Investec stumbles in the UK
Investec expects growth from its South African operations, but its UK business could drag down its results.
The company said in a trading statement on 18 September that it expects its upcoming interim results to be in line with its guidance from May 2026.
For investors, the group is expecting adjusted earnings per share to rise by between 3% and 7%, from 40.5 pence in the previous interim period.
Headline earnings per share (HEPS) are also expected to rise by 4% to 8% to between 38.1p and 39.7p.
In South Africa, Investec is expecting a boost to its operating profit, which is expected to rise by 6% from the prior period in rands and 14% in pounds.
The adjusted operating profit is also expected to increase in the first half of the 2026 financial year compared to the prior reporting period.
“The Specialist Bank adjusted operating profit is expected to be up to 4% ahead of the prior period in Rands and up to 14% in Pounds Sterling,” Investec said.
For its UK business, Investec expects its operating profit to decline compared with the prior reporting period.
It said that adjusted operating profit for its UK business, including its interest in Rathbones, will be 2% to 6% lower than the prior period.
“The UK Specialist Bank adjusted operating profit is expected to be between 3% and 7% behind the prior period,” the company added.
Overall, Investec is still forecasting growth in its next financial report, in line with its prior guidance, despite lower profits in the UK.
It said that its revenue growth had been supported by “increased activity levels, higher average advances, and positive net inflows in discretionary and annuity funds under management.”
The company also noted that net interest income had been supported by solid growth in its average lending book and lower funding costs in South Africa.
Investec’s funds under management increased considerably in its South Africa wealth segment, rising by approximately 13.8% since the end of March 2026.
“Strong net inflows in our discretionary and annuity funds of R10.7 billion, as well as non-discretionary inflows of R18.9 billion,” Investec said.
While Investec was initially founded in South Africa in 1974, the company today trades in the UK and on the JSE through a dual listing.
Loading ...