Investec joint CEO Fani Titi. Picture: SUPPLIED
Investec joint CEO Fani Titi. Picture: SUPPLIED

Investec says earnings rose 5.8% in the year to end-March, thanks in part to gains made by its UK business.

“The group has delivered a sound operational performance supported by substantial net inflows, good loan book growth in home currency, and a significantly improved performance from the UK specialist banking business,” Investec said.

The specialist banking unit was boosted by loan book growth, though a reduction in impairments was partly offset by a weak performance from the investment portfolio, it said.

Adjusted earnings attributable to shareholders grew 5.8% to £519.3m and the company raised its dividend 2.1% to 24.5p a share.

The combined SA businesses reported adjusted operating profit growth of just 1.8% in rand terms, while the combined UK and other businesses contributed a 36.1% increase in adjusted operating profit in pounds.

Investec joint-CEO Fani Titi speaks to Business Day TV about pressures in the company's two main markets, SA and the UK, and what it means for Investec.

However, Investec said operating costs grew faster than revenue. “Revenue growth and cost containment remain priorities,” it said.

“The past year has seen a smooth leadership transition combined with a strategic review of the group. We are on track with the proposed demerger and separate listing of Investec Asset Management, which should enhance the long-term prospects of both businesses,” said Investec, which is led by co-CEOs Fani Titi and Hendrik du Toit.

Investec Bank, a subsidiary of Investec, said in a separate statement its earnings attributable to shareholders grew 6.2% to R5bn in the year to end-March.