Investec CEO Optimistic on Pandemic Recovery, Cautious on Growth

The transcript discusses the economic recovery and business momentum post-COVID-19, highlighting the impact of vaccination programs in South Africa and the UK. It covers capital generation, investor strategies, and return on equity targets. The discussion also explores opportunities in the wealth management sector, emphasizing the need for scale due to regulatory and technological costs.

What characterized the first half of the year for the business?

• Shutdowns in several economies

• High market demand

• Rapid economic growth

• Increased lending

How does the company view the vaccination rollout in the UK?

• As irrelevant to their business strategy

• As a successful initiative likely to boost recovery

• As a potential risk to recovery

• As a slow and problematic process

What is the company's approach to excess capital in the short term?

• Expanding aggressively in new markets

• Being cautious due to virus-related uncertainties

• Returning all capital to shareholders

• Investing heavily in new projects

What is the company's target return on equity in the UK?

• 15% to 18%

• 4% to 6%

• 6% to 7%

• 11% to 15%

What are the main challenges facing the wealth industry according to the transcript?

• Lack of investment opportunities

• Regulatory costs and fee pressure

• High competition from new entrants

• Limited access to technology

What is the company's strategy for dealing with the challenges in the wealth industry?

• Reducing operational costs

• Focusing on small-scale investments

• Seeking opportunities for consolidation

• Avoiding mergers and acquisitions

What is the company's outlook on consolidation in the wealth industry?

• It will only occur in small firms

• It is a matter of when, not if

• It is not a priority for the company

• It is unlikely to happen