Investec has projected an adjusted earnings per share increase from 76p to 80p for the fiscal year 2024, compared to 68.9p in the last year.
The company also expects an increase in operating profit, rising to between £866.9m and £909.6m from £818.7m the year before. UK businesses particularly, such as Rathbones Group, expect at least a 15 percentage point jump.
Investec and Rathbones embarked on merging their wealth management businesses throughout 2023, with the £839m deal completed in September. Following the merger, the Investec Group owns 41.3% of the enlarged Rathbones Group.
“The group’s diversified revenue streams and the success of our client acquisition strategies across our client franchises have continued to underpin a solid performance, notwithstanding the uncertain macroeconomic environment and persistent market volatility that prevailed,” Investec said within its statement.
Investec noted an expected credit loss ratio “around the mid-point of the through-the-cycle range” of 25 to 35bps. The UK will likely see credit loss between 50 to 60bps.
“Given the challenging macroeconomic and elevated interest rate environment, we have seen idiosyncratic client stresses with no evidence of trend deterioration in the overall credit quality of our lending books,” Investec stated.
The company plans to report full-year results on 23 May, along with revised financial targets.
