Investec annual EPS hits top end of guidance

South African lender Investec almost doubled annual profits, driven by loan growth and a rise in funds under management.

The bank on Thursday reported an adjusted earnings per share of 55.1 pence, up 90.7% for the year to March 31, at the top end of guidance. Adjusted operating profit was up 82.1% to £687.4m.

Funds under management rose 9% to £63.8bn, with core loans up 13.2% to £29.9bn. The lender also announced a final dividend of 14p a share, taking its full year dividend to 25p each, up from last year’s 13p.

Investec said the results were underpinned by net inflows of £1.9bn and a rebalancing of market levels, after a sustained period of volatility, which trickled into the last quarter.

For the current financial year, Investec said it expected revenue growth to be supported by higher interest rates, higher lending and "increased activity levels given expected GDP growth".