Investec reports strong performance and outlines five-year strategy

INVESTEC reported a strong performance in the year to March 31 with its 13.9% return on equity in line with guidance from a year ago and a new strategy was outlined for the next five years.

- EDWARD WEST

Headline earnings a share at 72.6 pence were barely changed from 72.9 pence last year. Pre-provision adjusted operating profit increased by 7.8%. Robust capital and liquidity levels were maintained.

CEO Fanie Titi said in an online presentation that a strategy to simplify and focus the business, communicated to the market in 2019, had resulted in a 200 percent point (bps) structural improvement in group returns.

"We are scaling and leveraging our client franchises, allocating capital with discipline, and investing in clearly defined growth initiatives to enhance our existing platform," he said.

He said they aimed to achieve incremental returns of a further 200 basis points over the next five years, resulting in a return on equity at the upper end of an upgraded medium-term target range.

Revenue for the past year, which increased to £2.19 billion from £2.01bn over the past year, was supported by client acquisition and entrenchment strategies, strong net inflows in discretionary and annuity funds under management, as well as growth in average interest-earning assets.