Good day, ladies and gentlemen, and welcome to the Investec pre-close trading update. All participants will be in listen-only mode. There will be an opportunity to ask questions later during the conference. If you should need assistance during the call, please signal an operator by pressing star, then zero. Please note that this call is being recorded. I would now like to turn the conference over to Fani Titi, the Chief Executive of the Investec Group. Please go ahead. Ladies and gentlemen, good morning and welcome. Thank you all for taking the time to join us on this call to discuss our pre-close trading update, which covers the continuing operations for the 11 months ended 28th February 2021, and guidance for our full year results. Please note that our full year results for the 12 months ending 31st of March will be announced on the 25th of May. We'll take a few minutes to talk through the key highlights from our trading update, and we'll then take some questions. First, a few general comments on the operating environment and our overall performance. Despite further lockdowns globally during the period under review, the actions taken by governments and central banks have continued to support economies and financial markets. 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. We expect the group's operating results for the year ending 31 March 2021 to be in line with the guidance released in our interim results in November 2020. Adjusted earnings per share from continuing operations is expected to be 20%-29% behind the prior year. A table containing full details of our earnings guidance for FY 2021 can be found on page two of today's trading statement. Year on year, our performance has been negatively impacted by lower interest rates, elevated costs related to the hedging of our U.K. structured products book as guided in November, reduced client activity over the period, and circa 14% depreciation of the average rand against pound sterling. This was offset by lower expected credit losses and continued cost containment. Our expected performance also 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. In terms of the momentum I mentioned, second half adjusted operating profit and earnings are expected to be ahead of comparable numbers reported in the first half of the financial year, reflecting an improving trend, particularly in the last quarter. I move on to financial performance in more detail. In terms of the underlying performance over the 11 months to 28th February, third-party funds under management increased by 26.7% to GBP 57 billion, with net inflows of just under GBP 1 billion. Core loans increased 5.5% to GBP 26.3 billion, while deposits were up 5.9% to GBP 34.1 billion. Turning to operating income, the expected revenue decline in FY 2021 reflects an environment still marked by the crisis that prevailed throughout the financial year. Risk management and risk reduction costs related to the hedging of the U.K. structured products book are expected to be in line with the guidance provided at our September interim results. In the second half, relative to the first half, revenue benefited from improved client activity and liability repricing. Operating costs for the full year are expected to be lower than last year by mid-single digits, and these costs include costs associated with the implementation of strategic initiatives taken during the period under review. On asset quality, the group expects to report a lower credit impairment charge in the second half compared to the first half, resulting in a full year forecast credit loss ratio of between 37 and 44 basis points. Capital leverage and liquidity ratios remain sound and ahead of internal board approved minimum targets and regulatory requirements. The group's cash and near cash on the 28th of February was at GBP 13.9 billion, representing approximately 41% of customer deposits. Turning to the geographic performance of the business. In Southern Africa, adjusted operating profit from continuing operations is expected to be 16%-24% behind in GBP. Financial year 2020, that number was GBP 286 million. In ZAR terms, adjusted operating profit from continuing operations is expected to be 4%-12% behind. That number in ZAR was ZAR 5.3 billion. Last year. In the U.K. and others, adjusted operating profit from continuing operations is expected to be 15%-26% behind the prior year number of GBP 133.5 million. Finally, on the dividend, Investec paid an interim dividend of GBP 0.055 at the half year, and a final dividend will be considered as part of the normal board process leading up to the full-year results on the 21st of May 2021. In summary, the group's operating results for the year ending 31st March 2021 are expected to be in line with guidance, including the hedging costs related to our U.K. structured products book. Our underlying performance demonstrates the strength and resilience of our client franchises. We anticipate lower expected credit losses year-on-year, and costs remain well contained. While the general outlook is improving, the long-term impact of the pandemic is uncertain. Investec remains well-capitalized, highly liquid, and well-provisioned for impairments. With the simplification of the group now substantially complete, we are positioned to