South Africa’s most exclusive bank chugging along

Investec expects to report a resilient set of results for its 2026 financial year, with the bank making progress on its strategic growth agenda.

On Thursday, 19 March 2026, Investec released a trading update outlining its expected performance for the year ending 31 March 2026.

This update revealed that Investec expects its headline earnings per share to remain flat or increase by 2% compared to its 2025 financial year.

Adjusted earnings per share are projected to rise by between 3% and 6%, while basic earnings per share are expected to increase by between 6% and 9%.

Investec’s credit loss ratio should be within its through-the-cycle range of 25 to 45 basis points, with a cost-to-income ratio of between 52% and 54%. The company noted that its overall credit quality remains solid.

The group’s return on equity (ROE) should be between 13.3% and 13.7%, within its medium-term target range of 13% to 17%. 

The company said its revenue growth over the year was supported by increased activity levels, higher average advances, and positive net inflows in discretionary and annuity funds under management. 

However, it noted that this was partially offset by the negative impact of lower average interest rates.

From a segmental perspective, Investec’s Southern African business’s adjusted operating profit is expected to be at least 4% ahead of the prior year in rands.

This business’s ROE is expected to be around 18.0%, which falls within Investec’s 16% to 20% medium-term target range. 

The bank’s UK business, including its interest in Rathbones, expects its adjusted operating profit to be at least in line with the prior year.

The UK business’s return on tangible equity is expected to be between 13.3% and 13.7%, within the medium-term target range of 13% to 17%. 

Overall, Investec said it has robust capital and liquidity levels to deliver on its strategy to enhance long-term shareholder returns. 

“We are focused on growing market share, deepening client relationships and driving incremental returns, while maintaining cost discipline and capital efficiency,” it said.

“We are making progress on the strategic growth agenda outlined in May 2025. The investment in our Corporate mid-market, Private Client segments and the ongoing modernisation of our operating and digital platforms is on track.”

Investec’s year-end results are scheduled to be released on Thursday, 21 May 2026.