECL calculation. This included a thorough review of management’s data, methodologies, and assumptions used in the ECL models, and a critical assessment of the model governance framework, encompassing controls over the implementation of new models and changes to existing ECL models; • Tested the completeness and accuracy of key data inputs used in the ECL models. This involved agreeing a sample of data inputs to source information from internal systems and external data providers. Furthermore, we independently recalculated ECL estimates, including PD, EAD, and LGD parameters, to validate management's assumptions and the appropriateness of judgements applied; • Assessed the appropriateness of ECL-related disclosures for exposures in the financial statements for compliance with IFRS 7 Financial Instruments: Disclosures. We also evaluated the consistency between the credit risk disclosures and the ECL information tested during our audit procedures (including data, models, estimates, and macro-economic forecasts); and • Performed a comprehensive assessment of the overall reasonableness of the ECL provision and coverage ratio (ECL provision to gross advances), considering the credit quality of the group portfolios, risk profile, and the impact of current economic conditions on the group’s customers. This included a detailed analysis at both an overall and stage-specific level. Where available, we supplemented this assessment with peer benchmarking to evaluate staging and provision coverage levels. To challenge the group’s SICR assessment, we: • Supported by our credit specialists, evaluated the group’s SICR policy and assessed whether it complies with IFRS 9 Financial Instruments (“IFRS 9”); • On a sample basis, tested the completeness and accuracy of the data used in applying the quantitative and qualitative criteria in the SICR assessment to assess whether loans were assigned to the correct stage; and • Performed an independent staging assessment for a sample of loans in Stage 1 and 2, to determine whether they were appropriately recorded in the correct stage. To challenge the group’s macro-economic scenarios and the probability weightings applied, we: • Supported by our economic specialists, challenged the appropriateness of the macro-economic scenarios and the weightings assigned to them. We assessed the selection of economic variables and forecasts under the scenarios in light of the current economic environment as at 31 March 2026; and • Supported by our credit specialists, assessed the methodology and implementation of models used to translate the economic scenarios and forecasts into expected credit losses, using a combination of recoding and reperformance. To challenge the group’s assessment of collateral valuation and other significant cash flows for a sample of individually assessed loans, we: • Supported by our property valuation specialists and fair value specialists, tested a sample of collateral valuations for individually assessed loans by reference to available market data; • Evaluated the appropriateness of recovery strategies identified, including an assessment over the reasonableness of the probability weightings applied; • Challenged the assumptions relating to the timing of cash flows resulting from the sale of collateral, debt settlement agreements or refinance agreements; and • Independently recalculated the ECL provision.


	Key observations			Based on our audit procedures performed as detailed above, we concluded that the ECL provisions on loans and advances to customers are reasonable and recognised in accordance with the requirements of IFRS 9.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Valuation of level 3 equity investments and associated unrealised income



	Key audit matter description			At 31 March 2026, the fair value of the investment portfolio totalled £202 million (2025: £212 million), including Level 3 assets of £201 million (2025: £210 million). Valuation of Level 3 investments includes significant subjectivity, as a key part of the value is determined by reference to unobservable inputs. This is most challenging for unlisted equity investments where the valuation is reliant on, inter alia, forecasts of future business performance and ranges of earnings multiples. The valuation of the above assets and their associated unrealised income has been identified as a key audit matter in the current year because of the significant judgement applied in selecting a valuation technique, and the estimation uncertainty involved in the inputs to the valuation. In estimating the valuation of these assets, management has exercised their judgement and applied assumptions in the following areas: • Fair value measurements utilise a range of techniques, including discounted forecast cash flow analysis, price-earnings multiples, net asset value calculations and complex valuation models. These techniques are applied to various assets such as illiquid investments in unquoted private companies. The selection of appropriate techniques and the inherent subjectivity of inputs (e.g., discount rates, growth rates, earnings multiples) introduce significant estimation uncertainty. • Limited market data and low liquidity necessitate significant management judgement in determining appropriate valuation inputs. These inputs include yield curves, discount rates, volatility estimates, sector-specific factors, expected cash flows, and future earnings projections. The uncertainty inherent in these estimations significantly impacts the overall fair value measurement. This key audit matter is discussed in the Audit Committee report on page 82. The financial statement disclosures with respect to this key audit matter are contained in the following notes: • Accounting policies, “Financial Instruments” and “Key management assumptions”; and • Note 13, “Fair value hierarchy”.


	How the scope of our audit responded to the key audit matter			To challenge the group’s valuation of Level 3 equity investments, we performed the following audit procedures: • Obtained an understanding of the relevant financial controls over the valuation process; • With the involvement of our valuation specialists, for a sample of unlisted investments included within the investment portfolio, we challenged the appropriateness of the valuation methodology and inputs by performing independent revaluations and comparing the results to management's output; • For a sample of unlisted investments, we compared unobservable inputs used in valuations to alternative data/input sources. The approach was tailored to the most appropriate method for each investment; and • Assessed the related financial statement disclosures against the requirements of IFRS 13.


	Key observations			Based on our audit procedures performed as detailed above, we concluded that the valuation of Level 3 equity investments and associated unrealised income is reasonable and in accordance with IFRS 13.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Provision for regulatory and litigation matters



	Key audit matter description			The group operates in a regulated environment, inherently facing risks related to litigation, regulatory investigations, and customer remediation. Determining these provisions requires significant judgement under IAS 37, Provisions, Contingent Liabilities and Contingent Assets. Management's estimate of potential outflows of resources embodying economic benefits is inherently subjective and uncertain. This uncertainty is amplified by the evolving nature of these matters. The group has recognised a provision in respect of investigations concerning historical German dividend tax arbitrage transactions (cum-ex). Ongoing investigations by the Cologne Public Prosecutor and the German Federal Tax Office create uncertainty around the ultimate financial impact, potentially affecting provisions and disclosures in the financial statements. While the group is cooperating with authorities, the ongoing investigations and potential for civil litigation create significant uncertainty. Therefore, the estimation of the valuation of this provision constitutes a key audit matter. This key audit matter is discussed in the Audit Committee report on page 83. The financial statement disclosures with respect to this key audit matter are contained in the following notes: • Accounting policies and “Key management assumptions”; and • Note 42, “Commitments, contingent liabilities and provisions”.


	How the scope of our audit responded to the key audit matter			We performed the following audit procedures: • Obtained an understanding of the group’s controls over the review of the appropriateness of judgements used to determine a best estimate; • Evaluated and challenged management's scenarios and assumptions underpinning the dividend arbitrage provision, including by obtaining and considering responses to legal confirmation requests sent to the group’s external legal counsel; • Reviewed regulatory correspondence with the Cologne Public Prosecutor and the Federal Tax Office; • Inspected correspondence and made direct inquiries with the group’s internal and external legal counsel; and • Assessed the related financial statement disclosures against the requirements of IAS 37.


	Key observations			Notwithstanding the significant judgement required in estimating the timing and value of any settlement that may be required for the historical German dividend tax arbitrage transactions, we are satisfied that the approach to the recognition, estimation and disclosures of this provision is consistent with the requirements of IFRS Accounting Standards.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Our application of materiality

Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic

decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of

our audit work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:


	Group financial statements	Parent company financial statements

Materiality	£17 million (2025: £18 million)	£16 million (2025: £16 million)


Basis for determining materiality	3.9% of profit before taxation Consistent with the prior year, we based materiality on forecast profit before taxation. Our determined materiality equates to 3.9% of this metric (2025: 4.0%)	2.9% of profit before taxation Consistent with the prior year, we based materiality on forecast profit before taxation. Our determined materiality equates to 2.9% of this metric (2025: 4.8%). The fall in the percentage year on year is primarily due to an increase in dividends received in the current year.


Rationale for the benchmark applied	Profit before taxation is a key performance indicator for management and shareholders to assess profitability and performance of the group.	Profit before taxation is a key performance indicator for management and shareholders to assess profitability and performance of the parent company.

Group materiality

£17.0m

Component performance

materiality range

£1.1m to £9.9m

Audit committee

reporting threshold

£0.90m


	PBT	£439.64m
	Group materiality	£17.00m

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and

undetected misstatements exceed the materiality for the financial statements as a whole.


	Group financial statements	Parent company financial statements

Performance materiality	65% (2025: 65%) of group materiality	65% (2025: 65%) of parent company materiality


Basis and rationale for determining performance materiality	In determining performance materiality, we considered the following factors: a. the quality of the control environment and whether we were able to rely on controls, as described in Section 7.2; and b. the results of the previous year’s audit, including the nature, value and quantum of misstatements (corrected and uncorrected) identified in the previous audit and our expectation of the likelihood of misstatements recurring in the current period.

Error reporting threshold

We agreed with the Audit Committee that we would report to them all audit differences in excess of £0.9 million

(2025: £0.9 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.

We also report to the Audit Committee on disclosure matters that we identify when assessing the overall presentation of the

financial statements.

An overview of the scope of our audit

Identification and scoping of components

Our audit was scoped by obtaining an understanding of the group and its environment and assessing the risks of material

misstatement at the group level. We structured our approach to the audit to reflect how the group is organised so that our audit

was both effective and risk focused.

Due to the centralised nature of the business, which includes central management of financial reporting for components, a

significant portion of our testing was performed centrally by the group audit team in the UK.

Our group audit scoping identified specific classes of transactions and account balances relating to two components. Where we

identified that certain processes, controls and other financial reporting activities were not centrally managed and were instead

performed locally, we instructed our component auditors in the UK, Switzerland and South Africa to perform audit work over these

specific classes of transactions and account balances. Audit procedures for all other classes of transactions and account balances

determined to be within the scope of the group audit were performed by the group auditor. These procedures were performed

using component performance materialities ranging from £1.1 million to £9.9 million which are set at a different level to the group

and statutory performance materialities as set out in section 6.2.

Our audit work was performed on components which represented 98% of group’s revenue, 98% of the group’s profit before

taxation and 92% of the group’s net assets. In addition, we carried out reviews at a group level to confirm our conclusion that there

were no significant risks of material misstatement of the aggregated financial information of the remaining components not subject

to audit.

Revenue


	Audit of the entire financial information	93%
	Specific audit procedures	5%
	Review at Group level	2%

Profit before tax


	Audit of the entire financial information	95%
	Specific audit procedures	3%
	Review at Group level	2%

Net assets


	Audit of the entire financial information	86%
	Specific audit procedures	6%
	Review at Group level	8%

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Our consideration of the control environment

The group relies on several key IT systems and applications to

support the accurate and complete recording of financial

transactions across its main business cycles. With the

involvement of IT specialists, we obtained an understanding of

centrally managed IT controls and tested general IT controls

(GITCs), including those related to access and change

management, as well as relevant IT application controls.

During the current year, management has taken steps to

address the majority of previously reported IT risks through

enhanced procedures, retrospective reviews, and the

implementation of compensating controls. However, certain

deficiencies remain unmitigated and our control reliance

strategy has not changed since the prior year. We continued to

adopt a fully substantive approach for those areas affected by

unresolved deficiencies (specifically the customer deposits

portfolio and the derivative valuation and hedge accounting

processes), and maintained reliance on controls for all other

areas as planned.

The status of remediation actions and remaining deficiencies

was reported to the Audit Committee as part of the 31 March

2026 year-end audit, and management continues to progress

remediation plans as disclosed in the Audit Committee report on

page 80. All other deficiencies were communicated to

management.

Our consideration of climate-related risks

In planning our audit, we considered the potential impact of

climate change on the group’s business and its financial

statements. The group continues to develop its assessment of

and response to the potential impacts of environmental, social

and governance (“ESG”) related risks, including climate change,

as outlined in the Sustainability Report and climate related

financial disclosures. We held discussions with management to

understand the process for identifying climate-related risks, the

consideration of mitigating actions and the impact on the

group’s financial statements which can be found in the Climate-

related financial disclosures aligned to the Taskforce on

Climate-related Financial Disclosure (“TCFD”) requirements on

pages 312 to 322.

Management do not expect any material climate change related

financial impact on their business, as disclosed on page 146 to

the financial statements. We performed our own qualitative risk

assessment of the potential impact of climate change on the

group’s classes of transactions and account balances based on

our understanding of the nature of the group’s underlying

operations.

We read the climate-related disclosures included in the

Investec Annual Report 2026 and considered whether they are

materially consistent with the financial statements and our

knowledge obtained in the audit.

Working with other auditors

Detailed audit instructions were sent to the component auditors

in UK, Switzerland and South Africa. These instructions

identified the relevant risks of material misstatement for

significant classes of transactions, account balances and

disclosures, including those that were identified as significant

risks. The instructions also set out certain audit procedures to

be performed and the information to be reported back to the

group audit team, and other matters relevant to the audit.

In addition, the group audit team was involved in the audit work

performed by component auditors through a combination of:

regular interaction with component teams during the year using

video conferencing tools, including planning and closing calls;

onsite visits by the group engagement partner and other team

members to components in Switzerland and South Africa; and

review of related component inter-office reporting, their audit

files and findings from their work.

Other information

The other information comprises the information included in the

annual report, other than the 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 financial statements does not cover the

other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance

conclusion thereon.

Our responsibility is to read the other information and, in doing

so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge

obtained in the course of the audit, or otherwise appears to be

materially misstated. If we identify such material inconsistencies

or apparent material misstatements, we are required to

determine whether this gives rise to a material misstatement in

the financial statements themselves. If, based on the work we

have performed, we conclude that there is a material

misstatement of 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 financial statements and for being satisfied that they give a

true and fair view, and for such internal control as the directors

determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, 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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Auditor’s responsibilities for the audit of

the financial statements

Our objectives are to obtain reasonable assurance about

whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of

users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the

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.

Identifying and assessing potential risks related to

irregularities

In identifying and assessing risks of material misstatement in

respect of irregularities, including fraud and non-compliance

with laws and regulations, we considered the following:

• the nature of the industry and sector, control environment

and business performance including the design of the group’s

remuneration policies, key drivers for directors’ remuneration,

bonus levels and performance targets;

• the group’s own assessment of the risks that irregularities

may occur either as a result of fraud or error;

• results of our enquiries 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 sector;

• any matters we identified having obtained and reviewed the

group’s documentation of their policies and procedures

relating to:

– identifying, evaluating and complying with laws and

regulations and whether they were aware of any instances

of non-compliance;

– detecting and responding to the risks of fraud and whether

they have knowledge of any actual, suspected or alleged

fraud;

– the internal controls established to mitigate risks of fraud or

non-compliance with laws and regulations;

• the matters discussed among the audit engagement team

including component audit teams and relevant internal

specialists, including tax, credit valuations, IT and regulatory

specialists regarding how and where fraud might occur in the

financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the

opportunities and incentives that may exist within the

organisation for fraud and identified the greatest potential for

fraud in the following areas: provision for expected credit losses

on loans and advances to customers and the valuation of Level

3 equity investments and associated unrealised income.

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

to perform specific procedures to respond to the risk of

management override.

We also obtained an understanding of the legal and regulatory

frameworks that the group operates in, focusing on provisions

of those laws and regulations that had a direct effect on the

determination of material amounts and disclosures in the

financial statements. The key laws and regulations we

considered in this context included the UK Companies Act, as

well as those laws and regulations prevailing in each country in

which components were subject to audit procedures, including

taxation legislation.

In addition, we considered provisions of other laws and

regulations that 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

Prudential Regulatory Authority, and Financial Conduct

Authority.

Audit response to risks identified

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

for expected credit losses on loans and advances to customers

and the valuation of Level 3 investments and associated

unrealised income as key audit matters related to the potential

risk of fraud. The key audit matters section of our report

explains the matters in more detail and also describes the

specific procedures we performed in response to those key

audit matters.

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

identified included the following:

• reviewing the financial statement disclosures and testing to

supporting documentation to assess compliance with

provisions of relevant laws and regulations described as

having a direct effect on the financial statements;

• enquiring of management, the Audit Committee and in-house

legal counsel concerning actual and potential litigation and

claims;

• performing analytical procedures to identify any unusual or

unexpected relationships that may indicate risks of material

misstatement due to fraud;

• reading minutes of meetings of those charged with

governance, reviewing internal audit reports and reviewing

correspondence with regulatory bodies such as the PRA, FCA

and HMRC; and

• in addressing the risk of fraud through management override

of controls, testing the appropriateness of journal entries and

other adjustments; assessing whether the judgements made

in making accounting estimates are indicative of a potential

bias; and evaluating the business rationale of any significant

transactions that are unusual or outside the normal course of

business.

