Investec says earnings rose 5.8% in the year to end-March, thanks in part to gains made by its UK business.
“The group has delivered a sound operational performance supported by substantial net inflows, good loan book growth in home currency, and a significantly improved performance from the UK specialist banking business,” Investec said.
The specialist banking unit was boosted by loan book growth, though a reduction in impairments was partly offset by a weak performance from the investment portfolio, it said.
Adjusted earnings attributable to shareholders grew 5.8% to £519.3m and the company raised its dividend 2.1% to 24.5p a share.
The combined SA businesses reported adjusted operating profit growth of just 1.8% in rand terms, while the combined UK and other businesses contributed a 36.1% increase in adjusted operating profit in pounds.
However, Investec said operating costs grew faster than revenue. “Revenue growth and cost containment remain priorities,” it said.
“The past year has seen a smooth leadership transition combined with a strategic review of the group. We are on track with the proposed demerger and separate listing of Investec Asset Management, which should enhance the long-term prospects of both businesses,” said Investec, which is led by co-CEOs Fani Titi and Hendrik du Toit.
Investec Bank, a subsidiary of Investec, said in a separate statement its earnings attributable to shareholders grew 6.2% to R5bn in the year to end-March.
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