Final Results

THE BANKERS INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 October 2016

This announcement contains regulated information

The Company aims to provide investors with an attractive total return, focused on growing both
capital and income for shareholders.

OBJECTIVES

Capital – To achieve long term asset growth through active stock selection.
Income – To achieve regular dividend growth greater than inflation.

INVESTMENT POLICY

To achieve both these objectives by investing in a broadly diversified international portfolio of
shares.


CHAIRMAN’S STATEMENT

• Net asset value increase of 19.9%
• Dividend increase of 7.6%
• 50th consecutive year of dividend increase
• Forecast increase in 2017 dividend of at least 6.0%

Performance

I am pleased to be able to report another excellent year of performance for our shareholders. A
net asset value return of 19.9% and a dividend increase of 7.6% are significant achievements
during what has proven to be a volatile year in financial markets. That these strong returns should
be generated against such difficult markets is testament to our fund management team. However,
despite our efforts to buy-back shares in the market, the degree of volatility and uncertainty led to
a widening of our discount and thus the share price rise during the period was restricted to 12%.
Looking forward the Board is now able to recommend a further significant increase in the dividend
representing the 50th consecutive year of dividend increases and, importantly, an improvement in
the growth rate in dividend payments relative to the last ten years. This record is a notable
achievement by any standards and reinforces the benefits of taking a long term view of equity
investing.

I was too cautious last year in my outlook for returns from world equity markets albeit, on closer
inspection, a substantial element of these returns were generated in the second half of the year
and were driven by exchange rate movements. The catalyst for this shift in sentiment away from
sterling was the European Referendum which not only surprised the political elite but also the
markets. The reaction was quickest on the currency markets where sterling fell significantly
against every major currency, followed by rapid stock and sector rotation in the UK equity market
towards the larger, international companies and away from the mid-sized, domestically focused
companies. The majority of the market returns in sterling for the year were generated in the month
after the Brexit vote.

The impact of currency on our portfolio of investments is demonstrated by the comparison of
global market returns in sterling. The total return from the FTSE All-Share Index for the twelve
month period ended 31 October 2016 was 12.2%, compared with a total return for a sterling
investor from North America of 32.3%, from Europe of 19.7% and from Japan of 31.4%. Even
emerging market currencies proved to be stronger than sterling during the summer and, when
combined with better local markets, the sterling return from the FTSE All-World Emerging Market
Index was in excess of 49.1% for a sterling investor. These returns are truly exceptional and
demonstrate the benefit of having a broad diversified portfolio of unhedged international equities.

As reported in my statement last year, over the last ten years we have continued to reduce our
exposure to sterling assets. Whilst not expecting the currency fluctuations mentioned above it
does clearly focus the attention in regard to our regional asset allocation. Approximately ten years
ago the sterling exposure of the total portfolio was as high as 55%. Today it is less than 30% and,
given the growth in international stock markets, I would expect this declining exposure to the UK to
continue.

Revenue and Dividends

Total revenue generated by the portfolio rose helped by solid underlying dividend growth across
our equity holdings. Special dividends have again been a significant contributor to our total
revenue line, albeit below the levels of the previous year. The exchange rate changes also helped
the revenue account when dividends were translated into sterling. It is against this strong backdrop
that the Board is again able to recommend an increase in the final quarterly dividend to 4.60p per
share. If approved by shareholders this will result in a total dividend payment for the year of 17.0p
(2015: 15.8p), an increase of 7.6%. This compares with my forecast of an increase of at least 4%
in my statement last year. Our revenue earnings per share over the same period rose to 17.5p, an
increase of 1.8%.

The outlook for the year ahead, from a revenue account perspective, is positive. If the sterling
exchange rate remains at around the current levels against the US dollar, euro and yen and the
trend of dividend increases continues, especially from our overseas investments, a further
increase can be expected in the dividend for the year ahead. The confidence behind this projection
is enhanced by the strong level of revenue reserves which we continue to maintain and which, if
appropriate, the Board will access to maintain the progressive dividend policy of the last 50 years.
As such I am able, on behalf of the Board, to forecast dividend growth of no less than 6% for
2017, representing a minimum total dividend for the year of approximately 18.0p per share.

