17th Sep 2013 08:27
LONDON (Alliance News) - Investec PLC Tuesday said it expects first-half operating profit to be below last year's figure as a result of weaker results from its UK specialist banking business.
Investec said it expects operating profit to decline marginally on the last half-year, with moderately higher expenses to come with revenues in line with the prior year.
Investec said its UK specialist banking business - which includes private banking, corporate and investment banking and property acquisition - together with the restructuring of its Australian business, were the factors behind the weaker performance of its global specialist banking business. Investec noted, though, that it expects its South African specialist banking results to be substantially ahead of last the half-year in rand terms. It has started a review on the Australian business to align it more consistently with the rest of the company.
Earlier in the year, in its interim management statement for the three months to June 30, Investec said overall results had suffered because of the depreciation of the South African rand, which in August reached a four-year low against the pound.
Investec also gave updates on its asset management business, which it said was performing solidly, and its wealth and investment business, which it said was performing well ahead of the prior year, with higher average funds under management.
Investec shares were Tuesday quoted at 410.20 pence, down 31.70 pence, or 7.2%.
By Samuel Agini; [email protected]; @samuelagini
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