In This Article:
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Adjusted Earnings Per Share (EPS): 39.5 pence, up from 26.3 pence in the first half of 2022.
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Funds Under Management: Increased to 23.4 billion, with inflows of 10 billion rand.
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Loan Book Growth: Increased by over 5% to 31.7 billion.
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Deposits Growth: Grew by just under 5% annualized to 40.4 billion.
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Dividend: Declared at 16.5 pence, a 6.5% increase over the prior period.
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Return on Equity (ROE): 13.9%, within the upgraded range of 13-17%.
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Return on Tangible Equity (ROTE): 16.4%.
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Pre-Provision Operating Profit: Increased by double digits to 542 million.
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Cost to Income Ratio: Improved to just under 51%.
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Credit Loss Ratio: 42 basis points, at the higher end of the 25-45 basis points range.
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Adjusted Operating Profit: Increased by 7.6% to 475 million.
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UK Deposit Growth: 8.1% annually.
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South African Adjusted Operating Profit Growth: 21.9% in rands.
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UK Adjusted Operating Profit: Decreased by 5.4%.
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South African ROE: 19.9%, at the top end of the 16-20% range.
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UK ROTE: 13.5%.
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Net Interest Income Growth: 2%.
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Non-Interest Revenue Growth: 12.2%.
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Operating Costs Increase: 0.8%.
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Technology Spend: Over 20% of operating costs, totaling 109.2 million.
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Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Investec PLC (IVTJF) reported solid results with adjusted earnings per share of 39.5p, at the upper end of their guidance range.
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Funds under management in their wealth business grew by double digits to 23.4 billion, with significant inflows.
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The company declared a dividend of 16.5p, a 6.5% increase over the prior period.
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Investec PLC (IVTJF) achieved a return on equity of 13.9%, within their upgraded through-the-cycle range of 13% to 17%.
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The South African business reported a commendable adjusted operating profit increase of 21.9% in a challenging market.
Negative Points
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The UK business saw a decline in adjusted operating profit by 5.4%, with the specialist bank down by 2.4%.
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The credit loss ratio increased to 42 basis points, at the higher end of their through-the-cycle range.
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Group costs increased significantly, with South Africa up 14% and the UK up 27%, raising concerns about cost management.
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The UK market remains highly competitive, impacting deposit pricing and profitability.
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The company faces challenges from geopolitical risks and changes in tax environments, particularly in the UK.