Investec PLC halves dividend after mixed first half

() chief executive Fani Titi said the financial group remained “well placed” to navigate the current market situation but the interim dividend was halved.

The Anglo-South African banking, investment and wealth management group declared a 5.5p payout for the six months ended September 30, 2020, compared to 11p a year ago.

Total operating income before expected credit losses of £729mln was down 24% year on year, with profit before taxation from continuing operations tumbling 57% to £112.9mln.

Adjusted basic earnings per share of 11.2p was 50.0% behind the prior period, albeit ahead of the company’s latest guidance.

The Wealth & Investment arm reported net inflows of £336mln and growth in funds under management (FUM) of 14.9% to £51.1bn since the last year end in March.

Specialist Banking business saw good client acquisition in South Africa and UK, but operating profits fell 53% despite net core loans growing 1% as strong loan book growth in UK private banking was offset by subdued corporate lending activity in both geographies and higher repayments.

“We are encouraged by the resilience of our loan book, the performance of our core franchises against a tough backdrop and progress made on our strategic objectives,” said Titi.

He and his board colleagues expect the overall performance in the second half to be ahead of the first, “underpinned by improving revenue trends relative to 1H2021 as client activity levels improve and liability repricing aids net interest income”.