Investec CEO on full-year earnings, economic optimism amid vaccine rollout

Investec, a financial services group, recently reported a 7.5 pence final dividend alongside a lower than expected 14.7% decline in annual profit. The positive results were driven by factors such as growth in loans and funds under management. Fani Titi, the CEO of Investec, spoke with CNBC Africa to discuss the performance of the company's African and UK businesses. Titi highlighted the strong performance of Investec's UK business, which saw record assets and management of £41.7 billion, leading to record profits of £74 million. Factors contributing to this success included market level recovery, excellent investment performance, and significant net inflows. In South Africa, Investec experienced discretionary net inflows of £7.6 billion and an 11% increase in profits, demonstrating resilience in a challenging market environment. The CEO also pointed out that the past year was characterized by two distinct halves, with the first half marked by difficulty and volatility, while the second half showed signs of recovery. Titi attributed the recovery to improving economic conditions, particularly driven by optimism surrounding vaccination efforts. This optimism has translated into increased confidence among clients, both on the corporate and private sides. Looking ahead to the next financial year, Titi expressed confidence in continued recovery and growth. The CEO emphasized the importance of client activity and market levels, with a focus on economic activity and containment of the virus. While acknowledging the potential impact of reduced stimulus measures in some economies, Titi remained optimistic about the overall outlook for Investec's business. Investec's funds under management reached record highs, with notable growth and net inflows. Titi expressed optimism about the strength of these results carrying forward into the first half of the next financial year, citing the resilience of clients and positive market conditions as key drivers of continued success. Overall, Titi's outlook for Investec remains positive, buoyed by strong performance, favorable market conditions, and a sense of optimism regarding the broader economic landscape. As the company navigates the evolving financial landscape, it aims to build on its recent successes and capitalize on emerging opportunities for growth and expansion.