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Investec PLC and Ltd said on Thursday it plans a share buyback after delivering what it called ‘strong’ annual financial performance amid market volatility. The Sandton-based financial services reported pretax profit from continuing operations of £863.2 million for the financial year that ended March 31, up 4.9% from £822.5 million the year before. Annual revenue was £2.19 billion, up 5.0% from £2.09 billion, supported by client acquisition, net inflows in discretionary and annuity funds under management, and growth in average interest earning assets, Investec said. Funds under management in the Southern African business rose 12% to £23.4 billion at March 31 from £20.9 billion a year before. Net interest income was up 1.5% to £1.36 billion from £1.34 billion, benefitting from higher average lending books and lower cost of funds in Southern Africa. Non-interest revenue was up 12% to £832.4 million from £746.6 million, reflecting strong growth in fees from the SA Wealth & Investment business, as well as improved fee income generation from the Banking businesses. Expected credit loss impairment charges were increased by 51% to £119.2 million from £79.1 million. Investec declared a final dividend to 20.0 pence, up 5.3% from 19.0p, lifting the total payout to 36.5p, up 5.8% from 34.5p. The company also intends to execute a share buyback programme of R 2.5 billion, about £100 million, to be completed over the next twelve months. Basic earnings per share was 72.8p, down 31% from 105.3p, while adjusted EPS was up 1.3% to 79.1p from 78.1p. Headline EPS inched down to 72.6p from 72.9p. As at March 31, net asset value per share was up 4.2% to 587.7p from 563.9p, and tangible NAV rose 6.0% to 506.3p from 477.5p. Investec said the return on equity was 13.9%, down from 14.6%, but remained within its medium-term 13% to 17% target range. It guides for ROE of 14.0% for the 2026 financial year. It expects Southern Africa to have ROE of 18.5%, while the UK & Other business is expected to have return on tangible equity of 14.0%. ‘We are pleased to report a strong performance in a volatile operating environment, with the group generating a return on equity of 13.9%, in line with guidance provided in May 2024,’ Investec Chief Executive Officer Fani Titi said. Shares in Investec PLC were down 0.5% to 489.20p in London on Thursday morning. In Johannesburg, Investec Ltd shares were down 0.4% at R 116.68 and Investec PLC down 0.6% at R 117.16. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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