We also communicated relevant identified laws and regulations

and potential fraud risks to all engagement team members

including internal specialists and component audit teams and

remained alert to any indications of fraud or non-compliance

with laws and regulations throughout the audit.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Report on other legal and regulatory requirements

Opinions on other matters prescribed by

the Companies Act 2006



	In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the group and of the parent company and their environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.

Corporate Governance Statement



	Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit: • the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 93; • the directors’ explanation as to its assessment of the group’s prospects, the period this assessment covers and why the period is appropriate set out on page 93; • the directors’ statement on fair, balanced and understandable set out on page 96; • the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 47; • the section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 72; and • the section describing the work of the Audit Committee set out on page 80 of the IBP Audit Committee report.

Opinion on other matter prescribed by the

Capital Requirements (Country-by-

Country Reporting) Regulations 2013



	In our opinion the information given in note 65 to the financial statements for the financial year ended 31 March 2026 has been properly prepared, in all material respects, in accordance with the Capital Requirements (Country-by Country Reporting) Regulations 2013.

Matters on which we are required to

report by exception

Adequacy of explanations received and

accounting records

Under the Companies Act 2006 we are required to report to you

if, in our opinion:

• we have not received all the information and explanations we

require for our audit; or

• adequate accounting records have not been kept by the

parent company, or returns adequate for our audit have not

been received from branches not visited by us; or

• the parent company financial statements are not in

agreement with the accounting records and returns.



	We have nothing to report in respect of these matters.

Directors’ remuneration

Under the Companies Act 2006 we are also required to report if

in our opinion certain disclosures of directors’ remuneration

have not been made.



	We have nothing to report in respect of these matters.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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

Other matters which we are required to

address

Auditor tenure

Following the recommendation of the Audit Committee, we were

appointed by the company at its Annual General Meeting on 7

August 2024 to audit the financial statements for the year ending

31 March 2025 and subsequent financial periods. The period of

total uninterrupted engagement including previous renewals and

reappointments of the firm is two years, covering the years from

our appointment through to the year ending 31 March 2026.

Consistency of the audit report with the additional

report to the Audit Committee

Our audit opinion is consistent with the additional report to the

Audit Committee we are required to provide in accordance with

ISAs (UK).

Use of our report

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

body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we might

state to the company’s members 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 and

the company’s members as a body, for our audit work, for this

report, or for the opinions we have formed.

As required by the Financial Conduct Authority (FCA) Disclosure

Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,

these financial statements form part of the Electronic Format

Annual Financial Report filed on the National Storage

Mechanism of the FCA in accordance with DTR 4.1.15R – DTR

4.1.18R. This auditor’s report provides no assurance over

whether the Electronic Format Annual Financial Report has been

prepared in compliance with DTR 4.1.15R – DTR 4.1.18R. We

have provided assurance on whether the Electronic Format

Annual Financial Report has been prepared in compliance with

DTR 4.1.15R – DTR 4.1.18R and have publicly reported

separately to the members on this.

Tom Millar, FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

12 June 2026

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

CONSOLIDATED INCOME STATEMENT


For the year to 31 March		2026	2025
£’000	Notes	2026	2025
Interest income	2	1 735 860	1 979 851
Interest income calculated using effective interest rate method		1 636 947	1 888 110
Other interest income		98 913	91 741
Interest expense	2	(1 002 655)	(1 189 390)
Net interest income		733 205	790 461
Fee and commission income	3	228 134	194 340
Fee and commission expense	3	(21 489)	(13 864)
Investment income	4	42 880	41 811
Share of post-taxation profit of associates and joint venture holdings	25	60 283	38 081
Profit before amortisation and integration costs		89 862	72 380
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		6 013	14 248
Other operating income	5	21 173	6 676
Operating income		1 161 693	1 157 295
Expected credit loss impairment charges	6	(97 349)	(97 040)
Operating income after expected credit loss impairment charges		1 064 344	1 060 255
Operating costs	7	(607 310)	(597 719)
Financial impact of strategic actions**		(17 393)	(15 688)
Profit before taxation		439 641	446 848
Taxation on operating profit before acquired intangibles and strategic actions	9	(87 619)	(80 222)
Taxation on acquired intangibles and strategic actions	9	1 529	(195)
Profit after taxation		353 551	366 431
Profit attributable to non-controlling interests		(355)	(12)
Earnings attributable to equity holders		353 196	366 419
Earnings attributable to ordinary shareholders		316 446	328 063
Earnings distributed to Additional Tier 1 security holders		36 750	38 356

*Included within Trading income/(loss) 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.

124



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME


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

Profit after taxation		353 551	366 431
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		3 984	(4 305)
Hedge of net investment in subsidiary		(2 080)	—
Items that will not be reclassified to the income statement:
Share of other comprehensive income of associates and joint venture holdings		27	(3 803)
Total comprehensive income		348 594	340 778
Total comprehensive income/(loss) attributable to non-controlling interests		117	(12)
Total comprehensive income attributable to equity holders		348 711	340 766
Total comprehensive income attributable to ordinary shareholders		311 961	302 410
Total comprehensive income distributed to Additional Tier 1 securities		36 750	38 356

125



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

BALANCE SHEETS


		Group
		31 March 2026	31 March 2025
£’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	800 615	859 802
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	370 494	325 886
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	45	(20 507)	—
Other loans and advances	24	141 301	162 882
Investment portfolio	23	202 146	211 753
Interests in associated undertakings and joint venture holdings	25	851 867	832 141
Current taxation assets		60 322	7 016
Deferred taxation assets	26	72 671	120 918
Other assets	27	934 758	677 318
Property and equipment	28	149 630	58 940
Goodwill	29	65 113	56 934
Software	30	12 458	4 742
		31 827 508	29 734 085
Liabilities
Deposits by banks		902 677	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	22 534 593	21 555 444
Fair value adjustment for liability portfolio hedged risk	45	(10 395)	—
Debt securities in issue	34	1 075 112	974 371
Current taxation liabilities		9 260	9 023
Other liabilities	35	1 248 340	893 546
		27 263 788	25 379 187
Subordinated liabilities	36	697 632	682 218
		27 961 420	26 061 405
Equity
Ordinary share capital	37	1 280 550	1 280 550
Share premium		199 538	199 538
Other reserves		162	4 674
Retained income		2 034 831	1 836 722
Shareholder’s equity excluding non-controlling interests		3 515 081	3 321 484
Additional Tier 1 securities in issue	39	350 000	350 000
Non-controlling interests in partially held subsidiaries		1 007	1 196
Total equity		3 866 088	3 672 680
Total liabilities and equity		31 827 508	29 734 085

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.

Ruth Leas

Chief Executive

12 June 2026

126



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

BALANCE SHEETS CONTINUED

As at 31 March 2026


		Company
		2026	2025
£’000	Notes	2026	2025
Assets
Cash and balances at central banks	15	3 158 937	4 175 092
Loans and advances to banks	16	557 491	450 989
Reverse repurchase agreements and cash collateral on securities borrowed	17	1 884 699	1 640 765
Sovereign debt securities	18	2 646 693	1 495 200
Bank debt securities	19	473 920	324 179
Other debt securities	20	1 330 993	1 395 161
Derivative financial instruments	21	352 780	311 854
Securities arising from trading activities	22	44 723	149 912
Loans and advances to customers	24	13 683 100	12 793 481
Fair value adjustment for asset portfolio hedged risk	45	(20 507)	—
Other loans and advances	24	3 337 585	3 340 506
Investment portfolio	23	26 215	32 027
Interests in associated undertakings and joint venture holdings	25	785 739	787 400
Current taxation assets		57 038	33 049
Deferred taxation assets	26	44 322	50 454
Other assets	27	753 494	388 833
Property and equipment	28	105 383	35 325
Software	30	7 037	—
Investment in subsidiaries	51	477 510	461 636
		29 707 152	27 865 863
Liabilities
Deposits by banks		1 365 723	1 968 896
Derivative financial instruments	21	409 690	267 909
Other trading liabilities	32	19 409	16 242
Repurchase agreements and cash collateral on securities lent	17	1 215 886	328 534
Customer accounts (deposits)	33	20 496 140	19 952 173
Fair value adjustment for liability portfolio hedged risk	45	(10 395)	—
Debt securities in issue	34	1 073 917	973 176
Other liabilities	35	1 048 283	621 967
		25 618 653	24 128 897
Subordinated liabilities	36	697 632	682 218
		26 316 285	24 811 115
Equity
Ordinary share capital	37	1 280 550	1 280 550
Share premium		199 538	199 538
Other reserves		(6 342)	1 614
Retained income		1 567 121	1 223 046
Shareholder’s equity excluding non-controlling interests		3 040 867	2 704 748
Additional Tier 1 securities in issue	39	350 000	350 000
Total equity		3 390 867	3 054 748
Total liabilities and equity		29 707 152	27 865 863

The Company's profit for the year, determined in accordance with the Companies Act 2006, was £510.6 million

( 2025: £275.0 million).

The Company has taken advantage in Section 408 of the Companies Act 2006 not to present its own profit and loss account.

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: £165 million) are assets similarly pledged in respect of

securities lending transactions.

Ruth Leas

Chief Executive

12 June 2026

127



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

CASH FLOW STATEMENTS


		Group		Company
For the year to 31 March		2026	2025	2026	2025*
£’000	Notes	2026	2025	2026	2025*
Profit before taxation adjusted for non-cash items and other adjustments	41	547 146	552 838	655 557	441 361
Taxation paid		(73 176)	(64 733)	(52 767)	(43 096)
Increase in operating assets	41	(3 142 293)	(1 317 141)	(2 724 977)	(994 387)
Increase/(decrease) in operating liabilities	41	1 944 798	(132 847)	1 440 398	(427 470)
Net cash outflow from operating activities		(723 525)	(961 883)	(681 789)	(1 023 592)
Cash flow on acquisition of subsidiaries, net of cash acquired		(1 167)	—	—	—
Cash flow on disposal of subsidiaries		—	—	—	899
Cash flow on acquisition of associates and joint venture holdings		(5 769)	—	(5 769)	—
Cash flow on acquisition of property, equipment, software and other intangible assets		(46 946)	(3 943)	(39 838)	(139)
Cash flow on disposal of property, equipment, software and other intangible assets		137	204	—	—
Cash flow on disposal of associate		1 952	—	1 952	—
Injection of capital to subsidiary		—	—	(16 661)	(7 100)
Net cash outflow from investing activities		(51 793)	(3 739)	(60 316)	(6 340)
Dividends paid to ordinary shareholder		(137 000)	(120 000)	(136 490)	(120 000)
Dividends paid to other equity holders		(36 750)	(42 223)	(36 750)	(42 223)
Redemption of Additional Tier 1 instruments		—	(108 108)	—	(108 108)
Proceeds from issue of subordinated debt		298 343	—	298 343	—
Redemption of subordinated debt		(290 850)	—	(290 850)	—
Lease liabilities paid		(143 227)	(43 776)	(1 801)	(8 769)
Net cash outflow from financing activities		(309 484)	(314 107)	(167 548)	(279 100)
Effects of exchange rate changes on cash and cash equivalents		7 023	(1 128)	—	—
Net decrease in cash and cash equivalents		(1 077 779)	(1 280 857)	(909 653)	(1 309 032)
Cash and cash equivalents at the beginning of the year		5 051 552	6 332 409	4 626 081	5 935 113
Cash and cash equivalents at the end of the year		3 973 773	5 051 552	3 716 428	4 626 081
Cash and cash equivalents is defined as including:
Cash and balances at central banks		3 173 756	4 191 750	3 158 937	4 175 092
On demand loans and advances to banks^		800 017	859 802	557 491	450 989
Cash and cash equivalents at the end of the year		3 973 773	5 051 552	3 716 428	4 626 081

^ 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.

* The presentation of dividends from subsidiaries, associates and joint ventures has historically been inconsistent between the Group and Company cash flow

statement. These have been aligned in the current year by amending the presentation of the Company, with the comparative revised accordingly.

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

profile of greater than three months are £0.6 million ( 31 March 2025: £ nil) for Group and for Company the balance is £nil (31 March

2025 : £nil).

Included within net cash outflow from operating activities for the Group is interest received of £1 700 million ( 2025 : £1 953 million),

interest paid of £975 million (2025: £1 253 million) and dividends received of £5.4 million (2025: £4.5 million). Th e Company

includes interest received of £1 484 million ( 2025: £1 698 million), interest paid of £964 million ( 2025: £1 220 million) and dividends

received of £340.0 million (2025: £107.5 million) including those received from its subsidiaries.

128



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

STATEMENT OF CHANGES IN EQUITY



£’000	Ordinary share capital	Share premium	Capital reserve account
Group
At 1 April 2024	1 280 550	199 538	11 274
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	—	—	—
Foreign currency adjustments on translating foreign operations	—	—	—
Share of other comprehensive income of associates and joint ventures	—	—	—
Total comprehensive income for the year	—	—	—
Share-based payments adjustments	—	—	—
Employee benefit liability recognised	—	—	—
Redemption of Additional Tier 1 security instruments	—	—	—
Dividends paid to ordinary shareholder	—	—	—
Dividends declared to Additional Tier 1 security holders	—	—	—
Dividends paid to Additional Tier 1 security holders	—	—	—
Net equity impact of non-controlling interest movements	—	—	—
Net equity movements in associates and joint ventures	—	—	—
Release of capital reserve to retained income	—	—	(11 274)
At 31 March 2025	1 280 550	199 538	—
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	—	—	—
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	—	—	—
Employee benefit liability recognised	—	—	—
Redemption of Additional Tier 1 security instruments	—	—	—
Dividends paid to ordinary shareholder	—	—	—
Dividends declared to Additional Tier 1 security holders	—	—	—
Dividends paid to Additional Tier 1 security holders	—	—	—
Net equity impact of non-controlling interest movements	—	—	—
Net equity movements in associates and joint ventures	—	—	—
Release of capital reserve to retained income	—	—	—
At 31 March 2026	1 280 550	199 538	—

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 £312.0 million

(31 March 2025: £302.4 million).

129



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

STATEMENT OF CHANGES IN EQUITY CONTINUED


Other reserves
Fair value reserve	Cash flow hedge reserve	Foreign currency reserves	Retained income	Shareholder’s equity excluding non- controlling interests	Additional Tier 1 securities in issue	Non- controlling interests	Total equity

5 571	17 664	3 289	1 627 373	3 145 259	458 108	2 851	3 606 218

—	—	—	366 419	366 419	—	12	366 431
(166)	—	—	—	(166)	—	—	(166)
—	(11 259)	—	—	(11 259)	—	—	(11 259)
(6 120)	—	—	—	(6 120)	—	—	(6 120)
—	—	(4 305)	—	(4 305)	—	—	(4 305)
—	—	—	(3 803)	(3 803)	—	—	(3 803)
(6 286)	(11 259)	(4 305)	362 616	340 766	—	12	340 778
—	—	—	107	107	—	—	107
—	—	—	402	402	—	—	402
—	—	—	—	—	(108 108)	—	(108 108)
—	—	—	(120 000)	(120 000)	—	—	(120 000)
—	—	—	(38 356)	(38 356)	38 356	—	—
—	—	—	—	—	(38 356)	—	(38 356)
—	—	—	1 755	1 755	—	(1 667)	88
—	—	—	(8 449)	(8 449)	—	—	(8 449)
—	—	—	11 274	—	—	—	—
(715)	6 405	(1 016)	1 836 722	3 321 484	350 000	1 196	3 672 680
	—
—	—	—	353 196	353 196	—	355	353 551
2 171	—	—	—	2 171	—	—	2 171
—	(8 931)	—	—	(8 931)	—	—	(8 931)
(128)	—	—	—	(128)	—	—	(128)
—	—	4 456	—	4 456	—	(472)	3 984
—	—	—	27	27	—	—	27
—	—	(2 080)	—	(2 080)	—	—	(2 080)
2 043	(8 931)	2 376	353 223	348 711	—	(117)	348 594
—	—	—	10 515	10 515	—	—	10 515
—	—	—	238	238	—	—	238
—	—	—	—	—	—	—	—
—	—	—	(137 000)	(137 000)	—	—	(137 000)
—	—	—	(36 750)	(36 750)	36 750	—	—
—	—	—	—	—	(36 750)	—	(36 750)
—	—	—	—	—	—	(72)	(72)
—	—	—	7 883	7 883	—	—	7 883
—	—	—	—	—	—	—	—
1 328	(2 526)	1 360	2 034 831	3 515 081	350 000	1 007	3 866 088

