19th Nov 2015 08:03
LONDON (Alliance News) - Investec PLC on Thursday reported higher first-half profit despite continued pressure from the weakness of the South African rand against its sterling reporting currency, as the financial services group highlighted the performance of its specialist banking business.
The Anglo-South African bank and asset manager said that operating profit, which excludes the effects of goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests, rose to GBP279.4 million in the six months to September 30 from GBP240.8 million the corresponding half the prior year.
Earnings attributable to shareholders rose to GBP197.6 million in the half from GBP121.6 million in the corresponding period the prior year, and Investec lifted its interim dividend per share to 9.5 pence from 8.5p.
"We are pleased with the progress shown by the group, with profits comfortably ahead of last year. In particular, our specialist banking businesses are benefiting from positive business momentum, as reflected in the growth in our loan books and increased client base," Chief Executive Stephen Koseff said in a statement.
"Our investment to digitise and internationalise the wealth and investment operation will place it on a strong footing to continue its growth trajectory, whilst good net inflows demonstrate the resilience and diversification of our asset management franchise. We are well placed to continue our growth despite the Rand weakness and market volatility," Koseff said.
Operating profit in the specialist bank increased 29% to GBP229.2 million thanks to "good levels" of client activity, Investec said.
Net inflows amounted to GBP2.9 billion in the asset management arm, where assets under management fell to GBP70.1 billion from GBP77.5 billion over the course of the six months and operating profit fell by 8.0% to GBP70.6 million year on year.
The wealth and investment division's net inflows amounted to GBP1.1 billion, though funds under management fell to GBP43.4 billion from GBP46.1 billion over the course of the six months to September 30. Operating profit in the division fell by 0.5% to GBP37.9 million when compared against the corresponding half the prior year.
By Samuel Agini; [email protected]; @samuelagini
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