Announcement

MKTUPDTE: BIT: BIT- Annual Financial Report 08:30am 
BIT
16/01/2019 08:30
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REL: 0830 HRS The Bankers Investment Trust Plc

MKTUPDTE: BIT: BIT- Annual Financial Report

LEGAL ENTITY IDENTIFIER: 213800B9YWXL3X1VMZ69

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2018

This announcement contains regulated information

Performance Highlights 31 October 2018 31 October 2017
NAV per share at year end 865.8p 878.9p
Share price at year end(1) 835.0p 852.0p
Dividend for year(2) 19.72p 18.60p

31 October 2018
31 October 2017
Dividend yield(3) 2.4% 2.2%
Dividend growth 6.0% 9.4%
Ongoing charge for year 0.50% 0.44%
Net gearing at year end(4) 2.4% 2.3%
Discount at year end 3.6% 3.1%

(1) Share price is the midmarket closing price.
(2) This represents the four ordinary dividends recommended or paid for the
year.
(3) Based on the share price at the year end.
(4) Net gearing is calculated in accordance with the gearing definition in
the glossary in the
Annual Report

Sources: Morningstar for the AIC, Janus Henderson, Datastream.

CHAIRMAN'S STATEMENT

o Net asset value total return increase of 0.8%

o Dividend increase of 6% to 19.72p per share

o Forecast increase in 2019 dividend of 6%

Performance
The past year has been disappointing from a net asset value ('NAV') total
return basis, with an increase of just 0.8% leading to a flat share price
total return over this period. The caution that I expressed in the outlook
paragraph of the Strategic Report last year was for the early part of the
year misplaced. Yet by our year-end the effects of rising US interest rates,
stretched valuations of growth stocks, trade wars and UK politics had all
played their part in turning global market sentiment negative.

Volatility has been in evidence across global markets since early summer as
the momentum behind the tightening US interest rate cycle has begun to
influence market sentiment and, in particular, highly-rated growth stocks
such as those in the technology sector. In addition, the growing number of
macro concerns (trade wars, UK politics, emerging market debt levels) have
risen to prominence as the year progressed. Against this backdrop,
companies issuing profit warnings have been harshly treated by the markets
thus compounding the rising nervousness amongst investors.

During the year the asset allocation structure of the portfolio has continued
the trend of the past three years, namely a reduction in the UK equity
element of the portfolio, a gradual increase in the US and a maintaining of
our allocation to Japanese and Continental European equities. Towards our end
of the period we allocated some more monies to our China exposure, following
a near 20% decline in the market, thus maintaining an overall stable
allocation to the Asian region.

With the exception of North America and Japan, all global markets experienced
negative returns during the year. On a positive note our regional managers
performed well with four (Europe, North America, Asia Pacific and China)
significantly outperforming their local benchmarks whilst the UK, Japan and
Emerging Market portfolios underperformed their local benchmarks. From a
sectorial perspective, our overweight position in consumer stocks, in
particular in the UK, has negatively impacted performance, whilst our
technology exposure in the US has driven our outperformance in this market.
Towards our year-end some profits were realised from these elements of the
portfolio.

Revenue and Dividends
Bankers has delivered a further solid increase in the revenue account,
reflecting positive currency movements, robust dividend growth and further
special dividends. This performance has enabled the Board to recommend a
final quarterly dividend of 5p per share. If approved by shareholders, this
will result in a total dividend payment for the year of 19.72p, (2017:
18.60p), an increase of 6.0%. Delivering on my forecast for the year. Our
revenue earnings per share over the same period rose to 20.78p (2017:
20.49p), an increase of 1.4%.

The outlook for the year ahead from a revenue account perspective remains
positive. The recommended final 2018 dividend payment, if approved, will
still accommodate a healthy transfer to our revenue reserve which, at the
year-end, represented 1.2 times the cost of the 2018 annual dividend. This
reserve gives the Board confidence in its discussions regarding likely future
dividend growth. The main concern when forecasting growth for the current
year remains the level of sterling. Sterling's weakness has helped our
revenue account significantly during the past three years. A sudden increase
in the value of sterling, albeit not our expectation, will lead to pressure
on the revenue account. However such is our level of revenue reserves that I
am pleased to be able to report, on behalf of the Board, a forecast of
dividend growth of approximately 6% for 2019.

Board Changes
As has previously been announced, I shall be retiring from the Board at the
forthcoming Annual General Meeting ('AGM'). Sue Inglis will succeed as
Chairman from the conclusion of the AGM. Sue joined the Board in November
2012 and became Senior Independent director in February 2015. Sue is highly
experienced and knowledgeable within the Investment Trust sector and has for
many years advised other companies in her role as a lawyer and subsequently a
corporate financier. Sue has a number of other non-executive roles in the
sector having stepped down as Managing Director - Corporate Finance at Cantor
Fitzgerald Europe last summer. I know that Sue will continue the ethos that
has served shareholders in Bankers so well over the longer term. Julian
Chillingworth will succeed Sue as Senior Independent Director at the same
time.

