Investec (LSE:INVP) expects to deliver a resilient performance for the year ending 31 March 2026, forecasting modest increases in adjusted, headline and basic earnings per share. The group also anticipates pre-provision adjusted operating profit to rise by around 3% to 5%. Returns are expected to remain within medium-term targets, with both return on equity and return on tangible equity supported by strong balance sheet metrics and the completion of a R2.5 billion share buyback.
In Southern Africa, the bank is projected to achieve profit growth of at least 4% in local currency terms. This performance is being driven by robust loan and deposit expansion, lower credit losses and an expected return on equity of about 18%. Meanwhile, the UK division—including wealth manager Rathbones—is expected to deliver broadly stable results, with higher credit losses offset by returns that remain within the division’s target range.
Across the group, revenue growth has been supported by higher lending volumes, strong fee income and trading activity, along with solid wealth inflows. Southern Africa in particular has seen strong momentum in wealth management, helping reinforce Investec’s capital position and supporting its strategy of investing in technology, expanding private client services and delivering incremental value for shareholders.
Within the Specialist Banking division, core loans increased at a double-digit annualised rate in reported currency to £36.3 billion, while customer deposits rose to £45.5 billion, reflecting sustained demand from both private and corporate clients across its key markets. Assets under management in the Southern African wealth business climbed nearly 27%, driven by strong discretionary inflows and the addition of a Swiss acquisition. At the same time, Investec’s associate Rathbones also reported growth in managed assets, strengthening the group’s overall presence in wealth and investment management.
The company’s outlook is somewhat constrained by weak cash generation, with negative operating and free cash flow despite solid profitability and improved leverage metrics. On the positive side, valuation remains attractive, supported by a relatively low price-to-earnings ratio and a strong dividend yield. Technical indicators suggest an established upward trend in the share price, while earnings guidance and shareholder returns provide additional support, although broader macroeconomic uncertainty continues to weigh on the outlook.
More about Investec
Investec Group is an international banking and wealth management group focused primarily on Southern Africa and the United Kingdom, with additional operations in Europe, the Channel Islands, Dubai, India, Mauritius, Switzerland and the United States.
The group provides a range of services including private banking, wealth management and corporate and investment banking for private, corporate and institutional clients. With around 8,000 employees worldwide, Investec emphasises tailored financial solutions and a client-focused approach, supported by diversified revenue streams across lending, deposits, advisory and investment services. Its strategy centres on expanding market share in its core regions, strengthening client relationships and advancing digital and transactional banking capabilities to support long-term, capital-efficient growth.
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