18th Sep 2026 08:46
(Alliance News) - Investec PLC and Ltd reported on Friday its financial performance for the first five months of its financial year was "stable" and indicated it was on track to meeting its annual guidance.
The Sandton-based financial services company said its revenue growth was supported by increased activity levels, higher average advances, and positive net inflows in discretionary and annuity funds under management for the five months that ended August 31.
Net interest income for five months reflected solid growth in average lending books, and lower cost of funding in Southern Africa. Non-interest revenue growth was underpinned by strong fee growth from the group's Southern African Private Client business.
Investec said funds under management in its Southern African Wealth business rose 14% to GBP30.7 billion as at August 31, from GBP27.0 billion at March 31.
It delivered strong net inflows in discretionary and annuity funds of ZAR10.7 billion, as well as non-discretionary inflows of ZAR18.9 billion.
Investec's associate Rathbones Group PLC reported funds under management & administration of GBP120.7 billion as at June 30, up 6.3% from GBP113.6 billion at March 31.
Investec described its performance for the first five months as "stable".
The financial services company expects to deliver annual financial results in line with guidance.
Back in May, Investec said it expected revenue to be supported by book growth, ongoing client activity and continued client acquisition and entrenchment strategies.
Return on equity for financial 2027 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%.
On Friday, Investec said it remains committed to advance returns towards the upper end of its target range by financial 2030.
The company on Friday guided for basic earnings per share of between 38.1 pence and 39.7p for the six months that ended September 30 from 37.8p a year earlier. Adjusted EPS is estimated at between 41.7p and 43.3p from 40.5p.
Headline EPS is projected to rise to between 38.1p and 39.7p from 36.7p.
Pre-provision adjusted operating profit is seen between GBP531.4 million and GBP548.4 million from GBP527.4 million, while adjusted operating pretax profit is expected within a range of between GBP479.2 million and GBP496.2 million from GBP468.1 million.
Investec plans to release its interim financial results on November 19.
Separately, Investec said on Friday it has exercised its option to redeem GBP350.0 million 2.625% callable fixed rate resettable subordinated notes due 2032. It said GBP55.8 million in aggregate principal amount is outstanding.
Shares in Investec were down 2.0% to 647.50p in London on Friday morning. In Johannesburg, Investec Ltd shares fell 3.2% to ZAR136.43, and Investec PLC shares slid 3.0% to ZAR139.45.
By Artwell Dlamini, Alliance News senior reporter South Africa
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