pursue long-term growth. Thank you for joining the call. I would now like to open the line for questions. Thank you. Ladies and gentlemen, if anyone would like to ask a question, you are welcome to press star and then one on your touch-tone phone or on the keypad on your screen. If you wish to withdraw the question, you may press star and then two to remove yourself from the question queue. If anyone would like to ask a question, please press star and then one. We will pause a moment for the queue to build. Ladies and gentlemen, if anyone would like to ask a question, you are welcome to press star and then one. We have a question from John Storey of JP Morgan. Good morning, Fani. Thanks very much for the detail in your presentation. Morning, John. I wonder if you could give a little bit more color just around the cost performance of the U.K. specialist bank. If there's anything more that you could provide than what was provided in the release this morning, it would be useful. Thanks very much. Hi. It's Nishlan. I think what is quite relevant from a U.K. specialist bank perspective is the fact that we have obviously been through a period of implementing some of the strategic actions. In this period, some of the costs associated with implementation are going to be carried in the cost base. The benefits are really going to be reflected into our 2022 financial year. Having said that, notwithstanding those particular costs, we've indicated that overall, our cost base will be down in mid-single digits, and that's represented across both the South African and the U.K. platform. obviously, when we announce our results. Okay. Thanks very much, Nishlan. In May, we will go into more detail and disclose what the associated costs to the restructure are and how they impacted the number that we're talking about. Excellent. Thanks very much, Fani. Thanks, John. Our next question is from David Talpert of Avior Capital Markets. Good day. Thanks for the presentation today. Just a question around those credit losses in the U.K. Just wondering if you can chat more about outlook suppose and maybe improving U.K. equity markets would help that unwind slightly quicker than previously guided to. Thanks, David. You're right that improving equity markets are positive for this business. Just to remind you, we have the costs of ongoing day-to-day hedging. We have costs related to taking of risk from the table, specifically selling portions of the book. The cost of managing the book on a day-to-day basis in terms of hedging, those costs are obviously moderating as markets improve. We specifically are continuing to sell portions of the book. The cost reduction element of the total cost would obviously still be there. Therefore, the overall costs are in line with guidance. Whenever there is an opportunity to reduce the book, we will do so. Our next question is from Chris Steward of Ninety One. Morning, gentlemen. Thanks very much for your time this morning. Just a quick question from my side, probably one for Nish. Can you just comment on the fairly dramatic uptick in the tax rate in the second half? What's driving that? What the implications are for different tax rates going forward? Yeah. Hi, Chris. Thanks for the question. It's, again, pretty much associated with our actions in Australia, where we did have some deferred tax assets that we've revised our outlook on, which has caused a pick-up in the effective tax rate. Would that imply that the effective tax rate you're showing for the full year is the sort of effective tax rate you would expect as a sustainable rate going forward? The fairly elevated second half tax charge is more indicative of ongoing run rate? No. I would say that the elevation in this period was caused much more by a once-off event. Obviously, noting that you do have corporate tax rates going up in 2023 in the U.K., as was announced. In South Africa, you have a slight decrease of about 1% also coming into effect in 2023. Those will blend in to the forward-look tax rate. Okay. We shouldn't necessarily use the 2021 full year or H2 tax rate as a relatively elevated level, would necessarily be pre-tax dispensation changing the two geographies rates going forward. Yeah. I think previously, we guided to a sort of a normalized tax rate of about 19%-20%. Got you. Thank you. Next question is from James Starke of SBG Securities. Hi. Good morning, gentlemen. Thank you for the opportunity. If you could just give us some color around the asset quality trends you're seeing in your real estate exposures, in particular on the commercial property side, also on the mortgage book within the private bank. Thank you. Sure. I think overall, I would say that the asset quality trends have been relatively pleasing. I think, particularly when you look at some of the relief levels being provided, and those are at relatively low levels in both the South African and the U.K. book. Overall, loan-to-value levels and collateral positions have also remained relatively strong over the period, and repayment rates. We have seen maybe one or two migrations into stage 2 or stage 3, but nothing symptomatic from an asset quality perspective. If I look at our mortgage lending book, I think over history, we've tended to have a fairly low loss rate. In particular, the