18th Nov 2021 08:26
(Alliance News) - Investec PLC and Ltd on Thursday attributed its strong first-half performance to resilient client franchises, strong revenue momentum and sound asset quality.
For six months ended September 30, Investec saw pretax profit soar to GBP329.4 million from GBP112.8 million in the prior year.
Revenue increased 31% to GBP951.1 million GBP729.0 million previously, supported by the strength of the company's client franchises and improved market conditions.
Investec proposed an interim dividend of 11 pence per share, doubled from 5.5p last year.
During six months to September 30, wealth & investment funds under management increased 8.6% to GBP63.0 billion from GBP58.0 billion on March 31, underpinned by net inflows of GBP1.5 billion, market recovery and good investment performance.
Adjusted basic earnings per share came in line with guidance, jumping to 26.3p from 11.2p in 2020, while headline earnings per share also met expectations, rising to 24.7p from 9.2p.
Investec Chief Executive Fani Titi said the group delivered a strong first half results, underpinned by resilient client franchises, strong revenue momentum and sound asset quality.
The 2020 period was hurt by the economic contraction brought on by Covid-19 pandemic-related lockdowns, which affected transactional levels, net interest margins, valuations and impairments.
Investec raised its earnings guidance for the full-year. Adjusted earnings per share is expected to range from 48p to 53p, up from 36p and 41p forecast in May. For the financial year ended March 31, adjusted earnings per share hit 46.5p.
"The macro-economic environment is improving; however, global recovery remains uneven. Underlying consumer and business confidence in our core markets will continue to be tested by the ongoing presence of Covid-19, along with the consequences of Brexit in the UK and the slow progress in implementing economic reforms in South Africa," Investec said.
In Johannesburg, Investec's PLC shares added 0.3% to ZAR74.41, but its Ltd shares are down 0.3% at ZAR75.27 on Thursday morning. In London, Investec PLC shares were down 0.2% to 352.70p each.
By Artwell Dlamini; [email protected]
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