I am also pleased to report that Richard Huntingford joined the Board on 26
September 2018, subject to shareholder approval at the AGM. Richard has been
involved in the media and marketing sectors for more than 30 years and has
held a number of executive and non-executive roles in listed and private
businesses. Further details of his experience can be found in the Annual
Report. I look forward to introducing Richard to shareholders at the AGM.

Annual General Meeting ('AGM')
This year's AGM will again be held at Trinity House, London, EC3N 4DH on 27
February 2019 at 12 noon. Full details of the business to be conducted at the
meeting are set out in the Notice of Meeting which has been sent to
shareholders with the Annual Report. Directions and a map showing the
location of the AGM can also be found in the Notice of Meeting. At the AGM,
Alex Crooke and his investment team will present their investment views and
how these are reflected in the portfolio. Following the formal business of
the meeting light refreshments will be served. The Board looks forward to
seeing many of you at the AGM.

Outlook
In my view it is too early to become contrarian in regard to market sentiment
but it is very tempting to begin to look at markets more positively. The
global economy, led by North America, remains solid, and inflationary
pressures, whilst higher than a year ago, are stabilising. The recent oil
price decline has yet to feed through into inflation numbers and, whilst wage
inflation remains a concern, overall inflation could fall in 2019. If such a
scenario were to be in evidence then the current momentum in interest rate
rises in the US could ease giving markets a welcome boost. Valuations in
certain sectors will continue to be a limiting factor, equally investors will
need a resolution of the current trade tariff dispute to commit substantial
new money to the market. The recent low levels of volatility in markets are a
phenomenon that are now likely to be confined to history and a product of
quantitative easing used to stabilise markets through the financial crises.
Therefore, going forward investors will need to readjust to more historically
normal high levels of volatility.

The uncertainty in the UK will remain and will be dominated by Brexit issues
well beyond the end of March 2019. Consumer and business sentiment remain as
critical indicators in the year ahead for the country and for confidence to
return to the UK from international investors in particular. The UK market
therefore will likely have another dull year. Yet the valuation argument is
becoming more compelling especially for some companies in more traditional
defensive sectors with strong balance sheets and well covered dividends.
Currency markets may surprise in 2019 and, as highlighted earlier, a stronger
sterling would impact our revenue account and also have a negative
translational impact on the NAV from the international holdings.

Thus I fear caution remains the key watch word for global equity markets, at
least for the first half of 2019. The direction of US interest rates, the
outcome of Brexit with its range of economic implications and the wider
inflationary picture should all be clearer by this time. If corporate
earnings growth remains positive then valuations may become compelling,
despite the late stage in the cycle in which we find ourselves.

R W Killingbeck
Chairman
15 January 2019

FUND MANAGER'S REVIEW
This past year has been one of the most challenging in my career, as factors
beyond the financial world have collided and created a very difficult
environment for investors and companies alike. I have to look back to the
1960s to find a period when politics dominated financial markets as much as
they have in 2018. The fear of the unknown swamped equity markets in 2018 and
created an environment where share prices outside the US fell sharply towards
the end of our financial year under review.
The year started in bright form, as against my own scepticism, tax reform in
the US was enacted, leading to investors' exuberance about the future.
Markets rallied to set new highs in January, with one of the strongest rises
in share prices of growth stocks on record. There were plenty of signs that
the optimism would fade and we did reduce the gearing into the rally selling
some of the best performing stocks in the portfolio. The US Federal Reserve
clearly indicated at the start of 2018 that it would raise interest rates
throughout the year and the European Central Bank ('ECB') announced that it's
quantitative easing bond purchases would reduce monthly and cease by the end
of the year. These actions would progressively drain liquidity in markets and
reduce money supply. In previous tightening cycles, we have seen market
volatility increase and equity prices decline. I had expected a difficult
summer but the sell-off didn't start until October.
Our line up of fund managers has not changed this year but sadly Tim
Stevenson, our European fund manager, has decided to retire in early 2019
after a long career with Janus Henderson and nearly 20 years helping Bankers.
His replacement will be James Ross, who joined Janus Henderson in 2007 and
has worked closely with Tim in recent years.
Asset Allocation
In hindsight asset allocation was a simple decision of owning American
equities and the US dollar to the exclusion of all other global markets.
Every other region declined with only Japan holding flat; Chinese equities
fell over 20%, in a bear market. US investors clearly repatriated assets,
with investment flows moving from international markets back into US dollars.
Despite the expensive valuations we increased the investment in the US,
resisting the temptation to lock in gains. The portfolio's underperformance
relative to the FTSE World Index is partly explained by the smaller exposure
to the US relative to the benchmark, 31.6% as compared to 60.6%. I believe
that purchasing expensively valued companies will ultimately hurt returns
over time. The US is now a highly valued market that has outperformed other
global markets for seven years during the last decade and therefore an
element of caution is warranted in terms of increasing exposure. Our stock
selection has offset the underweight, with the North American team producing
a very impressive performance by focusing on long-term secular trends such as
paperless payment, disruption and health care. The European and Pacific
portfolios also delivered strong relative returns, with a focus on quality
companies with dominant market positions in their industries. It was not a
year to bet against market trends reversing, momentum remained strong for
market leaders and value and income stocks underperformed.

