Investec sees annual profit drop but second half resurgence boosts outlook
Investec today said its financial year was a ‘tale of two halves’, with a strong earnings recovery in the second half supported by a resilient client base.
Adjusted earnings per share for the year ended 31 March was 28.9p, almost 15 per cent lower than the previous year.
Second half earnings shot up to 58 per cent ahead of the first half. A final dividend of 7.5p has been proposed, bringing to full year dividend to 13p.
Adjusted operating profit hit £377.6m for the year, a ten per cent decrease from same period in 2020.
Fani Titi, group CEO of Investec, said the company was encouraged by its recent momentum and it expects the second half performance to continue.
“The 2021 financial year was a tale of two halves. First half performance was characterised by difficult and volatile market and economic conditions attributable primarily to Covid-19.
“The second half showed strong earnings recovery, supported by our resilient client base, a rebound in economic activity and a greater sense of optimism spurred on by global vaccination campaigns.”
Following the full year update, shares in Investec rose 0.7 per cent as markets opened.