Investec Group has reported strong full-year results for the year ended 31 March 2025, with operating profit rising 7.8% to surpass £1 billion for the first time.
The group also outlined plans to scale its banking franchise and intensify its focus on sustainability-led finance as part of its long-term growth strategy.
Investec is an Anglo-South African international banking and wealth management group that operates in Europe, Southern Africa, and Asia-Pacific. The group is dual-listed on the London Stock Exchange and the Johannesburg Stock Exchange.
Central to its long-term growth strategy is a significant investment in its corporate mid-market transactional banking proposition across both the UK and South Africa.
In the UK, Investec aims to expand its offering beyond its well-established Corporate and Investment Banking capabilities, targeting a 2% market share and at least 1,000 clients with multiple product relationships by FY2030.
In South Africa, the bank seeks to triple its current client base of 2,700 mid-sized corporates by building a fully integrated banking platform, targeting an 8% market share over the same period.
Simultaneously, the group said it is enhancing its Private Client proposition to drive deeper client engagement, grow its high-net-worth mortgage book, and expand its international wealth offering.
With a target to more than double the UK client base from 7,500 to 18,500 by FY2030, Investec said it is investing in full-suite transactional capabilities including multi-currency accounts and credit cards.
In South Africa, accelerated acquisition in the high-income segment and an integrated global offering are key pillars of future growth, it said.
These initiatives reflect Investec’s broader ambition to unlock the full potential of its “One Investec” strategy, strengthening cross-divisional collaboration and expanding market share across growing geographies.
Investec reported a 7.8% rise in pre-provision adjusted operating profit to £1,039.2 million (FY2024: £963.6 million), driven by 5% revenue growth outpacing 2.8% cost growth.
The group’s cost-to-income ratio improved to 52.6%, from 53.8% in the prior year.
Revenue was buoyed by client acquisition efforts, higher interest-earning assets, and robust net inflows in discretionary and annuity funds under management (FUM).
Non-interest revenue (NIR) saw strong contributions from the South African Wealth & Investment business and improved Banking fee income.
Return on Equity (ROE) stood at 13.9% – within the group’s medium-term target range.
The board proposed a final dividend of 20.0p per share, bringing the total dividend for the year to 36.5p, and announced a planned £100 million share buy-back over the next 12 months.
Fani Titi, group chief executive, said: “We are pleased to report a strong performance in a volatile operating environment, with the group generating a Return on Equity of 13.9%, in line with guidance provided in May 2024.
“Pre-provision adjusted operating profit grew 7.8% surpassing £1 billion for the first time in our history, demonstrating the underlying strength of our differentiated client franchises,” he said.
“We have maintained robust capital and liquidity levels, positioning us well to support our clients and drive sustainable growth.”
In a significant step forward in its ESG agenda, Investec announced a new target to facilitate £18 billion of sustainable and transition finance by 2030.
Net core loans rose by 4.7% to £32.4 billion, driven by corporate lending growth in South Africa and private client lending across both regions.
Looking ahead to FY2026, the group expects continued revenue momentum supported by book growth, enhanced client engagement, and the successful execution of its growth initiatives.
ROE is forecast at around 14%, within the 13% to 17% target range, with the South African segment expected to deliver 18.5% ROE.
Cost discipline will remain a priority, with the cost-to-income ratio expected to remain between 52.0% and 54.0%, despite ongoing investment in people, technology, and strategic initiatives, it said.
