Investec CEO Titi outlines bank’s future, Hong Kong

Investec, a prominent financial services company, recently faced challenges with its share price trading lower due to weak performances in the United Kingdom banking and wealth management sectors. Despite these difficulties, Investec's CEO, Fani Titi, remains optimistic about the company's future prospects. In a recent interview with CNBC Africa, Titi outlined the bank's future plans, including the spin-off of its asset management division next year. This strategic move will leave Investec with a focus on banking and wealth management operations.Experts analyzing Investec's performance have noted that the bank's results were in line with the adjusted operating profit expectations set earlier in the year. Titi acknowledged the tough market conditions in both South Africa and the UK, citing factors such as low business confidence, Brexit uncertainty, and sluggish economic growth. However, despite these challenges, Investec's asset management and wealth businesses saw significant inflows and growth in assets under management.Titi emphasized that Investec continues to invest in its core businesses and client base, particularly targeting high net worth individuals and professionals. The bank reported growth in its loan books and deposits, demonstrating resilience in its private banking sector. Additionally, Investec has been focusing on enhancing its corporate banking offerings, despite a decrease in the loan book on that side of the business due to economic uncertainties. Looking ahead, Titi remains hopeful that with improvements in government policies and a more business-friendly environment, there could be a resurgence in the economy, benefiting Investec's operations. The impending announcement from Moody's regarding Investec's credit status in February next year remains a key concern. Titi expressed confidence in the resilience of their clients and their ability to navigate challenging economic conditions, even in the event of a downgrade.Titi also addressed the recent appointment of a new CEO for Eskom, the South African electricity utility. While the bond market's reaction was mixed, Titi highlighted the importance of a healthy Eskom for driving economic growth in the country. He emphasized the need for restructuring and tough decisions to address Eskom's debt burden and improve its operational efficiency.Despite facing pressures in its UK banking business, Investec has been actively working to enhance its offerings and clarify its market proposition. Titi noted that the corporate banking business in the UK has been profitable, and they are optimistic about future growth opportunities. He highlighted the importance of political stability, particularly with the upcoming UK elections and the need for a Brexit resolution.In response to questions about Investec's presence in Hong Kong amidst ongoing protests and economic challenges in the region, Titi mentioned that the bank has minimal impact from the unrest due to its limited operations there. He expressed hope for stability and a return to normalcy in Hong Kong.Finally, Titi discussed the upcoming demerger of Investec's asset management division, 91, into a separate entity. He expressed enthusiasm for the independence and growth potential of both businesses post-demerger, emphasizing their ability to generate capital and distribute returns to shareholders. Titi likened the demerger to a child coming of age, signaling a new chapter of growth and opportunity for Investec.