Ann: FLLYR: BIT: BIT - Final Results

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BIT
21/01/2013 08:37
FLLYR

REL: 0837 HRS The Bankers Investment Trust Plc

FLLYR: BIT: BIT - Final Results

Page 1 of 17
THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

This announcement contains regulated information

MANAGEMENT REPORT
Chairman's Statement:

o Net Asset Value total return was 9.4% over the year
o Total annual dividend for 2012 increased by 5% and forecasting a minimum
increase of 4% for 2013
o 46th consecutive year of dividend increases

Performance and Markets
It is pleasing to be able to present to shareholders an increase in net asset
value, share price and dividend. Our careful and diverse selection of
investments continues to deliver steady growth. A further recovery in
investment income has allowed us to exceed our forecast and raise the annual
dividend again.

However, it is dissapointing to repeat the same problems that have overhung
markets in recent years being high levels of government debt and little
evidence of a lasting resolution in Europe. It appeared that a degree of
progress was being made in the US during the first half of our year and this
lifted expectations. The summer months witnessed a return to uncertainty
which held back consumer spending and corporate investment, delaying orders
and causing company earnings to stall. The second half of the year produced
little progress in share prices and a return to more volatile market
conditions. Despite all of this the Company achieved a net asset value total
return of  9.4% over the year, which compared to a total return of 9.8% for
the composite benchmark index, with the majority of our investment returns
being made in the first half. Our performance has closely matched the index
returns for much of the year with our, Portfolio Manager making gainings by
successful stock selection in most markets, but which were eroded by the
overall regional asset allocation. Asset allocation is always challenging as
it involves so many variable global factors, but we expect to add value in
this area, in addition to gains from stock selection. Greater resources are
being engaged by our Manager to assist in optimising returns from geographic
allocations and this should further improve results over time.

As I reported to you last year, stock selection has in general exceeded the
returns from local indices but this useful work has been negated by an
underweight position in US stocks, which delivered the greatest returns, in
sterling terms, for a second year. The UK, European, Japanese and Pacific
regional portfolios all beat their local index returns, reflecting our
Portfolio Managers' careful selection of stocks that pay good dividends and
have strong franchises. The results in the Pacific region were particularly
welcome, delivering a 15.7% total return and justifying our overweight stance
in this area of the world. The two regions that underperformed their
respective indices were the US and Emerging Markets. The strategy of focusing
on medium sized companies in the US resulted in under performance relative to
the largest capitalised stocks, which increased in value more, possibly
benefiting from their additional overseas earnings and a flight to safety by
investors. The shortfall in the emerging markets portfolio was due to the
decline in the value of commodities which impacted the holdings of both
Impala Platinum and Petroleo Brasileiros. In recent months our position in
Petroleo Brasileiros has been reduced significantly while we expect a
recovery in the platinum price will improve the prospects for Impala.

Page 2 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

Revenue and Dividends
There has been a substantial recovery in our investment income over the year,
with gross revenue up 13.4% compared to last year. While a portion of the
growth in income has been as a result of a number of special dividends, the
underlying investment income increased by 11.9%, year on year. There is
typically a time lag between the recovery of earnings and dividends as
companies wait for confidence to return to their businesses before they
increase dividends. It is encouraging that we are
now seeing the benefits of the recovery in corporate profits. It is
interesting to note that our overseas investment income has exceeded that of
our UK based investments for the second year running. This reflects both the
increased asset allocation overseas in recent years, and most especially the
fact that in the US market companies like Apple are paying dividends for the
first time. The rate of growth in income will moderate in the coming year but
our forecasts still show further progress in revenue even excluding any
uplift from further special dividends.

We are recommending a final dividend of 3.43p, making a total of 13.33p for
the year, an increase of 5%. This reflects a better outturn than we predicted
last year and extends our long term record of increasing dividends to
shareholders every year since 1966. The great strength of the size of our
revenue reserve is the ability to protect shareholders from the volatility of
earnings and smooth the dividends we pay out. Looking to 2013, we are able to
forecast a dividend per share of not less than 13.86p, which represents an
increase of 4%.