The UK remained mired in Brexit uncertainty which has made the UK stock
market almost un-investable in many international investors' eyes. Sterling
steadily declined against the US dollar, although it has held its own against
the Euro. The UK economy has seen little impact from Brexit, benefitting from
the lower exchange rate. However the strains have latterly become apparent
with reduced inward investment flows and tighter labour markets as
immigration falls. The portfolio's exposure to the UK was reduced further
this year, ending at 25.2%. The majority of the underperformance against the
benchmark can be explained by the UK exposure and the underperformance of the
UK stocks we held. A narrow number of the largest stocks performed well in
the UK but the mid-cap stocks, which are more domestically exposed, did not
perform for us.
Outlook
As I look forward I suspect that the future will not turn out as bad as many
predict. The world does not appear on the verge of a sharp recession but
clearly growth is slowing and share prices have begun to price this in. There
is an incentive on all sides to get trade discussions concluded and I expect
a better picture to emerge as the year develops. By the summer many of the
uncertainties will have resolved themselves in one form or another and we
should have a clearer outlook. Valuations have fallen significantly in recent
months and we have an opportunity to invest cash at very favourable dividend
yields. An element of caution still seems sensible and we are looking to
purchase only quality companies with strong balance sheets, rather than
recovery situations that require a higher level of economic growth. It looks
like a year of two halves lies ahead of us.
Alex Crooke
Fund Manager
15 January 2019

LARGEST INVESTMENTS at 31 October 2018

Ranking
2018 Ranking
2017

Company

Country Valuation
2017
?'000 Purchases
?'000 Sales proceeds
?'000 Appreciation/ (depreciation)
?'000 Valuation
2018
?'000
1 # Microsoft US - 16,301 - 5,121
21,422
2 (2) Apple US 18,258 - (3,386) 6,413 21,285
3 (4) American Express US 16,404 1,718 - 2,052
20,174
4 (16) Union Pacific US 12,349 3,399 - 4,028
19,776
5 (1) BP UK 19,898 - (3,097) 2,015 18,816
6 (13) Berkshire Hathaway US 12,624 3,462 - 2,003
18,089
7 (21) Estee Lauder US 10,748 3,177 - 3,005
16,930
8 (60) Alphabet US 14,455 - - 1,431
15,886
9 (18) Visa US 11,471 - - 3,467 14,938
10 (9) Royal Dutch Shell UK 14,091 - - 835
14,926
11 (5) American Tower US 15,860 - (3,135) 1,687
14,412
12 (12) Comcast US 12,972 - - 1,300 14,272
13 (11) FedEx US 13,688 - - 188 13,876
14 (25) MasterCard US 9,949 - - 3,793
13,742
15 (20) ICON US 10,952 - - 2,264 13,216
16 (14) Aptiv US 12,603 3,311 (2,173) (840) 12,901
17 # GlaxoSmithKline UK 8,694 2,739 - 1,277
12,710
18 (24) Diageo UK 9,972 1,417 - 598 11,987
19 (3) British American Tobacco UK 17,057 - -
(5,174) 11,883
20 (15) Taiwan Semiconductor Manufacturing Taiwan 12,524 -
- (809) 11,715
21 # Intercontinental Exchange US - 11,151 -
38 11,189
22 (10) Xylem US 13,809 - (3,129) 487 11,167
23 (19) Cognizant Technology Solutions US 11,466 - -
(597) 10,869
24 # The Cooper Companies US 9,679 - - 1,135
10,814
25 # Booking US 10,506 - - 203
10,709

----------- ----------- -----------
----------- -----------
300,029 46,675 (14,920) 35,920
367,704
====== ====== ====== ====== ======

All securities are equity investments
# Not in the top 25 last year
Convertibles and all classes of equity in any one company being treated as
one investment

