Investec’s Full-year profits rose nearly 91% due to strong growth in debt, higher client acquisitions and increased funding under management, it said on Thursday.
The bank, which serves exclusive and high-income private clients in South Africa, reported a consistent earnings per share of 55.1 pence – a profit during the normal trading period – for the year ended March 31, on top of its estimates.
It announced a final dividend of 14 pence per share, taking its full-year dividend to 25 pence per share.
Lenders, which have doubled as an asset management firm and are also listed in the UK, have been among the top performing banks in South Africa in terms of share price over the past two years.
It is primarily driven by a focus on acquiring and serving quality clients, reducing costs and closing its asset management business Ninety One.
Funds under lender management increased 9.2% to .8 63.8 billion and core debt increased 13.2% to .9 29.9 billion, its two main business divisions.
Its revenue, backed by post-epidemic economic recovery, rose 21.3%, it said.
For the fiscal year ended March 31, 2023, Investec expects revenue growth to be supported by higher interest rates, higher debt and “increased activity levels due to projected GDP growth”.