130



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

STATEMENT OF CHANGES IN EQUITY CONTINUED



£’000	Ordinary share capital	Share premium	Capital reserve account
Company
At 1 April 2024	1 280 550	199 538	11 528
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	—	—	—
Foreign currency adjustments on translating foreign operations	—	—	—
Total comprehensive income for the year	—	—	—
Share-based payments adjustments	—	—	—
Employee benefit liability recognised	—	—	—
Redemption of Additional Tier 1 security instruments	—	—	—
Dividends paid to ordinary shareholder	—	—	—
Dividends declared to Additional Tier 1 security holders	—	—	—
Dividends paid to Additional Tier 1 security holders	—	—	—
Release of capital reserve to retained income	—	—	(11 528)
At 31 March 2025	1 280 550	199 538	—
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	—	—	—
Foreign currency adjustments on translating foreign operations	—	—	—
Total comprehensive income for the year	—	—	—
Share-based payments adjustments	—	—	—
Employee benefit liability recognised	—	—	—
Dividends paid to ordinary shareholder	—	—	—
Dividends declared to Additional Tier 1 security holders	—	—	—
Dividends paid to Additional Tier 1 security holders	—	—	—
At 31 March 2026	1 280 550	199 538	—

131



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

STATEMENT OF CHANGES IN EQUITY CONTINUED


Other reserves
Fair value reserve	Cash flow hedge reserve	Foreign currency reserves	Retained income	Shareholder’s equity excluding non- controlling interests	Additional Tier 1 securities in issue	Total equity

6 962	17 664	(5 073)	1 096 019	2 607 188	458 108	3 065 296

—	—	—	275 022	275 022	—	275 022
(164)	—	—	—	(164)	—	(164)
—	(11 259)	—	—	(11 259)	—	(11 259)
(6 467)	—	—	—	(6 467)	—	(6 467)
—	—	(49)	—	(49)	—	(49)
(6 631)	(11 259)	(49)	275 022	257 083	—	257 083
—	—	—	(1 511)	(1 511)	—	(1 511)
—	—	—	344	344	—	344
—	—	—	—	—	(108 108)	(108 108)
—	—	—	(120 000)	(120 000)	—	(120 000)
—	—	—	(38 356)	(38 356)	38 356	—
—	—	—	—	—	(38 356)	(38 356)
—	—	—	11 528	—	—	—
331	6 405	(5 122)	1 223 046	2 704 748	350 000	3 054 748

—	—	—	510 554	510 554	—	510 554
2 334	—	—	—	2 334	—	2 334
—	(8 931)	—	—	(8 931)	—	(8 931)
(312)	—	—	—	(312)	—	(312)
—	—	(1 047)	—	(1 047)	—	(1 047)
2 022	(8 931)	(1 047)	510 554	502 598	—	502 598
—	—	—	6 523	6 523	—	6 523
—	—	—	238	238	—	238
—	—	—	(136 490)	(136 490)	—	(136 490)
—	—	—	(36 750)	(36 750)	36 750	—
—	—	—	—	—	(36 750)	(36 750)
2 353	(2 526)	(6 169)	1 567 121	3 040 867	350 000	3 390 867

132



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

ACCOUNTING POLICIES

Basis of preparation

The Group and Company financial statements have been prepared in accordance with UK adopted international accounting

standards and with International Financial Reporting Standards (IFRS® Accounting Standards/IFRS) as issued by the International

Accounting Standards Board (IASB).

As stated on page 92, the directors consider that it is appropriate to continue to adopt the going concern basis in preparing the

financial statements.

‘Group’ refers to Group and Company in the accounting policies that follow unless specifically stated otherwise.

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.

Investments in subsidiaries and interests in associated undertakings and joint venture holdings are carried at their cost less any

accumulated impairment in the Company financial statements.

133



05	Annual financial statements	Investec Bank 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 three principal business divisions, which represent both operating and reportable segments, namely Wealth & Investment,

Private Banking and Corporate and Investment Banking and Other.

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.

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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.

Share-based payments transactions will be settled with instruments of the parent company, Investec plc. The obligation to provide

shares to the employees is with the parent company. For these equity-settled transactions a corresponding increase in equity, a

‘contribution from parent company’, is recognised over the period that the service conditions of the grant are met. The Group is

required to pay Investec plc for the share-based payments provided. The repayment to the holding company will be accounted for

as a ‘distribution to the parent company’.

All entities of the Group account for any share-based payment recharge costs allocated to equity in the period during which it is

levied in their separate financial statements. Any excess over and above the recognised share-based payment expense is

accounted for as an expense in the income statement. This cost is presented with the share-based payment expense.

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 Bank 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.

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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.

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.

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, as well as net gains and losses on investment and trading properties.

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.

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Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access

at that date. The fair value of an asset or a liability 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

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.

Solely payment of principal and interest (SPPI)

The Group assesses whether the asset’s cash flows represent solely payments of principal and interest (the SPPI test). In making

this assessment, the Group considers whether the contractual cash flows are consistent with a basic lending arrangement (i.e.

interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is

consistent with a basic lending arrangement). Where the contractual terms introduce exposure to risk or volatility that are

inconsistent with a basic lending arrangement, the related asset is classified and measured at FVPL.

Financial assets with derivative-like features are considered in their entirety when determining whether their cash flows are solely

payments of principal and interest.

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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.

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.

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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.

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.

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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.

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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

• 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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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 payment date or the date that it is

approved by Investec Bank 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’.

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.

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ACCOUNTING POLICIES CONTINUED

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

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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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 expense 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.

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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

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 disclosures on

pages 264.

• 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.

▪ 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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

ACCOUNTING POLICIES CONTINUED

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

– The measurement of ECL considers the ability of borrowers to make contractual payments as and when they become due.

Investec performed an assessment of specific sectors that could be most impacted by climate risk in all jurisdictions,

specifically focusing on the ability of the clients in these sectors to meet their financing needs. The assessment further

included a review of Investec’s appetite to fund clients in the respective sectors. While these have not resulted in material

impact to ECL, the determination of the impact of these risks 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 section on pages 262.

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 53.

• 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.

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05	Annual financial statements	Investec Bank 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 in the UK 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.

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	439 641	446 848
Financial impact of strategic actions*	17 393	15 688
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	486 258	496 823

*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.

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

1. Segmental business analysis – income statement (continued)


		Specialist Banking		Total Group
	Private Client		Corporate, Investment Banking and Other
For the year to 31 March 2026	Wealth & Investment	Private Banking
£’000	Wealth & Investment	Private Banking
Net interest income	6 128	76 528	650 549	733 205
Fee and commission income	12 292	1 094	214 748	228 134
Fee and commission expense	(855)	(26)	(20 608)	(21 489)
Investment income	3	—	42 877	42 880
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	5 991	6 013
Other operating income	—	—	21 173	21 173
Operating income	100 112	80 801	1 010 359	1 191 272
Expected credit loss impairment charges	5	(4 036)	(93 318)	(97 349)
Operating income after expected credit loss impairment charges	100 117	76 765	917 041	1 093 923
Operating costs	(19 064)	(44 245)	(544 001)	(607 310)
Profit attributable to non-controlling interests	—	—	(355)	(355)
Adjusted operating profit	81 053	32 520	372 685	486 258
Selected returns and key statistics
Cost to income ratio	19.0%	54.8%	53.9%	51.0%
Total assets (£’mn)	1 026	5 636	25 166	31 828
Total liabilities (£'mn)	208	19	27 734	27 961


		Specialist Banking
	Private Client		Corporate, Investment Banking and Other
For the year to 31 March 2025	Wealth & Investment	Private Banking
£’000	Wealth & Investment	Private Banking		Total Group
Net interest income	7 381	96 639	686 441	790 461
Fee and commission income	10 424	979	182 937	194 340
Fee and commission expense	(1 054)	(19)	(12 791)	(13 864)
Investment income	1	—	41 810	41 811
Share of post-taxation operating profit of associates and joint venture holdings	69 147	—	3 233	72 380
Trading income/(loss) arising from
– customer flow	1 792	3 018	80 732	85 542
– balance sheet management and other trading activities	(34)	(47)	14 329	14 248
Other operating income	—	—	6 676	6 676
Operating income	87 657	100 570	1 003 367	1 191 594
Expected credit loss impairment charges	(16)	(5 582)	(91 442)	(97 040)
Operating income after expected credit loss impairment charges	87 641	94 988	911 925	1 094 554
Operating costs	(15 366)	(47 860)	(534 493)	(597 719)
Profit attributable to non-controlling interests	—	—	(12)	(12)
Adjusted operating profit	72 275	47 128	377 420	496 823
Selected returns and key statistics
Cost to income ratio	17.5%	47.6%	53.3%	50.2%
Total assets (£’mn)	1 022	5 196	23 516	29 734
Total liabilities (£’mn)	185	26	25 850	26 061

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05	Annual financial statements	Investec Bank 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	9 469 228	364 430	3.85%	9 975 819	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%	5 189 467	281 839	5.43%
Corporate, institutional and other clients		11 858 603	965 019	8.14%	11 538 277	1 052 464	9.12%
Other debt securities and other loans and advances		1 141 410	66 248	5.80%	822 686	56 535	6.87%
Other	3	2 961	64 967	n/a	141 669	111 405	n/a
Total interest-earning assets		27 942 188	1 735 860	6.21%	27 667 918	1 979 851	7.16%


		2026			2025
For the year to 31 March		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	2 856 755	90 198	3.16%	2 792 913	108 501	3.88%
Customer accounts (deposits)		21 835 418	811 529	3.72%	21 578 083	944 449	4.38%
Subordinated liabilities		710 064	43 558	6.13%	690 113	42 565	6.17%
Other	5	161 609	57 370	n/a	219 339	93 875	n/a
Total interest-bearing liabilities		25 563 846	1 002 655	3.92%	25 280 448	1 189 390	4.70%
Net interest income			733 205			790 461
Annualised net interest margin			2.62%			2.86%

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 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 balance sheet.

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

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	195 208	171 106
Specialist Banking fee and commission income ^{^}	215 842	183 916
Specialist Banking fee and commission expense	(20 634)	(12 810)
Net fee and commission income	206 645	180 476
Fee and commission income	228 134	194 340
Fee and commission expense	(21 489)	(13 864)
Net fee and commission income	206 645	180 476
Annuity fees (net of fees payable)	54 393	35 594
Deal fees	152 252	144 882

*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 is out of the scope of IFRS 15 – Revenue from Contracts with Customers.

151



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

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	17 251	—	19 498	(1 583)	—	8 154	26 069
Unrealised*	670	2 716	—	3 386	172	(1 090)	7 576	10 044
Dividend income	52	5 255	—	5 307	—	—	75	5 382
Funding and other net related income	—	—	—	—	—	1 385	—	1 385
	2 969	25 222	—	28 191	(1 411)	295	15 805	42 880
2025
Realised	(2 001)	6 526	1 194	5 719	4 897	—	(994)	9 622
Unrealised*	2 541	37 801	(451)	39 891	(3 410)	(11 000)	702	26 183
Dividend income	(15)	4 427	—	4 412	—	—	75	4 487
Funding and other net related income	—	—	—	—	—	1 519	—	1 519
	525	48 754	743	50 022	1 487	(9 481)	(217)	41 811

*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 .

5. Other operating income


For the year to 31 March	2026	2025
£’000	2026	2025
Insurance proceeds^	11 491	—
Gains/(losses) recognised on property and equipment	1	(41)
Income from operating leases	1 924	2 595
Income from government grants*	7 757	4 122
	21 173	6 676

*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	296	859
Undrawn commitments and guarantees	458	(1 104)
	97 349	97 040

152



05	Annual financial statements	Investec Bank 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	402 509	410 175
Salaries and wages (including directors’ remuneration)**	320 674	326 337
Share-based payment expense	17 583	20 005
Social security costs	42 879	43 231
Pensions and provident fund contributions	21 373	20 602
Training and other costs	9 286	8 940
Staff costs	411 795	419 115
Premises expenses	29 193	27 156
Premises expenses (excluding depreciation and impairments)	12 663	11 530
Premises depreciation and impairments	16 530	15 626
Equipment expenses (excluding depreciation)	56 898	48 152
Business expenses*	92 307	84 002
Marketing expenses	14 516	13 129
Depreciation, amortisation and impairment of equipment, software and intangibles^	2 601	6 165
	607 310	597 719

* 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 remuneration report on pages 99 to 108.

Segmental breakdown of operating costs


		Specialist Banking		Total Group
	Private Client		Corporate, Investment Banking and Other
For the year to 31 March 2026	Wealth & Investment	Private Banking
£’000	Wealth & Investment	Private Banking
Staff costs	9 715	13 881	388 199	411 795
Premises expenses	1 280	1 375	26 538	29 193
Equipment expenses (excluding depreciation)	3 114	6 105	47 679	56 898
Business expenses	4 831	20 263	67 213	92 307
Marketing expenses	89	2 621	11 806	14 516
Depreciation, amortisation and impairment of equipment, software and intangibles	35	—	2 566	2 601
	19 064	44 245	544 001	607 310


		Specialist Banking		Total Group
	Private Client		Corporate, Investment Banking and Other
For the year to 31 March 2025	Wealth & Investment	Private Banking
£’000	Wealth & Investment	Private Banking
Staff costs	8 019	17 180	393 916	419 115
Premises expenses	579	1 397	25 180	27 156
Equipment expenses (excluding depreciation)	3 258	6 645	38 249	48 152
Business expenses	3 365	20 031	60 606	84 002
Marketing expenses	76	2 607	10 446	13 129
Depreciation, amortisation and impairment of equipment, software and intangibles	69	—	6 096	6 165
	15 366	47 860	534 493	597 719

During the year, the average number of permanent employees was 2 365 (2025: 2 331).

153



05	Annual financial statements	Investec Bank 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	5 640	5 274
Audit of the Group’s accounts	5 125	4 758
Audit of the Group’s subsidiaries	515	516
Total non-audit fees	1 031	1 017
Other assurance services¹	523	439
Other non-audit services	508	578
Total auditor’s remuneration	6 671	6 291

1.Other assurance services relate to services required by law or regulation (including agreed-upon procedures relating to statutory and regulatory filings and reporting

to regulators on client assets).

154



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

8. Share-based payments

The Investec Group operates share option and long-term share incentive plans for employees, the majority of which are on an

equity-settled basis. The purpose of the staff share schemes is to promote an esprit de corps within the organisation, create an

awareness of Investec Group’s performance and provide an incentive to maximise individual business unit and Investec Group

performance by allowing all staff to share in the risks and rewards of the Investec Group.

Awards made under the UK share schemes are settled in Investec plc shares (INVP and INP).

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

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	17 583	20 005

Group


For the year to 31 March	2026	2025
£’000	2026	2025
Weighted average fair value of awards granted in the year
UK schemes	23 446	18 522


	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	18 453 648	—	22 018 834	—
Granted during the year	4 892 444	—	3 743 001	—
Exercised during the year ^{^}	(7 910 127)	—	(6 690 728)	—
Awards forfeited during the year	(537 994)	—	(617 459)	—
Outstanding at the end of the year	14 897 971	—	18 453 648	—
Exercisable at the end of the year	373 970	—	324 315	—

^The weighted average share price of options exercised during the year was £5.57 (2025 : £5.37).

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

155



05	Annual financial statements	Investec Bank 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	1.88 years	1.54 years
Weighted average fair value of awards and long-term grants at measurement date	£4.79	£4.95
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 award type	Number of share awards outstanding	Year of vesting	Number of share awards outstanding	Year of vesting
Conditional awards	823 357	3,4,5	618 203	3,4,5
Executive conditional awards	2 578 617	2,3.5,5 & 2,3,4 & 2.5,3.5,5 & 3,4,5,6,7	2 286 955	1,2,3 & 3,4,5 & 3,4,5,6,7
Forfeitable shares	11 480 997	3,4,5	15 533 490	3,4,5
Nil-cost options	15 000	4,5	15 000	4,5
Outstanding at the end of the year	14 897 971		18 453 648

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.


Vesting period of outstanding options by financial year	2026	2025
Year to 31 March 2025	—	324 315
Year to 31 March 2026	373 970	7 719 997
Year to 31 March 2027	3 881 881	4 019 697
Year to 31 March 2028	3 821 978	3 818 374
Year to 31 March 2029	3 795 716	2 404 331
Year to 31 March 2030	2 695 057	101 318
Year to 31 March 2031	329 369	36 200
Year to 31 March 2032	—	29 416
Year to 31 March 2033	—	—
Outstanding at the end of the year	14 897 971	18 453 648

Company


For the year to 31 March	2026	2025
£’000	2026	2025
Weighted average fair value of awards granted in the year
UK schemes	18 978	14 375

156



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

8. Share-based payments (continued)


	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	15 307 374	—	19 016 003	—
Transfer of employees during the year	(54 391)	—	(204 692)	—
Granted during the year	3 949 165	—	2 867 082	—
Exercised during the year^	(6 982 229)	—	(5 816 488)	—
Awards forfeited during the year	(422 607)	—	(554 531)	—
Outstanding at the end of the year	11 797 312	—	15 307 374	—
Exercisable at the end of the year	208 461	—	180 968	—

^The weighted average share price of options exercised during the year was £5.56 (2025: £5.37).

