Investec

Website: Investec
Index: FTSE 250
EPIC: INVP
Supersector: Financial Services
Sector: Financial Services
Subsector: Investment Services
Market Cap: £3.35B
Payout Frequency: Semi-Annual

Investec Dividend Analysis and Summary

Dividend declaration and key dates

Interim dividend: 17.5p per share (up 6.1% YoY from 16.5p).
Payout ratio: 43.2% (within policy of 35%–50%); dividend cover ˜ 2.3x H1 adjusted EPS (40.5p).
Ex-dividend date (LSE): 11/12/2025.
Record date: 12/12/2025.
Payment date: 30/12/2025.
South Africa equivalent: 396.0 cents gross (FX rate 22.615); SA Dividend Tax 20% applies for non-exempt holders.
Capital returns: c.£46m buyback executed toward the £100m programme (May 2025); c.£376m returned over 12 months (dividends + buybacks).

Short financial context (H1 FY2026)

Adjusted EPS: 40.5p (+2.5% YoY); Adjusted operating profit: £468m (-1.4%).
ROE: 13.6%; ROTE: 15.7% (both within target ranges).
Cost-to-income: 51.9% (from 50.8%); Credit loss ratio: 35bps (within 25–45bps TTC), ECL down YoY.
Capital: CET1 12.7% (plc) and 14.6% (Limited); TNAV/share up to 527.9p, NAV/share 608.1p.

Analysis: sustainability, growth and support

Sustainability: The interim dividend is well-covered (~2.3x) by adjusted earnings with a 43.2% payout, comfortably inside policy. Capital ratios are strong and liquidity robust, supporting ongoing distributions.
Earnings trajectory: EPS grew modestly despite slight revenue and operating profit pressure, aided by fee income growth and lower impairments. Management guides H2 performance broadly in line with H1, suggesting a steady full-year base for dividends.
Support from capital allocation: Balance between dividends and buybacks continues; focus on capital-light growth (Wealth & Investment, Rathbones associate) should enhance the durability of cash generation over time.
Growth: Interim DPS rose 6.1% YoY. With ROE within target and strong capital generation, the dividend policy looks maintainable; future progression should track earnings and capital delivery.

Structural or policy items relevant to future dividends

Dual-listed structure (Investec plc/Investec Limited): Dividends to UK register paid by Investec plc; SA branch register paid via SA DAS share at disclosed FX—no change to policy.
Portfolio developments: Ongoing benefits from the 2023 IW&I UK/Rathbones all-share combination (synergies achieved); Swiss wealth acquisition added FUM; internal creation of a unified Corporate mid-market division to drive growth and fee income.
Funding mix and capital: Settlement of legacy AT1 (Dec 2024) normalised AT1 costs; UK bank progressing toward IRB approach (potential longer-term capital efficiency).

Risks and flags for dividend stability

Regulatory redress: FCA motor finance scheme—current provision £30m; ultimate cost uncertain and could vary with final rules and take-up.
Legal exposure: Ongoing German cum-ex investigations; outcomes and financial impact remain uncertain.
Margin pressure and costs: Lower average rates and competitive pricing weighing on NII; cost-to-income rose to 51.9% amid investment and inflation.
Credit cycle: Guidance indicates UK credit loss ratio around the upper end of the 50–60bps range in FY2026; any deterioration would pressure earnings cover.
Macro/FX: Geopolitical and rate uncertainty plus FX translation can influence reported earnings and capital generation across geographies.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
14/08/2025	29/08/2025	Final	20.00p	GBX
27/11/2025	12/12/2025	Interim	26.1986p	GBX
11/12/2025	30/12/2025	Final	17.5000p	GBX

Total (Annual Dividends Per Share): 63.70p

Dividend Yield = Annual Dividends Per Share (63.70p) ÷ Share Price (530.5p) = 12.01%

Ex Dividend Date	Payment Date	Type	Amount	Currency
11/12/2025	30/12/2025	Final	17.5000p	GBX
27/11/2025	12/12/2025	Interim	26.1986p	GBX
14/08/2025	29/08/2025	Final	20.00p	GBX
12/12/2024	31/12/2024	Interim	16.50p	GBX
22/08/2024	06/09/2024	Final	19.00p	GBX
07/12/2023	22/12/2023	Interim	15.50p	GBX
17/08/2023	04/09/2023	Final	17.50p	GBX
08/12/2022	09/01/2023	Interim	13.50p	GBX
21/07/2022	08/08/2022	Final	14.00p	GBX
09/12/2021	22/12/2021	Interim	11.00p	GBX
22/07/2021	10/08/2021	Final	7.50p	GBX
10/12/2020	04/01/2021	Interim	5.50p	GBX
05/12/2019	18/12/2019	Interim	11.00p	GBX
25/07/2019	12/08/2019	Final	13.50p	GBX
06/12/2018	18/12/2018	Interim	11.00p	GBX
06/12/2018	19/12/2018	Interim	11.00p	GBX
26/07/2018	13/08/2018	Final	13.50p	GBX
07/12/2017	20/12/2017	Interim	10.50p	GBX
27/07/2017	14/08/2017	Final	13.00p	GBX
08/12/2016	21/12/2016	Interim	10.0p	GBX
28/07/2016	10/08/2016	Final	11.50p	GBX
10/12/2015	23/12/2015	Interim	9.50p	GBX
30/07/2015	14/08/2015	Final	11.50p	GBX
11/12/2014	29/12/2014	Interim	8.50p	GBX
30/07/2014	15/08/2014	Final	11.00p	GBX
11/12/2013	27/12/2013	Interim	8.00p	GBX
31/07/2013	12/08/2013	Final	10.00p	GBX
12/12/2012	28/12/2012	Interim	8.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	16.500	19.000	GBX	35.500	7.570
2023	15.500	17.500	GBX	33.000	20.000
2022	13.500	14.000	GBX	27.500	48.640
2021	11.000	7.500	GBX	18.500	236.360
2020	5.500		GBX	5.500	-77.550
2019	11.000	13.500	GBX	24.500	-30.980
2018	22.000	13.500	GBX	35.500	51.060
2017	10.500	13.000	GBX	23.500	9.300
2016	10.000	11.500	GBX	21.500	2.380
2015	9.500	11.500	GBX	21.000	7.690
2014	8.500	11.000	GBX	19.500	8.330
2013	8.000	10.000	GBX	18.000	125.000
2012	8.000		GBX	8.000

Number of Shares:

Payment	Paid	Amount
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