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Investec Limited Incorporated in the Republic of South Africa Registration number 1925/002833/06 JSE share code : INL NSX share code : IVD BSE share code : INVESTEC ISIN : ZAE000081949 Investec ( comprising Investec plc and Investec Limited ) – pre - close trading update 19 March 2021 Investec today announces its scheduled pre - close trading update for the year ending 31 March 2021 ( FY2021 ) . Investec plc Incorporated in England and Wales Registration number 3633621 LSE share code : INVP JSE share code : INP ISIN : GB00B17BBQ50 An investor conference call will be held today at 09:00 UK time / 11:00 South African time . Please register for the call at www.investec.com/investorrelations . Commentary on the group's financial performance in this pre - close trading update represents the continuing operations ( excluding Ninety One , formerly Investec Asset Management ) for the 11 months ended 28 February 2021 and compares forecast FY2021 to FY2020 . Fani Titi , Group Chief Executive commented : " The group's operating results for the year ending 31 March 2021 are expected to be in line with the guidance released in our interim results in November 2020. We are encouraged by the momentum we are seeing across our business , the continued recovery of markets and the positive developments related to COVID - 19 vaccines . Our expected performance demonstrates the strength of our underlying client franchises , the continued execution of our strategic objectives and the resilience of our people in what has been an unprecedented year . Adjusted earnings per share from continuing operations for FY2021 is expected to be 20 % - 29 % behind the prior year . Underlying performance has been resilient notwithstanding the challenging operating environment and the elevated risk management and risk reduction costs associated with hedging our UK structured products book as previously communicated . While the general outlook is improving , the long - term impact of the pandemic is uncertain . Investec remains well capitalised , highly liquid , and well provisioned for impairments . With the simplification of the group now substantially complete , we are positioned to pursue long term growth . " Trading update - key highlights : The year - on - year performance has been negatively impacted by lower interest rates , elevated costs related to the hedging of our UK structured products book as guided in November , reduced client activity and a c.14 % depreciation of the average Rand against Pound Sterling . This was offset by lower expected credit losses and continued cost containment . Adjusted operating profit is expected to be 16 % -24 % behind the prior year . The effective tax rate for FY2021 is expected to be approximately 22 % ( FY2020 : 11.9 % ) . The second half ( 2H2021 ) adjusted operating profit and earnings are expected to be ahead of comparable numbers reported in the first half ( 1H2021 ) of the financial year , reflecting an improving trend , particularly in the last quarter . ● ● Resilient client franchises : The Specialist Banking businesses saw improved client activity in 2H2021 ( as economies continued to recover ) with good client acquisition in both geographies . The Private Banking franchise reported strong lending book growth in 2H2021 . Corporate lending activity was largely subdued over the period under review , showing improvement in the last quarter of the 2020 calendar year . The Wealth & Investment businesses reported growth in funds under management ( FUM ) reflecting market recovery , continued net inflows and good investment performance . Key earnings drivers : Core loans increased 5.5 % to £ 26.3 billion ( FY2020 : £ 24.9 billion ) while deposits were up 5.9 % to £ 34.1 billion ( FY2020 : £ 32.2 billion ) . Over the 1