Annual General Meeting
The Annual General Meeting this year will be held at Stationers' Hall, Ave
Maria Lane, London EC4M 7DD on 26 February 2013 at 12 noon.

Governance and Board changes
Investment Trust Boards are proud of being able to demonstrate levels of
governance that open-ended investment products do not have. Your Board is
independent and takes its responsibilities most seriously. We review the
Manager's performance throughout the year and hold a major review of all
aspects of the service provided by your Manager at the end of the financial
year. Our priority is to ensure that the management agreement serves the best
interests of shareholders as a whole. It is our opinion that the current
relationship with Henderson Global Investors achieves this. Good governance
is dependent on having a Board of Directors with the right blend of skills,
experience and character. In this respect I am pleased to bring you up to
date with developments.

On 1 November 2012 we strengthened your Board by the appointment of Susan
Inglis. Sue is the first woman to join the Board in our long history and she
is a most welcome addition bringing with her a legal and investment company
corporate finance background.

It is eight years since I became Chairman and it is time to pass on the baton
to a younger person. I am pleased to tell you that Richard Killingbeck has
agreed to take on the Chairmanship from this summer. Richard has served your
Company most diligently for nine years and especially as senior independent
director over the last two years. He has very considerable experience in
financial services and fund management in particular and I am confident that
he will maintain the values and standards that are the hallmark of Bankers'
long term success.

Page 3 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

Retail Distribution Review
From 1 January 2013, the market place for selling retail investment products
in the UK has changed radically, as commissions paid to advisers by funds
have been banned. This should provide a more level playing field for
investment companies such as Bankers when competing for investors with
open-ended products and we hope more advisers will recommend investment
companies to their clients.

In view of the above comments we have decided to simplify the management fee
arrangements and drop the performance fee paid to our Manager and return to a
simple fixed percentage fee of 0.4% per annum of net assets (following
regulatory approval). On 1 November 2013 this is expected to move to 0.45%,
subject to review (more details can be found in the Annual Report and
Financial Statements). This fee remains one of the lowest in the Global
Growth sector, and indeed amongst all investment trusts. We believe that the
key characteristics of Bankers, offering consistent growth in income and
capital from a broadly diversified portfolio of global companies, is very
attractive and your Board is working with our Manager to spread this message
to a wider audience of new investors.

We are also making changes to how we present figures to allow a better
comparison with the wider spectrum of investment funds. We have adopted the
standardised definitions of gearing and expenses (now called "ongoing
charges") recently recommended by the AIC.

Outlook
The Company will be 125 years old in April and, at times over those years, my
predecessors had to contend with an outlook that must have been truly bleak.
However, the Company has endured and remained true to its long term
commitment of growing shareholders' capital and income. There remain some
notable barriers to returning the world to a steady state of economic growth
but it is likely that the events that currently trouble investors such as the
slowing Chinese economy or balancing the US defeat will in due course be
resolved. The high level of debt in the world may mean that economies will
grow at a slower pace than in previous periods of expansion but well managed
companies should succeed in growing at a greater pace. The quality of
corporate balance sheets and earnings has significantly improved since the
downturn which gives us comfort that their dividends and in turn their
attraction to investors should continue to increase. Good quality companies
can provide both attractive yields and a degree of protection from rising
inflation that bonds do not.

A global equity fund such as Bankers is therefore well placed to offer an
attractive investment for people saving for their future.  1,000 invested 30
years ago with all dividends re-invested would today have a value of  38,951.
This compares with the return from cash invested in a bank deposit account
with interest over that same period of 4,145. These are difficult times for
savers, as cash deposits carry negative real interest rates; whereas there
are real merits of investing in a savings product offering such as Bankers.
It has a superior track record of long-term capital growth and increasing
dividends in real terms. The above figures showing the comparison of returns
over 30 years speak for themselves.

