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Highlights

  • In FY24, INVP’s revenue surged 5% and adjusted operating profit grew ~8.04%
  • The cost-to-income ratio improved from 54.7% in FY23 to 53.8% in FY24
  • In FY25, the group anticipates an overall ROE and ROTE of approximately 14% and 16%, respectively

Investec PLC (LSE: INVP) is an FTSE 250 listed wealth manager and international bank. It provides integrated and diversified wealth management and banking services to its clients in the UK.

In FY24, INVP recorded a revenue of GBP 2085.20 million, marking a 5% increase from FY23. This growth was fueled by enhanced performance from Investec Wealth & Investment in Africa and corporate client franchises across both regions. Non-interest revenue benefited from rising client activity levels and stable client acquisition.

Similarly, the company saw an 8.04% surge in adjusted operating profit, attributed to expanding average lending books and higher prevailing interest rates. Additionally, the cost-to-income ratio improved from 54.7% in FY23 to 53.8% in FY24.

Key metrics in pictures

From the above charts, it can be drawn that the company’s efficiency ratio has increased to 57.30% in FY24 compared to 54.10% in FY23, demonstrating an enhanced ability to use its assets and effective management of liabilities in the short term.

Recent business update

According to the company's FY24 financial report, net core loans rose by 1.7% to GBP 30.9 billion from GBP 30.4 billion in FY23. This growth was mainly driven by private client lending in South Africa and corporate lending across core regions. With discretionary net inflows of R16.6 billion and FX translation gains, funds under management in South Africa increased by 5.5%, totaling GBP 20.9 billion as of March 31, 2024.

Company outlook

In FY25, the group anticipates an overall ROE and ROTE of approximately 14% and 16%, respectively. The South Africa division is forecasted to achieve an ROE of around 18.5%, while the UK and other regions are expected to report an ROTE of approximately 14%. Additionally, the cost-to-income ratio is expected to be around 54% in FY25.

Stock performance

The stock price of INVP has witnessed a surge of ~19.6% in the past year however, it has decreased by ~2% in the past month. The stock’s 52-week low and 52-week high stand at GBX 401.00 & GBX 567.00, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 28 May 2024. The reference data in this report has been partly sourced from EODHD/Others.