book in the U.K., I think over history has been around about 45 basis points. And we haven't seen any change to those long-term trends. Thank you. Our next question is from Michael Gresty of Anchor Capital. Good morning, Fani and Nishlan. Can you hear me okay? Yeah. Loud and clear. Please go ahead. Thanks for the opportunity, guys. It's just a couple from me. I just wanted to clarify the way you guys are seeing these losses relating to that structured lending book in the U.K. My previous recollection was you were looking at a similar loss in the second half, which was about GBP 100 million, and then potentially slightly smaller, but not much in the next year. Fani, your comments would suggest that maybe that's looking less sizable than it used to. If you could just be a little bit clearer on, A, is my recollection correct, and B, how are you seeing it now? Next question is, have you made any progress in these more supportive markets in the second half in getting rid of any of that private equities non-core assets that you had? The last question, just the big outflows in discretionary AUM in South Africa versus inflows in non-discretionary. That was quite interesting. No, it's actually the opposite. Oh, sorry. Could you- Still the second- [audio distrortion] Okay. Let me take the first question just to give you clarity. We had guided to approximately GBP 106 million of losses relating to the hedging of that book for the full year, being GBP 53 million in the first half and a similar number in the second half. We had also said that we would expect a similar number for the full year, March 2022. That was the guidance we gave. What we are saying now is while we have benefited from improving markets on the ongoing cost of management of the book, we have had the opportunity to take off risk as we go forward. While the overall guidance for the financial year 2021 is the same, the proportion of where that money has been spent is different. Lower ongoing management costs versus slightly higher risk reduction costs. Clearly, as markets improve, our position in that book should improve, but I don't want to speculate at this stage. We will give you more color of our expectations when we report our results. Your general understanding of how the book should behave is broadly in line. The second question related to flows. Nish, do you want to deal with flows? Michael, again, it's very important to note that we actually saw very strong flows into our discretionary portfolios in both South Africa and the U.K. I think in South Africa, just under ZAR 7 billion offloads into the discretionary portfolio. The non-discretionary is effectively directly managed by clients, as they effectively react to various aspects. We're not concerned about the level of change that was seen on that, and are holistically focused on the discretionary element. Your question around progress on the investment portfolio. I would say that over the period, again, we have seen improving trends of late in this last quarter of this financial year. Our intention is not to offload any of these assets. Our intention is to work through the portfolio with an intention to effectively realize value, because these are and remain high quality asset portfolios. We have had some success in terms of realizations, and we'll report those levels in the results and also remain quite encouraged with where markets are getting to. Great. Thanks very much, guys. Ladies and gentlemen, just a final reminder, if anyone would like to ask a question, you're welcome to press star and then one. We will pause a moment to see if we have any further questions. We have a question from Neill Young of Coronation. Hi. Thanks very much for the update. Hi, Neill. Hi, guys. For Nishlan, just to confirm, the adjusted operating profit, you say, down 16%-24%. That would exclude the 25% holding in Ninety One, is that correct? In both periods. No, Neill. I think it excludes the full result of asset management in the prior year. We would have equity accounted a piece of Ninety One from the 16th of March to the end of last year. I think that number was about GBP 1.4 million last year. This period will include equity accounted income of Ninety One under 25%. For the full year? Correct. For the full year. Correct. That is included in both the adjusted operating profit number as well as the adjusted earnings per share from continuing operations number? Yep. That's it. Correctly. Yes. Okay. All right. Okay. Understood. Thanks. Ladies and gentlemen, just another final reminder. If anyone else would like to ask a question, you are welcome to press star and then one. We will pause a moment to see if we have any further questions. Since we have no further questions on the line, sir, would you like to make any closing comments? Just to thank everyone for their interest in the business and for attending this briefing. As usual, if there are follow-up questions, please contact our team, and we will deal with the questions raised. Equally, if you want to talk to any of our other executives on any part of the business, please let us know and we can facilitate that. Thank you again, and good day to you. Ladies and gentlemen, that concludes today's conference. Thank you for joining us. You may now disconnect your lines.