Henderson/Janus Merger

Towards our year end an announcement was made by our Manager that, subject to shareholder
approval, Henderson had agreed to merge with Janus Capital, a large US institutional fund
manager. Whilst completion will not be until June and a lot of the detail is still to be decided, the
Board of Bankers believes that the increased global investment breadth that this merger should
bring to our Manager can only be positive for the ongoing investment expertise available to our
Fund Manager and his team for the performance of the Company’s portfolio.


Corporate Event /Management Fee

During the year the Board has delivered some significant and positive outcomes. Firstly, the Board
agreed that Bankers act as a ‘global growth’ rollover option in the transaction to liquidate
Henderson Global Trust plc. This resulted in the issue of over 9 million new Bankers shares,
priced at a premium to net asset value and increased the Company’s size by around £60 million.
Also, at the year-end, the Company repaid its £10 million 10.5% 2016 debenture at par, using part
of the proceeds from our previously announced £50 million, 20 year, 3.68% loan note issue.

We have agreed with our Manager a simplified tiered fee structure of 0.45% p.a. on the first £750
million and 0.40% p.a. on the excess over £750 million of the value of the net assets on the last
day of each quarter. The new fee structure, which took effect on 1 July 2016, is subject to a
transition period until 31 December 2017, during which period the fee is capped at £843,750 per
quarter. This new fee structure should assist in a reduction in the ongoing charge as a percentage
of net assets as the Company grows over time.

Annual General Meeting (‘AGM’)

This year’s AGM will again be held at Trinity House, London, EC3N 4DH on 22 February 2017 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. The Board looks
forward to seeing many of you at this meeting at which 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.

Outlook

Politics will remain to the fore during the year ahead and the key for financial markets will be
whether there are any further surprises, especially from Europe. I suspect there may be. The
extent of these potential surprises could keep markets in a state of uncertainty for most of the year
which will make it even harder for the fund managers to position the regional portfolios correctly.

Putting politics aside, the economic tailwind looks positive. President Trump has inherited a strong
economy where growth is accelerating. The strong US economy, despite the protectionist rhetoric,
is good for the global economic outlook. In the UK we are bound to see a significant jump in
inflation as a result of the weaker level of sterling. One of the key debates this year will be whether
the move to higher inflation is a temporary or permanent shift. At the moment the likelihood is that
this will be a temporary situation. However, if we see pressure mounting on wage inflation the
Bank of England might move more quickly to raise interest rates. Depending upon the resilience of
the UK economy in 2017 this could have a negative impact on a number of sectors although it
could well be seen as a positive for the financial sector.

Thus challenges remain to the fore but the resilience of our portfolio has been tested over time
and the confidence which has been expressed by myself and the rest of the Board is based on this
knowledge.



Richard Killingbeck
Chairman

PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of 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 result of the UK referendum 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 objective 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. 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.

Henderson has been contracted to provide
investment, company secretarial,
administration and accounting services
through qualified professionals. The Board
receives internal control reports produced by
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
Henderson.
Operational Risks
Disruption to, or failure of, 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 risk that one or more of its
service providers may not provide the required
level of service.

The Board monitors the services provided by
Henderson 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 Strategic Report contained in the Annal 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 has 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, 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 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. This included consideration of the duration of the
Company’s fixed term debt and how a breach of the gearing covenants could impact on the
Company’s net asset value and share price.

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.
Only a substantial financial crisis affecting the global economy could have an impact on this
assessment.

RELATED PARTY TRANSACTIONS
The Company’s transactions with related parties in the year were with its Directors and
Henderson. There have been 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 Henderson, other than fees payable by the Company in the ordinary course of
business and the provision of sales and marketing services, there have been no transactions with
Henderson affecting the financial position of the Company during the year under review.

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:

• 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

• 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 of Directors

Richard Killingbeck
Chairman

FUND MANAGER’S REVIEW
In 2016 the populations of two of the oldest democracies in the world expressed the view that they
do not approve of the way the world is going. Despite investment experts warning of turmoil
markets have generally taken the news well producing handsome returns this year for investors
from both bonds and equities. There was a brief wobble in February on worries of a Chinese
slowdown and Deutsche Bank’s solvency but this soon passed. The interesting question from the
events in the UK and the US is whether this signals the end of globalisation. Often cherished as a
central tenet of progress towards prosperity, globalisation essentially boils down to the
international arbitrage of labour costs to the benefit of lower consumer prices. A return to more
normal levels of inflation and interest rates could actually benefit equity prices if accompanied by
wage and job growth.