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


Additional information relating to awards:	2026	2025
Company
Long-term incentive grants with no strike price
Exercise price range	£nil	£nil
Weighted average remaining contractual life	1.86 years	1.48 years
Weighted average fair value of awards and long-term grants at measurement date	£4.81	£5.01
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
Summary by award type	Number of share awards outstanding	Year of vesting	Number of share awards outstanding	Year of vesting
Conditional awards	12 531	3,4,5	12 531	3,4,5
Executive conditional awards	2 313 547	2,3.5,5 & 2,3,4 & 2.5,3.5,5 & 3,4,5,6,7	2 056 240	1,2,3 & 3,4,5 & 3,4,5,6,7
Forfeitable shares	9 471 234	3,4,5	13 238 603	3,4,5
Outstanding at the end of the year	11 797 312		15 307 374

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.

157



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

8. Share-based payments (continued)

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


Vesting period of outstanding options by financial year	2026	2025
Year to 31 March 2025	—	180 968
Year to 31 March 2026	208 461	6 789 400
Year to 31 March 2027	3 229 717	3 363 820
Year to 31 March 2028	3 025 190	3 012 169
Year to 31 March 2029	2 920 537	1 809 211
Year to 31 March 2030	2 100 031	86 190
Year to 31 March 2031	313 376	36 200
Year to 31 March 2032	—	29 416
Year to 31 March 2033	—	—
Outstanding at the end of the year	11 797 312	15 307 374

9. Taxation


For the year to 31 March	2026	2025
£’000	2026	2025
Income statement taxation charge
Current taxation
UK
Current taxation on income for the year	66 326	75 449
Adjustments in respect of prior years	(37 940)	1 390
Corporation tax before double tax relief	28 386	76 839
Double tax relief	—	(402)
	28 386	76 437
Europe	9 868	8 223
Australia	690	106
Other ^*	749	458
	11 307	8 787
Total current taxation	39 693	85 224
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	86 090	80 417
Total taxation charge for the year comprises:
Taxation on operating profit before acquired intangibles and strategic actions	87 619	80 222
Taxation on acquired intangibles and strategic actions	(1 529)	195
	86 090	80 417
Deferred taxation comprises:
Origination and reversal of temporary differences	4 844	(2 268)
Changes in taxation rates	(16)	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
	46 397	(4 807)

*Where Other largely includes India and North America.

158



05	Annual financial statements	Investec Bank 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	439 641	446 848
Taxation on profit before taxation	86 090	80 417
Effective tax rate	19.6%	18.0%
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%)	109 910	111 711
Taxation adjustments relating to foreign earnings*	(9 273)	(11 119)
Taxation relating to prior years	3 629	(1 612)
Non-operating items	10 202	12 671
Share options accounting expense/(income)	(1 757)	941
Non-taxable income	(30 095)	(18 717)
Net other permanent differences	6 039	(6 993)
Bank surcharge	2 623	3 558
Capital gains – non-taxable/covered by losses	(3 853)	(6 565)
Movement in unrecognised trading losses	(1 319)	(3 920)
Change in tax rate	(16)	462
Total taxation charge as per income statement	86 090	80 417
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 instruments at FVOCI taken directly to other comprehensive income	(128)	(6 120)
Pre-taxation	(250)	(8 705)
Taxation effect	121	2 585
Cash flow hedge reserve	(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)	(38 356)
Pre-taxation	(36 750)	(38 356)
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: £nil)

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: £nil) of Pillar Two income taxes relating to these jurisdictions.

Pillar Two top-up tax is recognised on a different basis compared to the prior year, with the previous year amount accrued centrally

at Investec Plc Group level under the Income Inclusion Rule (IIR), whereas in the current year the liability is recognised at local entity

level under applicable Qualified Domestic Minimum Top-up Tax (QDMTT) regimes.

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.

159



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

10. Dividends


For the year to 31 March	2026	2025
£’000	2026	2025
Ordinary dividends
Dividends for current year	137 000	120 000
Total dividends attributable to ordinary shareholder	137 000	120 000


For the year to 31 March	2026	2025
£’000	2026	2025
Dividend attributable to Additional Tier 1 securities	36 750	38 356

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.

160



05	Annual financial statements	Investec Bank 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	(21 865)	—	—
Fee and commission income	19 164	—	—
Fee and commission expense	—	—	—
Investment income	28 780	—	(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	10 414	—	—
Other operating income	—	—	—
Total operating income/(expense) before expected credit loss	259 359	—	249 887
Expected credit loss impairments charges	—	—	5 077
Operating income/(expense)	259 359	—	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	49 401	(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	15 578	—	—
Other operating income	—	—	—
Total operating income/(expense) before expected credit loss	253 790	(60)	235 518
Expected credit loss impairments charges	—	—	(9 886)
Operating income/(expense)	253 790	(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.

161



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED




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

1 357 477	13	—	1 735 860
(972 640)	(8 150)	—	(1 002 655)
91 408	—	117 562	228 134
(2 860)	—	(18 629)	(21 489)
(6 726)	23 904	—	42 880
—	60 283	—	60 283

(5 967)	—	—	91 494
(4 401)	—	—	6 013
1 924	1	19 248	21 173
458 215	76 051	118 181	1 161 693
(101 969)	—	(457)	(97 349)
356 246	76 051	117 724	1 064 344


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

1 596 858	3 673	—	1 979 851
(1 111 982)	(9 709)	—	(1 189 390)
80 872	—	94 847	194 340
(2 953)	—	(10 911)	(13 864)
1 022	(8 780)	—	41 811
—	38 081	—	38 081

(8 317)	—	—	85 542
(1 330)	—	—	14 248
2 595	(41)	4 122	6 676
556 765	23 224	88 058	1 157 295
(88 258)	—	1 104	(97 040)
468 507	23 224	89 162	1 060 255

162



05	Annual financial statements	Investec Bank 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	Mandatory	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory	Designated at initial recognition	Debt instrument with dual business model
Group
2026
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	370 494	—	—
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	202 146	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	4 417	—	—
Property and equipment	—	—	—
Goodwill	—	—	—
Software	—	—	—
	1 452 439	—	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 45 on pages 216 to 230.

163



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NOTES TO THE FINANCIAL STATEMENTS CONTINUED




Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total



—	3 173 756	—	3 173 756
—	800 615	—	800 615
—	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
370 494	—	—	370 494
44 723	—	—	44 723
3 477 675	14 325 978	—	17 803 653
(20 507)	—	—	(20 507)
—	141 301	—	141 301
202 146	—	—	202 146
—	—	851 867	851 867
—	—	60 322	60 322
—	—	72 671	72 671
4 417	766 978	163 363	934 758
—	—	149 630	149 630
—	—	65 113	65 113
—	—	12 458	12 458
6 284 588	24 167 496	1 375 424	31 827 508

—	902 677	—	902 677
419 205	—	—	419 205
19 409	—	—	19 409
—	1 065 587	—	1 065 587
—	22 534 593	—	22 534 593
(10 395)	—	—	(10 395)
—	1 075 112	—	1 075 112
—	—	9 260	9 260
—	937 635	310 705	1 248 340
428 219	26 515 604	319 965	27 263 788
—	697 632	—	697 632
428 219	27 213 236	319 965	27 961 420

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05	Annual financial statements	Investec Bank 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	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
Group
2025
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	325 886	—	—
Securities arising from trading activities	149 912	—	—
Loans and advances to customers	571 929	—	2 005 308
Other loans and advances	—	—	—
Other securitised assets	—	—	—
Investment portfolio	211 753	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	1 228	—	—
Property and equipment	—	—	—
Goodwill	—	—	—
Software	—	—	—
	1 366 857	—	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 45 on pages 216 to 223.

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED




Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total



—	4 191 750	—	4 191 750
—	859 802	—	859 802
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
325 886	—	—	325 886
149 912	—	—	149 912
2 577 237	14 236 486	—	16 813 723
—	162 882	—	162 882
—	—	—	—
211 753	—	—	211 753
—	—	832 141	832 141
—	—	7 016	7 016
—	—	120 918	120 918
1 228	380 319	295 771	677 318
—	—	58 940	58 940
—	—	56 934	56 934
—	—	4 742	4 742
5 040 773	23 316 850	1 376 462	29 734 085

—	1 477 568	—	1 477 568
274 791	—	—	274 791
16 242	—	—	16 242
—	178 202	—	178 202
—	21 555 444	—	21 555 444
—	974 371	—	974 371
—	—	9 023	9 023
—	509 303	384 243	893 546
291 033	24 694 888	393 266	25 379 187
—	682 218	—	682 218
291 033	25 377 106	393 266	26 061 405

166



05	Annual financial statements	Investec Bank 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	Mandatory	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory	Designated at initial recognition	Debt instrument with dual business model
Company
2026
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	—	767 195
Bank debt securities	—	—	473 920
Other debt securities	40 634	—	8 753
Derivative financial instruments	352 780	—	—
Securities arising from trading activities	44 723	—	—
Loans and advances to customers	767 104	—	2 573 436
Fair value adjustment for asset portfolio hedged risk	(20 507)	—	—
Other loans and advances	7 434	—	—
Investment portfolio	26 215	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	4 417	—	—
Property and equipment	—	—	—
Software	—	—	—
Investment in subsidiaries	—		—
	1 223 059	—	3 823 304
Liabilities
Deposits by banks	—	—	—
Derivative financial instruments	409 690	—	—
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	—	—	—
Other liabilities	—	—	—
	418 704	—	—
Subordinated liabilities	—	—	—
	418 704	—	—

For more information on hedges, please refer to note 45 on pages 216 to 223.

167



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NOTES TO THE FINANCIAL STATEMENTS CONTINUED




Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total



—	3 158 937	—	3 158 937
—	557 491	—	557 491
—	1 884 699	—	1 884 699
767 454	1 879 239	—	2 646 693
473 920	—	—	473 920
49 387	1 281 606	—	1 330 993
352 780	—	—	352 780
44 723	—	—	44 723
3 340 540	10 342 560	—	13 683 100
(20 507)	—	—	(20 507)
7 434	3 330 151	—	3 337 585
26 215	—	—	26 215
—	—	785 739	785 739
—	—	57 038	57 038
—	—	44 322	44 322
4 417	723 763	25 314	753 494
—	—	105 383	105 383
—	—	7 037	7 037
—	—	477 510	477 510
5 046 363	23 158 446	1 502 343	29 707 152

—	1 365 723	—	1 365 723
409 690	—	—	409 690
19 409	—	—	19 409
—	1 215 886	—	1 215 886
—	20 496 140	—	20 496 140
(10 395)	—	—	(10 395)
—	1 073 917	—	1 073 917
—	862 754	185 529	1 048 283
418 704	25 014 420	185 529	25 618 653
—	697 632	—	697 632
418 704	25 712 052	185 529	26 316 285

168



05	Annual financial statements	Investec Bank 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	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
£’000	Mandatory*	Designated at initial recognition	Debt instrument with dual business model
Company
2025
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	—	—	449 340
Bank debt securities	—	—	324 179
Other debt securities	49 111	—	8 777
Derivative financial instruments	311 854	—	—
Securities arising from trading activities	149 912	—	—
Loans and advances to customers	512 882	—	1 936 974
Other loans and advances	9 460	—	—
Investment portfolio	32 027	—	—
Interests in associated undertakings and joint venture holdings	—	—	—
Current taxation assets	—	—	—
Deferred taxation assets	—	—	—
Other assets	1 228	—	—
Property and equipment	—	—	—
Investment in subsidiaries	—	—	—
	1 122 887	—	2 719 270
Liabilities
Deposits by banks	—	—	—
Derivative financial instruments	267 909	—	—
Other trading liabilities	16 242	—	—
Repurchase agreements and cash collateral on securities lent	—	—	—
Customer accounts (deposits)	—	—	—
Debt securities in issue	—	—	—
Other liabilities	—	—	—
	284 151	—	—
Subordinated liabilities	—	—	—
	284 151	—	—

*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 45 on pages 216 to 223.

169



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED




Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total
Total instruments at fair value	Amortised cost	Non-financial instruments or scoped out of IFRS 9	Total



—	4 175 092	—	4 175 092
—	450 989	—	450 989
56 413	1 584 352	—	1 640 765
449 340	1 045 860	—	1 495 200
324 179	—	—	324 179
57 888	1 337 273	—	1 395 161
311 854	—	—	311 854
149 912	—	—	149 912
2 449 856	10 343 625	—	12 793 481
9 460	3 331 046	—	3 340 506
32 027	—	—	32 027
—	—	787 400	787 400
—	—	33 049	33 049
—	—	50 454	50 454
1 228	359 038	28 567	388 833
—	—	35 325	35 325
—	—	461 636	461 636
3 842 157	22 627 275	1 396 431	27 865 863

—	1 968 896	—	1 968 896
267 909	—	—	267 909
16 242	—	—	16 242
—	328 534	—	328 534
—	19 952 173	—	19 952 173
—	973 176	—	973 176
—	455 892	166 075	621 967
284 151	23 678 671	166 075	24 128 897
—	682 218	—	682 218
284 151	24 360 889	166 075	24 811 115

170



05	Annual financial statements	Investec Bank 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	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Group
2026
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	370 494	—	369 120	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	202 146	3	729	201 414
Other assets	4 417	—	—	4 417
	6 284 588	2 208 457	387 969	3 688 162
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	5 856 369	2 189 048	(20 307)	3 687 628

*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.

171



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13 . Fair value hierarchy (continued)


		Fair value category
At 31 March	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Group
2025
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	325 886	—	319 534	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	211 753	935	962	209 856
Other assets	1 228	1 228	—	—
	5 040 773	1 820 683	424 058	2 796 032
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	4 749 740	1 804 441	150 094	2 795 205

*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.

172



05	Annual financial statements	Investec Bank 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^}	Total
£’000	Investment portfolio	Loans and advances to customers	Other securitised assets	Other balance sheet assets ^{1^}	Total
Group
Assets
Balance as at 1 April 2024	242 593	2 042 150	66 702	70 183	2 421 628

Net gains/(losses) in the income statement^	24 314	209 554	724	2 132	236 724
Interest income	—	210 079	—	3 357	213 436
Investment income	24 314	(525)	724	(531)	23 982
Trading income/(loss) arising from customer flow	—	—	—	(694)	(694)
Gains or (losses) in the statement of comprehensive income	—	19 118	—	—	19 118
Purchases and originations	20 506	3 201 706	—	5 478	3 227 690
Sales	(9 340)	(1 166 693)	—	(421)	(1 176 454)
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)
Deconsolidation of subsidiaries	—	—	(59 023)	(1 998)	(61 021)
Transfers out of level 3	—	(1 825)	—	—	(1 825)
Foreign exchange adjustments	(3 609)	(41 172)	—	(5 030)	(49 811)
Balance as at 31 March 2025	209 856	2 532 138	—	54 038	2 796 032

Net gains/(losses) in the income statement^	11 757	228 416	—	(569)	239 604
Interest income	—	234 915	—	3 978	238 893
Investment income	11 757	(6 499)	—	(3 070)	2 188
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	7 043	4 574 655	—	35 643	4 617 341
Sales	(14 029)	(1 116 954)	—	(21 002)	(1 151 985)
Settlements	(4 343)	(2 801 536)	—	(20 899)	(2 826 778)
Transfers out of level 3	(9 335)	—	—	—	(9 335)
Foreign exchange adjustments	465	33 989	—	(3 456)	30 998
Balance as at 31 March 2026	201 414	3 442 993	—	43 755	3 688 162

1.Comprises level 3 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.

