Investec (LSE:INVP) reported resilient unaudited combined results for the year ended 31 March 2026, delivering growth across key financial metrics despite a more challenging economic environment. Revenue increased 4.2% to £2.28 billion, while adjusted earnings per share rose 4.8% to 82.9p.
The specialist bank and wealth manager also recorded strong balance sheet growth, with net core loans climbing 9.6% to £35.5 billion and customer deposits increasing 8.7% to £44.7 billion. In Southern Africa, wealth funds under management advanced 15.4% to £27.0 billion. Investec said returns on equity remained within its target range, although operating costs edged higher during the year.
Management highlighted continued strategic investment across the business, particularly within its private client operations, as the group seeks to strengthen client relationships, improve operating leverage and expand capital-light revenue streams. Investec said these initiatives are designed to support long-term growth while enhancing the scalability of its wealth and banking franchises.
The group also increased shareholder distributions, declaring a higher total dividend of 38.5p per share and completing a £110 million share buyback programme. Capital levels remained robust, with CET1 ratios holding at around 13%.
Alongside its financial performance, Investec continued to advance its sustainability strategy, facilitating £3.1 billion in sustainable finance activity during the year and introducing additional sector-specific decarbonisation targets. Management reiterated its ambition to increase return on equity and return on tangible equity to approximately 16% and 18% respectively by 2030, with current investment spending expected to peak around FY2027.
The company’s broader outlook remains affected by weak operating and free cash flow generation despite solid profitability and an improved leverage profile. However, supportive valuation metrics, including a relatively low price-to-earnings ratio and strong dividend yield, combined with positive share price momentum and continued capital returns, provide offsetting support. Management noted that macroeconomic uncertainty and pressure on profitability remain ongoing considerations.
More about Investec
Investec is a specialist banking and wealth management group listed in both the UK and South Africa. The company provides lending, private banking, wealth management and investment services, with major operations in Southern Africa and the UK. Investec’s strategy focuses on growing capital-light, fee-based activities while maintaining strong capital ratios and expanding its private client and wealth management platforms.
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