Investec as you know it is changing
Investec is updating its Private Client strategy as the group looks to grow its market share and drive returns.
Speaking in the group’s financial results for the year ended 31 March 2026, Investec CEO Fani Titi said the group will present a business update on its Private Client strategy.
Titi said that the bank plans to expand its proposition, strengthen cross-collaboration and evolve its business model to improve operating leverage.
“Our Private Client offering supports clients across their lifecycle with bespoke solutions, combining deep relationships, digital enablement and the power of One Investec,” said Titi.
The group hopes that the new Private Client strategy will evolve its business model to drive market share growth and incremental returns.
The CEO added that the group will continue to deploy capital to advance returns via its dynamic capital management approach.
The group’s performance over the year was relatively muted, with adjusted earnings per share increasing by 4.8% to 82.9 pence, as we continued to support our clients while investing in long-term growth.
“The group delivered a resilient performance in an uncertain macro-economic environment, reflecting the strength of our diversified business model and balance sheet,” said the CEO.
Adjusted earnings per share increased by 4.8% to 82.9 pence (R19.27 at average exchange rates). However, the group’s non-adjusted earnings per share rose by 5.9% to 77.1 pence (R17.93).
Return on equity was 13.6% (FY2025: 13.9%), which is near the bottom of the group’s medium-term target range of 13% to 17%.
The group’s revenue growth was supported by ongoing client acquisition, client activity, growth in average lending portfolios, and continued net inflows in discretionary and annuity funds under management.
The group’s net interest income benefited from growth in average lending books and lower funding costs, reflecting optimisation of the funding mix in Southern Africa in recent years.
This was offset by the endowment effect of lower interest rates. Non-interest revenue growth reflected strong increases in fee income generated by the group’s banking businesses and higher annuity fees.
The group’s board declared a final dividend of 21.0 pence per share, bringing the total dividend for the year to 38.5 pence (R8.95), translating to a 46.4% payout ratio.
The Group has completed around R2.5 billion in share buybacks announced in May 2025.
| Financial Metric | FY2026 | FY2025 | Variance | % change | Neutral currency % change |
| Operating income (£’m) | 2 281.4 (R53,042.6m) | 2 190.5 (R50,929.1m) | 90.9 (R2,113.4m) | 4.2% | 4.0% |
| Operating costs (£’m) | (1 205.3) (R-28,023.2m) | (1 151.4) (R-26,770.1m) | (53.9) (R-1,253.2m) | 4.7% | 4.5% |
| Adjusted operating profit (£’m) | 951.0 (R22,110.8m) | 920.0 (R21,390.0m) | 31.0 (R720.8m) | 3.4% | 3.3% |
| Adjusted earnings attributable to shareholders (£’m) | 704.5 (R16,379.6m) | 676.8 (R15,735.6m) | 27.8 (R646.4m) | 4.1% | 4.1% |
| Adjusted basic earnings per share (pence) | 82.9 (R19.27) | 79.1 (R18.39) | 3.8 (R0.88) | 4.8% | 4.8% |
| Basic earnings per share (pence) | 77.1 (R17.93) | 72.8 (R16.93) | 4.3 (R1.00) | 5.9% | 5.9% |
| Headline earnings per share (pence) | 73.1 (R17.00) | 72.6 (R16.88) | 0.5 (R0.12) | 0.7% | 0.7% |
| Dividend per share (pence) | 38.5 (R8.95) | 36.5 (R8.49) | |||
| Dividend payout ratio | 46.4% | 46.1% | |||
| CLR (credit loss ratio) | 0.36% | 0.38% | |||
| Cost-to-income ratio | 52.9% | 52.6% | |||
| ROTE (return on tangible equity) | 15.7% | 16.2% | |||
| ROE (return on equity) | 13.6% | 13.9% |
Outlook
With regard to FY2027, the group expects revenue to be supported by book growth, ongoing client activity and continued success in its client acquisition and entrenchment strategies.
The group currently expects group ROE to be between 13.0% and 17.0%, which incorporates large investments in its growth initiatives.
South Africa is also expected to report an ROE between 18.0% and 19.0%, within the target range of 16.0% to 20.0%.
UK & Other is expected to report a Return on tangible equity of 12.5% to 13.5%, near the lower end of the target range of 13.0% to 17.0%.
The group said that its credit loss ratio is expected to be within the through-the-cycle (TTC) range of 25bps to 45bps.
“The group is well-positioned to continue to support our clients in navigating the current economic uncertainty and deliver on our clear strategy to enhance long-term shareholder returns,” it said.
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