Since July, and more profoundly since Trump’s presidential election, investors’ appetite has shifted
towards companies and sectors that are perceived to benefit from reflationary trends. This rotation
towards previously out of favour sectors such as banks, construction and mining was not
unexpected but the rate of adoption could be challenged by the lack of real evidence of actual
policy action or higher inflation. The portfolio is well positioned in financials and industrials for a
continuation of this theme but is being held back by a sharp derating in quality defensive stocks,
irrespective of their valuations. Normally during periods of higher inflation, value outperforms
growth as an investment style but this is only partially occurring at present. Valuation has been a
factor greatly diminished in stock and sector performance over recent years. Its re-emergence will
be very helpful to us and active managers in general.

The portfolio’s performance, for UK investors, has been dominated by the collapse in sterling since
the Brexit vote in late June. The returns from the overseas portfolios are a factor of 4-5x those of
the UK holdings, due to the higher translation values back into sterling. While not predicting a vote
to leave, we did fear a close race and decided earlier in the year to significantly reduce the
portfolio’s exposure to UK domestically exposed stocks. The UK allocation fell from 38% to 29%
by the year end and post Brexit we also increased allocations to international companies listed on
the London market. Performance within the regions was generally positive with strong relative
returns in the Pacific, China, Emerging Markets and Europe. Only the UK and US regions missed
their benchmarks.

We welcome a new manager for the Japanese portfolio. Junichi Inoue has recently joined
Henderson and will be managing the Japanese portfolio from Tokyo. His style will closely match
our overall aim of focusing on quality businesses that generate attractive levels of free cash flow to
fund dividends whilst careful not to overpay. I would like to take the opportunity to thank Michael
Wood-Martin, our previous Japanese manager, for his skilful stock selection and dedication to
Bankers over many years.

Over the past year we have gained a licence to invest directly in India and also gained further
flexibility to access China via Hong Kong Connect. The Company is becoming more global in its
outlook and this is most obvious when viewing the regional revenues from the portfolio holdings.
The discrepancy between the percentage invested in the UK market (29% at the time of writing)
and the revenues from the UK (15%) is a reminder that many stocks we own do very little business
in the UK despite being listed in London.

We were cautious of markets earlier in the year and felt it was more prudent not to chase
valuations higher while corporate profit expectations continued to be downgraded. We did invest
cash when there were market dips in February and June, but thereafter sold holdings when
markets subsequently rallied. The opportunity to act as a rollover option for Henderson Global
Trust plc in April resulted in the issuance of 9.4m new shares, increasing Bankers’ shares in issue
by 8.3%. The majority of the assets were received in near cash instruments which were then
invested to rebalance the portfolio further away from the UK. At the year end the 10.5% 2016
debenture was repaid for £10 million and cash levels have fallen resulting in a net gearing position
of 2.6%.

The Company’s income received a modest but useful boost from sterling’s weakness, however,
the full effects will be felt in 2017. There remained a healthy level of special dividends, particularly
from the UK holdings, many of which should continue to distribute excess profits this year.

Alex Crooke
Fund Manager






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
Head and Director of Investment Trusts
Henderson Investment Funds Limited
Telephone: 020 7818 3349
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors Limited
Telephone: 020 7818 3198

(1)
This represents the four ordinary dividends recommended or paid for the year.

(2)
Based on the share price at the year end.

Sources: Morningstar for the AIC, Henderson, Datastream.



Performance Highlights

31 October
2016
31 October
2015
Net Asset Value per share 755.9p
630.2p
Share price 690.0p
618.5p
Dividend for year
(1)
17.0p
15.8p




31 October
2016
Change since
31 October
2015
Dividend yield
(2)
2.5%
2.6%
Retail Prices Index increase over year 2.0%
0.7%
Ongoing charge for year 0.52%
0.52%
Net gearing at year end 2.6%
2.0%
Discount at year end 8.7%
1.9%

