Investec Group

The company reported adjusted EPS up 4.8%, adjusted operating profit up 3.4% to GBP 951 million from GBP 920 million, and total revenue up 4.2%. Noninterest income grew 13.6%, net interest income fell 1.6%, operating costs rose 4.7%, and the credit loss ratio was 36 basis points versus 38 basis points a year earlier. Cost-to-income was 52.9%, tangible NAV per share was 553.1p, up 9.2%, and ROE was 13.6%. The final dividend took the full-year dividend to 38.5p, up 5.5%, and the previously announced buyback of about GBP 110 million was completed. Looking ahead, management guided for FY '27 ROE of 13% to 14%, FY '28 ROE of 13.8% to 14.2%, and reiterated a long-term target of 16% ROE and 18% ROTE by FY 2030. They also said the investment program totals GBP 282 million and is expected to start driving a meaningful earnings and return inflection from FY '28.

Fani Titi’s message was that the business is holding up well in a difficult macro and geopolitical environment because it stays conservative on liquidity and capital while serving defensive, relationship-based client franchises. He emphasized that Investec is in a heavy investment phase, is willing to absorb short-term profitability pressure, and expects those investments in private client, corporate mid-market and technology platforms to pay off from 2028 onward. His tone was confident but cautious, repeatedly stressing disciplined capital allocation, client focus and long-term returns.

Nishlan Samujh walked through the numbers in detail, highlighting that total revenue rose 4.2%, adjusted operating profit rose 3.4% to GBP 951 million, noninterest income increased 13.6%, and operating costs rose 4.7%. He noted the group’s cost-to-income ratio of 52.9% remained within guidance, the credit loss ratio was 36 basis points, and the business is spending heavily on technology, with GBP 246 million of IT spend in the period and GBP 282 million of platform investment planned from 2025 to 2028. He also pointed to strong capital and liquidity, with CET1 at 13% in the U.K. and 13.6% in South Africa after buybacks and a capital floor effect, and said the group had capitalized GBP 20.5 million of software. The buyback reduced shares in issue to 850.3 million, with about 840 million implied on an equalized basis next year.

Analysts pressed on why South African credit losses remain so low, whether the group is sacrificing growth, and what loan growth should look like in FY '27; management said the book is deliberately selective, but that higher-risk corporate mid-market lending is coming and loan growth should continue despite near-term uncertainty. Questions on U.K. stage 2 and 3 movements drew reassurance that there was no underlying deterioration and that stage 3 inflows had actually slowed. On inorganic growth, Fani said the group will consider bolt-ons, especially in wealth, but only with strict capital discipline and a preference for accretive deals; he also confirmed the discretionary motor finance provision remained adequate because the exposure was very small and the initial assumptions were conservative.