Page 4 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

Principal Risks and Uncertainties
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
are as follows:

o Portfolio and market
Although the Company invests almost entirely in securities that are quoted on
recognised markets, share prices may move sharply. The companies in which
investments are made may operate unsuccessfully, or fail entirely. A fall in
the market value of the Company's portfolio would have an adverse effect on
the shareholders' funds. The Board reviews the portfolio each month and
mitigates this risk through diversification of investments in the portfolio.

o Investment activity and performance
An inappropriate investment strategy (for example, in terms of asset
allocation or the level of gearing) may result in underperformance against
the Company's benchmark index and the companies in its peer group. The Board
monitors investment performance at each Board meeting and regularly reviews
the extent of its borrowings.

o Tax and regulatory risks
A breach of Section 1158 of the Corporation Taxes Act 2011 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 UKLA Listing
Rules could result in suspension of the Company's shares, while a breach of
the Companies Act 2006 could lead to criminal proceedings, or financial or
reputational damage. The Company must also ensure compliance with the listing
rules of the New Zealand Stock Exchange.  The Manager has contracted to
provide investment, company secretarial, administration and accounting
services through qualified professionals. The Board receives internal control
reports produced by the Manager on a quarterly basis, which confirmed
regulatory compliance during the year.

o Financial
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.
Details of these risks and how they are managed are contained in the notes in
the Annual Report and Financial Statements.

o Operational
Disruption to, or failure of, the Manager's accounting, dealing or payment
systems or the Custodian's records could prevent the accurate reporting and
monitoring of the Company's financial position. The Company is also exposed
to the operational risk that one or more of its suppliers may not provide the
required level of service.  Details of how the Board monitors the services
provided by the Manager and its other suppliers, and the key elements
designed to provide effective internal control, are explained further in the
internal controls section in the Annual Report and Financial Statements.

Page 5 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

Related Party Transactions
Other than the relationship between the Company and its directors, the
provison of services by Henderson is the only related party arrangement
currently in place.  Other than the fees payable by the Company in the
ordinary course of business, there have been no material transactions with
this related party which has affected the financial position or performance
of the Company in the financial year.

Statement of Directors' Responsibilities under DTR 4.1.12
Each of the directors confirms that, to the best of his or her knowledge:

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

o the Report of the Directors includes a fair review of the development and
performance of the business and the position of the Group and Company,
together with a description of the principal risks and uncertainties that it
faces.

For and on behalf of the Board of Directors

Richard Brewster
Chairman

For further information contact:

Alex Crooke
Fund Manager
The Bankers Investment Trust PLC
Telephone: 020 7818 4447
 Richard Brewster
Chairman
The Bankers Investment Trust PLC
Telephone: 020 7818 4233
James de Sausmarez
Director of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 3349 Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: 020 7818 3198

Page 6 of 17
THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

SUMMARY OF THE YEAR

 31 October
2012 31 October
2011 Change %
Consolidated Assets
Total assets less current liabilities ( '000)
  551,214
521,331 +5.7
Net asset value per ordinary share  474.5p 446.9p +6.2
Ordinary share mid-market price 433.1p 385.0p +12.5
Discount (Share Price to Net Asset Value) 8.7% 13.9%

Consolidated Revenue
Gross revenue ( '000) 18,593 16,389 +13.4
Revenue earnings per ordinary share 13.84p 11.98p +15.5
Dividends per ordinary share in respect of the year
13.33p
12.70p +5.0

Total Return
Total return per ordinary share 40.42p 7.51p

Indices (capital return)
FTSE All-Share Index 3,024.40 2,860.86 +5.7
S&P 500 Composite Index 1,412.66 1,253.30 +12.9 #
FTSE All-World Developed Europe (ex UK) Index ( )
134.44
126.52 +6.3
TOPIX (Tokyo First Section Index) 742.33 764.06 -5.0 #
FTSE World (ex UK) Index ( ) 347.98 325.93 +6.8

Composite Index (capital return)
50/50 FTSE All-Share Index/
    FTSE World (ex UK) Index ( )
212.6
200.0* +6.3

Ongoing Charges**   0.42% 0.40%

Retail Prices Index 245.6 238.0 +3.2

#   adjusted
*    rebased as at 31 October 2012
**  excluding borrowing costs

Page 7 of 17
THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 October 2012

