Investec is updating its Private Client strategy as the group looks to grow its market share and drive returns. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Titi said that the bank plans to expand its proposition, strengthen cross-collaboration and evolve its business model to improve operating leverage. <\/p>\n\n\n\n
“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. <\/p>\n\n\n\n
The group hopes that the new Private Client strategy will evolve its business model to drive market share growth and incremental returns.<\/p>\n\n\n\n
The CEO added that the group will continue to deploy capital to advance returns via its dynamic capital management approach. <\/p>\n\n\n\n
The group’s performance over the year was relatively muted, with adjusted earnings per share increasing by 4.8% to 82.9 pence, as it continued to support our clients while investing in long-term growth.<\/p>\n\n\n\n
“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. <\/p>\n\n\n\n
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). <\/p>\n\n\n\n
Return on equity was 13.6% (FY2025: 13.9%), which is near the bottom of the group\u2019s medium-term target range of 13% to 17%.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
The Group has completed around R2.5 billion in share buybacks announced in May 2025.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n The group currently expects group ROE to be between 13.0% and 17.0%, which incorporates large investments in its growth initiatives. <\/p>\n\n\n\n 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%. <\/p>\n\n\n\n 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%. <\/p>\n\n\n\n The group said that its credit loss ratio is expected to be within the through-the-cycle (TTC) range of 25bps to 45bps.<\/p>\n\n\n\n “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. <\/p>\n\n\n\n This article has been updated<\/em>. <\/p>\n","protected":false},"excerpt":{"rendered":" Investec is changing its Private Client strategy as the group looks to grow its market share and drive returns. <\/p>\n","protected":false},"author":95,"featured_media":812762,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[1498],"class_list":["post-860989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-investec"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=860989"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860989\/revisions"}],"predecessor-version":[{"id":864737,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/860989\/revisions\/864737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812762"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=860989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=860989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=860989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financial Metric<\/strong><\/td> FY2026<\/strong><\/td> FY2025<\/strong><\/td> Variance<\/strong><\/td> % change<\/strong><\/td> Neutral currency % change<\/strong><\/td><\/tr><\/thead> Operating income (\u00a3\u2019m)<\/strong><\/td> 2 281.4
(R53,042.6m)<\/strong><\/td>2 190.5
(R50,929.1m)<\/strong><\/td>90.9
(R2,113.4m)<\/strong><\/td>4.2%<\/td> 4.0%<\/td><\/tr> Operating costs (\u00a3\u2019m)<\/strong><\/td> (1 205.3)
(R-28,023.2m)<\/strong><\/td>(1 151.4)
(R-26,770.1m)<\/strong><\/td>(53.9)
(R-1,253.2m)<\/strong><\/td>4.7%<\/td> 4.5%<\/td><\/tr> Adjusted operating profit (\u00a3\u2019m)<\/strong><\/td> 951.0
(R22,110.8m)<\/strong><\/td>920.0
(R21,390.0m)<\/strong><\/td>31.0
(R720.8m)<\/strong><\/td>3.4%<\/td> 3.3%<\/td><\/tr> Adjusted earnings attributable to shareholders (\u00a3\u2019m)<\/strong><\/td> 704.5
(R16,379.6m)<\/strong><\/td>676.8
(R15,735.6m)<\/strong><\/td>27.8
(R646.4m)<\/strong><\/td>4.1%<\/td> 4.1%<\/td><\/tr> Adjusted basic earnings per share (pence)<\/strong><\/td> 82.9
(R19.27)<\/strong><\/td>79.1
(R18.39)<\/strong><\/td>3.8
(R0.88)<\/strong><\/td>4.8%<\/td> 4.8%<\/td><\/tr> Basic earnings per share (pence)<\/strong><\/td> 77.1
(R17.93)<\/strong><\/td>72.8
(R16.93)<\/strong><\/td>4.3
(R1.00)<\/strong><\/td>5.9%<\/td> 5.9%<\/td><\/tr> Headline earnings per share (pence)<\/strong><\/td> 73.1
(R17.00)<\/strong><\/td>72.6
(R16.88)<\/strong><\/td>0.5
(R0.12)<\/strong><\/td>0.7%<\/td> 0.7%<\/td><\/tr> Dividend per share (pence)<\/strong><\/td> 38.5
(R8.95)<\/strong><\/td>36.5
(R8.49)<\/strong><\/td><\/td> <\/td> <\/td><\/tr> Dividend payout ratio<\/strong><\/td> 46.4%<\/td> 46.1%<\/td> <\/td> <\/td> <\/td><\/tr> CLR (credit loss ratio)<\/strong><\/td> 0.36%<\/td> 0.38%<\/td> <\/td> <\/td> <\/td><\/tr> Cost-to-income ratio<\/strong><\/td> 52.9%<\/td> 52.6%<\/td> <\/td> <\/td> <\/td><\/tr> ROTE (return on tangible equity)<\/strong><\/td> 15.7%<\/td> 16.2%<\/td> <\/td> <\/td> <\/td><\/tr> ROE (return on equity)<\/strong><\/td> 13.6%<\/td> 13.9%<\/td> <\/td> <\/td> <\/td><\/tr><\/tbody><\/table><\/div> Outlook <\/h2>\n\n\n\n