STATEMENT OF COMPREHENSIVE INCOME


Year ended 31 October 2016
Year ended 31 October 2015


Notes
Revenue
return
£'000
Capital
return
£'000

Total
£'000
Revenue
return
£'000
Capital
return
£'000

Total
£'000
Gains on investments held at
fair value through profit or loss

- 156,527 156,527 - 40,745 40,745
Investment income 2
24,661 - 24,661 22,621 - 22,621
Other operating income 3
255 - 255 146 17 163
--------- --------- --------- --------- --------- ---------
Total income 24,916 156,527 181,443 22,767 40,762 63,529

--------- --------- --------- --------- --------- ---------
Expenses
Management fees 4
(959) (2,237) (3,196) (892) (2,082) (2,974)
Other expenses
(811) (3) (814) (788) (7) (795)

--------- --------- --------- --------- --------- ---------
Profit before finance costs
and taxation

23,146 154,287 177,433 21,087 38,673 59,760

--------- --------- --------- --------- --------- ---------
Finance costs
(1,227) (2,863) (4,090) (925) (2,157) (3,082)

--------- --------- --------- --------- --------- ---------
Profit before taxation 21,919 151,424 173,343 20,162 36,516 56,678


Taxation 5
(1,090) – (1,090) (849) (6) (855)

--------- --------- --------- --------- --------- ---------
Profit for the year and total
comprehensive income

20,829 151,424 172,253 19,313 36,510 55,823
===== ====== ====== ===== ====== ======
Earnings per ordinary share
– basic and diluted 6 17.53p 127.45p 144.98p 17.22p 32.54p 49.76p






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 2016
Called up
share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other
capital
reserves
£’000

Revenue
reserve
£’000

Total
equity
£’000
Total equity at 1 November 2015
28,271 12,722 12,489 624,099 35,052 712,633
Total comprehensive income:

Profit for the year
- - - 151,424 20,829 172,253
Transactions with owners, recorded
directly to equity:

Issue of 10,863,453 ordinary shares
2,715 65,819 - - - 68,534
Buy–back of 1,338,509 ordinary
shares
- - - (8,206) - (8,206)
Ordinary dividends paid
- - - - (18,476) (18,476)

---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2016
30,986 78,541 12,489 767,317 37,405 926,738

====== ====== ====== ====== ====== ======






Year ended
31 October 2015

Called up
share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other
capital
reserves
£’000

Revenue
reserve
£’000

Total
equity
£’000
Total equity at 1 November 2014
28,027 7,053 12,483 587,744 32,889 668,196
Total comprehensive income:

Profit for the year
- - - 36,510 19,313 55,823
Transactions with owners, recorded
directly to equity:

Issue of 100,000 ordinary shares
250 5,669 - - - 5,919
Buy-back of 25,000 ordinary shares
(6) - 6 (155) - (155)
Ordinary dividends paid
- - - - (17,150) (17,150)

---------- ---------- ---------- ---------- ---------- ----------
Total equity at 31 October 2015
28,271 12,722 12,489 624,099 35,052 712,633

====== ====== ====== ====== ====== ======

STATEMENT OF FINANCIAL POSITION












At 31 October
2016
£'000

At 31 October
2015
£'000


Non-current assets

Investments held at fair value through profit or loss
951,219
726,831

------------
------------


Current assets

Investments held at fair value through profit or loss
21,354
28,323
Other receivables
7,817
2,360
Cash and cash equivalents
23,271
31,762

-----------
-----------
52,442
62,445

-------------
-----------
Total assets 1,003,661
789,276

-------------
-----------
Current liabilities

Other payables
(12,117)
(1,848)
Debenture stock
-
(10,000)

------------
-----------

(12,117)
(11,848)

-----------
-----------
Total assets less current liabilities 991,544
777,428

------------
-----------
Non-current liabilities


Debenture stock (15,000) (15,000)
Unsecured loan notes
(49,806) (49,795)

------------
-----------

(64,806) (64,795)

-----------
-----------
Net assets 926,738
712,633
=======
=======



Equity attributable to equity shareholders

Share capital
30,986
28,271
Share premium account
78,541
12,722
Capital redemption reserve
12,489
12,489
Retained earnings:


Other capital reserves
767,317
624,099
Revenue reserve
37,405
35,052

-----------
-----------
Total equity 926,738
712,633
=======
=======
Net asset value per ordinary share 755.9p
630.2p
=======
=======

CASH FLOW STATEMENT


Reconciliation of profit before taxation to
net cash flow from operating activities
At 31
October
2016
£’000
At 31
October
2015
£'000
Operating activities

