Investec Group has reported a robust set of results despite large fund outflows due to a difficult economic backdrop.
In consolidated financial results for the year end 31 March 2023, it said revenue grew 14.6% from higher global interest rates and loan growth.
These were underpinned by client acquisition and increased client activity.
But funds under management (FUM) decreased 4.5% to £61bn from £63.8bn for the same period last year.
Also net inflows were £377m, with £810m inflows in discretionary FUM partly offset by £433m net outflows in non-discretionary FUM.
The group also announced that Ciaran Whelan and Richard Wainwright will step down as executive directors at the annual general meeting on 3 August 2023.
This is part of Investec’s long term succession plan and reduces the number of executive directors to two, namely, Fani Titi as chief executive and Nishlan Samujh as group finance director.
Wainwright will step down from his current position as CEO of Investec Bank Limited during the course of 2024.
A successor will be revealed at the conclusion of a selection process.
And post transition, Wainwright will remain in an executive role until his planned retirement in 2025.
At the start of April it was announced Rathbones Group and Investec Wealth and Investment will merge to create the UK’s “leading” discretionary wealth manager.
The deal that is subject to regulatory approval is expected to complete in Q4 2023.
The terms of the tie-up imply an equity value of approximately £839m for Investec Wealth and Investment UK.
Under the terms of the deal, new Rathbones shares will be issued in exchange for 100% of Investec Wealth and Investment UK’s share capital.
The transaction perimeter includes Investec Group’s wealth and investment businesses in the UK and Channel Islands.
It excludes Investec Bank (Switzerland) AG and Investec Wealth and Investment International – both of which will remain wholly-owned subsidiaries of Investec Group.
Speaking about the results today (18 May) Investec group CEO Fani Titi said: “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.”
