Investec Group (INVP) H2 2025 earnings summary

Executive summary

• Delivered strong results for the year ending March 2025, overcoming challenging macroeconomic and political environments in South Africa and the U.K., with improved activity and loan book growth in the second half.

• Pre-provision operating profit increased by 7.8% to over £1 billion, a historic high, reflecting the strength of focused client franchises and disciplined execution of the group’s simplification and growth strategy since 2019.

• Adjusted EPS rose from 55.1p to 79.1p over three years, with consistent growth in loan books, funds under management, and deposits.

• Board declared a final dividend of 20p, bringing the full-year dividend to 36.5p, and approved a GBP 100 million share buyback.

• Results were in line with prior guidance, with group ROE at 13.9% and strong liquidity.

Financial highlights

• Adjusted operating profit grew 4% year-over-year to GBP 920 million, driven by 5% revenue growth.

• Net interest income increased by 1.5%, supported by higher book growth, while non-interest revenue grew 11.5% due to strong banking activity and wealth management fees.

• Cost-to-income ratio improved to 52.6% from 53.8% over recent years.

• Credit loss ratio at 38 basis points, up from prior year due to normalization after prior recoveries.

• Tangible net asset value per share up 6% to 506.3p; adjusted EPS increased 1.4% to 79.1p.

Outlook and guidance

• Expect FY2026 ROE around 14% and ROTE around 16%, with cost-to-income ratio between 52%-54% and credit loss ratio within 25-45 basis points.

• Medium-term (to 2030) targets: incremental 200 basis points in returns, aiming for ROE above 16% and ROTE around 18%.

• Revenue momentum anticipated from continued loan book growth and increased client acquisition.

• Strategic focus on scaling private client and corporate mid-market segments in both South Africa and the U.K.