Residential mortgage activity sees Investec’s UK loan book grow

The group attributed this to lending in the residential mortgage market, with this segment seeing a 7.9 per cent rise. As of the end of the reported period, its UK mortgage book stood at £4.5bn. 

Adjusted operating profit within the UK business rose 52.3 per cent to £128.6m, compared to £84.5m previously. 

It said its growth in income was driven by a higher average book, higher fees, rising interest rates and sustained client activity. During the period, its net interest income rose 40.8 per cent to £49.7m. 

Impairment charges within the UK business totalled £27.9m, resulting in a credit loss ratio of 32 basis points. Investec said these charges were driven by the “deterioration” in future macroeconomic assumptions. 

‘Proud of the progress’

As a whole, the group posted an adjusted operating profit of £425.2m, which was 29.5 per cent higher than the same period last year. 

Fani Titi, group chief executive of Investec, said: “The group’s earnings growth momentum continued, underpinned by strong revenues from our diversified client franchises and a focused approach to support our clients. Rising global interest rates, client acquisition and strong asset quality supported these results.  

“We have strong liquidity and capital levels and are well positioned to support all our stakeholders, including our clients, our people, and communities around us. We are proud of the progress we are making to entrench sustainability across every aspect of our business.”