Investec Reports Resilient H1 2026 Results with Adjusted EPS Growth and Dividend Hike

Investec H1 2026 results: steady earnings, higher dividend, and a firm grip on risk

Investec has posted a resilient set of interim numbers for the six months to 30 September 2025. Adjusted EPS edged up 2.5% to 40.5p, the interim dividend was lifted to 17.5p, and returns stayed comfortably within target ranges despite softer revenue and margin pressure. Management continues to push growth in corporate mid-market banking and private client franchises, while keeping credit costs well behaved.

The tone is confident. Over the past 12 months the Group returned about £376 million to shareholders via ordinary dividends and buybacks, equivalent to 7.4% of average market capitalisation, and it still carries strong capital and liquidity.

Key numbers investors should know

Metric	1H2026	YoY
Revenue	£1,096.3 million	(0.6%)
Adjusted operating profit	£468.1 million	(1.4%)
Adjusted EPS	40.5p	+2.5%
Basic EPS	37.8p	+3.3%
Interim dividend	17.5p	up from 16.5p
Payout ratio	43.2%	within 35-50% policy
ROE	13.6%	within 13-17% target
ROTE	15.7%	within 14-18% target
Cost-to-income ratio	51.9%	from 50.8%
Credit loss ratio (CLR)	35bps	from 42bps
NAV per share	608.1p	+5.6%
TNAV per share	527.9p	+7.4%
Net core loans	£33.7 billion	+6.1%
Customer deposits	£41.9 billion	+3.6%
Cash and near cash	£16.9 billion	flat
CET1 ratio	SA 14.6%, UK 12.7%	robust

Jargon check: CLR is the expected loss charge on loans as a percentage of the average book; ROTE is return on tangible equity; NAV is net asset value, TNAV strips out goodwill and intangibles.

What drove the half-year performance

Income mix: fees up, margins tighter

• Net interest income slipped 2.1% to £670.1 million as lower average interest rates and fierce pricing competition more than offset loan growth and cheaper funding in Southern Africa.
• Non-interest revenue rose 1.9% to £426.2 million. Net fees climbed 9.4% to £242.5 million, led by UK corporate lending and advisory, and higher annuity fees in SA Wealth & Investment.
• Trading and investment income was softer versus a strong prior period that benefited from South Africa’s post-GNU market rally.

Costs and credit: disciplined, if not perfect

• Operating costs rose 1.5% to £568.9 million, reflecting investment in people and technology and inflation. The cost-to-income ratio ticked up to 51.9%.
• Impairments fell to £59.3 million, taking the CLR down to 35bps within the 25-45bps through-the-cycle range. Management reports no deterioration in overall credit quality.
• The effective tax rate improved to 20.9% from 22.3%.

Balance sheet and capital: plenty of firepower

• Net core loans grew to £33.7 billion, with broad-based growth across corporate and private client books.
• Deposits increased to £41.9 billion. Liquidity is strong with £16.9 billion cash and near cash, and both LCR and NSFR well above requirements.
• CET1 remains healthy at 14.6% in Southern Africa and 12.7% in the UK. The UK bank is progressing towards the Internal Ratings-Based capital approach.

Segment performance: UK vs Southern Africa

• Investec plc – UK & Other: adjusted operating profit £230.0 million, up 3.3%. Loans grew 6.6% annualised to £17.4 billion, helped by Fund Solutions, Direct Lending, Aviation and UK mortgages. CLR eased to 56bps from 67bps, in line with guidance. Cost-to-income 53.3% as investment in growth and regulatory programmes continued.
• Investec Limited – Southern Africa: adjusted operating profit £238.0 million, down 5.5% in Pounds. Loans grew 8.9% YoY to £16.3 billion and deposits 9.4% to £20.6 billion. CLR dropped to 12bps and ROE remained strong at 18.3%, though the cost-to-income ratio rose to 47.4% in local reporting and 52.1% in the combined metrics due to investment and inflation.

Motor finance redress watch: the Group holds a £30 million provision for the UK industry-wide motor finance redress consultation. Based on the FCA’s current proposals, management says the provision remains appropriate, but outcomes are uncertain until final rules are set.

Wealth & Investment and Rathbones stake

• Wealth & Investment adjusted operating profit increased 10.6% to £60.3 million.
• Southern Africa FUM rose 13.4% to £26.5 billion, with strong discretionary and annuity net inflows of R11.5 billion (£478 million), plus R5.2 billion (£215 million) added via a Swiss acquisition, partly offset by non-discretionary outflows.
• Rathbones reported £113.0 billion FUMA. Investec’s share of Rathbones’ post-tax underlying profit contributed £33.9 million, accrued at an effective interest of 43.05%. Rathbones has completed the IW&I UK migration and hit its £60 million synergy run-rate target.

Shareholder returns: dividend uplift and buybacks

The interim dividend is up 6.1% to 17.5p per share, equating to a 43.2% payout ratio, squarely within the 35-50% policy. Investec has repurchased about £46 million of the £100 million buyback announced in May 2025. NAV per share increased to 608.1p and TNAV to 527.9p, supported by strong capital generation.

For detailed dates and mechanics for shareholders in the UK and South Africa, see Investec’s investor relations page at investec.com/investorrelations.

Outlook and guidance for FY2026

• H2 performance is expected to be broadly in line with H1.
• Group ROE guided to around 13.7% within the 13-17% range. Southern Africa ROE c.18.5%; UK & Other ROTE c.13.6%.
• Cost-to-income ratio expected between 52% and 54% as the Group continues to invest.
• CLR to remain within the 25-45bps range. Southern Africa near the lower end of its 15-35bps band; UK & Other around the upper end of its 50-60bps guidance.

Strategically, Investec is doubling down on its corporate mid-market proposition in the UK and Southern Africa, aiming to bring private client banking-style service to mid-sized companies. Management also sees a clear path to c.200bps incremental ROE by FY2030 through scale, capital optimisation and a greater tilt to capital-light earnings.

My take: a sensible, shareholder-friendly print

This is a solid set of results in a trickier rate backdrop. The positives are clear: loan growth, robust fee momentum, lower impairments, rising NAV and a higher dividend. Capital and liquidity give plenty of flexibility, and the Rathbones exposure adds a stable annuity stream.

The trade-offs are also visible. Revenue dipped slightly, margins are under pressure, and costs are running hotter as Investec invests in growth and resilience. UK impairments remain at the top end of guidance, and Group Investments’ lower contribution shows how market-sensitive that line can be. The motor finance redress remains a swing factor, even if current provisioning looks prudent.

Overall, the direction of travel is positive. If management delivers on mid-market banking scale-up while keeping CLR inside the range and costs contained, the combination of buybacks, dividend growth and TNAV accretion should continue to support long-term returns.