CHANGES IN INVESTMENTS at 31 October

Valuation
2017
?'000 Purchases
?'000 Sales proceeds
?'000 Appreciation/ (depreciation)
?'000 Valuation
2018
?'000
United Kingdom 291,399 51,806 (47,851) (21,821) 273,533
Europe (ex UK) 163,534 62,917 (57,390) (6,980) 162,081
North America 305,266 64,264 (70,309) 43,835 343,056
Japan 128,314 62,549 (58,416) (4,872) 127,575
Pacific (ex Japan, China) 118,822 25,405 (44,304) (4,802)
95,121
China 67,645 64,030 (57,624) (15,629) 58,422
Emerging Markets 26,836 4,483 (1,864) (2,210) 27,245
-------------- ----------- ------------ ------------
--------------
1,101,816 335,454 (337,758) (12,479) 1,087,033
======== ====== ======= ======= ========

PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of Janus Henderson, has carried out a robust
assessment of the principal risks facing the Company, including those that
would threaten its business model, future performance, solvency or liquidity.
In carrying out this assessment, the Board has considered the market
uncertainty arising from the UK's negotiations to leave the European Union.
The Board has drawn up a matrix of risks facing the Company and has put in
place a schedule of investment limits and restrictions, appropriate to the
Company's investment objectives and policy, in order to mitigate these risks
as far as practicable. The principal risks which have been identified, and
the steps taken by the Board to mitigate these as far as practicable, and
whether the Board considers the impact of such risks has changed over the
past year, are as follows:

Risk Controls and Mitigation
Investment Activity and Performance Risks
An inappropriate investment strategy (for example, in terms of asset
allocation or the level of gearing) may result in underperformance against
the Company's various indices and the companies in its peer group.
The Board monitors investment performance at each Board meeting and regularly
reviews the extent of the Company's borrowings.
Portfolio and Market Risks
Although the Company invests almost entirely in securities that are listed on
recognised markets, share prices may move rapidly. The companies in which
investments are made may operate unsuccessfully, or fail entirely. Macro
matters (such as trade wars, the conclusion of the UK's negotiations to leave
the European Union and the global economic outlook) are expected to lead to
continued volatility in the markets. This is likely to impact share prices of
investments in the portfolio, to the extent not already factored into current
prices. A fall in the market value of the Company's portfolio would have an
adverse effect on shareholders' funds.

The Fund Manager seeks to maintain a diversified portfolio to mitigate
against this risk. The Board regularly reviews the portfolio, investment
activity and performance.
Tax, Legal and Regulatory Risks
A breach of Section 1158 could lead to a loss of investment trust status,
resulting in capital gains realised within the portfolio being subject to
corporation tax. A breach of the UK Listing Authority's Rules could result in
suspension of the Company's shares, while a breach of the Companies Act could
lead to criminal proceedings. All breaches could result in financial or
reputational damage. The Company must also ensure compliance with the Listing
Rules of the New Zealand Stock Exchange.
Janus Henderson has been contracted to provide investment, company
secretarial, administration and accounting services through qualified
professionals. The Board receives internal control reports produced by Janus
Henderson on a quarterly basis, which confirm tax, legal and regulatory
compliance both in the UK and New Zealand.
Financial Risks
By its nature as an investment trust, the Company's business activities are
exposed to market risk (including market price risk, currency risk and
interest rate risk), liquidity risk and credit and counterparty risk.

The Company has a diversified portfolio which comprises mainly investments in
large and medium-sized companies and mitigates the Company's exposure to
liquidity risk. The Company minimises the risk of a counterparty failing to
deliver securities or cash by dealing through organisations that have
undergone rigorous due diligence by Janus Henderson. Further information on
the mitigation of financial risks is included in the Annual Report.
Operational and Cyber Risks
Disruption to, or failure of, Janus Henderson's accounting, dealing or
payment systems or the Depositary's records could prevent the accurate
reporting and monitoring of the Company's financial position. The Company is
also exposed to the operational and cyber risks that one or more of its
service providers may not provide the required level of service.
The Board monitors the services provided by Janus Henderson, the Depositary
and its other suppliers and receives reports on the key elements in place to
provide effective internal control.

The Board considers these risks to have remained unchanged throughout the
year under review.

VIABILITY STATEMENT
The Directors have assessed the viability of the Company over a three year
period, taking account of the Company's current position and the potential
impact of the principal risks and uncertainties documented in the Annual
Report. The Directors conducted the assessment based on a period of three
years because they consider this to be an appropriate period over which they
do not expect there to be any significant change in the current principal
risks and adequacy of the mitigating controls in place. Also the Directors do
not envisage any change in strategy or objectives or any events that would
prevent the Company from continuing to operate over that period as the
Company's assets are liquid, its commitments are limited and the Company
intends to continue to operate as an investment trust.