 Year ended 31 October 2012 Year ended 31 October 2011

Notes Revenue Return  '000 Capital Return  '000
Total  '000 Revenue Return  '000 Capital Return  '000
Total
 '000

Gains/(losses) on investments held at fair value through profit or loss

-
31,623
31,623
-
(2,786)
(2,786)
Investment income 2 18,349 - 18,349 15,988 - 15,988
Other operating income 3 244 - 244 401 - 401
  --------- --------- --------- --------- --------- ---------
Total income/(loss)  18,593 31,623 50,216 16,389 (2,786) 13,603
  --------- --------- --------- --------- --------- ---------
Expenses
Management fees 4 (1,026) (552) (1,578) (979) (528) (1,507)
Other expenses (725) - (725) (696) - (696)
  --------- --------- --------- --------- ------------ ---------
Profit/(loss) before finance costs and taxation
16,842
31,071
47,913
14,714
(3,314)
11,400

Finance costs  (678) (1,582) (2,260) (706) (1,647) (2,353)
  --------- --------- --------- --------- ------------ ---------
Profit/(loss) before taxation  16,164 29,489 45,653 14,008 (4,961) 9,047

Taxation 5 (805) - (805) (701) - (701)
  --------- --------- --------- --------- ------------ ---------
Profit/(loss) for the year and total comprehensive income
15,359
29,489
44,848
13,307
(4,961)
8,346
  ===== ======= ====== ===== ======= ======
Earnings/(loss) per ordinary share  6 13.84p 26.58p 40.42p 11.98p (4.47p)
7.51p

The total column of this statement represents the Consolidated Statement of
Comprehensive Income, prepared in accordance with IFRS 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.

All income is attributable to the equity shareholders of The Bankers
Investment Trust PLC.

As permitted by the Companies Act 2006, the Company has not presented its own
Statement of Comprehensive Income.  The net profit of the Company for the
year was  44,848,000 (2011:  8,346,000).

Page 8 of 17
THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

AUDITED CONSOLIDATED AND PARENT COMPANY STATEMENT OF CHANGES IN EQUITY for
the year ended 31 October 2012

Consolidated year ended
31 October 2012  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 2011 27,763 452 12,447 425,185 30,484 496,331
Total comprehensive income:
Profit for the year - - - 29,489 15,359 44,848
Transactions with owners, recorded directly to equity:
Buy back of 145,000 ordinary shares (36) - 36 (594) - (594)
Ordinary dividends paid - - - - (14,371) (14,371)
 ---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2012 27,727 452 12,483 454,080 31,472 526,214
 ====== ====== ====== ====== ====== ======

Consolidated year ended
31 October 2011
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 2010 27,772 452 12,438 430,286 31,007 501,955
Total comprehensive income:
(Loss)/ profit for the year - - - (4,961) 13,307 8,346
Transactions with owners, recorded directly to equity:
Buy back of 34,000 ordinary shares (9) - 9 (140) - (140)
Ordinary dividends paid - - - - (13,830) (13,830)
 ---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2011 27,763 452 12,447 425,185 30,484 496,331
 ====== ====== ====== ====== ====== ======

Company year ended
31 October 2012  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  2011 27,763 452 12,447 426,372 29,297 496,331
Total comprehensive income:
(Loss)/profit for the year - - - 28,398 16,450 44,848
Transactions with owners, recorded directly to equity:
Buy back of 145,000 ordinary shares (36) - 36 (594) - (594)
Ordinary dividends paid - - - - (14,371) (14,371)
 ---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2012 27,727 452 12,483 454,176 31,376 526,214
 ====== ====== ====== ====== ====== ======

Company year ended
31 October 2011
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 2010 27,772 452 12,438 431,271 30,022 501,955
Total comprehensive income:
Profit for the year - - - (4,759) 13,105 8,346
Transactions with owners, recorded directly to equity:
Buy back of 34,000 ordinary shares (9) - 9 (140) - (140)
Ordinary dividends paid - - - - (13,830) (13,830)
 ---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2011 27,763 452 12,447 426,372 29,297 496,331
 ====== ====== ====== ====== ====== ======

