21st May 2021 09:03
(Alliance News) - Investec PLC raised its dividend, as it reported on Friday rise in annual earnings in a mixed year for the Anglo-South African asset manager.
For the financial year that ended March 31, pretax profit from continuing operations was GBP331.6 million, up 6.8% from GBP310.5 million last year. Investec said earnings had been impacted by lower interest rates, reduced client activity, and elevated risk reduction costs.
Reported funds under management were GBP58.4 billion, up 30% from 45.0 billion.
The bank declared a final dividend of 7.5 pence, giving a 13.0p full-year payout, up 18% from 11.0p last year.
Shares were up 0.8% at 293.30p on Friday in London. In Johannesburg, its 'Ltd' shares were up 0.7% at ZAR55.52, and its 'PLC' shares 1.3% higher at ZAR58.25.
"The 2021 financial year was a tale of two halves," said Chief Executive Fani Titi.
"First half performance was characterised by difficult and volatile market and economic conditions attributable primarily to Covid-19. The second half showed strong earnings recovery, supported by our resilient client base, a rebound in economic activity and a greater sense of optimism spurred on by global vaccination campaigns. We carry this momentum into the 2022 financial year, focused on actively servicing our clients and delivering long-term value."
Investec reported basic earnings per share of 25.2 pence, up 44% from 17.5p, and headline EPS of 26.6p, up 24% from 21.5p.
Looking ahead, the company expects revenue momentum from the second half to continue assuming economic growth remains intact.
By Will Paige; [email protected]
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