LONDON (dpa-AFX) - Investec Plc. (INVP.L) on Thursday posted lower earnings in fiscal 2025. The result was impacted by wider credit loss impairment charges and one-time impact of strategic actions. Revenue and net interest income for the period, however, rose from last year. The company also provided outlook for fiscal 2026.
During fiscal 2025, the South African financial services company posted earnings attributable to shareholders of 693.48 million pounds, lower than last year's 941.04 million pounds. On a per share basis, earnings dropped to 70.3 pence from 101.0 pence a year ago.
Annual pre-tax profit from continuing operations, however, rose to 863.15 million pounds from 822.50 million in fiscal 2024.
Adjusted earnings attributable to shareholders rose 2.2 percent to 676.8 million pounds from 662.5 million pounds last year. On an adjusted basis, basic earnings per share came in at 79.1 pence, higher than 78.1 pence in the prior year.
The annual results included 21.02 million pounds one-time financial impact of strategic actions. Credit loss impairment charges widened to 119.23 million from 79.113 million last year.
According to Investec, net asset value or NAV per share climbed to 587.7 pence from 563.9 pence a year ago. The company's Return on equity or ROE, however, fell to 13.9 percent from 14.6 percent last year.
Annual revenue came in at 2.190 billion pounds, up 5 percent from last year's 2.085 billion pounds. The increase in revenue was due to improved client acquisition and ongoing entrenchment strategies.
The company's interest income rose to 4.160 billion pounds from 4.124 billion pounds recorded last year. Net interest income for the year was 1.358 billion, up 1.5 percent from 1.338 billion pounds recorded a year ago.
Looking ahead, the company said that it is committed towards its medium-term financial goals and in fiscal 2026, group ROE is expected to be around 14.0 percent within the 13.0 percent to 17.0 percent target range.
The company said that it is working towards achieving the ROE towards the upper end of the target range by fiscal 2030.
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