Investec pays R9 billion to shareholders
Investec has delivered R9 billion in returns to shareholders over the past year, despite its latest financial results being relatively flat.
“The group delivered resilient results in a challenging macro-economic environment characterised by geopolitical uncertainty and ongoing market volatility,” said Investec CEO Fani Titi in the group’s latest interim results.
“Over the past twelve months, we have returned c.£376 million (c.R9 billion) to shareholders, equivalent to 7.4% of the group’s average market capitalisation, through ordinary dividends and share buybacks.”
The group’s revenue 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 (NII) benefited from growth in average lending books and lower cost of funds in Southern Africa. The impact of lower average interest rates offset this.
Non-interest revenue (NIR) growth reflects a substantial increase in fee income generated by the group’s UK banking business, as well as higher annuity fees from the SA Wealth & Investment business.
Trading income and investment are behind the comparative period, which benefited from the positive sentiment that followed the formation of the Government of National Unity.
This was augmented by an increase in the Group’s share of post-tax profits from associates.
The group’s credit loss ratio (CLR) on core loans was 25 basis points, within the group’s through-the-cycle (TTC) range of 25 to 45 basis points.
Expected credit loss (ECL) impairment charges decreased to £59.3 million (R1.3 billion at average exchange rates over the period)
The group said that the credit quality remained strong, with no evidence of trend deterioration.
The group’s return on equity (ROE) was 13.6% (1H2025: 13.9%), which is at the lower end of the group’s medium-term target range of 13% to 17%.
The group’s earnings per share are 37.8 pence (R8.50), showing a 6.5% growth in rand terms, with an interim dividend of 17.5 pence per share (R4), which marks a 45% payout ratio.
| Metric | 1H2026 | 1H2025 | % change in £ | % change in Rands |
| Revenue (£ millions) | 1 096.3 | 1 102.6 | (0.6%) | 2.4% |
| Cost to income | 51.9% | 50.8% | ||
| CLR | 35bps | 42bps | ||
| Adjusted operating profit (£ millions) | 468.1 | 474.7 | (1.4%) | 1.5% |
| Adjusted EPS (pence) | 40.5 | 39.5 | 2.5% | 5.6% |
| Basic EPS (pence) | 37.8 | 36.6 | 3.3% | 6.5% |
| HEPS (pence) | 36.7 | 36.6 | 0.3% | 3.4% |
| ROE | 13.6% | 13.9% | ||
| ROTE | 15.7% | 16.4% | ||
| Total DPS (pence) | 17.5 | 16.5 | 6.1% | |
| NAV per share (pence) | 608.1 | 575.7 | 5.6% | 6.2% |
| TNAV per share (pence) | 527.9 | 491.6 | 7.4% | 7.9% |
Outlook
Looking ahead, the group expects revenue to be supported by book growth, ongoing client activity, and success in client acquisition and entrenchment strategies.
This will be partly offset by the impact of lower average interest rates, with the group expecting its financial performance to be broadly in line with the current period.
The group’s performance in the second half of the financial year is expected to be broadly in line with the current period, with
Group ROE to be c.13.7% within the 13.0% to 17.0% target range:
- Southern Africa is expected to report ROE of c.18.5%, within the target range of 16.0% to 20.0%
- UK & Other is expected to report ROTE of c.13.6%, within the target range of 13.0% to 17.0%
The credit loss ratio is also within the through-the-cycle (TTC) range of 25 bps to 45 bps.
South Africa is expected to be at the lower end of the TTC range of 15bps to 35bps, while the UK will be at the upper end of the 50bps to 60bps range.
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