Investec anticipates solid FY2024 performance

South African banking giant expects earnings surge on diversified income streams.

Investec anticipates solid FY2024 performance
Investec INL

Investec (LSE: INL) forecasts earnings per share to jump to 102.9p-106.8p for the year ending March 31, up from 85.8p previously. This projected increase factors in a gain from the recent merger of its UK wealth unit with Rathbones. Shares in Investec climbed 2.2% early Wednesday.

Adjusted operating profit is guided at £866.9m-£909.6m versus £818.7m last year. Investec cited diversified revenue streams and client acquisition strategies as drivers, despite economic volatility.

Adjusted EPS is seen at 76.0p-80.0p, up from 68.9p, while headline EPS excluding one-offs should rise to 70.0p-74.0p from 66.8p.

Core loans at Specialist Banking grew 1.6% annualised to £30.8bn by February-end, though deposits stayed flat at £39.5bn. South African funds under management advanced 3.6% to £20.5bn.

Post the Rathbones deal completion, Investec's UK wealth funds are consolidated under the latter, which reported £105.3bn in managed/administered assets as of December 31.

Investec targets unveiling full annual results on May 23, having achieved medium-term goals through strategic execution since 2019.

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