Investec has reinstated its interim dividend even after a “difficult and volatile” year for markets which saw its profits plunge.
The Anglo-South African firm declared an interim dividend of 5.5 pence per share, down from 11 pence. It halted dividend payouts on the guidance of UK and South African regulators amid the pandemic.
Total operating income was down 24 per cent year-on-year at £729m, with profit before taxation plunging 57 per cent to £112.9m.
Adjusted earnings per share – one of the firm’s company’s preferred metrics – halved to 11.2 pence per share in the first half.
Chief executive Fani Titi said: “The first half of the financial year has been characterised by difficult and volatile market and economic conditions attributed primarily to Covid-19.”
Investec’s common equity tier 1 ratio, a measure of financial stability, was unchanged at 10.7 per cent.
Investec’s wealth and investment arm reported net inflows of £336m and a 14.9 per cent rise in funds under management to £51.1bn.
Despite a rocky first-half, Investec anticipates performance in the second half to be ahead of the first due to improving revenue trends and client activity levels.
“We are encouraged by the resilience of our loan book, the performance of our core franchises against a tough backdrop and progress made on our strategic objectives,” said Titi.
In September the bank and wealth manager confirmed plans to cut 210 jobs in its London office, roughly 13 per cent of its UK headcount.