6th Feb 2014 09:25
LONDON (Alliance News) - Investec PLC Thursday said its income was flat over the first nine months of the year, as it continues to suffer from the depreciation of the rand, while it is also "exploring" a potential sale of its UK mortgage business, Kensington.
In a statement, the specialist bank and asset manager, which operates in the UK, South Africa and Australia but reports in sterling, said its total operating income, excluding depreciation on operating leased assets, for the first nine months of the year ending December 31, 2013, was 1% ahead of the year prior. Operating costs increased by 2%.
Investec said core loans and advances decreased by 9% to GBP16.8 billion.
But its Asset Management division reported results moderately ahead of the prior year, while Wealth & Investment increased "substantially" with both divisions benefiting from higher levels of average funds under management and net inflows of GBP2 billion and GBP1.1 billion, respectively.
Investec, which been restructuring its operations in Australia, said it wishes to transform its banking business there into a "boutique operation".
Commenting on its plans for its Australian operations, Investec said: "Independent advisers have been appointed to identify alternatives for the bank's Professional Finance and Asset Finance & Leasing divisions. These alternatives for the Professional Finance and Asset Finance & Leasing divisions include a possible sale, a joint venture with an appropriate supportive partner, or continuing with current operations."
"The group expects to be in a position to communicate the outcome of this process by March 31," the company added.
Investec shares were Thursday quoted at 407.20 pence, up 10.40 pence, or 2.6%.
By Samuel Agini; [email protected]; @samuelagini
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