Investec’s target market for Swiss operations is individuals with $3 million (R54 million) or more in investable assets.

The group said it was leveraging its Swiss platform and value proposition to enhance its private banking and wealth management offerings.

Investec has also identified the UAE as a key growth area, following thousands of wealthy South African expats establishing themselves in the region. The company opened an office at the Dubai International Financial Center (DIFC) in September, which connects high-net-worth clients, family offices and Gulf Cooperation Council financial institutions.

The group has also established a partnership in Latin America with access to more than 400 independent financial advisors to distribute Investec-branded and managed mutual funds.

The group announced growth of 7.6% in its adjusted operating profit on Thursday.

Turnover, at £1.1 billion, increased by 5.6% in sterling and 5.2% in rand in the six months to the end of September, benefiting from balance sheet growth, the breadth and depth of the group’s customer franchises and the high interest rate environment. Adjusted operating profit increased 7.6% to £474.7 million.

Net interest income increased by 2% to £684.4 million, driven by higher average interest earning assets and higher average interest rates, which were in partly offset by the effects of the repricing of deposits in the United Kingdom.

Non-interest income increased 12.2% to £418.2 million, reflecting increased capital light income from the group’s banking business, as well as strong fee growth from the SA Wealth & Investment.

Investment income also contributed positively to the growth of non-interest incomegiven the improvement in global markets.

The trading result was lower due to the non-repetition of risk management gains from the previous financial year resulting from the hedging of the remaining financial product portfolio in the United Kingdom, as well as the implementation of accounting for coverage in the SA credit investment portfolio from the first quarter of the current period. .

Adjusted earnings per share (EPS) rose 2.1% to 39.5p, while headline earnings per share (HEPS), at 36.6c, were down 0.8%.

“We are pleased to report an ROE (return on equity) of 13.9%, putting us on track to achieve the group’s ROE targets for the full year,” said Fani Titi , CEO of the group.

Investec expects the group’s ROE to be around 14%, with Southern Africa reporting an ROE of 19% and the UK and others 13.5%, in line with the first half.

The credit loss ratio is expected to be in the range of 25 to 45 basis points throughout the cycle.

Update: November 21, 2024
This story has been updated with new information.

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