Half Year 2025 Investec Ltd Earnings Call Transcript
Key Points
- Investec Ltd (ITCFY) reported solid results with adjusted earnings per share of 39.5p, at the upper end of their guidance range.
- The company saw double-digit growth in funds under management, reaching £23.4 billion, with significant inflows of 10 billion rand.
- Loan books increased by over 5% to £31.7 billion, and deposits grew by just under 5% annualized to £40.4 billion.
- The board approved a dividend increase of 6.5% to 16.5p, reflecting strong capital generation.
- Investec Ltd (ITCFY) achieved a return on equity of 13.9%, within their upgraded through-the-cycle range of 13% to 17%.
- The UK business saw a decline in adjusted operating profit by 5.4%, with the specialist bank down by 2.4%.
- The credit loss ratio increased to 42 basis points, at the higher end of their through-the-cycle range.
- Group costs increased significantly, with South Africa up 14% and the UK up 27%, raising concerns about cost management.
- The UK credit loss ratio was elevated due to higher interest rates impacting the mid-market segment.
- The company faces challenges from geopolitical risks and changes in government policies, particularly in the UK.
Good morning and welcome to the beautiful city of Cape Town from which we are hosting this presentation of the results. The screens are not on. So we go to first start with a short video and then get into the presentation.
(video playing)
Thank you. As usual, I'm going to be joined by my colleagues, Nishlan Samujh, our finance director; Kurs Modia, the chief executive of our South African Business and Ruth Leas, the Chief executive of our UK and other Business to review the results.
We're going to try to go through the basic presentation in 45 minutes have about 1,520 minutes of of questions or more if if needed.
So to start off with just an overview, we're obviously very pleased with the solid results that we have published earlier today for the period six months period, end the 30th of September 2024 really great results. And ROE, as you see, in fact, sorry, not, not ROE first, let me start with adjusted earnings per share of 39.5 P which is at the upper end of the range that we guided in
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