Investec PLC and Ltd said on Wednesday it had revised upwards its interim earnings guidance, seemingly getting a boost from the merger between Investec’s UK Wealth & Investment and Rathbones Group PLC.

The Sandton, Johannesburg-based financial services firm upgraded earnings per share guidance between 69.0 pence and 70.0p for the six months to September 30, from 50.6p a year before. In September, the company said it expected EPS to range between 67.2p and 69.2p.

Investec also marked higher its headline EPS to between 36.5p and 37.5p, compared to 32.0p. It estimated HEPS in September at between 33.8p and 35.8p.

Adjusted EPS guidance for the first half was raised to between 38.0p and 39.0p, from 35.5p and 37.5p. In 2022, adjusted EPS was 32.9p.

Back in September, Investec described its first-half performance as ‘solid’, despite a challenging macroeconomic environment. It also cited the implementation of Investec’s UK Wealth & Investment combination with Rathbones for improved performance.

It said then it expected adjusted operating profit to rise to a range of between £428.7 million and £449.6 million, from £405.0 million.

This growth in adjusted operating profit was driven by continued client acquisition, positive effects from higher global interest rates and year-on-year growth in average lending books.

An all-share combination between Rathbones and UK Wealth & Investment to create the ‘UK’s leading discretionary wealth manager’. Investec now owns a 41% stake in Rathbones.

Investec shares were up 0.7% at 481.30 pence each on Wednesday morning in London, and traded 1.2% higher at R 107.25 each in Johannesburg.

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