Investec shares down despite positive annual earnings guidance

Investec PLC and Ltd on Thursday said it expects its diversified revenue streams to cushion it from an ‘uncertain and evolving environment’.

The Sandton-based financial services company guided for basic earnings per share of between 76.9 pence and 79.2p for the financial year ending March 31, up at least 5.6% from 72.8p a year before.

Headline EPS is seen within a range of between 72.6p and 74.1p, flat to up from 72.6p, while adjusted EPS is tipped to rise to between 81.6p and 84.0p from 79.1p.

Pre-provision adjusted operating profit is estimated within a GBB1.07 billion to £1.09 billion range, up from £1.04 billion.

Pretax adjusted operating profit is likely to be between £940.3 million and £965.9 million, up at least 2.2% from £920.0 million.

In the Southern African business, adjusted operating profit is expected to be at least 4% ahead of the prior year in rand terms from R 10.78 billion or £463.0 million, Investec said.

Adjusted operating profit in the UK business, including its interest in Rathbones Group PLC, is expected to be at least in line with the prior year’s £457.0 million.

Investec said it expects return on equity to be between 13.3% and 13.7%, within its medium-term target range of 13% to 17%.

‘The group is expected to deliver a resilient performance, reflecting the strength of our client franchises and diversified revenue streams,’ Investec said.

The R 2.5 billion or £110 million share buyback programme, announced in May 2025, is complete, it noted.

For the 11 months that ended February 28, Investec said core loans within specialist banking rose 7.4% annualised in neutral currency and by 13.3% annualised in reported currency to £36.3 billion from £32.4 billion on March 31, 2025.

Customer deposits for the 11 months grew by 5.7% annualised in neutral currency and by 11.5% annualised in reported currency to £45.5 billion.

Funds under management in Investec’s Southern African wealth business rose 27% to £29.6 billion as of February 28 from £23.4 billion as of March 31, 2025.

In Johannesburg early Thursday, Investec Ltd shares were down 2.1% at R 125.90 and Investec PLC shares down 2.9% to R 126.49. In London, Investec PLC shares were down 3.8% to 564.00 pence.

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