Investec Sets Course for Next Growth Phase, says CEO Fani Titi

Investec is entering a new phase of its growth journey, driven by a focused set of priorities that build on its well-established strengths while opening pathways for sustainable expansion, CEO Fani Titi said in the company’s annual report released on Monday.

Over the past six years, the group has executed a comprehensive strategy to simplify and focus the business. "We have executed this strategy with discipline, taking bold - and at times difficult - decisions. The outcome is reflected in a re-rated market valuation and a streamlined, well-capitalised business poised for accelerated growth," said Titi.

Reflecting on this period of transformation, Titi expressed pride in the progress made despite persistent global challenges. The company delivered a structural improvement of 200 basis points (bps) in group returns, laying a solid foundation for future growth.

Looking ahead, Titi outlined a clear and executable plan to scale Investec’s existing client franchises and invest in targeted growth initiatives that strengthen its specialist capabilities. "We expect these strategies to collectively add a further 200 bps to group returns over the next five years, bringing us to the upper end of our revised medium-term target range," he added.

Strong Performance Amid Volatility

In the year under review, Investec delivered robust performance in a volatile environment, achieving a Group Return on Equity (ROE) of 13.9%, in line with guidance issued in May 2024. "For the first time in our history, pre-provision adjusted operating profit surpassed £1 billion (R24bn), underscoring the strength of our differentiated client franchises and diversified business model," Titi noted.

Despite persistent geopolitical and macroeconomic uncertainty, Investec maintained strong capital and liquidity positions. Titi described the current rebalancing of global trade relations as a historic shift that brings both risk and long-term opportunity. He said the group remains well-positioned to support clients through this complexity.

Strategic Focus in Core Markets

Investec is continuing to invest in platforms that strengthen its corporate mid-market proposition in its two core geographies: the UK and South Africa. In South Africa, the aim is to create an integrated platform enabling mid-sized corporates to manage all their banking needs.

"Our ambition is to become the primary banking partner for these clients, combining high-touch lending with a modern, user-friendly transactional experience. Our brand, track record, and client-centric operating model position us uniquely to bring the Investec private client experience to businesses," Titi explained.

In the South African private client segment, the group is accelerating its client acquisition strategy, particularly among high-income individuals. It will continue to invest in a global private client offering that integrates full-service banking with international wealth and investment management.

Titi said Investec's well-established UK Corporate and Investment Banking franchise stands as the only integrated and diversified specialist bank catering to the UK corporate mid-market. Investec was now investing in transactional banking capabilities to deliver end-to end corporate banking to this large and growing segment.

Its UK Private Client business is advancing its growth objectives by delivering a comprehensive banking proposition. Investec's investment in the private client transactional banking platform will facilitate the delivery of a full-suite product offering including multi-currency.

Outlook and Financial Projections

Group Finance Director Nishlan Samujh noted that while the global macroeconomic outlook remains uncertain, Investec is actively monitoring developments and remains confident in its ability to adapt.

Looking ahead to 2026, Investec expects to sustain its revenue momentum, supported by continued book growth, increased client activity, and successful execution of its acquisition and retention strategies. Group ROE is forecast at 14%, within the target range. In South Africa, ROE is expected to reach 18.5%, while the UK and Other business segment is targeting a Return on Tangible Equity of 14.0%.