173



05	Annual financial statements	Investec Bank 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
Group
Liabilities
Balance as at 1 April 2024	71 751	934	72 685

Net (gains)/losses in the income statement^	311	29	340
Interest income	—	48	48
Investment income	311	(19)	292
Settlements	(7 638)	—	7 638
Deconsolidation of subsidiaries	(64 424)	(136)	(64 560)
Balance as at 31 March 2025	—	827	827

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

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
Group
2026
Total gains or (losses) included in the income statement for the year
Interest income	238 893	206 808	32 085
Investment income	2 188	(6 931)	9 119
Trading income arising from customer flow	(1 184)	664	(1 848)
	239 897	200 541	39 356
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	23 689	(10 284)	33 973
Trading loss arising from customer flow	(741)	—	(741)
	236 384	176 749	59 635
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

174



05	Annual financial statements	Investec Bank 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 the period ends 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

175



05	Annual financial statements	Investec Bank 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 inputs used	Favourable changes £’000	Unfavourable changes £’000
Group
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	—
Derivative financial instruments		Other	Other	^	788	—

Investment portfolio	201 414		Potential impact on income statement		23 390	(45 538)
		Price earnings	EBITDA multiple	7.89x - 8.5x	5 048	(7 775)
		Price earnings	Price earnings 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	^^	4 340	(10 173)
		Net asset value	Discount rate	20% - 30%	3 630	(7 260)
		Other	Discount rate	10%	3 732	(7 466)
		Other	Other	^	2 656	(5 188)

Loans and advances to customers	3 442 993		Potential impact on income statement		12 359	(17 755)
		Discounted cash flow	Credit spreads		8 526	(13 232)
		Discounted cash flow	Discount rate	0.1	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		1 673	(467)
Other assets		Discounted cash flows	Cash flow adjustments	47.71% CPR	1 673	(467)

Total level 3 assets	3 688 162				56 567	(92 680)

Liabilities
Derivative financial instruments	534		Potential impact on income statement		(50)	—
Derivative financial instruments		Other	Other	^	(50)	—

Total level 3 liabilities	534				(50)	—
Net level 3 assets	3 687 628				56 517	(92 680)

^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.

176



05	Annual financial statements	Investec Bank 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 inputs used	Favourable changes £’000	Unfavourable changes £’000
Group
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)
		Option pricing model	Volatilities	7.5% - 16.95%	—	(1)
		Underlying asset value	Underlying asset value	^^	1	(3)
		Other	Other	^	1 057	(698)

Investment portfolio	209 856		Potential impact on income statement		25 364	(49 299)
		Price earnings	Price earnings multiple	1.6x - 7.5x	5 662	(10 660)
		Price earnings	EBITDA multiple	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	^	3 168	(6 336)

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	0.3733	1 557	(1 557)
		Price earnings	Price earnings multiple	4.5x	675	(1 101)
		Other	Other	^	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	2 796 032				56 273	(104 664)

Liabilities
Derivative financial instruments	827		Potential impact on income statement		(12)	—
		Other	Other	^	(12)	—

Total level 3 liabilities	827				(12)	—
Net level 3 assets	2 795 205				56 261	(104 664)

^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.

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05	Annual financial statements	Investec Bank 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 relate to the future cash flows that can be expected from the instrument and requires judgement. Cash flows are input

into a discounted cash flow valuation.

Price earnings multiple

The price-to-earnings ratio is an equity valuation multiple used in the adjustment of underlying market prices. It is a key driver in the

valuation of unlisted investments.

Underlying asset value

In instances where cash flows have links to referenced assets, the underlying asset value is used to determine the fair value.

The underlying asset valuation is derived using observable market prices sourced from broker quotes, specialist valuers or other

reliable pricing sources.


		Fair value category
At 31 March	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Company
2026
Assets
Sovereign debt securities	767 454	767 454	—	—
Bank debt securities	473 920	473 920	—	—
Other debt securities	49 387	8 753	3 945	36 689
Derivative financial instruments	352 780	—	351 406	1 374
Securities arising from trading activities	44 723	44 723	—	—
Loans and advances to customers*	3 340 540	—	—	3 340 540
Fair value adjustment for asset portfolio hedged risk	(20 507)	—	(20 507)	—
Other loans and advances	7 434	—	—	7 434
Investment portfolio	26 215	—	268	25 947
Other assets	4 417	—	—	4 417
	5 046 363	1 294 850	335 112	3 416 401
Liabilities
Derivative financial instruments	409 690	—	409 156	534
Other trading liabilities	19 409	19 409	—	—
Fair value adjustment for liability portfolio hedged risk	(10 395)	—	(10 395)	—
	418 704	19 409	398 761	534
Net assets at fair value	4 648 166	1 275 441	(43 142)	3 415 867

*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.

178



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. Fair value hierarchy (continued)


		Fair value category
At 31 March	Total instruments at fair value	Level 1	Level 2	Level 3
£’000	Total instruments at fair value	Level 1	Level 2	Level 3
Company
2025
Assets
Reverse repurchase agreements and cash collateral on securities borrowed	56 413	—	56 413	—
Sovereign debt securities	449 340	449 340	—	—
Bank debt securities	324 179	324 179	—	—
Other debt securities	57 888	8 777	2 050	47 061
Derivative financial instruments	311 854	—	305 502	6 352
Securities arising from trading activities	149 912	149 912	—	—
Loans and advances to customers*	2 449 856	—	1 438	2 448 418
Other securitised assets	9 460	—	—	9 460
Investment portfolio	32 027	—	962	31 065
Other assets	1 228	1 228	—	—
	3 842 157	933 436	366 365	2 542 356
Liabilities
Derivative financial instruments	267 909	—	267 082	827
Other trading liabilities	16 242	16 242	—	—
	284 151	16 242	267 082	827
Net assets at fair value	3 558 006	917 194	99 283	2 541 529

*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.

179



05	Annual financial statements	Investec Bank 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	Total
£’000	Investment portfolio	Loans and advances to customers	Other securitised assets	Other balance sheet assets ¹	Total
Company
Assets
Balance as at 1 April 2024	42 888	2 032 806	468	92 529	2 168 691
Net gains/(losses) in the income statement^	(1 798)	209 448	(157)	4 156	211 649
Interest income	—	209 941	—	4 790	214 731
Investment income	(1 798)	(493)	(157)	61	(2 387)
Trading income/(loss) arising from customer flow	—	—	—	(695)	(695)
Gains or (losses) in the statement of comprehensive income	—	19 118	—	—	19 118
Purchases	5 104	3 121 074	—	5 055	3 131 233
Sales	—	(1 160 858)	(311)	(14 560)	(1 175 729)
Settlements	(14 469)	(1 730 700)	—	(18 716)	(1 763 885)
Transfers out of level 3	—	(1 825)	—	—	(1 825)
Foreign exchange adjustments	(660)	(40 645)	—	(5 591)	(46 896)
Balance as at 31 March 2025	31 065	2 448 418	—	62 873	2 542 356
Net gains/(losses) in the income statement^	(496)	229 551	—	708	229 763
Interest income	—	234 888	—	5 239	240 127
Investment income	(496)	(5 337)	—	(3 054)	(8 887)
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	—	4 559 850	—	51 924	4 611 774
Sales	(41)	(1 115 755)	—	(21 002)	(1 136 798)
Settlements	(3 913)	(2 801 536)	—	(39 864)	(2 845 313)
Transfers out of level 3	(172)	—	—	—	(172)
Foreign exchange adjustments	(497)	27 727	—	(4 724)	22 506
Balance as at 31 March 2026	25 946	3 340 540	—	49 915	3 416 401

1.Comprises level 3 other debt securities, derivative financial instruments, other loans and advances 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.


For the year to	Derivative financial instruments	Total
£’000	Derivative financial instruments	Total
Company
Liabilities
Balance as at 1 April 2024	22 002	22 002

Net (gains)/losses in the income statement^	48	48
Trading income/(loss) arising from customer flow	48	48
Settlements	(21 223)	(21 223)
Balance as at 31 March 2025	827	827

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

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05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

13. Fair value hierarchy (continued)

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 2025, loans and advances to customers of £1.8 million were transferred from level 3 to level 2

following the use of broker‑observable valuation inputs. There were no transfers in or out of level 3 in the current year.

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
Company
2026
Total gains or (losses) included in the income statement for the period
Interest income	240 127	208 040	32 087
Investment income	(8 887)	(15 156)	6 269
Trading income/(loss) arising from customer flow	(1 184)	664	(1 848)
	230 056	193 548	36 508
Total gains or (losses) included in other comprehensive income for the period
Gains on realisation on debt instruments at FVOCI recycled through the income statement	(3 335)	(3 335)	—
Fair value movements on debt instruments at FVOCI taken directly to other comprehensive income	(7 715)	—	(7 715)
	(11 050)	(3 335)	(7 715)
2025
Total gains or (losses) included in the income statement for the period
Interest income	214 732	188 431	26 301
Investment income	(2 387)	(10 060)	7 673
Trading income/(loss) arising from customer flow	(744)		(744)
	211 601	178 371	33 230
Total gains or (losses) included in other comprehensive income for the period
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

Level 2 financial assets and financial liabilities

The Company follows the Group’s principal valuation techniques set out on page 174 in determining the fair value of its financial

assets and financial liabilities that are classified within level 2 of the fair value hierarchy.

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05	Annual financial statements	Investec Bank 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 table below shows the sensitivity of these fair values to reasonably possible

alternative assumptions, determined at a transactional level:


At 31 March 2026	Balance sheet value £’000	Principle valuation technique	Significant unobservable input	Range of unobservable inputs used	Favourable changes £’000	Unfavourable changes £’000
Company
Assets
Other debt securities	36 689		Potential impact on income statement		1 279	(1 650)
		Discounted cash flows	Credit spreads	0.47% - 1.19%	46	(76)
		Net asset value	Underlying asset value		892	(1 408)
		Other	Other	^	341	(166)

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

Investment portfolio	25 947		Potential impact on income statement		2 015	(6 534)
		Price earnings	EBITDA multiple	7.89x	1 669	(4 162)
		Discounted cash flow	Discount rate	15%	16	(32)
		Net asset value	Underlying asset value	^^	321	(2 322)
		Other	Other	^	9	(18)

Loans and advances to customers	3 340 540		Potential impact on income statement		12 147	(17 426)
		Discounted cash flow	Credit spreads	0.19% - 4.01%	8 411	(13 064)
		Discounted cash flow	Discount rate	0.1	876	(1 529)
		Net asset value	Underlying asset value	^^	2 860	(2 833)
			Potential impact on other comprehensive income		16 576	(26 448)
		Discounted cash flows	Credit spreads	0.18% - 4.43%	16 576	(26 448)

Other loans and advances	7 434				8	(14)
Other loans and advances		Discounted cash flows	Credit spreads	2%	8	(14)

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

Total level 3 assets	3 416 401				34 875	(52 866)
Liabilities
Derivative financial instruments	(534)		Potential impact on income statement		(50)	—
Derivative financial instruments		Other	Other	^	(50)	—

Total level 3 liabilities	(534)				50	—
Net level 3 assets	3 415 867				34 825	(52 866)

^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.

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05	Annual financial statements	Investec Bank 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 inputs used	Favourable changes £’000	Unfavourable changes £’000
Company
Assets
Other debt securities	47 061		Potential impact on income statement		1 914	(3 205)
		Discounted cash flows	Credit spreads	0.36% - 1.5%	53	(97)
		Discounted cash flows	Cash flow adjustments	CPR 13.94%	256	(164)
			Underlying asset value^^	^^	1 361	(2 700)
		Other	Other	^	244	(244)

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

Investment portfolio	31 065		Potential impact on income statement		3 132	(6 607)
		Discounted cash flows	Discount rate	15%	44	(82)
		Underlying asset value	Underlying asset value	^^	2 561	(5 470)
		Other	Other	^	527	(1 055)

Loans and advances to customers	2 448 418		Potential impact on income statement		9 141	(16 798)
		Discounted cash flows	Credit spreads	0.14% - 4.65%	6 068	(13 818)
		Discounted cash flows	Credit spreads	0.37%	1 557	(1 557)
		Underlying asset value	Underlying asset value	^^	1 516	(1 423)
			Potential impact on other comprehensive income		15 653	(28 974)
		Discounted cash flows	Credit spreads	0.16% - 5.72%	15 653	(28 974)

Other loans and advances	9		Potential impact on income statement		711	—
		Other	Other	^	711	—


Total level 3 assets	2 542 356				31 609	(56 286)
Liabilities
Derivative financial instruments	(827)		Potential impact on income statement		(12)	—
		Other	Other	^	(12)	—

Total level 3 liabilities	(827)				(12)	—
Net level 3 assets	2 541 529				31 597	(56 286)

^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.

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05	Annual financial statements	Investec Bank 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	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
Group
2026
Assets
Cash and balances at central banks	3 173 756	3 173 756	—	—	—	—	—
Loans and advances to banks	800 615	800 615	—	—	—	—	—
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	141 301	141 301	—	—	—	—	—
Other assets	766 979	766 978	—	—	—	—	—
	24 167 497	8 100 215	16 067 281	16 089 462
Liabilities
Deposits by banks	902 677	221 008	681 669	684 211	—	684 211	—
Repurchase agreements and cash collateral on securities lent	1 065 587	1 065 587	—	—	—	—	—
Customer accounts (deposits)	22 534 593	12 836 639	9 697 954	9 627 072	—	9 627 072	—
Debt securities in issue	1 075 112	1 194	1 073 918	1 088 190	1 066 859	21 331	—
Other liabilities	937 635	937 635	—	—	—	—	—
Subordinated liabilities	697 632	—	697 632	722 815	722 815	—	—
	27 213 236	15 062 063	12 151 173	12 122 288

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.

184



05	Annual financial statements	Investec Bank 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	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
Group
2025
Assets
Cash and balances at central banks	4 191 750	4 191 750	—	—	—	—	—
Loans and advances to banks	859 802	859 802	—	—	—	—	—
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	162 882	114 694	48 188	48 164	—	48 164	—
Other assets	380 319	380 319	—	—	—	—	—
	23 316 850	7 926 911	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)	21 555 444	13 573 368	7 982 076	7 949 847	—	7 949 847	—
Debt securities in issue	974 371	1 194	973 177	980 488	848 810	131 678	—
Other liabilities	509 303	508 621	682	189	—	—	189
Subordinated liabilities	682 218	—	682 218	712 548	712 548	—	—
	25 377 106	14 462 545	10 914 561	10 925 426

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

185



05	Annual financial statements	Investec Bank 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


Other assets	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

186



05	Annual financial statements	Investec Bank 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	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
Company
2026
Assets
Cash and balances at central banks	3 158 937	3 158 937	—	—	—	—	—
Loans and advances to banks	557 491	557 491	—	—	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	1 884 699	1 552 902	331 797	332 104	—	332 104	—
Sovereign debt securities	1 879 239	925 443	953 796	952 569	952 569	—	—
Bank debt securities	—	—	—	—	—	—	—
Other debt securities	1 281 606	351 025	930 581	916 477	—	916 477	—
Loans and advances to customers	10 342 560	297 132	10 045 428	10 050 205	—	—	10 050 205
Other loans and advances	3 330 151	3 330 151	—	—	—	—	—
Other assets	723 763	723 763	—	—	—	—	—
	23 158 446	10 896 844	12 261 602	12 251 355
Liabilities
Deposits by banks	1 365 723	684 053	681 670	684 211	—	684 211	—
Repurchase agreements and cash collateral on securities lent	1 215 886	1 215 886	—	—	—	—	—
Customer accounts (deposits)	20 496 140	11 108 551	9 387 589	9 315 823	—	9 315 823	—
Debt securities in issue	1 073 917	—	1 073 917	1 088 190	1 066 859	21 331	—
Other liabilities	862 754	862 754	—	—	—	—	—
Subordinated liabilities	697 632	—	697 632	722 815	722 815	—	—
	25 712 052	13 871 244	11 840 808	11 811 039

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 mat urity, 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.