Profit before taxation
173,343
56,678
Add back interest payable (‘finance costs’)
4,090
3,082
Amortisation of loan note issue costs
11
5
Less gains on investments held at fair value through profit or loss
(156,527)
(40,745)
Increase in accrued income
(454)
(70)
Increase in other receivables
(28)
(46)
Increase in other payables
113
59
Purchases of investments
(215,420)
(185,007)
Sales of investments
199,472
184,706
Purchases of current asset investments
(45,156)
(61,777)
Sales of current asset investments
52,125
37,350
(Increase)/decrease in securities sold for future settlement
(4,754)
1,263
Increase/(decrease) in securities purchased for future settlement
10,168
(1,077)

--------------
------------


Net cash inflow /(outflow) from operating activities before interest
and taxation * 16,983 (5,579)
Interest paid
(4,102)
(2,291)
Taxation on investment income
(1,302)
(672)

--------------
------------
Net cash inflow /(outflow) from operating activities 11,579
(8,542)



Financing activities

Equity dividends paid (net of refund of unclaimed distributions)
(18,476)
(17,150)
Share issue
9,007
5,919
Buy-back of own shares
(8,206)
(155)
Repayment of loan
-
(2,947)
Repayment of debenture stock
(10,000)
-
Cash received from the liquidation of Henderson Global Trust plc
7,160
-
Issue of unsecured loan note
-
49,790

-------------
------------
Net cash(outflow)/inflow from financing activities (20,515)
35,457

-------------
------------



(Decrease)/increase in cash
(8,936)
26,915
Cash and cash equivalents at start of the year
31,762
5,023
Exchange movements
445
(176)

-----------
------------
Cash and cash equivalents at end of the year
23,271
31,762
=======
=======

* In accordance with IAS 7.31 cash inflow from dividends was £22,932,000 (2015: 21,466,000) and cash inflows from interest was
£226,000 (2015: £87,000).

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 2016 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 IFRS. 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 IFRS 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 below. These
policies have been applied consistently throughout the year. 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 November 2014 is consistent with
the requirements of IFRS, 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 entirely 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.









2016
2015
2.
Investment income £’000
£’000
UK dividend income - listed
9,696
8,370
UK dividend income - special dividends
693
2,011
Overseas dividend income - listed
13,419
11,872
Overseas dividend income - special dividends
682
188
Property income distributions
171
180


----------- --------

24,661
22,621

======
=====
Analysis of investment income by geographical region:


UK
11,853
12,841
Europe (ex UK)
3,268
2,306
North America
2,883
2,193
Japan
2,209
1,345
China
1,171
997
Pacific (ex Japan, China)
2,599
2,510
Emerging markets
678
429

-----------
--------

24,661
22,621

======
=====

2016
2015
3.
Other operating income £’000
£’000
Bank interest
86
39
Underwriting revenue
77
41
Stock lending revenue
83
66
Treasury bill interest
3
-
Other income
6
-

--------
----------

255
146

=====
=====

At 31 October 2016 the total value of securities on loan by the Company for stock lending
purposes was £30,184,000 (2015: £50,889,000). The maximum aggregate value of
securities on loan at any one time during the year ended 31 October 2016 was £66,536,000
(2015: £69,710,000). The Company’s agent held collateral at 31 October 2016 with a value
of £32,154,000 (2015: £56,493,000) in respect of securities on loan. The value of securities
held on loan is reviewed on a daily basis, comprising Corporate and Government Bonds with
a minimum market value of 105% (2015: 105%) of the market value of any securities on
loan.




4.



Management fees
Revenue
return
2016
£’000
Capital
return
2016
£’000

Total
2016
£’000
Revenue
return
2015
£’000
Capital
return
2015
£’000

Total
2015
£’000
Investment management
959 2,237 3,196
892 2,082 2,974

------- ------- -------
------- ------- -------

959 2,237 3,196
892 2,082 2,974

==== ==== ====
==== ==== ====

A summary of the terms of the management agreement is given in the Strategic Report in
the Annual Report and financial statements.




5.



