CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Investec (INL) reports revenue growth on improved market conditions

By Angela Barnes

14:45, 18 November 2021

Exterior of an Investec bank branch in London
Investec also announced that it will distribute a 15% stake in Ninety One to shareholders – Photo: Alamy

Anglo-South African international banking and wealth management group Investec (INL) announced its revenue growth and plans to distribute a 15% stake in asset manager Ninety One (N91) to shareholders onThursday.

Investec – the former parent company of Ninety One before the two businesses demerged in 2020 – currently holds a 25% share in Ninety One. It will still hold onto 10% of the Ninety One stock once the 15% stake is distributed, the company said.

Investec also said it would announce the terms and process for the distribution at a later date.

Revenue growth

The group said revenue grew 30.5% in the first half, supported by the strength of its client franchises and improved market conditions.

For the six months to 30 September, its adjusted earnings per share (AEPS), which reflect profits made in the course of ordinary operations, stood at 26.3p, compared to 11.2p a year earlier.

Based on its performance, Investec also updated its annual guidance. It now expects AEPS of between 48p and 53p for the full-year.

The business also said wealth and investment funds under management (FUM) increased 8.6% to £63bn (€74.8bn, $84.9bn) compared to £58bn in March. It said it was underpinned by net inflows of £1.5bn, market recovery and good investment performance.

GME

17.21 Price
+10.660% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.39

COIN

141.73 Price
+5.400% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.63

TSLA

235.29 Price
-1.640% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.33

NVDA

453.45 Price
-3.090% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.49

Comments from the chief exec

Fani Titi, the group’s CEO, commented on the results: “The group delivered a strong first-half result, underpinned by resilient client franchises, strong revenue momentum and sound asset quality – resulting in AEPS of 26.3p, ahead of comparable pre-Covid levels.  

“I am pleased to share that the board has proposed an interim dividend of 11.0p relative to 5.5p in 1H2021. Further, in line with our strategy to optimise the allocation of capital, the board has resolved to distribute a 15% holding in Ninety One to our shareholders.

“The strength of the relationships we have built with our clients is reflected in the trust they have continued to place in our people and our organisation. The changes made to simplify and focus the group are bearing fruit, positioning us well for the future.”

Titi added: “Our resilient business model and strong balance sheet will support our drive to achieve sustainable long-term value and growth for our colleagues, clients, shareholders and societies in which we live.”

 

Read more: Metro Bank (MTRO) shares hit as Carlyle quits takeover talks

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading