Investec launches £350m share buyback as profits jump
By Abigail Townsend
Date: Thursday 17 Nov 2022
(Sharecast News) - Investec unveiled a £350m share buyback programme on Thursday following a jump in half-year revenues and profits.
Posting results for the six months to 30 September, the banking and wealth management firm reported an 18.9% jump in operating income to £1.13bn. Adjusted operating profits rose 24.3% to £405m.
Adjusted earnings per share were 32.9p, a 25.1% increase year-on-year and at the top end of previous guidance.
Revenues were boosted by continued momentum in client franchises and higher interest rates worldwide.
Funds under management, however, fell 7.6%, to £59bn, "reflecting the year-to-date decline in global markets", Investec said. Net inflows were £202m, with £464m in discretionary FUM inflows partially offset by £261m in net outflows.
Fani Titi, chief executive, said: "Rising global interest rates, client acquisitions and strong asset quality supported these results.
"We have made good progress on our capital optimisation strategy as we seek to return excess capital from the South African balance sheet to shareholders."
The dual-listed, Anglo-South African group said the board had approved a proposed share purchase and share buyback programme of up to 7bn rand (£350m), which will run over the next 18 months, dependent on market conditions.
Titi added: "We have strong liquidity and capital levels, and are well positioned to support all our stakeholders."
As at 0845 GMT, Investec's London-listed shares were down nearly 4% at 453.6p, and off 2% in Johannesburg.
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