Taxation
Revenue
return
2016
£’000
Capital
return
2016
£’000

Total
2016
£’000
Revenue
return
2015
£’000
Capital
return
2015
£’000

Total
2015
£’000

a) Analysis of the charge for
the year





Overseas tax suffered
1,373 - 1,373
956 6 962
Overseas tax reclaimable
(283) - (283)
(107) - (107)
------- ------- ------- ------- ------- -------

Total tax charge for the year 1,090 - 1,090
849 6 855
==== ==== ==== ==== ==== ====

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

Revenue
return
2016
£’000
Capital
return
2016
£’000

Total
2016
£’000
Revenue
return
2015
£’000
Capital
return
2015
£’000

Total
2015
£’000
Profit before taxation
21,919 151,424 173,343
20,162 36,516 56,678
Corporation tax for the year
at 20.00% (2015: 20.42%)
4,384 30,285 34,669
4,117 7,457 11,574

Non taxable UK dividends
(2,046) - (2,046)
(2,097) - (2,097)

Overseas income and non
taxable scrip dividends
(2,617) - (2,617)
(2,370) - (2,370)
Income taxable in different
years
- - -
(4) - (4)
Overseas withholding tax
suffered
1,090 - 1,090
849 6 855
Excess management
expenses and loan
relationships
279 1,021 1,300
353 849 1,202
Disallowable expenses
- - -
1 - 1
Capital gains not subject to
tax
- (31,306) (31,306)
- (8,306) (8,306)

-------- ----------- -----------
-------- ----------- -----------

1,090 - 1,090
849 6 855

===== ====== =====
==== ====== =====


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 future.

d) Factors that may affect future tax charges
The UK Government announced in July 2015 that the corporate tax rate is set to be cut to 19.0%
in 2017 and 18.0% in 2020. These reductions in the standard rate of corporation tax were
substantially enacted on 26 October 2015 and became effective from 18 November 2015. The
rate for 2020 was subsequently reduced to 17.0% by the Finance Act 2016. The Company has
not recognised a deferred tax asset totalling £6,257,000 (2015: £6,561,000) based on a
prospective corporation tax rate of 17.0% (2015: 20.0%). 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 £172,253,000 (2015: £55,823,000) and on 118,813,485 ordinary shares (2015:
112,178,757), being the weighted average number of shares in issue during the year.


The total earnings can be further analysed as follows:


2016
2015

£’000
£’000
Revenue profit
20,829
19,313
Capital profit
151,424
36,510

-------------
----------
Profit for the year
172,253
55,823

-------------
----------
Weighted average number of ordinary shares
118,813,485
112,178,757

-----------------
----------------
Revenue earnings per ordinary share
17.53p
17.22p
Capital earnings per ordinary share
127.45p
32.54p

-------------
----------
Earnings per ordinary share
144.98p
49.76p

=======
=======



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 authorised

At 1 November 2015
113,081,839 113,081,839 28,271
New shares issued
10,863,453 10,863,453 2,715
Shares brought back in the year: held in
treasury

(1,338,509)

-

-

----------------- ----------------- -----------

At 31 October 2016 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 authorised

At 1 November 2014 112,106,839 112,106,839 28,027
New shares issued 1,000,000 1,000,000 250
Shares brought back in the year: (25,000) (25,000) (6)
----------------- ----------------- -----------
At 31 October 2015 113,081,839 113,081,839 28,271
----------------- ----------------- -----------

8.
Net asset value per ordinary share
The net asset value per ordinary share is based on net assets attributable to ordinary shares of
£926,738,000 (2015: £712,633,000) and on 122,606,783 ordinary shares in issue at
31 October 2016 (2015: 113,081,839). 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:

2016
2015

£’000
£’000
Net assets attributable to ordinary shares at start of year
712,633
668,196
Total net profit on ordinary activities after taxation
172,253
55,823
Dividends paid
(18,476)
(17,150)
Issue of ordinary shares
68,534
5,919
Purchase of ordinary shares
(8,206)
(155)

-----------
------------

Net assets attributable to ordinary shares at end of year 926,738
712,633

======
======
9.
2016 Financial Information
The figures and financial information for the year ended 31 October 2016 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 2016 have
been audited but have not yet been delivered to the Registrar of Companies. The Auditors’
report on the 2016 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.


10.
2015 Financial Information
The figures and financial information for the year ended 31 October 2015 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.

11.
Dividend
A final dividend of 4.60p per share, if approved by shareholders at the AGM, will be paid on 28
February 2017 to shareholders on the register on 27 January 2017. The shares go ex-dividend
on 26 January 2017. This final dividend, together with the three interim dividends already paid,
brings the total dividend for the year to 17.0p.

