European Banks Daily

Research evidence excerpt

European Banks Daily

J P M O R G A N Europe Equity Research

26 June 2026

Daily Valuation Sheet | Banks Analyser & Global Banks and Fintech Valuation European Banks

ACWeekly sheet | European Banks 2026 Outlook - PODCAST Kian Abouhossein

(44-20) 7134-4575

Research kian.abouhossein@jpmorgan.com

J.P. Morgan Securities plc

EMEA

Specialist Sales contact details:

Gigi Sparling - Specialist Sales -

Investec Plc: DLC structure is a legacy enabler now presenting simplification European Financials

opportunity (44-20) 7134-0355

Baron Nkomo (27-11) 507-0385 ghislaine.sparling@jpmorgan.com

Investec operates a Dual Listed Companies (DLC) structure (Investec Limited in

South Africa and Investec plc in the UK) which was formed in 2001. The structure is

designed to make the two listed parents function as a single economic enterprise with

equivalent shareholder rights (dividends, capital and voting) via contractual

agreements, equalisation/matching mechanisms and special voting arrangements. In

theory, the core benefits are strategic and regulatory: it preserves a South African

'national identity’ and oversight framework while enabling a UK primary listing and

access to global capital pools. The main disadvantages are complexity and 'investor

segmentation': two legal entities, two regulatory regimes, ring-fenced creditors and

non‑fungible capital/liquidity can all contribute to a valuation discount and friction in

capital allocation. Currently, c.52% of group capital is allocated to the UK, which also

makes up c.49% of group earnings, with the balance in SA. While the DLC was

historically beneficial in establishing Investec’s international footprint and satisfying

South African regulatory objectives, we feel that the investment case today is hindered

by this structure to some extent.