The assessment considered the impact of the likelihood of the principal risks
and uncertainties facing the Company, in particular Investment Activity and
Performance, Portfolio and Market and Financial risks, materialising in
severe but plausible scenarios, and the effectiveness of any mitigating
controls in place.

The Directors also took into account the liquidity of the portfolio, the
gearing and the income stream from the portfolio in considering the viability
of the Company over the next three years and its ability to meet liabilities
as they fall due. This included consideration of the duration of the
Company's long-term borrowings, how a breach of the gearing covenants could
impact on the Company's net asset value and share price and how the forecast
income stream, expenditure and levels of reserves could impact on the
Company's ability to pay dividends to shareholders over that period in line
with its current dividend policy. Whilst detailed forecasts are only made
over a shorter time frame, the nature of the Company's business as an
investment trust means that such forecasts are equally valid to be considered
over the longer three year period as a means of assessing whether the Company
can continue in operation.

Based on their assessment, the Directors have a reasonable expectation that
the Company will be able to continue in operation and meet its liabilities as
they fall due over the next three year period.

RELATED PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with its
Directors and Janus Henderson. There were no material transactions between
the Company and its Directors during the year other than the amounts paid to
them in respect of Directors' remuneration for which there were no
outstanding amounts payable at the year end. In relation to the provision of
services by the Manager, other than fees payable by the Company in the
ordinary course of business and the provision of sales and marketing
services, there were no transactions with the Manager affecting the financial
position of the Company during the year under review. More details on
transactions with the Manager, including amounts outstanding at the year end
as shown in the Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES UNDER DISCLOSURE GUIDANCE AND
TRANSPARECY RULE 4.1.12
Each of the Directors confirms that, to the best of his or her knowledge:

o the Company's financial statements, which have been prepared in accordance
with IFRSs as adopted by the EU, give a true and fair view of the assets,
liabilities, financial position and profit of the Company; and

o the Strategic Report in the Annual Report and financial statements includes
a fair review of the development and performance of the business and the
position of the Company, together with a description of the principal risks
and uncertainties that it faces.

For and on behalf of the Board

Richard Killingbeck
Chairman
15 January 2019

STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 October 2018 Year ended 31 October 2017

Notes Revenue return ?'000 Capital return ?'000 Total return
?'000 Revenue return ?'000 Capital return ?'000 Total/
return
?'000
(Losses)/Gains on investments held at fair value through profit or loss
- (12,611) (12,611) - 152,388 152,388
Investment income 2 30,321 - 30,321 29,445 -
29,445
Other operating income 3 226 - 226 189 - 189
--------- --------- --------- ---------
--------- ---------
Total income 30,547 (12,611) 17,936 29,634 152,388
182,022
--------- --------- --------- ---------
--------- ---------
Expenses
Management fees 4 (1,344) (3,136) (4,480) (1,012) (2,362) (3,374)
Other expenses (990) - (990) (963) - (963)
--------- --------- --------- ---------
--------- ---------
Profit/(loss) before finance costs and taxation 28,213 (15,747)
12,466 27,659 150,026 177,685
--------- ---------- --------- ---------
--------- ---------
Finance costs (917) (2,141) (3,058) (916) (2,137) (3,053)
--------- ---------- --------- ---------
--------- ---------
Profit/(loss) before taxation 27,296 (17,888) 9,408
26,743 147,889 174,632

Taxation 5 (1,823) - (1,823) (1,624) - (1,624)
--------- --------- --------- ---------
--------- ---------
Profit/(loss) for the year and total comprehensive income
25,473 (17,888) 7,585 25,119 147,889 173,008
===== ====== ====== ===== ====== ======
Earnings per ordinary share - basic and diluted 6 20.78p (14.59p)
6.19p 20.49p 120.62p 141.11p

The total columns of this statement represent the Statement of Comprehensive
Income, prepared in accordance with IFRSs as adopted by the European Union.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.

STATEMENT OF CHANGES IN EQUITY

Year ended
31 October 2018 Called up
share capital
?'000
Share premium
account
?'000
Capital redemption
reserve
?'000
Other capital
reserves
?'000

Revenue reserve
?'000

Total
?'000
Total equity at 1 November 2017 30,986 78,541 12,489 915,206 40,341
1,077,563
Total comprehensive income:
(Loss)/profit for the year - - - (17,888)
25,473 7,585
Ordinary dividends paid - - - - (23,565)
(23,565)
---------- ---------- ---------- ----------
---------- -------------
Total equity at 31 October 2018 30,986 78,541 12,489 897,318 42,249
1,061,583
====== ====== ====== ====== ====== =======

Year ended
31 October 2017 Called up
share capital
?'000 Share premium
account
?'000 Capital redemption
reserve
?'000 Other capital
reserves
?'000
Revenue reserve
?'000