187



05	Annual financial statements	Investec Bank 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	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
Company
2025
Assets
Cash and balances at central banks	4 175 092	4 175 092	—	—	—	—	—
Loans and advances to banks	450 989	450 989	—	—	—	—	—
Reverse repurchase agreements and cash collateral on securities borrowed	1 584 352	1 318 407	265 945	266 404	—	266 404	—
Sovereign debt securities	1 045 860	417 699	628 161	628 112	628 112	—	—
Other debt securities	1 337 273	701 043	636 230	629 936	—	629 936	—
Loans and advances to customers	10 343 625	304 871	10 038 754	10 019 795	—	—	10 019 795
Other loans and advances	3 331 046	3 282 858	48 188	48 164	—	48 164	—
Other assets	359 038	359 038	—	—	—	—	—
	22 627 275	11 009 997	11 617 278	11 592 411
Liabilities
Deposits by banks	1 968 896	692 487	1 276 409	1 282 354	—	1 282 354	—
Repurchase agreements and cash collateral on securities lent	328 534	328 534	—	—	—	—	—
Customer accounts (deposits)	19 952 173	12 323 683	7 628 490	7 595 233	—	7 595 233	—
Debt securities in issue	973 176	—	973 176	980 488	848 810	131 678	—
Other liabilities	455 892	455 209	683	189	—	—	189
Subordinated liabilities	682 218	—	682 218	712 548	712 548	—	—
	24 360 889	13 799 913	10 560 976	10 570 812

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

188



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

15. Cash and balances at central banks


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross cash and balances at central banks	3 173 756	4 191 750	3 158 937	4 175 092
Expected credit loss	—	—	—	—
Net cash and balances at central banks	3 173 756	4 191 750	3 158 937	4 175 092
The country risk of cash and bank balances at central banks lies in the following geographies:
United Kingdom	3 158 938	4 175 093	3 158 937	4 175 092
Europe (excluding UK)	14 818	16 657	—	—
	3 173 756	4 191 750	3 158 937	4 175 092

16. Loans and advances to banks


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross loans and advances to banks	800 677	859 831	557 494	450 992
Expected credit loss	(62)	(29)	(3)	(3)
Net loans and advances to banks	800 615	859 802	557 491	450 989
The country risk of loans and advances to banks lies in the following geographies:
North America	101 736	95 462	92 237	81 908
Asia	10 492	8 474	3 778	5 905
Europe (excluding UK)	373 469	408 603	331 231	244 885
United Kingdom	307 583	327 036	125 901	105 587
Other	355	473	349	466
South Africa	1 527	2 206	250	836
Australia	5 453	17 548	3 745	11 402
	800 615	859 802	557 491	450 989

189



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

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

repurchase agreements and cash collateral on securities lent


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Assets
Gross reverse repurchase agreements and cash collateral on securities borrowed	1 884 714	1 640 780	1 884 714	1 640 780
Expected credit loss	(15)	(15)	(15)	(15)
Net reverse repurchase agreements and cash collateral on securities borrowed	1 884 699	1 640 765	1 884 699	1 640 765
Reverse repurchase agreements	1 868 712	1 630 578	1 868 712	1 630 578
Cash collateral on securities borrowed	15 987	10 187	15 987	10 187
	1 884 699	1 640 765	1 884 699	1 640 765
As part of the reverse repurchase and securities borrowing agreements the Group and Company have received securities that it is allowed to sell or repledge. £16 million (2025: £10 million) has been resold or repledged to third parties in connection with financing activities or to comply with commitments under short sale transactions.
Liabilities
Repurchase agreements	1 056 564	169 708	1 206 863	320 040
Cash collateral on securities lent	9 023	8 494	9 023	8 494
	1 065 587	178 202	1 215 886	328 534

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.

190



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

18. Sovereign debt securities


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross sovereign debt securities	3 688 138	2 524 702	2 646 693	1 495 200
Expected credit loss	—	—	—	—
Net sovereign debt securities	3 688 138	2 524 702	2 646 693	1 495 200
The country risk of sovereign debt securities lies in the following geographies:
United Kingdom	2 330 958	1 377 860	1 930 643	1 037 398
Europe (excluding UK)*	304 531	239 778	225 125	158 257
North America	1 052 390	907 064	490 666	299 545
Asia	259	—	259	—
	3 688 138	2 524 702	2 646 693	1 495 200

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

19. Bank debt securities


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross bank debt securities^	474 082	324 268	474 082	324 268
Expected credit loss^	(162)	(89)	(162)	(89)
Net bank debt securities	473 920	324 179	473 920	324 179
Bonds	473 920	324 179	473 920	324 179
	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	395 154	257 401
Australia	53 606	51 663	53 606	51 663
North America	25 160	15 115	25 160	15 115
	473 920	324 179	473 920	324 179

^As a result of the change in presentation of ECL on FVOCI instruments, explained on page 252, 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


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross other debt securities	1 117 800	771 481	1 331 041	1 395 920
Expected credit loss	(49)	(759)	(48)	(759)
Net other debt securities	1 117 751	770 722	1 330 993	1 395 161
Bonds	50 613	69 830	49 339	69 205
Asset-backed securities	1 067 138	700 892	1 281 654	1 325 956
	1 117 751	770 722	1 330 993	1 395 161
The country risk of other debt securities lies in the following geographies:
United Kingdom	42 473	60 111	256 989	685 176
Europe (excluding UK)	120 177	91 867	120 177	91 867
North America	943 446	600 762	943 446	600 762
Asia	11 655	17 982	10 381	17 356
	1 117 751	770 722	1 330 993	1 395 161

191



05	Annual financial statements	Investec Bank 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
Group
Foreign exchange derivatives
Forward foreign exchange contracts	18 369 192	144 767	87 883	18 555 720	165 286	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	10 815	22 652	2 412 722	12 381	15 207
	23 809 187	162 138	141 820	22 041 132	197 192	122 726
Interest rate derivatives
Caps and floors	6 781 765	6 710	20 933	8 559 624	28 420	25 442
Swaps	33 382 553	63 553	63 147	34 140 306	64 457	80 963
OTC options bought and sold	54 600	—	541	54 600	—	447
	40 218 918	70 263	84 621	42 754 530	92 877	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		370 494	419 205		325 886	274 791

192



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

21. Derivative financial instruments (continued)


	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
Company
Foreign exchange derivatives
Forward foreign exchange contracts	16 207 349	128 369	77 781	16 404 118	152 264	93 703
Currency swaps	3 203 580	6 556	31 276	1 053 965	19 525	4 529
OTC options bought and sold	2 197 818	9 794	20 791	2 353 968	11 690	15 016
	21 608 747	144 719	129 848	19 812 051	183 479	113 248
Interest rate derivatives
Caps and floors	6 133 843	23 082	22 279	7 970 882	28 291	24 272
Swaps	34 072 051	47 180	63 090	34 116 892	64 616	84 437
Forward rate agreements	—	—	—	—	—	541
OTC options bought and sold	54 600	—	541	54 600	—	447
	40 260 494	70 262	85 910	42 142 374	92 907	109 697
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	25 839	25 808	319 445	4 131	1 136
Commodity swaps and forwards	553 146	110 238	159 597	386 927	14 097	8 951
Exchange traded futures	83 428	3	4	141 479	5	—
	996 331	136 080	185 409	847 851	18 233	10 087
Credit derivatives	420 321	1 529	1 234	361 034	1 737	1 540
Other derivatives		—	—		3 502	—
Derivatives per balance sheet		352 780	409 690		311 854	267 909

193



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

22. Securities arising from trading activities


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

23. Investment portfolio


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Listed equities	—	866	—	1
Unlisted equities	198 722	210 887	22 791	32 026
Profit shares	3 424	—	3 424	—
	202 146	211 753	26 215	32 027

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


	Group		Company
At 31 March	2026	2025^{^}	2026	2025 ^{^}
£’000	2026	2025^{^}	2026	2025 ^{^}
Gross loans and advances to customers at amortised cost	14 515 528	14 390 276	10 475 970	10 450 982
Gross loans and advances to customers at FVOCI ^{^}	2 686 156	2 027 975	2 590 882	1 959 641
Gross loans and advances to customers subject to expected credit losses	17 201 684	16 418 251	13 066 852	12 410 623
Expected credit losses on loans and advances to customers at amortised cost and FVOCI ^{^}	(207 030)	(176 458)	(150 856)	(130 024)
Net loans and advances to customers at amortised cost and FVOCI	16 994 654	16 241 793	12 915 996	12 280 599
Loans and advances to customers at fair value through profit and loss	808 999	571 930	767 104	512 882
Net loans and advances to customers	17 803 653	16 813 723	13 683 100	12 793 481

Gross other loans and advances	141 330	162 909	3 336 579	3 337 522
Expected credit losses on other loans and advances	(29)	(27)	(6 428)	(6 476)
Net other loans and advances at amortised cost	141 301	162 882	3 330 151	3 331 046
Other loans and advances at fair value through profit and loss	—	—	7 434	9 460
Net other loans and advances	141 301	162 882	3 337 585	3 340 506

^Gross and ECL figures have been re-presented to incorporate interest in suspense of £11.6 million (Group) and £10.12 million (Company) at 31 March 2025 (1 April

2024: £5 million for both Group and Company), as well as ECL recognised on financial assets measured at FVOCI of £22.6 million at 31 March 2025 (1 April 2024:

£13.3 million).

For further analysis on loans and advances for the Group, refer to pages 252 to 258 in the notes to risk and capital

management, for the Company pages 285 to 286.

194



05	Annual financial statements	Investec Bank 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	Group	Company
£’000	Group	Company
Expected credit losses on loans and advances to customers at amortised cost ^{^}
Balance as at 1 April 2024	192 460	142 814
Charge to the income statement	97 286	83 233
Reversals and recoveries recognised in the income statement	(7)	(7)
Write-offs	(118 207)	(100 825)
Exchange adjustments	(1 615)	(1 091)
Accrual of suspended interest	6 541	5 900
Balance as at 31 March 2025	176 458	130 024
Charge to the income statement	96 849	73 570
Reversals and recoveries recognised in the income statement	(266)	(266)
Write-offs	(71 897)	(59 437)
Exchange adjustments	(875)	204
Accrual of suspended interest	6 761	6 761
Balance as at 31 March 2026	207 030	150 856
Expected credit loss on other loans and advances
Balance as at 1 April 2024	30	6 460
Charge to the income statement	6	16
Exchange adjustments	(9)	—
Balance as at 31 March 2025	27	6 476
Charge to the income statement	12	(50)
Exchange adjustments	(10)	2
Balance as at 31 March 2026	29	6 428

^ECL figures have been re-presented to incorporate interest in suspense of £11.6 million (Group) and £10.12 million (Company) at 31 March 2025 (1 April 2024: £5

million for both Group and Company), as well as ECL recognised on financial assets measured at FVOCI of £22.6 million at 31 March 2025 (1 April 2024: £13.3 million).

Of the amounts written off in the current period within the Group and Company, £5.2 million are subject to enforcement activity at

the year end (31 March 2025: £6.8 million).

195



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

25. Interests in associated undertakings and joint venture holdings


For the year to 31 March	2026	2025
£’000	2026	2025
Group
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	136 760
Exchange adjustments	(4 134)	(864)
Rathbones measurement period finalisation^{^^}	—	53 369
Change in shareholding	(7 580)	—
Disposals	(1 952)	—
Acquisitions of intangibles within associates	(8 171)	—
Transfer from investment portfolio^	—	27 835
Share of post-taxation profits of associates and joint venture holdings	75 331	44 393
Share of other comprehensive income and equity of associates and joint venture holdings	7 907	(12 252)
Dividends received	(42 026)	(24 173)
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
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.


For the year to 31 March	2026	2025
£’000	2026	2025
Company
Analysis of the movement in investment:
At the beginning of the year	787 400	781 674
Exchange adjustments	(16)	(43)
Disposals	(1 645)	—
Measurement period finalisation	—	5 769
At the end of the year	785 739	787 400
Provision for impairment in value:
At the beginning of the year	—	—
Disposals	—	—
At the end of the year	—	—
Net book value at the end of the year	785 739	787 400

196



05	Annual financial statements	Investec Bank 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	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 intangibles 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.

197



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

26. Deferred taxation


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Deferred taxation assets	72 671	120 918	44 322	50 454
Net deferred taxation assets	72 671	120 918	44 322	50 454
The net deferred taxation assets arise from:
Deferred capital allowances	30 107	72 665	4 813	5 016
Income and expenditure accruals	694	138	—	—
Asset in respect of unexpired options	29 598	33 072	29 598	33 072
Unrealised fair value adjustments on financial instruments	10 581	13 284	9 911	12 366
Losses carried forward	1 329	1 397	—	—
Asset in respect of pension deficit	362	362	—	—
Net deferred taxation assets	72 671	120 918	44 322	50 454
Reconciliation of net deferred taxation assets
At the beginning of the year	120 918	119 730	50 454	58 572
Release/(charge) to income statement	(46 397)	4 807	(4 533)	(4 714)
Movement directly in other comprehensive income and equity	(1 746)	(3 552)	(1 599)	(3 404)
Exchange adjustments	(104)	(67)	—	—
At the end of the year	72 671	120 918	44 322	50 454

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 £70.7 million (2025: £70.7 million), and in the Company £25.3 million (2025:

£25.3 million). There are capital losses carried forward of £97.0 million ( 2025: £82.9 million) (company: £14.3 million, 2025: £nil) on

which deferred tax assets have not been recognised due to uncertainty regarding future profits against which these losses can be

utilised. Of the £70.7 million trading losses, £nil will expire in the next four years (2025: £1 million).

27. Other assets


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Gross other assets	934 758	677 317	753 494	388 833
Expected credit loss	—	—	—	—
Net other assets	934 758	677 317	753 494	388 833
Financial assets
Settlement debtors	677 410	290 629	665 698	283 455
Trading initial margin	3 539	1 228	3 539	1 228
Prepayments and accruals	37 592	33 681	34 558	31 928
Other	52 854	56 009	24 385	43 655
	771 395	381 547	728 180	360 266
Scoped out of IFRS 9
Trading properties	83 888	84 704	—	—
Prepayments and accruals	27 987	24 786	14 966	13 935
Finance lease receivables	2 286	3 584	—	—
Indirect taxation assets receivable	596	773	623	653
Aircraft and aircraft-related structures*	24 495	135 783	—	—
Other	24 111	46 140	9 725	13 979
	163 363	295 770	25 314	28 567
	934 758	677 317	753 494	388 833

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

198



05	Annual financial statements	Investec Bank 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
Group
2026
Cost
At the beginning of the year	—	96 928	45 811	8 190	8 778	1 072	160 779
Exchange adjustments	—	(339)	(143)	6	(124)	—	(600)
Additions	—	74 617	32 047	4 242	1 969	—	112 875
Disposals	—	(1 899)	—	(43)	(138)	(518)	(2 598)
Write-off	—	(431)	(552)	(38)	(371)	—	(1 392)
At the end of the year	—	168 876	77 163	12 357	10 114	554	269 064
Accumulated depreciation
At the beginning of the year	—	(57 590)	(30 595)	(5 353)	(7 345)	(956)	(101 839)
Exchange adjustments	—	(641)	(227)	24	(24)	—	(868)
Disposals	—	962	—	43	—	481	1 486
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	—	(68 297)	(36 481)	(6 469)	(7 699)	(488)	(119 434)
Net carrying value	—	100 579	40 682	5 888	2 415	66	149 630
2025
Cost
At the beginning of the year	36	96 930	46 113	7 791	8 007	1 296	160 173
Exchange adjustments	—	(504)	(93)	(14)	(73)	—	(684)
Additions	—	913	981	706	1 010	—	3 610
Disposals	(36)	(411)	(1 190)	(293)	(166)	(224)	(2 320)
At the end of the year	—	96 928	45 811	8 190	8 778	1 072	160 779
Accumulated depreciation
At the beginning of the year	(36)	(47 418)	(26 681)	(4 977)	(6 975)	(1 139)	(87 226)
Exchange adjustments	—	195	40	4	25	—	264
Disposals	36	180	1 125	281	63	200	1 885
Depreciation and impairment charge for the year	—	(10 547)	(5 079)	(661)	(458)	(17)	(16 762)
At the end of the year	—	(57 590)	(30 595)	(5 353)	(7 345)	(956)	(101 839)
Net carrying value	—	39 338	15 216	2 837	1 433	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 (31 March 2025: £nil) disclosed on the income statement within Financial Impact of Strategic Actions.

199



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

28 . Property and equipment (continued)


At 31 March	Right-of-use assets^	Leasehold improvements	Furniture and vehicles	Equipment	Total
£’000	Right-of-use assets^	Leasehold improvements	Furniture and vehicles	Equipment	Total
Company
2026
Cost
At the beginning of the year	60 079	41 191	5 580	11 931	118 781
Additions	49 569	28 792	2 661	1 404	82 426
Disposals	(512)	—	—	—	(512)
Write-off	—	(356)	—	—	(356)
At the end of the year	109 136	69 627	8 241	13 335	200 339
Accumulated depreciation
At the beginning of the year	(39 278)	(28 980)	(3 693)	(11 505)	(83 456)
Disposals	—	—	—	—	—
Depreciation and impairment charge for the year	(5 520)	(5 129)	(903)	(304)	(11 856)
Write-off	—	356	—	—	356
At the end of the year	(44 798)	(33 753)	(4 596)	(11 809)	(94 956)
Net carrying value	64 338	35 874	3 645	1 526	105 383
2025
Cost
At the beginning of the year	59 617	41 191	5 580	11 848	118 236
Additions	462	—	—	83	545
At the end of the year	60 079	41 191	5 580	11 931	118 781
Accumulated depreciation
At the beginning of the year	(33 258)	(24 690)	(3 151)	(11 421)	(72 520)
Depreciation and impairment charge for the year	(6 020)	(4 290)	(542)	(84)	(10 936)
At the end of the year	(39 278)	(28 980)	(3 693)	(11 505)	(83 456)
Net carrying value	20 801	12 211	1 887	426	35 325

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

200



05	Annual financial statements	Investec Bank 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	89 812	90 960
Acquisition of subsidiaries	5 401	—
Exchange adjustments	2 778	(1 148)
At the end of the year	97 991	89 812
Accumulated impairments
At the beginning of the year	(32 878)	(32 878)
At the end of the year	(32 878)	(32 878)
Net carrying value	65 113	56 934
Analysis of goodwill by line of business:
Specialist Banking	65 113	56 934
Total Group	65 113	56 934

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.

