Investec Bank CEO to step down

The Investec Bank Limited Board says chief executive officer, Richard Wainwright, will step down from his role during the course of 2024, as per the group’s executive succession plan.

The board said that his successor will be announced at the end of a selection process.

However, post-transition, Wainwright will continue in an executive role until his planned retirement in 2025.

The announcement follows the release of Investec’s financial results for the year ended 31 March 2023, where it increased its dividend per share by 24%.

Dividends per share grew from 25 pence (R6.04) in 2022 to 31 pence (R8.46) in 2023.

The group said it achieved a robust financial performance over the financial year, despite the difficult macroeconomic backdrop.

Adjusted operating profit totalled £835.0 million (R20.1 billion) in 2023, up from £687.4 (R16.6 billion) in 2022.

Overall, headline earnings per share jumped 25.3%, increasing from 53.3 pence (R12.89) in 2022 to 66.8 pence (R16.15).

“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,” Fani Titi, Group Chief Executive, said.

“During the period under review, we returned approximately £780 million to shareholders, comprising ordinary dividends, the share purchase programme to optimise the SA balance sheet and the distribution of a 15% shareholding in Ninety One.”

“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.”

Below is the group’s key financial data (in Pound sterling):

Outlook

The group said that its strong capital and robust liquidity levels should help it navigate the current market and pursue its growth initiatives in chosen markets.

Based on the outlook, the groups said that revenue will be underpinned by moderate book growth, elevated interest rates and the activity level of clients.

Although the group expects continued inflationary pressures and will invest further in the business, it said that overall costs will be contained with a cost-to-income ratio of roughly 60%.

Moreover, the return on equity (ROE) should be in the mid-point of the group 12-16% target range.

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Investec Bank CEO to step down