Page 9 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

AUDITED CONSOLIDATED AND PARENT COMPANY BALANCE SHEETS
at 31 October 2012

 Consolidated
2012
 '000 Consolidated
2011
 '000  Company
2012
 '000  Company
2011
 '000

Non-current assets
Investments held at fair value through profit or loss 546,819 512,257 546,915
513,444
 ---------- ---------- ---------- ----------

Current assets
Investments held at fair value through profit or loss 1,301 3,650 1,301 3,650

Other receivables 2,046 2,628 2,251 2,809
Cash and cash equivalents 3,126 6,360 2,825 4,992
 ---------- ---------- ---------- ----------
 6,473 12,638 6,377 11,451
 ---------- ---------- ---------- ----------
Total assets 553,292 524,895 553,292 524,895
 ---------- ---------- ---------- ----------
Current liabilities
Bank loan (1,000) - (1,000) -
Other payables (1,078) (3,564) (1,078) (3,564)
 ---------- ---------- ---------- ----------
 (2,078) (3,564) (2,078) (3,564)
 ---------- ---------- ---------- ----------
Total assets less current liabilities 551,214 521,331 551,214 521,331
 ---------- ---------- ---------- ----------
Non-current liabilities
Debenture stocks (25,000) (25,000) (25,000) (25,000)
 ---------- ---------- ---------- ----------
Net assets 526,214 496,331 526,214 496,331
 ====== ====== ====== ======

Equity attributable to equity shareholders
Called up share capital (note 7) 27,727 27,763 27,727 27,763
Share premium account 452 452 452 452
Capital redemption reserve 12,483 12,447 12,483 12,447
Retained earnings:
 Other capital reserves 454,080 425,185 454,176 426,372
 Revenue reserve 31,472 30,484 31,376 29,297
 ---------- ---------- ---------- ----------
Total equity 526,214 496,331 526,214 496,331
 ====== ====== ====== ======
Net asset value per Ordinary share (pence)
- basic and diluted (Note 8)
474.5p
446.9p
474.5p
446.9p
 ====== ====== ====== ======

Page 10 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

AUDITED CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENTS
for the year ended 31 October 2012

Reconciliation of operating revenue to net cash flow from operating
activities Consolidated
2012
 '000 Company
2012
 '000  Consolidated
2011
 '000 Company
2011
 '000

Profit before taxation 45,653 45,629 9,047 9,047
Add interest payable ("finance costs") 2,260 2,260 2,353 2,353
(Less)/add: (gains)/losses on investments held at fair value through profit
or loss
(31,623)
(30,532)
2,786
2,521
(Increase)/decrease in accrued income (573) (573) 383 383
Decrease/(Increase) in other receivables  2 2 (7) (7)
(Decrease)/Increase in other payables and accruals (123) (123) 23 23
Purchases of investments (131,873) (131,873) (114,549) (114,549)
Sales of investments 128,980 128,980 121,530 121,530
Amounts received from subsidiary undertaking - - - 4,000
Purchases of current asset investments (22,899) (22,016) (35,682) (34,975)
Sales of current asset investments 25,364 24,365 39,242 37,625
Decrease in amounts due from brokers 1,179 1,179 767 767
Decrease in amounts due to brokers (2,363) (2,363) (7,285) (6,674)
Dealing profits (116) - (261) -
 ---------- ---------- ---------- ----------

Net cash inflow from operating activities before interest and taxation
13,868
14,935
18,347
22,044
Interest paid (2,260) (2,260) (2,374) (2,374)
Taxation on investment income (831) (831) (641) (641)
 ---------- ---------- ---------- ----------
Net cash inflow from operating activities 10,777 11,844 15,332 19,029

Financing activities
Equity dividends paid (14,371) (14,371) (13,830) (13,830)
Purchase of ordinary shares (594) (594) (140) (140)
Drawdown/(repayment) of loan 1,000 1,000 (4,000) (4,000)
 ---------- ---------- ---------- ----------
Net cash outflow from financing activities (13,965) (13,965) (17,970)
(17,970)
 ---------- ---------- ---------- ----------