Total
?'000
Total equity at 1 November 2016 30,986 78,541 12,489 767,317
37,405 926,738
Total comprehensive income:
Profit for the year - - - 147,889 25,119
173,008
Ordinary dividends paid - - - - (22,183)
(22,183)
---------- ---------- ---------- ----------
---------- -------------
Total equity at 31 October 2017 30,986 78,541 12,489 915,206
40,341 1,077,563
====== ====== ====== ====== ====== =======

STATEMENT OF FINANCIAL POSITION

At 31 October
2018
?'000
At 31 October
2017
?'000

Non-current assets
Investments held at fair value through profit or loss 1,087,033
1,101,816
-------------- --------------

Current assets
Investments held at fair value through profit or loss 18,005 23,252
Other receivables 4,667 2,660
Cash and cash equivalents 20,075 24,102
-------------- -------------
42,747 50,014
-------------- --------------
Total assets 1,129,780 1,151,830
-------------- --------------
Current liabilities
Other payables (3,370) (9,451)
------------ ------------
(3,370) (9,451)
------------- -----------
Total assets less current liabilities 1,126,410 1,142,379
-------------- ------------
Non-current liabilities
Debenture stock (15,000) (15,000)
Unsecured loan notes (49,827) (49,816)
-------------- ------------
(64,827) (64,816)
-------------- -----------
Net assets 1,061,583 1,077,563
======== =======

Equity attributable to equity shareholders
Share capital 30,986 30,986
Share premium account 78,541 78,541
Capital redemption reserve 12,489 12,489
Retained earnings:
Other capital reserves 897,318 915,206
Revenue reserve 42,249 40,341
------------- -------------
Total equity 1,061,583 1,077,563
======= ========
Net asset value per ordinary share 865.8p 878.9p
======= =======

CASH FLOW STATEMENT

Reconciliation of profit before taxation to
net cash flow from operating activities Year ended 31 October
2018
?'000 Year ended 31 October
2017
?'000
Operating activities
Profit before taxation 9,408 174,632
Add back interest payable ('finance costs') 3,047 3,043
Amortisation of loan notes issue costs 11 10
Add: losses/(gains) on investments held at fair value through profit or loss
12,611 (152,388)
Decrease in accrued income 113 79
(Increase)/decrease in other receivables (12) 42
Increase/(decrease) in other payables 82 (66)
Purchases of investments (335,454) (305,170)
Sales of investments 337,755 306,581
Purchases of current asset investments (46,003) (52,453)
Sales of current asset investments 51,250 50,555
(Increase)/decrease in securities sold for future settlement (1,834) 5,235

Decrease in securities purchased for future settlement (6,163) (2,601)
-------------- --------------

Net cash inflow from operating activities before interest and taxation1
24,811 27,499
Interest paid (3,058) (3,042)
Taxation on investment income (2,083) (1,832)
-------------- --------------
Net cash inflow from operating activities 19,670 22,625

Financing activities
Equity dividends paid (net of refund of unclaimed distributions)
(23,565) (22,183)
Drawdown of bank loan 2,005 -
Repayment of bank loan (2,005) -
Cash received from the liquidation of Henderson Global Trust plc -
9
------------- -------------
Net cash outflow from financing activities (23,565) (22,174)
------------- -------------

(Decrease)/ increase in cash (3,895) 451
Cash and cash equivalents at start of the year 24,102 23,271
Exchange movements (132) 380
----------- -----------
Cash and cash equivalents at end of the year 20,075 24,102
======= =======

1 In accordance with IAS 7.31 cash inflow from dividends was ?30,398,000
(2017: ?29,372,000) and cash inflow from interest was ?62,000 (2017:
?191,000).

NOTES:

1. Accounting policies
The Bankers Investment Trust PLC is a company incorporated and
domiciled in the United Kingdom under the Companies Act 2006. The financial
statements of the Company for the year ended 31 October 2018 have been
prepared in accordance with International Financial Reporting Standards
('IFRSs') as adopted by the European Union and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRSs. These
comprise standards and interpretations approved by the International
Accounting Standards Board ('IASB'), together with interpretations of the
International Accounting Standards and Standing Interpretations Committee
approved by the IFRS Interpretations Committee ('IFRS IC') that remain in
effect, to the extent that IFRSs have been adopted by the European Union.

The financial statements have been prepared on a going concern basis and on
the historical cost basis, except for the revaluation of certain financial
instruments held at fair value through profit or loss. The principal
accounting policies adopted are set out in the Annual Report. These policies
have been applied consistently throughout the year. Where presentational
guidance set out in the Statement of Recommended Practice (the 'SORP') for
investment companies issued by the Association of Investment Companies (the
'AIC') in November 2014 and updated in February 2018 with consequential
amendments is consistent with the requirements of IFRSs, the Directors have
sought to prepare the financial statements on a basis consistent with the
recommendations of the SORP.

