20th Nov 2025 08:50
(Alliance News) - Investec PLC and Ltd on Thursday reported a slight decline in interim profit as lower interest rates dented income.
The Sandton-based company offers financial services in South Africa and the UK. It suffered a 2.5% decline in pretax profit to GBP445.5 million for the six months that ended September 30 from GBP450.5 million a year earlier.
Pre-provision adjusted operating profit was down 2.6% to GBP527.4 million from GBP541.6 million.
Net interest income slipped 2.1% to GBP670.1 million from ZAR684.4 million, due to lower average interest rates. But non-interest revenue rose 1.9% to GBP426.2 million from GBP418.2 million, reflecting a strong increase in fee income generated by the lender's UK Banking business, as well as higher annuity fees from our SA Wealth & Investment business.
Revenue was flat at GBP1.10 billion.
For the first half, net core loans and advances grew by 8.0% annualised to GBP33.7 billion as of September 30 from GBP32.4 billion on March 31, 2025.
Customer deposits were up 3.6% annualised to GBP41.9 billion at September 30 from GBP41.2 billion at March 31.
Funds under management in the Southern African wealth business rose 13% to GBP26.5 billion from GBP23.4 billion at March 31.
Investec declared interim dividend of 17.5 pence, up 6.1% from 16.5p.
Basic earnings per share was up 3.3% to 37.8p from 36.6p, while headline EPS was 0.3% higher at 36.7p from 36.6p.
"The group delivered resilient results in a challenging macro-economic environment characterised by geopolitical uncertainty and ongoing market volatility," Investec Chief Executive Officer Fani Titi said.
Looking ahead, Investec said it expects performance in the second half of its 2026 financial year to be broadly in line with the first six months.
It expects revenue to be supported by book growth and ongoing client activity, partly offset by the lower interest rates.
Shares in Investec PLC were down 1.3% to 573.45 pence in London on Thursday morning. In Johannesburg, Investec Ltd shares were down 1.7% at ZAR129.47 and Investec PLC shares down 2.0% to ZAR128.87.
By Artwell Dlamini, Alliance News senior reporter South Africa
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