Investec announces record dividend, highlights SA performance
The global bank and wealth manager posted an operating profit of over R24 billion for its financial year to end-March 2025.
The Money Show's Stephen Grootes interviews the CEO of Investec Bank, Cumesh Moodliar.
Investec has reported a strong performance in a 'volatile' operating environment for the year ended 31 March 2025.
Pre-provision adjusted operating profit grew 7.8% to around £1.04 billion, as revenue grew 5% against operating cost growth of 2.8%.
The global bank and wealth manager has a Dual Listed Companies (DLC) structure with linked companies listed in London and Johannesburg.
Headline earnings per share (HEPS) were slightly down to 72.6 pence.
The Group still s proposed a final dividend of 20 pence per share, bringing the total dividend for the year to 36.5 pence.
This translates to a 46.1% payout ratio, within its current 35% to 50% payout policy.
Investec announced a planned share buyback of approximately £100 million over the next 12 months as part of ongoing capital optimisation at its South African businesses.
In conversation with Stephen Grootes, Investec Bank CEO Cumesh Moodliar highlights the performance of the South African business over the six months preceding the end of the financial year.
He attributes this to a change in the political climate after the 2024 elections.
"We saw activity pick up across both our private client and corporate client segments... Interestingly, looking at the same lending books at the half year around September, we were actually flat to slightly back. Investment confidence in South Africa certainly was boosted after the announcement of the election result and the formation of the GNU.
Cumesh Moodliar, CEO - Investec Bank
"You saw asset values being reset upwards in what I refer to as the honeymoon period post the GNU."
Cumesh Moodliar, CEO - Investec Bank
Alongside this shift in investment confidence, there was likely also some pent-up CapEx and further investment that was required, Moodliar says.
"So, in the context of a very difficult macroeconomic environment and low GDP growth.... what we do see still is the opportunity in the niches we operate in for clients to be actively engaged."
Cumesh Moodliar, CEO - Investec Bank
And while the postponement in the approval of the national budget was not ideal, he says, its final tabling this week shows a maturing of South Africa's democracy.
Scroll up to the audio player to listen to the interview