Investec annual profit up after "resilient" financial performance

(Alliance News) - Investec PLC and Ltd on Thursday described its financial performance for the full-year as "resilient", underpinned by new clients, growth in lending and continued net inflows.

For the financial year that ended March 31, pretax profit for the Sandton-based financial services company rose 4.5% to GBP901.8 million from GBP863.1 million a year earlier.

Revenue was up 4.2% to GBP2.28 billion from GBP2.19 billion. Net interest income was down 1.6% to GBP1.34 billion from GBP1.36 billion, due to the negative endowment effect of declining global interest rates.

But non-interest revenue rose 14% to GBP945.7 million from GBP832.4 million, reflecting a strong increase in fee income generated by the group's banking businesses, as well as higher annuity fees from its SA Wealth & Investment business.

Customer-flow trading income echoed increased client hedging activity in response to global market volatility, Investec said.

Funds under management in the Southern African wealth business grew by 15% to GBP27.0 billion from GBP23.4 billion. Strong net inflows in Investec's discretionary and annuity funds of GBP987 million were supplemented by GBP333 million additional funds under management from a strategic acquisition by its Swiss operations in September 2025.

Investec's associate Rathbones Group PLC reported funds under management & administration of GBP113.6 billion as at March 31, up 9.1% from GBP104.1 billion at March 31, 2025. Investec owns around 41% of Rathbones.

Loans and advances to customers as a percentage of customer deposits was 79.3%, up from 78.4% for Investec PLC and improved to 77.9% from 77.2% for Investec Ltd.

Investec declared a final dividend of 21.0 pence, up 5% from 20.0p, bringing the total payout for the 2026 financial year to 38.5p, up 5.5% from 36.5p.

Basic earnings per share was up 5.9% to 77.1p from 72.8p, while headline EPS was 0.7% higher at 73.1p from 72.6p.

"The group delivered a resilient performance in an uncertain macro-economic environment, reflecting the strength of our diversified business model and balance sheet," Investec Chief Executive Officer Fani Titi said.

Return on equity was 13.6%, compared to 13.9%, while return on tangible equity was 15.7%, down from 16.2%.

Investec expects the 2027 financial year to be the peak investment year.

For 2027 guidance, revenue is expected to be supported by book growth, ongoing client activity and continued client acquisition and entrenchment strategies.

Return on equity for 2027 financial is seen between 13.0% and 14.0%, within the 13.0% to 17.0% target range. Return on tangible equity is estimated between 14.8% and 15.8%, within the target range of 14.0% to 18.0%.

For 2028 financial, Return on equity is likely to improved to a 13.8% to 14.6% range and return on tangible equity is anticipated to reach 15.8% to 16.6%.

Shares in Investec were up 4.1% to 636.50p in London on Thursday morning. In Johannesburg, Investec Ltd shares rose 3.8% at ZAR138.85, and Investec PLC shares jumped 4.3% at ZAR141.60.

By Artwell Dlamini, Alliance News senior reporter South Africa

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

Investec