The assets of the Company consist mainly of securities that are listed and
readily realisable and, accordingly, the Directors believe that the Company
has adequate financial resources to continue in operational existence for at
least twelve months from the date of approval of the financial statements.
Having assessed these factors, the principal risks and other matters
discussed in connection with the Viability Statement, the Directors have
decided that it is appropriate for the financial statements to be prepared on
a going concern basis.

2018 2017
2. Investment income ?'000 ?'000
UK dividend income - listed 10,718 10,847
UK dividend income - special dividends 329 580
Overseas dividend income - listed 18,930 17,195
Overseas dividend income - special dividends 205 502
Property income distributions 139 321
----------- -----------
30,321 29,445
====== ======
Analysis of investment income by geographical region:
UK 11,641 12,743
Europe (ex UK) 5,215 5,220
North America 3,077 2,639
Japan 2,825 2,183
China 1,413 1,454
Pacific (ex Japan, China) 5,183 4,343
Emerging Markets 967 863
----------- -----------
30,321 29,445
====== ======
2018 2017
3. Other operating income ?'000 ?'000
Bank interest 64 23
Underwriting income 24 54
Stock lending revenue 135 108
Other income 3 4
----- -----
226 189
=== ===
At 31 October 2018 the total value of securities on loan by the
Company for stock lending purposes was ?42,093,000 (2017: ?28,166,000). The
maximum aggregate value of securities on loan at any one time during the year
ended 31 October 2018 was ?159,687,000 (2017: ?64,544,000). The Company's
agent held collateral at 31 October 2018 with a value of ?44,402,000 (2017:
?31,366,000) in respect of securities on loan. The value which is reviewed on
a daily basis comprises Corporate and Government Bonds with a minimum market
value of 105% (2017: 105%) of the market value of any securities on loan.

2018 2017

4.

Management fees Revenue return
?'000 Capital
return
?'000 Total return
?'000 Revenue return
?'000 Capital
return
?'000 Total
return
?'000
Investment management 1,344 3,136 4,480 1,012 2,362 3,374

------- ------- ------- ------- ------- -------
1,344 3,136 4,480 1,012 2,362 3,374
==== ==== ==== ==== ==== ====

A summary of the terms of the management agreement is given in the Annual
Report.

2018 2017

5.

Taxation Revenue return
?'000 Capital
return
?'000 Total return
?'000 Revenue return
?'000 Capital
return
?'000 Total
return
?'000
a) Analysis of the charge for the year

Overseas tax suffered 2,121 - 2,121 1,986 - 1,986

Overseas tax reclaimable (295) - (295) (362) -
(362)
Income tax recovered (3) - (3) - - -
------- ------- ------- ------- ------- -------
Total tax charge for the year 1,823 - 1,823 1,624 -
1,624
==== ==== ==== ==== ==== ====

b) Factors affecting the tax charge for the year
The differences are explained below:
2018 2017
Revenue return
?'000 Capital
return
?'000 Total return
?'000 Revenue return
?'000 Capital
return
?'000 Total
return
?'000
Profit/(loss) before taxation 27,296 (17,888) 9,408
26,743 147,889 174,362
Corporation tax for the year at 19.00% (2017: 19.42%) 5,186
(3,400) 1,786 5,193 28,720 33,913
Non taxable UK dividends (2,112) - (2,112) (2,229) -
(2,229)
Overseas income and non taxable scrip dividends (3,493) -
(3,493) (3,239) - (3,239)
Overseas withholding tax suffered 1,826 - 1,826 1,624
- 1,624
Income tax recovered (3) - (3) - - -
Realised gains on non-reporting offshore funds - - -
- 555 555
Excess management expenses and loan relationships 371 897
1,268 275 319 594
Interest capping restriction 48 106 154 - -
-
Capital losses/(gains) not subject to tax - 2,397 2,397
- (29,594) (29,594)
-------- ----------- ----------- --------
----------- -----------
1,823 - 1,823 1,624 - 1,624
===== ====== ===== ===== ====== =====
c) Provision for deferred taxation
No provision for deferred taxation has been made in the current year or in
the prior year.

The Company has not provided for deferred tax on capital gains or losses
arising on the revaluation or disposal of investments as it is exempt from
tax on these items because of its status as an investment trust, which it
intends to maintain for the foreseeable future.

d) Factors that may affect future tax charges
The Company has not recognised a deferred tax asset totalling ?8,263,000
(2017: ?7,201,000) based on a prospective corporation tax rate of 17.0%
(2017: 17.0%). The deferred tax asset arises as a result of having unutilised
management expenses and unutilised non-trade loan relationship deficits.
These expenses will only be utilised, to any material extent, if the Company
has profits chargeable to corporation tax in the future because changes are
made either to the tax treatment of the capital gains made by investment
trusts or to the Company's investment profile which require them to be used.

