South Africa's Investec reports marginal rise in full-year earnings (updated)
21/05/2026 08:07
Targets 122,000 new private banking clients by 2030 UK arm to shift from specialist lender to full-service bank Investec sees opportunity in affluent South Africans Recasts throughout with private client offering By Nqobile Dludla and Lulah Dube JOHANNESBURG, May 21 (Reuters) - Investec (INLJ.J) is doubling down on its private client business, betting affluent and high-net-worth customers in South Africa and Britain will drive growth as it deepens links across banking, lending, insurance and wealth. The push comes as margins in corporate and investment banking come under pressure, prompting banks to channel capital into relationship-led wealth businesses amid expanding wealthy populations. For Investec, which straddles South Africa and the UK, the private client franchise already contributes about a third of group operating profit, with room to grow. In a strategy update on Thursday, Group Chief Executive Fani Titi and business heads said the lender aims to add 122,000 private banking clients in South Africa to its current 128,000 and lift operating profit in the unit by 3 billion rand ($182 million) by March 2030. The target market includes roughly 1 million South Africans earning 800,000 rand or more, within a broader banking population of 40 million. While Investec has a leading share of high-net-worth clients, it sees room to expand in the affluent segment by offering investment and insurance products previously out of reach. "With a 7% market share, our view is that we are underrepresented in the affluent part of the South African market," Itumeleng Merafe, Head of Private Banking South Africa, said, pointing to a potential market of about 700,000 clients. In Britain, Investec INVP.L plans to add around 5,000 clients to its base of 8,200, contributing about £25 million pounds ($33.6 million) in additional operating profit. The group is repositioning its UK arm from a specialist lender to a full-service bank, adding current accounts, credit cards and rewards. Investec, which earlier reported pre-provision adjusted operating profit growth of 3.5% at £1.1 billion, is also leveraging its international footprint, spanning Switzerland, Channel Islands, Dubai and the UK, to serve globally mobile clients. Its Wealth & Investment International unit, serving about 27,000 annuity clients, is expected to grow earnings by 16% to 17% annually through 2030, driven by expansion in key markets and closer integration across the group. ($1 = 0.7447 pounds) (Reporting by Nqobile Dludla and Lulah Dube Editing by Tomasz Janowski, David Goodman and Bate Felix)