12.
Annual Report
Copies of the Annual Report will be posted to shareholders by the end of January 2017 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 22 February 2017 at 12 noon at Trinity
House, London, EC3N 4DH.
During the year, 10,863,453 ordinary shares were issued for net proceeds of £68,534,000
(2015: 1,000,000 issued for net proceeds of £5,919,000). Also during the year, 1,338,509
ordinary shares were purchased into treasury at a cost of £8,206,000 (2015: 25,000 shares
purchased for cancellation at a cost of £155,000). Further details can be found in the Annual
Report.

Included in the issue of 10,863,453 ordinary shares during the period were 9,413,453 shares
issued following the liquidation of Henderson Global Trust plc (‘HGT’) whereby investors in
HGT were given the option of receiving shares in either The Bankers Investment Trust PLC or
Henderson International Income Trust plc. The proceeds for this issue were received as a mix
of cash and in-specie assets. Since the year end, the Company has not issued any ordinary
shares.

LARGEST INVESTMENTS at 31 October 2016
The 25 largest investments (convertibles and all classes of equity in any one company being
treated as one investment) were as follows:



Rank
2016

Rank
2015



Company
Valuation
2015
£’000

Purchases
£’000
Sales
proceeds
£’000

Appreciation/
(depreciation)
£’000
Valuation
2016
£’000
1 (1) BP 13,197 6,089 - 4,317 23,603
2 (2) British American Tobacco 10,807 3,123 - 2,498 16,428
3 (9) American Tower 8,785 996 - 4,300 14,081
4 (4) Apple 10,044 900 - 2,396 13,340
5 (3) Delphi Automative 10,743 2,060 - (57) 12,746
6 (12) Royal Dutch Shell 8,534 1,411 - 2,362 12,307
7 # Alphabet 6,110 2,733 - 3,355 12,198
8 (16) Comcast 7,627 2,423 - 2,053 12,103
9 (11) CVS Health 8,621 2,325 - 664 11,610
10 (20) The Cooper Companies 6,861 785 - 3,441 11,087
11 (22) GlaxoSmithKline 6,518 2,929 (93) 1,012 10,366
12 (18) Fidelity National Information Services 7,252 728 - 2,295 10,275
13 (21) Accenture 6,700 798 - 2,657 10,155
14 # Taiwan Semiconductor
Manufacturing
4,694 1,069 - 4,245 10,008
15 # Amazon 5,464 595 - 3,579 9,638
16 (25) Visa 6,299 706 - 2,358 9,363
17 (24) American Express 6,390 1,839 - 1,061 9,290
18 (15) Cardinal Health 7,917 855 - 477 9,249
19 # FedEx 5,850 695 - 2,590 9,135
20 (17) Reckitt Benckiser 7,613 - - 1,163 8,776
21 # Fujitsu 2,147 3,816 - 2,811 8,774
22 # Facebook 4,360 1,035 - 3,098 8,493
23 # Mednax 5,824 1,851 - 763 8,438
24 # Applied Materials 3,468 483 - 4,456 8,407
25 # Netease 4,210 806 (3,047) 6,356 8,325

------------- ----------- ----------- ----------- -----------
176,035 41,050 (3,140) 64,250 278,195
======= ====== ====== ====== ======

All securities are equity investments
# Not in the top 25 last year.

CHANGES IN INVESTMENTS at 31 October 2016

Valuation
2015
£’000

Purchases
£’000
Sales
proceeds
£’000
Appreciation/
(depreciation)
£’000
Valuation
2016
£’000
United Kingdom
277,238 82,968 (85,833) 1,697
276,070
Europe
93,021 27,970 (8,503) 23,773
136,261
North America
177,721 41,780 (16,953) 61,173
263,721
Japan
84,564 23,071 (24,035) 25,372
108,972
China
23,086 30,643 (23,317) 10,060
40,472
Pacific (ex Japan, China)
58,787 52,166 (35,671) 26,614
101,896
Emerging Markets
12,414 9,180 (5,160) 7,393
23,827

----------- ----------- ------------ -----------
-----------

726,831 267,778 (199,472) 156,082
951,219

======= ====== ======= ======
======

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.
******