Investec Asset Finance Broker Conference 2017 Andy Hart

Transcription

1 Investec Asset Finance Broker Conference 2017 Andy Hart Head of Investec Asset Finance

2 Business update & strategy Stuart Hughes Head of Broker Sales Investec Asset Finance

3 Business update & strategy 16% 20% 10% growth growth in book growth in lending overall in live contract

4 Business update & strategy market share HA 60% SA 38% * Market size 14.5 billion * not including motor * Source: FLA, August 2017

5 How have we supported you so far Pricing Hard asset Soft asset New products Professions loans SME tax and VAT loans Regulated HP Pre-hire and stage payments Re-finance Southern Ireland

6 Recent history Consistency and service continues to be our focus 2017 Executive Committee strengthened James Collins Lisa Cleaver Matthew Smith

7 Broker survey 339 took part Business insight

8 Our commitment to you Provider A Provider B Provider C Investec Provider D Provider E Provider F

9 Our commitment to you Provider A Provider B Provider C Investec Provider D Provider E Provider F

10 Our success, is your success

11 Don t take our word for it.. Engaged a 3 rd party agency to benchmark against our own survey What the results told us Actions Our 3 rd party survey results tells us we tick all these boxes Confirmation IAF = valued proposition

12 What about the theme? Majority of broker businesses are growing Who was surveyed? What does it all mean?

13 2017 how is IAF shaping the future? IAF s team consists of 146 people 46%: aged <40 48%: female 65%: 3 years + with IAF 48% 52% We are also building from within: Martyn Edwards Laura James Fay Boyce How can we help you shape your future? 24% 29% 23% 23% < 30 years years years

14 2018 plans shaping your future IAF 2018 Broker Training programme January 18 launch IAF Credit Workshop (includes fraud, back to basics and GDPR) Introduction to Asset Finance aimed at new broker starters (admin and sales) Product and agreement types Annual IAF Broker Conference Quantum Credit Workshop Quarterly events aimed at helping us support your individual people and teams

15 2018 plans & what s to come Growth aspirations Investec assurances here for the long term Cross skilling Technology

16 Investec Asset Finance Broker Conference 2017 Phil Shaw and Andrew Mitchell Political and Economic update

17 Investec Asset Finance Broker Conference 2017 A glance at a few things that matter Phil Shaw Chief Economist, Investec Bank plc

18 The BoE has just raised rates for the first time since OK, perhaps not quite this long ago!

19 UK GPD growth (% q/q) down but not out Investec forecast (Bars represent contributions to growth)

20 Brexit process much to do EU/UK talks 5 rounds of talks since June - 2 abandoned early. More constructive atmosphere post-pm s Florence speech. But EU insists on sequencing i.e. agree separation terms before trade deal: i) settlement of existing obligations (i.e. financial); ii) EU nationals rights; iii) RoI-NI relations. EU methodology implies bn outlay from UK, but reducing to 55-75bn including repayments etc Trade deals No deal? EU WTO tariffs vary by sector average 3%-4% (i.e. relatively modest), but up to 45% for dairy. Also settle with EU; i) financial services access; ii) other non-tariff boundaries iii) customs arrangements The 55+ countries that currently have a trade deal with EU? Bear in mind Financial settlement is UK s strongest card! Britain is a net contributor of 8.5bn per annum. UK will request transition arrangement of around two years. In the end, politics not rules, will drive the outcome.

21 One to avoid

22 Main parties current poll ratings (averages) % May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Conservatives Labour Lib Dems UKIP Green

23 Today s rate hike in context Main motivation Tight labour market, fears of rising pay growth momentum and domestically generated inflation ahead. Also? Following the Fed? The Fed has raised rates four times already. Uncomfortable with near zero rates over protracted period.

24 Final observations Economy is expanding slowly GDP growth forecast +1.5% this year, +1.7% next. Squeeze on consumer spending should ease modestly. Economy vulnerable to i) major adverse reaction to higher rates; ii) Brexit uncertainty. (Neither is our central case). Rates up gently from here? MPC genuinely believes there is an inflation problem. Our forecast still for two more hikes over next two years (Bank rate at 1.0% by end-2019). Other policy moves Don t forget Budget on 22 November. Financial Policy Committee to tighten rules on unsecured lending to consumers towards end of month (28 Nov)?

25 Case study: IAF & PMD Tom Brown Head of Direct Finance PMD

26 Case study: IAF & PMD How we supported ecorrugated

27 Quantum Funding Paul Cunningham

28 Quantum Funding New recruits to Quantum Rob Emmison Quantum Broker Manager Lyanne Broomes Quantum Broker Support

29 Growing team in Quantum Paul Cunningham Head of Quantum Paul Clanfield Credit Hard Asset Kilsey Walker Head of Broker Support John Ward Quantum Broker Helen Lovegrove Credit Soft Asset Lyanne Broomes Quantum Broker Support Becky Jacobs Quantum Broker Support Jonathan Dent Credit Head of Hard Asset Paul Hastie Credit Head of Soft Asset Rob Emmison Quantum Broker Manager

30 Quantum Funding Beware the Lazy Broker Fast and consistent underwriting Fast payouts (same day) Maintain to Risk Bar Continued sustainable growth

31 The Wild Beer Co Tim Shears Black & White Understand the business = visit your client Why did we lend = vision and passion Lots of information Staged payments to Italian supplier

32 Investec Asset Finance Broker Conference 2017 Andy Hart Head of Investec Asset Finance

33 Investec Broker Conference 2017 Q&A

34 Investec Asset Finance Broker Conference 2017 This document is not legal advice and should not be acted or relied on as being so. Legal advice should be taken before applying any information in this document to any facts and circumstances. Investec Asset Finance plc is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office at Reading International Business Park, Reading, RG2 6AA. Registered in England Number