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Investec Expects Marginally Higher Full-Year Operating Profit

20th Mar 2014 11:45

LONDON (Alliance News) - Investec PLC Thursday said it expects its full-year operating profit to be marginally ahead of the previous year, as the specialist bank and asset manager coped with a significant depreciation of the rand against sterling over 2013.

Overall, the results were driven by performance in South Africa and the UK, with the Australian business acting as a drag due to a restructuring going on there.

Operating profit is expected to increase by 28% in rand terms, while adjusted earnings per share in sterling, which excludes goodwill, acquired intangibles and non-operating items and adjusts for other items, is expected to be up to 7% higher than in the previous year.

Adjusted earnings per share in rand is expected to be between 22% and 27% higher than the previous year.

Investec said impairments are expected to be about 35% lower than the previous year.

Its Wealth & Investment division's results are expected to increase "substantially", while Asset Management is expected to report results moderately ahead of the prior year.

Those businesses have been supported by net inflows of GBP1.1 billion and GBP2.5 billion, respectively, Investec said.

The bank, which operates primarily in the UK, South Africa and Australia, said the potential sale of its UK mortgage business remains at an early stage, but expects to give an update on the matter in the second-quarter of the calendar year.

It remains in the process of selling part of its Australian business.

Investec is considering its options for the Australian Professional Finance and Asset Finance and Leasing divisions, as previously announced, and said the process is progressing well.

"Consistent with the quality of the platforms these businesses have built, they have attracted strong interest from a range of parties with whom confidential discussions are ongoing. The group will provide a further update on the outcome of those discussions as soon as it is able to do so," Investec said in a statement.

Investec shares were Thursday quoted at 445.40, down 0.2%.

Investec will release its results for the year ended March 31 2014 on May 22.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright © 2014 Alliance News Limited. All Rights Reserved.


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