(Decrease)/increase in cash (3,188) (2,121) (2,638) 1,059
Cash and cash equivalents at start of the year 6,360 4,992 8,910 3,845
Exchange movements (46) (46) 88 88
 ---------- ---------- ---------- ----------
Cash and cash equivalents at end of the year 3,126 2,825 6,360 4,992
 ====== ====== ====== ======

Page 11 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

NOTES:

1. Accounting policies
 The consolidated and parent company financial statements for the year ended
31 October 2012 have been prepared in accordance with the 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.  IFRSs 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 International Accounting Standards
Committee ("IASC") 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.  The principal accounting policies are set out in the audited
accounts.  Where presentational guidance set out in the Statement of
Recommended Practice ("the SORP") for investment trusts issued by the
Association of Investment Companies ("the AIC") in January 2009 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.

  2012 2011
2. Investment income  '000  '000
 UK dividend income  - listed 8,146 7,456
 UK dividend income  - special dividends 687 50
 Overseas dividend income - listed 9,078 7,890
 Overseas dividend income - special dividends  118 170
 Property income distributions 320 333
 Income from fixed interest securities - 89
  -------- --------
  18,349 15,988
  ===== =====
 Analysis of investment income by geographical region:
 UK 9,842 8,459
 Europe (ex UK) 2,110 2,351
 North America 2,437 1,433
 Japan 1,102 971
 Pacific (ex Japan) 2,608 2,367
 Emerging markets 250 407
  -------- ---------
  18,349 15,988
  ===== =====

Page 12 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

  2012 2011
3. Other operating income  '000  '000
 Bank interest 20 15
 Stock lending revenue 108 125
 Dealing profits from subsidiary 116 261
  -------- --------
  244 401
  ===== =====

 At 31 October 2012 the total value of securities on loan by the Group for
stock lending purposes was  19,200,000 (2011:  37,200,000).  The maximum
aggregate value of securities on loan at any one time during the year ended
31 October 2012 was  39,000,000 (2011: 45,800,000).  The Group's agent held
collateral at 31 October 2012 with a value of  20,200,000 in respect of
securites on loan, the value of which is reviewed on a daily basis,
comprising CREST Delivery By Value ("DBVs") and Government Bonds with a
market value of 105% of the market value of any securities on loan.

4.

Management fees Revenue Return
2012
 '000 Capital
Return
2012
 '000
Total
2012
 '000 Revenue Return
2011
 '000 Capital
Return
2011
 '000
Total
2011
 '000
 Investment management 237 552 789 226 528 754
 Accounting, secretarial and administration
789
-
789
753
-
753
  ------- ------- ------- ------- ------- -------
  1,026 552 1,578 979 528 1,507
  ==== ==== ==== ==== ==== ====

5.

Taxation Revenue Return
2012
 '000 Capital
Return
2012
 '000
Total
2012
 '000 Revenue Return
2011
 '000 Capital
Return
2011
 '000
Total
2011
 '000
 (a) Analysis of the charge for the year

 Overseas tax suffered 925 - 925 874 - 874
 Overseas tax reclaimable (120) - (120) (173) - (173)
  ------- ------- ------- ------- ------- -------
 Taxation 805 - 805 701 - 701
  ==== ==== ==== ==== ==== ====

Page 13 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

 (b) Factors affecting the tax charge for the year
The differences are explained below:

  Revenue Return
2012
 '000 Capital
Return
2012
 '000
Total
2012
 '000 Revenue Return
2011
 '000 Capital
Return
2011
 '000
Total
2011
 '000
 Profit before taxation 16,164 29,489 45,653 14,008 (4,961) 9,047
  -------- ----------- ----------- -------- ----------- -----------
 Corporation tax at 24.83% (2011: 26.83%)
4,014
7,322
11,336
3,760
(1,332)
2,428
 Non taxable UK dividends (2,193) - (2,193) (1,988) - (1,988)
 Non taxable scrip dividends and other income
(2,238)
-
(2,238)
(2,119)
-
(2,119)

