Investec Group

Reported figures included 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%. Net interest income fell 1.6%, noninterest income rose 13.6%, operating costs increased 4.7%, and the group credit loss ratio was 36 bps, compared with 38 bps previously. Cost-to-income was 52.9%, ROE was 13.6%, tangible net asset value was 553.1p, and tangible net asset value increased 9.2%; the total dividend for the year was 38.5p, up 5.5%. On the balance sheet, FUM grew 15.4% (10.5% in neutral currency), core loans grew 9.6%, and U.K. Rathbones reported AUM of GBP 113.6 billion with achieved synergies of GBP 76 million. Management guided to ROE of 13% to 14% next year, 13.8% to 14.2% from 2028, and a long-term ROE target of 16% by FY2030 and ROTE of 18% by FY2030.

Fani Titi emphasized that the environment is volatile, but the group’s client franchise is defensive and relationship-driven, which he said supports resilience across cycles. He framed the current period as a deliberate investment phase, saying the company is choosing to “have faith in the future by investing today” and expects the payoff to become visible from 2028. He also stressed conservative capital and liquidity management, steady capital returns, and a focus on adding capital-light revenue streams in wealth and private client businesses.

Nishlan Samujh highlighted improving GDP conditions but warned that inflation, geopolitics, and interest rates remain uncertain and may stay higher for longer than expected. He walked through the income statement: operating profit grew to GBP 951 million, revenue rose 4.2%, NII was down 1.6%, noninterest income rose 13.6%, and costs increased 4.7%, leaving the cost-to-income ratio at 52.9%. He pointed to heavy technology investment, including GBP 246 million of IT spend in the period and a broader GBP 282 million platform investment program from 2025 to 2028, with most of the cost expensed and only a small amount capitalized. He also cited strong capital and liquidity, including U.K. CET1 at 13% and South Africa CET1 at 13.6% after the buyback and capital-floor effects.

Analysts focused on credit quality, loan growth, U.K. corporate lending stage 2/3 movements, inorganic growth in private client businesses, and the lack of an additional discretionary motor finance provision. Management said South African credit losses reflect both conservative client selection and good book quality, and that moving into mid-market corporate lending will likely raise the credit loss ratio but not materially worsen asset quality. On U.K. stage 2 and 3 exposures, Ruth Leas said there was no trend deterioration and stage 3 migration had actually slowed. On motor finance, Fani Titi said the exposure was very small and late, and the existing provision was based on conservative assumptions, so no further charge was needed. On inorganic activity, management said it would remain disciplined, preferring reinvestment and only pursuing accretive bolt-ons, especially in wealth.