By Adelaide Changole.
Investec posted a record dividend for the fourth straight year as the South Africa- and UK-listed bank’s full-year profit climbed to a new high.
Adjusted earnings per share climbed 4.8% to 82.9 pence in the year through March, the specialist lender said in a statement on Thursday, beating the 80-pence median estimate by five analysts in a Bloomberg survey.
Investec reported the gains as it and other lenders navigate rising economic uncertainty globally and in its home markets. The war in Iran has muddied the interest-rate and inflation outlook, with the South African central bank poised to pivot to tightening borrowing costs as price growth exceeds its target, and the Bank of England contemplating hikes later in the year.
Profit at the lender’s southern Africa business climbed 5.5% to £488.3 million ($655 million), while it rose 1.3% to £462.7 million at UK operations. It declared a final dividend of 21 pence per share, bringing the total payout for the year to 38.5 pence.
Return on equity dropped 30 basis points to 13.6%, but remained within the bank’s target range of 13% to 17%.
Investec hopes to boost ROE to as high as 16% in the coming years by offering bespoke solutions to clients and improving customers’ experience.
It expects 2027 to be the “peak investment year,” with improved shareholder returns to start in 2028.
For the year through March 2028, ROE should range from 13.8% to 14.6%, it said.
In the UK, its private-client and corporate mid-market propositions should generate “positive incremental returns” into the 2030 fiscal year.
Other highlights from the results include:
- A 3.5% increase in “pre-provision” adjusted operating profit for the year ending March 31 to £1.08 billion
- A 9.6% advance in net core loans to £35.5 billion, but declining global interest rates and margin pressure due to competitive pricing saw net interest income decrease 1.6% to £1.34 billion
- Non-interest revenue growth of 14%, underpinned by higher fee generation from both geographies
- An 8.7% jump in deposits to £44.7 billion
The cost-to-income ratio rose to 52.9% from 52.6% in 2025, while the bank’s credit-loss ratio improved to 36 basis points, within the group’s range of 25 to 45 basis points.
Investec has completed a R2.5 billion ($150 million) share buyback to optimise capital at its South African business. The lender has spent about R9.3 billion since 2023 on share buybacks.
© 2026 Bloomberg.