 Income taxable in different years
4
-
4
-
-
-
 Overseas withholding tax suffered
805
-
805
701
-
701
 Excess management expenses
413
530
943
347
584
931
 Capital losses/(gains) not subject to tax
-
(7,852)
(7,852)
-
748
748
  -------- ----------- ----------- -------- --------- ---------
  805 - 805 701 - 701
  ==== ===== ===== ==== ===== =====

 (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 company, which it intends to maintain for the foreseeable futue.

 (d) Factors that may affect future tax charges
The Company has not recognised a deferred tax asset totalling  3,976,000
(2011: 3,373,000) arising as a result of having unutilised non trade loan
relationship deficits of  2,910,000 (2011:  2,639,000), excess management
expenses of  1,066,000 (2011:  734,000) and deferred tax liability of  nil
(2011: Nil) on offshore funds. These expenses will only be utilised if the
Group has profits chargeable to corporation tax in the future.

The standard rate of corporation tax in the UK changed from 26% to 24% with
effect from 1 April 2012.
Accordingly, the Company's profits for this accounting period are taxed at
the effective rate of tax of 24.83%.

6. Earnings per ordinary share
 The total earnings per ordinary share is based on the net profits
attributable to the ordinary shares of 44,848,000 (2011:  8,346,000) and on
110,946,334 ordinary shares (2011: 111,072,713) being the weighted average
number of shares in issue during the year.

The total earnings can be further analysed as follows:

Page 14 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

  2012 2011
   '000  '000
 Revenue profit 15,359 13,307
 Capital profit/(loss) 29,489 (4,961)
  ---------- -----------
 Profit for the year 44,848 8,346
  ---------- -----------

 Weighted average number of ordinary shares 110,946,334 111,072,713
  ---------- ---------------

 Revenue earnings per ordinary share 13.84p 11.98p
 Capital earnings /(loss) per ordinary share 26.58p (4.47p)
  ---------- -----------
 Earnings per ordinary share 40.42p 7.51p
  ======= =======

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

7.
Called up share capital 2012
 '000 2011
 '000
 Authorised, allotted, issued and fully paid:
 110,906,839 (2011: 111,051,839) ordinary shares of 25p each 27,727 27,763
  ===== =====

 During the year, 145,000 (2011: 34,000) ordinary shares were bought back for
cancellation at a cost of  594,000 (2011:  140,000).

8. Net asset value per ordinary share
 The net asset value per ordinary share is based on net assets attributable
to ordinary shares of  526,214,000 (2011:  496,331,000) and on the
110,906,839 ordinary shares in issue at 31 October 2012 (2011: 111,051,839).
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:

  2012 2011
   '000  '000
 Net assets attributable to ordinary shares at start of year 496,331 501,955
 Total net profit on ordinary activities after taxation 44,848 8,346
 Dividends paid (14,371) (13,830)
 Buy back of ordinary shares (594) (140)
  ------------ ------------
 Net assets attributable to ordinary shares at end of year 526,214 496,331
  ======= =======

Page 15 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

9. Going Concern Statement
 The directors believe that it is appropriate to continue to adopt the going
concern basis in preparing the financial statements as the assets of the
Company consist mainly of securities which are readily realisable and,
accordingly, it has adequate financial resources to continue in operational
existence for the foreseeable future. In reviewing the position as at the
date of this report, the Board has considered the "Going Concern and
Liquidity Risk: Guidance for Directors of UK Companies 2010", published by
the Financial Reporting Council in October 2010.

10. 2012 financial information
 The figures and financial information for the year ended 31 October 2012 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 2012 have been audited but have not yet
been delivered to the Registrar of Companies.  The auditors' report on the
2012 annual financial statements was unqualified, did not include a reference
to any matter to which the auditors drew attention without qualifying the
report, and did not contain any statements under section 498 of the Companies
Act 2006.

