Investec profits climb but assets dip as it prepares for Rathbones merger

FUM fell 4.5% to £61bn due to unfavourable market movements

Photo by Ali Yaqub on Unsplash
Photo by Ali Yaqub on Unsplash


Investec has reported a rise in profits as the proposed merger of its wealth management business with Rathbones approaches.

In what it described as strong performance amidst a complex macroeconomic backdrop, the firm booked a 21.6% rise in operating profit to £835.9m from £687.4m the previous year.

Funds under management fell 4.5% to £61bn from £63.8bn. The bank pointed to unfavourable market movements as the primary reason for this. Net inflows were £377m, with £810m of inflows to discretionary funds offset by £433m of non-discretionary net outflows.

Investec also provided a minor update on the all-share merger of its wealth management business with Rathbones, confirming it is on track to be completed early in the fourth quarter of 2023. Provided all regulatory hurdles are cleared, the deal will create a business with over £100bn in assets. Investec will own 41.25% of the new entity, with Rathbones owning the rest.

Shares in Investec rose 0.25% this morning to 433p, for a market cap of £4.14bn.

Group chief executive Fani Titi commented: “The group reported strong results in a challenging macro backdrop, with all our client franchises reporting growth in pre-provision adjusted operating profit. Our focused approach to support our clients and the diversified nature of our revenue streams underpinned the financial performance.

“The strong capital generation across the group allows us to maintain robust capital and liquidity levels, deliver improved returns to our shareholders, and support our clients, colleagues, and societies through an uncertain economic environment. We are proud of the progress we are making to entrench sustainability across every aspect of our business.”


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