Investec has reported a “resilient” performance in an uncertain macro-economic environment, supported by an increase in core loans, growth across its diversified lending books and a rise in customer deposits,
On Thursday, the JSE and UK-listed group reported a 4.2% rise in revenue (4% in rand terms).
CEO Fani Titi said the group was making good progress with its strategy to enhance its platforms, leverage its franchises and deliver long-term value for stakeholders.
“We are on track to achieve returns at the upper end of our target range by financial year 2030,” he said.
Titi said revenue growth was supported by ongoing client acquisition, client activity, growth in average lending portfolios and continued net inflows in discretionary and annuity funds under management (FUM).
Net interest income benefited from growth in average lending books and lower cost of funds, reflecting optimisation of the funding mix in Southern Africa in recent years.
This was offset by the endowment effect of lower interest rates. Noninterest revenue growth reflected a strong increase in fee income generated by Investec’s banking businesses, as well as higher annuity fees from the South African wealth and investment business.
Funds under management in the Southern African wealth business increased 15.4%. The group experienced strong net inflows in its discretionary and annuity funds, supplemented by a strategic acquisition by its Swiss operations in September 2025.
Investec completed a R2.5bn/ £110m share buy-back announced in May last year, it said.
Investec expects 2027 to be a peak investment year, for both earnings growth and sustainable improvement in shareholder returns to commence in 2028.
It remains on track to deliver ROE of about 16% by the financial year ending March 2030.
“We are confident in the resilience of our client franchises across varying market cycles,” he said.
For the 2027 financial year, Investec’s guidance is for revenue to be supported by book growth, ongoing client activity and continued success in its client acquisition and entrenchment strategies.
The group currently expects ROE (Return on Equity) to be between 13% and 14%, which is within the 13%-17% target range. Southern Africa is expected to report ROE between 18% and 19%. - Business Day