Ninety One Share News (N91)

(Alliance News) - Investec PLC and Ltd on Thursday hailed a "strong" performance, notwithstanding the "complex macroeconomic backdrop" in its current financial year.

The Sandton-based financial services firm said it expects adjusted operating profit to rise to a range of between GBP782.8 million and GBP833.6 million for the financial year ending March 31, from GBP687.4 million a year earlier.

Headline earnings per share are likely to increase to between 65 pence and 69p, from 53.3p.

EPS is guided to grow to between 83p and 87p, from 52.0p, benefitting from the gain on the implementation of the distribution of Ninety One PLC and Ltd stake to its shareholders. Investec distributed 15% of Ninety One in May 2022, retaining a 10% interest.

For the full year, Investec expects adjusted EPS to increase to between 66p and 70p, up from 55.1p.

In the UK, the revenue growth experienced in the first half has continued, while the effects of weakening macro backdrop negatively impacted equity capital markets activity levels.

In Southern Africa, the group experienced positive revenue momentum in the second half.

Net interest income benefitted from higher average lending books and higher interest margin given the rising interest rate environment.

Non-interest revenue was hit by lower fees in the wealth & investment businesses, weaker UK equity capital markets, the distribution of 15% shareholding in Ninety One, and lower investment income. This was partly offset by a positive contribution from trading income.

For the 11 months that ended February 28, the Wealth & Investment business funds under management declined by 3.7% to GBP61.0 billion.

This was driven by market volatility, which was partly offset by net inflows of GBP396 million.

Investec said it is well capitalised with strong liquidity, and was well positioned to continue to support its clients and pursue growth opportunities.

In Johannesburg, Investec shares were up 2.9% at ZAR100.93. In London, Investec shares rallied by 3.7% to 455.70 pence.

By Artwell Dlamini, Alliance News reporter

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