Latest news with #R24bn
IOL News
15-07-2025
- Business
- IOL News
Investec Sets Course for Next Growth Phase, says CEO Fani Titi
Investec is entering a new phase of its growth journey, driven by a focused set of priorities that build on its well-established strengths while opening pathways for sustainable expansion, CEO Fani Titi said in the company's annual report released on Monday. Over the past six years, the group has executed a comprehensive strategy to simplify and focus the business. "We have executed this strategy with discipline, taking bold - and at times difficult - decisions. The outcome is reflected in a re-rated market valuation and a streamlined, well-capitalised business poised for accelerated growth," said Titi. Reflecting on this period of transformation, Titi expressed pride in the progress made despite persistent global challenges. The company delivered a structural improvement of 200 basis points (bps) in group returns, laying a solid foundation for future growth. Looking ahead, Titi outlined a clear and executable plan to scale Investec's existing client franchises and invest in targeted growth initiatives that strengthen its specialist capabilities. "We expect these strategies to collectively add a further 200 bps to group returns over the next five years, bringing us to the upper end of our revised medium-term target range," he added. Strong Performance Amid Volatility In the year under review, Investec delivered robust performance in a volatile environment, achieving a Group Return on Equity (ROE) of 13.9%, in line with guidance issued in May 2024. "For the first time in our history, pre-provision adjusted operating profit surpassed £1 billion (R24bn), underscoring the strength of our differentiated client franchises and diversified business model," Titi noted. Despite persistent geopolitical and macroeconomic uncertainty, Investec maintained strong capital and liquidity positions. Titi described the current rebalancing of global trade relations as a historic shift that brings both risk and long-term opportunity. He said the group remains well-positioned to support clients through this complexity. Strategic Focus in Core Markets Investec is continuing to invest in platforms that strengthen its corporate mid-market proposition in its two core geographies: the UK and South Africa. In South Africa, the aim is to create an integrated platform enabling mid-sized corporates to manage all their banking needs. "Our ambition is to become the primary banking partner for these clients, combining high-touch lending with a modern, user-friendly transactional experience. Our brand, track record, and client-centric operating model position us uniquely to bring the Investec private client experience to businesses," Titi explained. In the South African private client segment, the group is accelerating its client acquisition strategy, particularly among high-income individuals. It will continue to invest in a global private client offering that integrates full-service banking with international wealth and investment management. Titi said Investec's well-established UK Corporate and Investment Banking franchise stands as the only integrated and diversified specialist bank catering to the UK corporate mid-market. Investec was now investing in transactional banking capabilities to deliver end-to end corporate banking to this large and growing segment. Its UK Private Client business is advancing its growth objectives by delivering a comprehensive banking proposition. Investec's investment in the private client transactional banking platform will facilitate the delivery of a full-suite product offering including multi-currency. Outlook and Financial Projections Group Finance Director Nishlan Samujh noted that while the global macroeconomic outlook remains uncertain, Investec is actively monitoring developments and remains confident in its ability to adapt. Looking ahead to 2026, Investec expects to sustain its revenue momentum, supported by continued book growth, increased client activity, and successful execution of its acquisition and retention strategies. Group ROE is forecast at 14%, within the target range. In South Africa, ROE is expected to reach 18.5%, while the UK and Other business segment is targeting a Return on Tangible Equity of 14.0%.
TimesLIVE
21-05-2025
- Business
- TimesLIVE
Britain's M&S says cyberattack to cost R7.2bn
British retailer Marks & Spencer (M&S) said on Wednesday a 'highly sophisticated and targeted cyberattack' would cost it about £300m (R7.20bn) in operating profit, with disruption set to run into July. The attack on one of the biggest names in Britain, with 64,000 staff and 565 shops, has shocked the retail sector. It forced M&S's online clothing operation offline, left some food shelves bare and wiped more than £1bn (R24bn) from the company's stock market value. M&S, which was trading strongly before the hack, said online disruption in its fashion, home and beauty division would continue throughout June and into July as it restarts systems and then ramps up operations. Online sales and trading profit in that division had been 'heavily impacted' by the decision to suspend online shopping, though shop sales had 'remained resilient'. In food, M&S said it had been hit by reduced availability and higher waste and logistics costs as it was forced to return to pen and paper systems. Food sales had since improved. The company said it hoped to halve the expected profit hit for its 2025/2026 year through the 'management of costs, insurance and other trading actions'. Shares in M&S were down 3.4% in early trade on Wednesday, extending losses since the cyberattack to 13%. The group said it would use the crisis to 'accelerate the pace of improvement of our technology transformation' and had found new and innovative ways of working. 'We are focused on recovery, restoring our systems, operations and customer proposition over the rest of the first half, with the aim of exiting this period a much stronger business,' it said. British companies and institutions have been hit by increasingly aggressive and regular cyber and ransomware attacks in recent years, with the British Library, a blood testing service and the London Underground all suffering months of disruption. CEO Stuart Machin said M&S had overcome many challenges in the past 140 years and would do so again. 'This incident is a bump in the road and we will come out of this in better shape and continue our plan to reshape M&S for customers, colleagues and shareholders,' he said, adding that customers had been 'unwavering in their support'. With hackers having also hit the Co-op and Harrods in Britain, and Google saying last week those responsible were targeting US companies, retailers worldwide are racing to boost defences. M&S said last week some personal customer information had been stolen in the hack. The cyberattack also overshadowed the progress M&S had made with its turnaround plan. It reported a 22.2% rise in adjusted pretax profit to £875.5m (R21.02bn), the highest in more than 15 years, for the year to March 29, before analysts' average forecast of £840m (R20.16bn). Sales increased 6.1% to £13.9bn (R333.73bn), with food sales up 8.7% and clothing, home and beauty sales up 3.5%, with the group winning market share in both divisions. Some rivals are likely to benefit. Earlier this month clothing rival Next raised its profit outlook after strong first quarter trading. Analysts think it will get a trading tailwind from M&S' online problems, as will John Lewis, Tesco and Sainsbury's.