6. Earnings per ordinary share
The total earnings per ordinary share is based on the net profit
attributable to the ordinary shares of ?7,585,000 (2017: ?173,008,000) and on
122,606,783 ordinary shares (2017: 122,606,783), being the weighted average
number of shares in issue during the year.

The total earnings can be further analysed as follows:
2018 2017
?'000 ?'000
Revenue profit 25,473 25,119
Capital (loss)/profit (17,888) 147,889
---------------- ----------------
Profit for the year 7,585 173,008
---------------- ----------------
Weighted average number of ordinary shares 122,606,783
122,606,783
----------------- -----------------
Revenue earnings per ordinary share 20.78p 20.49p
Capital earnings per ordinary share (14.59p) 120.62p
------------- -------------
Earnings per ordinary share 6.19p 141.11p
======= =======

The Company does not have any dilutive securities, therefore basic
and diluted earnings are the same.

7.
Called up share capital Number of
shares entitled
to dividend Total n
Total number
of shares
Nominal value
of shares
?'000
Ordinary shares of 25p each
At 1 November 2017 122,606,783 123,945,292 30,986
----------------- ----------------- -----------
At 31 October 2018 122,606,783 123,945,292 30,986
----------------- ---------------- -----------

Number of
shares entitled
to dividend Total n
Total
number
of shares
Nominal value
of shares
?'000
Ordinary shares of 25p each
At 1 November 2016 122,606,783 123,945,292 30,986
----------------- ----------------- -----------
At 31 October 2017 122,606,783 123,945,292 30,986
----------------- ---------------- -----------

During the year, no ordinary shares were issued or purchased. In the
year ended 31 October 2017, no ordinary shares were issued or purchased.

Since the year end, the Company has not issued any ordinary shares or
purchased shares for cancellation or to be held in treasury.

8. Net asset value per ordinary share
The net asset value per ordinary share is based on net assets
attributable to ordinary shares of ?1,061,583,000 (2017: ?1,077,563,000) and
on 122,606,783 ordinary shares in issue at 31 October 2018 (2017:
122,606,783). The Company has no securities in issue that could dilute the
net asset value per ordinary share.

The movements during the year in net assets attributable to the ordinary
shares were as follows:
2018 2017
?'000 ?'000
Net assets attributable to ordinary shares at start of year
1,077,563 926,738
Total net profit on ordinary activities after taxation 7,585
173,008
Dividends paid (23,565) (22,183)
------------- -----------
Net assets attributable to ordinary shares at end of year
1,061,583 1,077,563

======= ======
9. Dividend
A final dividend of 5.00p per share, if approved by shareholders at
the Annual General Meeting, will be paid on 28 February 2019 to shareholders
on the register on 25 January 2019. The shares go ex-dividend on 24 January
2018. This final dividend, together with the three interim dividends already
paid brings the total dividend for the year to 19.72p.

10. 2018 Financial Information
The figures and financial information for the year ended 31 October
2018 are extracted from the Company's annual financial statements for that
period and do not constitute statutory accounts. The Company's annual
financial statements for the year to 31 October 2018 have been audited but
have not yet been delivered to the Registrar of Companies. The Auditor's
report on the 2018 annual financial statements was unqualified, did not
include a reference to any matter to which the Auditor drew attention without
qualifying the report, and did not contain any statements under Section 498
of the Companies Act 2006.

11. 2017 Financial Information
The figures and financial information for the year ended 31 October
2017 are compiled from an extract of the published accounts for that year and
do not constitute statutory accounts. Those accounts have been delivered to
the Registrar of Companies and included the report of the Auditor which was
unqualified and did not contain a statement under Sections 498(2) or 498(3)
of the Companies Act 2006.

12. Annual Report
Copies of the Annual Report will be posted to shareholders by the end
of January 2019 and will be available on the Company's website
(www.bankersinvestmenttrust.com) or in hard copy format from the Registered
Office, 201 Bishopsgate, London EC2M 3AE.

13. Annual General Meeting
The Annual General Meeting will be held on Wednesday 27 February 2019 at 12
noon at Trinity House, London, EC3N 4DH.

For further information contact:

Alex Crooke
Fund Manager
The Bankers Investment Trust PLC
Telephone: 020 7818 4447
Richard Killingbeck
Chairman
The Bankers Investment Trust PLC
Telephone: 020 7818 4233
James de Sausmarez
Director and Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 3349 Laura Thomas
Investor Relations and PR Manager
Janus Henderson Investors
Telephone: 020 7818 3198

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
End CA:00329479 For:BIT Type:MKTUPDTE Time:2019-01-16 08:30:35

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