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.

201



05	Annual financial statements	Investec Bank 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
Group
2026
Cost
At the beginning of the year	22 671	—	22 671	4 337	4 337	27 008
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	21 988	7 037	29 025	3 416	3 416	32 441
Accumulated amortisation and impairments
At the beginning of the year	(17 929)	—	(17 929)	(4 337)	(4 337)	(22 266)
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	(16 567)	—	(16 567)	(3 416)	(3 416)	(19 983)
Net carrying value	5 421	7 037	12 458	—	—	12 458
2025
Cost
At the beginning of the year	21 499	—	21 499	4 356	4 356	25 855
Exchange adjustments	(18)	—	(18)	(19)	(19)	(37)
Additions	1 190	—	1 190	—	—	1 190
At the end of the year	22 671	—	22 671	4 337	4 337	27 008
Accumulated amortisation and impairments
At the beginning of the year	(16 928)	—	(16 928)	(4 356)	(4 356)	(21 284)
Exchange adjustments	18	—	18	19	19	37
Amortisation	(1 019)	—	(1 019)	—	—	(1 019)
At the end of the year	(17 929)	—	(17 929)	(4 337)	(4 337)	(22 266)
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.

202



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

30 . Software and other acquired intangible assets (continued)


At 31 March	Acquired software	Internally generated
£’000	Acquired software	software	Total
Company
2026
Cost
At the beginning of the year	2 636	—	2 636
Additions	—	7 037	7 037
Write offs	(2 636)	—	(2 636)
At the end of the year	—	7 037	7 037
Accumulated amortisation and impairments
At the beginning of the year	(2 636)	—	(2 636)
Write offs	2 636	—	2 636
At the end of the year	—	—	—
Net carrying value	—	7 037	7 037
2025
Cost
At the beginning of the year	2 636	—	—
At the end of the year	2 636	—	—
Accumulated amortisation and impairments
At the beginning of the year	(2 636)	—	—
At the end of the year	(2 636)	—	—
Net carrying value	—	—	—

203



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

31. Acquisitions and disposals

There were no significant acquisitions or disposals during the current and prior year.

32. Other trading liabilities


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

33. Customer accounts (deposits)


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Demand	6 885 994	6 797 503	5 857 816	6 629 365
Transactional	429 404	437 022	429 404	437 022
Fixed	7 773 330	6 745 977	7 567 196	6 149 419
Notice	7 445 865	7 574 942	6 641 724	6 736 367
	22 534 593	21 555 444	20 496 140	19 952 173

34. Debt securities in issue


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Repayable in:
Less than three months	2 971	10 861	2 970	10 861
Three months to one year	17 918	98 562	17 918	98 562
One to five years	1 053 029	448 820	1 053 029	448 820
Greater than five years	1 194	416 128	—	414 933
	1 075 112	974 371	1 073 917	973 176
Debt securities in issue shown above comprise:
Senior unsecured notes	617 315	841 097	617 315	841 096
Structured notes	20 889	132 080	20 889	132 080
Redeemable preference shares	1 194	1 194	—	—
Floating rate notes	435 714	—	435 713	—
	1 075 112	974 371	1 073 917	973 176

204



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

35. Other liabilities


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Financial liabilities
Settlement liabilities	747 422	279 613	731 506	274 336
Other creditors and accruals	96 259	136 917	70 543	82 781
Other non-interest bearing liabilities	83 455	82 796	50 347	88 885
Expected credit losses on undrawn commitments and guarantees	10 499	9 977	10 358	9 890
	937 635	509 303	862 754	455 892
Scoped out of IFRS 9
Other creditors and accruals ^*	179 893	179 499	100 379	132 159
Lease liabilities	117 811	196 979	77 124	30 256
Other non-interest bearing liabilities	12 642	7 267	7 209	3 216
Indirect taxation liabilities payable	359	498	817	444
	310 705	384 243	185 529	166 075
	1 248 340	893 546	1 048 283	621 967

*Included in Other creditors and accruals is a provision relating to motor vehicle financing. Refer to note 42 for more details.

205



05	Annual financial statements	Investec Bank 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
Group
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


	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
Company
Lease liabilities included in other liabilities
Lease liabilities payable in:
Less than one year	6 320	6 129	8 847	8 778
One to two years	8 552	7 923	8 813	8 594
Two to three years	4 320	3 811	8 813	8 447
Three to four years	3 793	3 137	4 720	4 437
Four to five years	9 211	7 265	—	—
Later than five years	75 851	48 859	—	—
	108 047	77 124	31 193	30 256

Reconciliation from opening balance to closing balance


At 31 March	Group	Company
£’000	Group	Company
Balance as at 1 April 2024	243 951	38 563
Interest on lease liabilities	9 708	581
New leases	805	462
Repayment of lease liabilities	(53 484)	(9 350)
Capital repayment	(43 776)	(8 769)
Interest repayment	(9 708)	(581)
Remeasurement of lease liabilities	(294)	—
Exchange adjustments	(3 707)	—
Balance as at 31 March 2025	196 979	30 256
Interest on lease liabilities	8 153	2 822
New leases	22 407	—
Disposals	(1 983)	(898)
Deconsolidation of subsidiaries	(4)	—
Repayment of lease liabilities	(151 380)	(4 623)
Capital repayment	(143 227)	(1 801)
Interest repayment	(8 153)	(2 822)
Remeasurement of lease liabilities	49 723	49 567
Exchange adjustments	(6 084)	—
Balance as at 31 March 2026	117 811	77 124

Renewal options are taken into account when determining the term of the lease.

206



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

36. Subordinated liabilities


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Issued by Investec Bank plc
Subordinated fixed rate reset callable medium-term notes	697 632	682 218	697 632	682 218
	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
	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	682 218	668 810
New issue	298 343	—	298 343	—
Redemption	(290 850)	—	(290 850)	—
Accrual of interest	42 718	41 112	42 718	41 112
Repayment of interest	(42 952)	(41 125)	(42 952)	(41 125)
Hedge accounting/amortisation of discount	8 155	13 421	8 155	13 421
At the end of the year	697 632	682 218	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 prepayable fixed rate resettable medium term loan

On 4 October 2021, Investec Bank plc entered into a £350 000 000 subordinated loan at a rate of 2.625% and repayable in 2032

(2032 loan) with Investec plc. 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. On 2 February 2026, Investec Bank plc repaid £294 220 000

of the principal amount of the loan for a cash consideration of £290 836 470 plus accrued interest. The remaining loan of

£55 780 000 may be prepaid on any date in the period from 4 October 2026 to (and including) 4 January 2027 subject to

conditions. If the option to prepay the remaining loan is not exercised, the loan will be repaid on the maturity date of

4 January 2032.

Subordinated prepayable fixed rate resettable medium-term loan

On 6 December 2022, Investec Bank plc entered into a £350 000 000 subordinated loan at a rate of 9.125% (2033 loan) with

Investec plc. 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 may be prepaid on any date in the period from 6 December 2027 to (and including)

6 March 2028 subject to conditions. If the option to prepay is not exercised, the loan will be repaid on the maturity date of

6 March 2033.

Subordinated callable fixed rate resettable medium term notes

On 30 January 2026, Investec Bank plc entered into a £300 000 000 subordinated loan at a rate of 5.625% (2036 loan) with

Investec plc. 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 loan may be prepaid on any date in the period from 30 April 2031 to (and including)

30 July 2031 subject to conditions. If the option to prepay is not exercised, the loan will be repaid on the maturity date of

30 July 2036.

207



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

37. Ordinary share capital


	Group and Company
At 31 March	2026	2025
£’000	2026	2025
Authorised
The authorised share capital is £2 000 million (2025: £2 000 million) comprising:
2 000 million ordinary shares of £1 each (2025 : 2 000 million ordinary shares of £1 each)
Issued, allotted and fully paid
Number of ordinary shares	Number	Number
At the beginning of the year	1 280 550 000	1 280 550 000
Issued during the year	—	—
At the end of the year	1 280 550 000	1 280 550 000
Nominal value of ordinary shares	£’000	£’000
At the beginning of the year	1 280 550	1 280 550
Issued during the year	—	—
At the end of the year	1 280 550	1 280 550

38. 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.

39. Additional Tier 1 securities in issue


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital Securities	350 000	350 000	350 000	350 000

On 16 October 2017, Investec Bank plc issued £200 million Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital

Securities to Investec plc. 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. A further

£50 million was issued was on 22 January 2019 and paid a distribution rate of 6.75% per annum quarterly, after the initial short

period distribution paid on 5 March 2019. 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 Bank plc issued £350 million of Fixed Rate Reset Perpetual Additional Tier 1 Write Down Capital

Securities at par to Investec plc. 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 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.

208



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

40. 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
Group
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
Group
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.

The Company has no finance lease receivables at 31 March 2026 (31 March 2025 : £nil).

209



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

41. Notes to the cash flow statement


	Group		Company
At 31 March	2026	2025	2026	2025^
£’000	2026	2025	2026	2025^
Profit before taxation adjusted for non-cash items and other adjustments is derived as follows:
Profit before taxation	439 641	446 848	563 185	335 497
Adjustment for non-cash items included in profit before taxation:
Impairment of subsidiaries	—	—	787	11 000
Gain on step acquisition of a subsidiary	(2 072)	—	—	—
Net gain on deconsolidation, disposal and liquidation of subsidiaries	—	—	—	(453)
Depreciation of operating lease assets	14	17	—	—
Depreciation and impairment of property, equipment, software and other intangibles	20 645	21 774	11 856	10 937
Other non-cash income	(7 757)	—	(7 757)
Expected credit loss impairment charges	97 349	97 040	73 954	84 989
Profit on sale of associate	—	—	(307)	—
Share of post-taxation profit of associates and joint venture holdings	(60 283)	(38 081)	—	—
Dividends received from equity-accounted associates and joint venture holdings	42 026	24 173	—	—
Share-based payments and employee benefit liability recognised	17 583	1 067	13 839	(609)
Profit before taxation adjusted for non-cash items	547 146	552 838	655 557	441 361
Increase in operating assets
Loans and advances to banks	(629)	5 208	—	5 212
Reverse repurchase agreements and cash collateral on securities borrowed	(243 934)	(500 651)	(243 934)	(500 651)
Sovereign debt securities	(1 164 550)	(596 568)	(1 152 610)	(417 776)
Bank debt securities	(149 813)	(26 936)	(149 813)	(34 660)
Other debt securities	(345 509)	(62 795)	65 689	19 711
Derivative financial instruments	(57 012)	90 872	(53 331)	93 739
Securities arising from trading activities	105 189	7 420	105 189	7 420
Investment portfolio	9 522	(10 957)	5 812	(11 745)
Other loans and advances	21 582	(17 343)	2 971	(30 738)
Loans and advances to customers	(1 084 306)	(341 166)	(960 742)	(184 561)
Securitised assets	—	66 702	—	468
Other assets	(253 340)	69 073	(364 715)	59 194
Fair value adjustment for asset portfolio hedged risk	20 507	—	20 507	—
	(3 142 293)	(1 317 141)	(2 724 977)	(994 387)
Increase/(decrease) in operating liabilities
Deposits by banks	(574 891)	(696 737)	(603 173)	(589 125)
Derivative financial instruments	144 414	(134 464)	141 781	(161 766)
Other trading liabilities	3 167	(2 207)	3 167	(2 207)
Repurchase agreements and cash collateral on securities lent	887 385	93 111	887 352	93 087
Customer accounts	979 149	704 228	543 967	231 568
Debt securities in issue	100 741	17 484	100 741	17 482
Liabilities arising on securitisation of other assets	—	(71 751)	—	—
Fair value adjustment for liability portfolio hedged risk	(10 395)	—	(10 395)	—
Other liabilities	415 228	(42 511)	376 958	(16 509)
	1 944 798	(132 847)	1 440 398	(427 470)

^The presentation of dividends from subsidiaries, associates and joint ventures has historically been inconsistent between the Group and Company cash flow

statement. These have been aligned in the current year by amending the presentation of the Company, with the comparative revised accordingly.

210



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

42. Commitments, contingent liabilities and provisions


	Group		Company
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Undrawn facilities	2 800 803	2 477 158	2 702 815	2 429 944
Guarantees^	19 083	37 429	5 258	31 918
Irrevocable letters of credit^	312 762	461 265	312 762	461 265
Commitments in scope of IFRS 9	3 132 648	2 975 852	3 020 835	2 923 127
Other commitments	59 331	65 550	—	—
	3 191 979	3 041 402	3 020 835	2 923 127

^ Guarantees and irrevocable letters of credit have been disaggregated in the current year and the prior year has been re-presented.

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 both Group and Company. For further details refer to page 253.

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.

211



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

42. Commitments, contingent liabilities and provisions (continued)

Legal and regulatory matters

The Group operates in a legal and regulatory environment that exposes it to legal, regulatory and litigation risks. As a result, the

Group is involved in disputes, legal proceedings and is subject to enquiries and examinations, requests for information, audits,

investigations and other proceedings by regulators and competition authorities which arise in the ordinary course of business. The

Group evaluates all facts, the probability of the outcome of the proceedings and advice from internal and external legal counsel

when considering accounting and regulatory implications. At the present time, the Group does not expect the ultimate resolution of

any of these ongoing regulatory reviews and other matters to have a material adverse effect on its financial position.

Historical German dividend tax arbitrage transactions

Investec Bank plc has previously been notified by the Office of the Public Prosecutor in Cologne, Germany, that it and certain of its

current and former employees may be involved in possible charges relating to historical involvement in German dividend tax

arbitrage transactions (known as cum-ex transactions). Investigations are ongoing and no formal proceedings have been issued

against Investec Bank plc by the Office of the Public Prosecutor. In addition, Investec Bank plc received certain enquiries in respect

of client tax reclaims for the periods 2010–2011 relating to the historical German dividend arbitrage transactions from the German

Federal Tax Office (FTO) in Bonn. The FTO 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.

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 £30 million, 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.

212



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

43. Pledged assets


	Carrying amount of pledged assets		Related liability
At 31 March	2026	2025	2026	2025
£’000	2026	2025	2026	2025
Group
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
Company
Pledged assets
Loans and advances to banks	46 085	48 103	71 256	89 736
Sovereign debt securities	1 149 518	177 855	1 045 157	88 972
Bank debt securities	12 473	14 872	11 340	5 988
Other debt securities	214 474	624 085	551	312 198
Securities arising from trading activities	9 837	9 213	9 090	8 538
Loans and advances to customers	992 237	921 737	2 549	461 098
Other loans and advances	121	501	187	935
	2 424 745	1 796 366	1 140 130	967 465

The assets pledged by the Group and Company are strictly for the purpose of providing collateral for the counterparty. Additionally,

assets pledged for securities lending transactions amounting to £143 million at both Group and Company level (31 March 2025:

£52 million at Group level and £165 million at Company level) are disclosed this year. These are not included in “sovereign debt

securities” in the table above and have no related liabilities.

213



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

44. Related party transactions


For the year to 31 March	2026	2025
£’000	2026	2025
Balances involving directors (including key management personnel) and connected persons and companies controlled by them:
Loans	7 687	9 720
Deposits	6 976	4 387

*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.


For the year ended 31 March 2026	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
£’000	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
Group
Balances with other related parties
Assets
Loans and advances to banks	—	767	767
Derivative financial instruments	16 372	—	16 372
Other loans and advances	26 863	394	27 257
Other assets	—	26 439	26 439
Liabilities
Deposits by banks	—	18 609	18 609
Derivative financial instruments	—	1	1
Customer accounts (deposits)	59 833	14 881	74 714
Other liabilities	14 027	5 531	19 558


For the year ended 31 March 2025	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
£’000	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
Group
Balances with other related parties
Assets
Loans and advances to banks	—	1 046	1 046
Derivative financial instruments	26 604	1	26 605
Other loans and advances	23 670	125	23 795
Other assets	338	4 954	5 292
Liabilities
Deposits by banks	—	21 331	21 331
Derivative financial instruments	—	18	18
Customer accounts (deposits)	99 859	7 156	107 015
Debt securities in issue	—	12 772	12 772
Other liabilities	—	2	2

The above outstanding balances arose in 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 Bank plc and Investec Limited entities. In the year to 31

March 2026, Investec Bank plc paid a net amount of £33 million (2025: £36 million) to Investec Limited and Investec Limited

entities and received a net amount of £5.5 million (2025: £10.3 million) from Investec plc and Investec plc entities for these

services.