11. 2011 financial information
 The figures and financial information for the year ended 31 October 2011 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 auditors which was
unqualified and did not contain a statement under sections 498(2) or 498(3)
of the Companies Act 2006.

12. Dividend
 A final dividend of 3.43p per ordinary share will be paid, if approved by
shareholders at the AGM, on 28 February 2013 to shareholders on the register
on 1 February 2013.   The Company's shares go ex dividend on 30 January 2013.

13. Annual report and financial statements
 Copies of the Annual Report and Financial Statements will be posted to
shareholders by the end of January 2013 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.

14. Annual General Meeting
The Annual General Meeting will be held on Tuesday 26 February 2013 at 12
noon at the Stationers' Hall, Ave Maria Lane, London  EC4M 7DD.

Page 16 of 17

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

LARGEST INVESTMENTS at 31 October 2012
The 25 largest investments (convertibles and all classes of equity in any one
company being treated as one investment) were as follows:

Rank

(2011) Valuation
2011
 '000
Purchases
 '000 Sales proceeds
 '000 (Depreciation)
/appreciation
 '000 Valuation
2012
 '000
1 (1) BP 15,745  - - (605) 15,140
2 (3) British American Tobacco 11,659 - (752) 872  11,779
3 (4) GlaxoSmithKline  10,808  - - (104) 10,704
4 (5) Royal Dutch Shell  10,060  - - (203) 9,857
5 (2) Vodafone 11,735 - (2,558) (250) 8,927
6 (6) Catlin  9,493  - (2,516) 1,716  8,693
7 (7) HSBC 8,646  - (1,279) 771  8,138
8 (8) BG 8,546 - - (1,317) 7,229
9 (13) Apple  4,686  - (729) 2,243  6,200
10 (*) Galliford Try  3,623  - - 2,118 5,741
11 (*) Sports Direct International      1,607
2,072  - 1,932 5,611
12 (22) Petrofac 4,021 729  - 547  5,297
13 (20) Rolls-Royce  4,171  - - 903  5,074
14 (9) Jardine Lloyd Thompson  6,485  - (1,710) 148  4,923
15 (16) Amcor 4,268  - - 412  4,680
16 (*) Smiths News  2,861  - - 1,797  4,658
17 (*) Reckitt Benckiser  3,838  - - 662  4,500
18 (*) General Electric  - 3,722  - 723  4,445
19 (*) Time Warner Cable  - 3,413  - 893  4,306
20 (17) Christian Dior 4,243  - - 33  4,276
21 (*) Rio Tinto  - 3,705  - 437  4,142
22 (*) ITV 3,050  - - 1,071  4,121
23 (23) Microsoft  3,966  327  (612) 401  4,082
24 (11) Petroleo Brasileiros 6,024  - (572) (1,373) 4,079
25 (*) Fisher (J) & Sons  2,872  - - 1,175  4,047
   ---------- ---------- ---------- ---------- ----------
   142,407 13,968 (10,728) 15,002 160,649
   ====== ====== ====== ====== ======
These investments total 29.4% of the portfolio.
(*) Not in the top 25 last year.

Page 17 of 17
THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2012

CHANGES IN INVESTMENTS at 31 October 2012

Valuation
2011

Purchases

Sales proceeds

Appreciation/
(depreciation)

Valuation
2012
  '000 '000  '000  '000  '000
United Kingdom 233,189 30,747 (32,973) 17,677 248,640
Europe (ex UK) 61,742 8,479 (14,570) 3,358 59,009
North America 102,140 43,900 (39,674) 7,972 114,338
Japan 48,599 19,102 (18,427) (1,473) 47,801
Pacific (ex Japan) 56,520 23,125 (21,881) 6,175 63,939
Emerging Markets 9,969 6,520 (1,410) (2,070) 13,009
Fixed Interest 98 - (45) 30 83
 ----------- ----------- ---------- ----------- -----------
Total 512,257 131,873 (128,980) 31,669 546,819
 ====== ====== ====== ====== ======

- ENDS -

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:00232173 For:BIT    Type:FLLYR      Time:2013-01-21 08:37:25