INVESTEC's share price closed 3.3 per cent up yesterday after the wealth manager said its recovery continued in the first half of its 2022 financial year, as profit more than doubled from the same period a year earlier.

The FTSE 250 firm said this rebound was driven by a strong earnings recovery on increased client activity across the business and lower funding costs.

As a result of the surplus capital from increased earnings, the FTSE 250 firm announced it would offload 15 per cent of its 25 per cent stake in asset manager Ninety One in shares to shareholders.

First half earnings shot up 30.5 per cent, which the Anglo-South African firm said was driven by a combination of strong client franchises and improved market conditions.

As a result, Investec declared an interim dividend of 11p - double what it paid in the prior period, and resulting in a payout ratio of 41.8 per cent.

The FTSE 250 firm also announced it would distribute 15 per cent of its holding in Anglo-South African investment manager Ninety One.

(c) 2021 City A.M., source Newspaper