During the year to 31 March 2026, interest of £0.6 million (2025: £1 million) was paid to entities held by Investec Limited and

£5.9 million (2025: £9.9 million) was paid to Investec plc and Investec plc entities. Interest of £60, 700 (2025: £87, 000) was

received from Investec Limited and Investec Limited entities and interest of £0.2 million (2025: £18 million) was received from

Investec plc and Investec plc entities.

During the year to 31 March 2026, the Group paid £1.7 million (2025: £2.4 million) for services rendered in the ordinary course

of business and received £42.5 million (2025: £26.5 million) from associates and joint venture holdings.

214



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

44. Related party transactions (continued)

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. Expected credit

losses recognised on loans to related parties, as detailed above, amounted to £4.9 million at a Company level in 2026 (2025: £2.9

million) and are not material at a Group level for 2026 or 2025.

Balances and transactions between members of the Investec Bank plc Group

In accordance with IFRS 10 Consolidated Financial Statements, transactions and balances between the Company and its subsidiary

undertakings, and between those subsidiary undertakings, have all been eliminated on consolidation and thus are not reported as

related party transactions of the Group.

The Company, as a result of its position as parent of a Banking Group, has a large number of transactions with various of its

subsidiary undertakings; these are included on the balance sheet of the Company as follows:


For the year ended 31 March	2026	2025
£’000	2026	2025
Company
Assets
Loans and advances to banks	141 739	119 112
Other debt securities	214 516	625 065
Derivative financial instruments	12 805	16 147
Other loans and advances	3 223 192	3 177 624
Other assets	3 377	6 507
Liabilities
Deposits by banks	470 799	501 423
Derivative financial instruments	46 774	4 521
Customer accounts (deposits)	720 164	1 340 326
Repurchase agreements and cash collateral on securities lent	150 299	150 332
Other liabilities	5 774	41 096

Balances and transactions with Investec plc and Investec Limited and fellow subsidiaries of Investec

Bank plc

The Company and its subsidiaries have balances due to and from its Parent company, Investec plc, and Investec Limited and fellow

subsidiaries. These are included on the balance sheet as follows:


For the year ended 31 March 2026	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
£’000	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
Company
Balances with other related parties
Assets
Loans and advances to banks	—	251	251
Derivative financial instruments	16 372	—	16 372
Other loans and advances	5 232	621	5 853
Other assets	1 407	25 691	27 098
Liabilities
Deposits by banks	—	18 860	18 860
Derivative financial instruments	—	1	1
Customer accounts (deposits)	48 058	14 520	62 578
Other liabilities	10 646	5 510	16 156

215



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

44. Related party transactions (continued)


For the year ended 31 March 2025	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
£’000	Investec plc and subsidiaries	Investec Limited and subsidiaries	Total
Company
Balances with other related parties
Assets
Derivative financial instruments	26 604	1	26 605
Other loans and advances	23 670	125	23 795
Other assets	5 725	3 813	9 538
Liabilities
Deposits by banks	—	21 331	21 331
Derivative financial instruments	—	18	18
Customer accounts (deposits)	84 570	6 814	91 384
Debt securities in issue	—	12 772	12 772

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
Group and Company
Amounts due from associates	14 785	13 833

216



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. 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 275.

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 - Group

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 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^	5 170 303	84	(32 403)	(6 090)
		7 606 337	67 822	(34 747)	(17 725)
2025
Hedged assets	Interest rate swap^	2 362 156	89 938	(6 097)	(49 132)
Hedged liabilities	Interest rate swap^	4 611 982	2 158	(28 387)	35 647
		6 974 138	92 096	(34 484)	(13 485)

^This is the financial instrument designated as a hedging instrument which is included within derivative financial instruments on the balance sheet.

217



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. 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	—	—	—	—	636 216	—	636 216
Subordinated liabilities	—	—	—	55 780	350 000	300 000	705 780
	158 307	375 000	850 000	2 370 780	1 116 216	300 000	5 170 303
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	619 883	—	870 434
Subordinated liabilities	—	—	—	—	700 000	—	700 000
	150 000	84 837	976 735	2 060 526	1 339 883	—	4 611 981

^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.

218



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. 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	(627 876)	10 572	2 068	(794 101)	8 504	(23 936)
Subordinated liabilities	(707 997)	10 365	(8 675)	(699 940)	19 041	(12 089)
Total	(2 747 217)	(30 777)	21 498	(2 415 794)	(52 275)	12 440

^#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 £3.8 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 tables 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	3.65%	2.42%	4.01%	1.72%

219



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45 . Hedges (continued)

Fair value hedges - Company

Fair value hedges - Hedging instruments


At 31 March	Description of financial instrument designated as hedging instrument (All included within derivative financial instruments on the balance sheet)	Notional value of hedging instrument	Fair value of hedging instrument - Assets	Fair value of hedging instrument - Liabilities	Change in fair value used to measure 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	5 170 303	84	(32 403)	(6 090)
		7 606 337	67 822	(34 747)	(17 725)
2025
Hedged assets	Interest rate swap	2 362 156	89 938	(6 097)	(41 942)
Hedged liabilities	Interest rate swap	4 611 982	2 158	(28 387)	35 647
		6 974 138	92 096	(34 484)	(6 295)

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	—	—	—	—	636 216	—	636 216
Subordinated liabilities	—	—	—	55 780	350 000	300 000	705 780
	158 307	375 000	850 000	2 370 780	1 116 216	300 000	5 170 303
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	619 883	—	870 434
Subordinated liabilities	—	—	—	—	700 000	—	700 000
	150 000	84 837	976 735	2 060 526	1 339 883	—	4 611 981

^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.

220



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. 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)	—	—	—
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	(627 876)	10 572	2 068	(794 101)	8 504	(23 936)
Subordinated liabilities	(707 997)	10 365	(8 675)	(699 940)	19 041	(12 089)
Total	(2 747 217)	(30 777)	21 498	(2 415 794)	(52 275)	8 112

^#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:

£6.2 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 tables 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	3.65%	2.42%	4.01%	1.72%

221



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. 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 - Group and Company

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 gain/(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.

222



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. Hedges (continued)

Cash flow hedges - Hedged items


	2026
	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
At 31 March
£’000
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

Impact of cash flow hedges on profit and loss and other comprehensive income


	Income/(Expense)
£’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

223



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

45. Hedges (continued)

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 discloses 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 - Group

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.

224



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

46. 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
Group
2026
Liabilities
Deposits by banks	902 677	173 349	27 360	3 175	6 507	16 771	704 341	—	931 503
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)	22 534 593	7 427 125	1 232 437	5 930 231	3 313 202	3 387 434	1 320 365	—	22 610 794
Fair value adjustment for portfolio hedged risk	(10 395)								n/a
Debt securities in issue	1 075 112	—	71	6 651	10 927	37 175	1 170 482	1 194	1 226 500
Other liabilities	937 635	115 356	734 439	16 362	10 692	43 549	26 086	1 097	947 581
Subordinated liabilities	697 632	—	—	—	8 368	33 402	222 931	890 304	1 155 005
Total on-balance sheet liabilities	27 641 455	7 744 916	2 819 346	6 362 796	3 419 508	3 603 299	3 502 275	916 416	28 368 556
Letters of credit and financial guarantees	—	185 736	—	—	3 787	1 462	140 297	563	331 845
Commitments	—	1 724 806	46 378	3 278	25 571	103 749	884 827	145 337	2 933 946
Total liabilities	27 641 455	9 655 458	2 865 724	6 366 074	3 448 866	3 708 510	4 527 399	1 062 316	31 634 347

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 271 and note 35 for the liquidity disclosures relating

to lease liabilities.

225



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

46 . Liquidity analysis of financial liabilities based on undiscounted cash flows

(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
Group
2025
Liabilities
Deposits by banks	1 477 568	188 434	9 784	2 968	15 327	725 509	598 848	—	1 540 870
Derivative financial instruments	274 791	4 654	28 960	57 468	49 077	62 353	80 708	22 351	305 571
Derivative financial instruments – held for trading		52	—	—	—	—	—	—	52
Derivative financial instruments – held for hedging risk		4 602	28 960	57 468	49 077	62 353	80 708	22 351	305 519
Other trading liabilities	16 242	16 242	—	—	—	—	—	—	16 242
Repurchase agreements and cash collateral on securities lent	178 202	8 514	169 663	25	—	—	—	—	178 202
Customer accounts (deposits)	21 555 444	7 252 301	1 208 025	6 071 451	3 576 557	2 402 321	1 266 990	—	21 777 645
Debt securities in issue	974 371	—	1 799	9 898	15 377	106 105	539 060	434 770	1 107 009
Other liabilities	509 303	52 803	315 847	29 639	10 561	62 722	37 602	129	509 303
Subordinated liabilities	682 218	—	—	—	—	41 125	164 500	814 188	1 019 813
Total on-balance sheet liabilities	25 668 139	7 522 948	1 734 078	6 171 449	3 666 899	3 400 135	2 687 708	1 271 438	26 454 655
Letters of credit and financial guarantees^	—	242 838	—	—	—	6 805	243 464	5 587	498 694
Commitments^	—	1 442 572	63 957	28 899	18 162	46 237	886 319	128 312	2 614 458
Total liabilities	25 668 139	9 208 358	1 798 035	6 200 348	3 685 061	3 453 177	3 817 491	1 405 337	29 567 807

^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.

226



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

46. Liquidity analysis of financial liabilities based on undiscounted cash flows

(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
Company
2026
Liabilities
Deposits by banks	1 365 723	189 866	178 799	198 325	48 093	33 919	764 153	—	1 413 155
Derivative financial instruments	409 690	47 352	66 815	95 079	65 708	54 737	49 151	23 821	402 663
Derivative financial instruments – held for trading		47 032	—	—	—	—	—	—	47 032
Derivative financial instruments – held for hedging risk		320	66 815	95 079	65 708	54 737	49 151	23 821	355 631
Other trading liabilities	19 409	19 409	—	—	—	—	—	—	19 409
Repurchase agreements and cash collateral on securities lent	1 215 886	9 090	752 298	454 498	—	—	—	—	1 215 886
Customer accounts (deposits)	20 496 140	6 366 137	1 000 135	5 064 649	3 166 835	3 313 337	1 650 497	—	20 561 590
Fair value adjustment for portfolio hedged risk	(10 395)								n/a
Debt securities in issue	1 073 917	—	71	6 651	10 927	37 175	1 170 482	—	1 225 306
Other liabilities	862 754	105 262	681 376	11 390	4 620	42 893	17 122	92	862 755
Subordinated liabilities	697 632	—	—	—	8 368	33 402	222 931	890 304	1 155 005
Total on-balance sheet liabilities	26 130 756	6 737 116	2 679 494	5 830 592	3 304 551	3 515 463	3 874 336	914 217	26 855 769
Letters of credit and financial guarantees	—	171 911	—	—	3 787	1 462	140 297	563	318 020
Commitments	—	1 658 324	18 133	1 343	25 571	86 386	797 744	139 526	2 727 027
Total liabilities	26 130 756	8 567 351	2 697 627	5 831 935	3 333 909	3 603 311	4 812 377	1 054 306	29 900 816

The balances in the above table will not agree directly to the balances in the Company 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.

227



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

46. Liquidity analysis of financial liabilities based on undiscounted cash flows

(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
Company
2025
Liabilities
Deposits by banks	1 968 896	679 762	9 784	2 968	15 327	725 509	598 848	—	2 032 198
Derivative financial instruments	267 909	9 131	26 756	54 602	47 418	60 703	77 731	22 351	298 692
Derivative financial instruments – held for trading		4 558	—	—	—	—	—	—	4 558
Derivative financial instruments – held for hedging risk		4 573	26 756	54 602	47 418	60 703	77 731	22 351	294 134
Other trading liabilities	16 242	16 242	—	—	—	—	—	—	16 242
Repurchase agreements and cash collateral on securities lent	328 534	8 813	169 664	150 057	—	—	—	—	328 534
Customer accounts (deposits)	19 952 173	5 809 019	966 866	5 372 158	3 454 868	2 425 667	2 132 159	—	20 160 737
Debt securities in issue	973	—	1 799	9 898	15 377	106 105	539 060	433 576	1 105 815
Other liabilities	455 892	89 863	272 728	21 282	7 452	58 019	6 419	129	455 892
Subordinated liabilities	682 218	—	—	—	—	41 125	164 500	814 188	1 019 813
Total on-balance sheet liabilities	24 645 040	6 612 830	1 447 597	5 610 965	3 540 442	3 417 128	3 518 717	1 270 244	25 417 923
Letters of credit and financial guarantees^	—	237 328	—	—	—	6 805	243 464	5 587	493 184
Commitments^	—	1 404 093	37 867	24 242	17 662	42 403	824 460	124 260	2 474 987
Total liabilities	24 645 040	8 254 251	1 485 464	5 635 207	3 558 104	3 466 336	4 586 641	1 400 091	28 386 094

^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.

228



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47. Principal subsidiaries and associated companies and joint venture holdings –

Investec Bank plc


			Effective interest
At 31 March	Principal activity	Country of incorporation	2026	2025
Direct subsidiaries of Investec Bank plc
Investec Investments (UK) Limited	Investment holding	England and Wales	100%	100%
Investec Asset Finance plc	Leasing	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 Capitalmind Investment Limited	Non trading	England and Wales	100%	100%
Indirect subsidiary undertakings of Investec Bank plc
Investec Europe Limited	MiFiD firm	Ireland	100%	100%
Investec Securities (US) LLC	Financial services	USA	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%	—

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 53 on pages 236 to 239 .

Consolidated structured entities

Investec Bank 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 265.

229



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47. Principal subsidiaries and associated companies and joint venture holdings –

Investec Bank 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 a portfolio 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

(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 280 to 282.

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 50.

230



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

47. Principal subsidiaries and associated companies and joint venture holdings –

Investec Bank 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.

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


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


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

231



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

48. 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 132 to 147 .

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	—	0	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	0	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

232



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

48. 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 re-securitisations. 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 265.

233



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

49. 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) ²	Cash collateral	Net amount
£’000	Gross amounts	Amounts offset		Financial instruments (including non- cash collateral) ²	Cash collateral	Net amount
Group
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	805 314	(434 820)	370 494	(106 874)	(176 321)	87 299
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	1 068 316	(130 681)	937 635	—	—	937 635


	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) ²	Cash collateral	Net amount
£’000	Gross amounts	Amounts offset ¹		Financial instruments (including non- cash collateral) ²	Cash collateral	Net amount
Group
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	945 634	(619 748)	325 886	(116 383)	(113 709)	95 794
Liabilities
Derivative financial instruments	783 107	(508 316)	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^#	620 735	(111 432)	509 303	—	—	509 303

*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.

1.Amounts 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.

2.Financial instruments (including non-cash collateral) include financial collateral whether recognised or unrecognised.

234



05	Annual financial statements	Investec Bank plc Annual Financial Statements 2026

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

49. Offsetting (continued)


	Amounts subject to enforceable netting arrangements
	Effects of offsetting on-balance sheet			Related amounts not offset*
At 31 March	Gross amounts	Amounts offset	Net 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
Company
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	787 600	(434 820)	352 780	(104 016)	(160 565)	88 199
Liabilities
Derivative financial instruments	713 829	(304 139)	409 690	(104 016)	(38 284)	267 390
Repurchase agreements and cash collateral on securities lent	1 215 886	—	1 215 886	(1 215 953)	—	—
Other liabilities	993 435	(130 681)	862 754	—	—	862 754


	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) ¹	Cash collateral ^{^}	Net amount
£’000	Gross amounts	Amounts offset ^†		Financial instruments (including non- cash collateral) ¹	Cash collateral ^{^}	Net amount
Company
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	931 603	(619 749)	311 854	(113 180)	(98 417)	100 257
Liabilities
Derivative financial instruments	776 226	(508 317)	267 909	(113 180)	(36 742)	117 987
Repurchase agreements and cash collateral on securities lent	328 534	—	328 534	(327 162)	(522)	850
Other liabilities^#	567 324	(111 432)	455 892	—	—	455 892