Investec, the FTSE 250 lender, has reiterated its full-year targets, forecasting earnings per share to be between 41.7p and 43.3p. This represents a projected rise of three to seven per cent from the previous year.
The growth projection is primarily attributed to a surge in activity within its South African operations. In this region, funds under management in its wealth arm increased by 13.8 per cent to £30.7bn. The financier anticipates a 14 per cent increase in the region's operating profit from the prior year, where it generated £223.6m.
Conversely, Investec's UK business is expected to see a decline, with operating profit projected to fall by two to six per cent. Ruth Leas, Investec's UK chief executive, stated that this cooling performance reflects significant spending on expanding the firm's UK presence and the impact of Bank of England interest rate decisions. Despite the overall earnings drag in the UK, mortgage lending increased by nine to ten per cent.