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.