31st Jul 2014 10:00
LONDON (Alliance News) - Investec PLC Thursday said first-quarter operating profit grew across all three of its divisions, resulting in an overall increase at group level though it said that results were dented by a foreign exchange hit due to the depreciation of the rand against sterling.
In a statement, the Anglo-South African specialist bank and asset manager said its wealth and investment division reported "strong growth" in operating profit in the three months ended June 30, while asset management reported operating profit "marginally ahead" of the prior year.
Investec said that both divisions were boosted by higher levels of average funds under management and combined net inflows of GBP3.6 billion. Its specialist banking business reported a "solid increase" in operating profit, with both the South African and UK businesses showing an improved performance.
Total operating income, excluding depreciation on operating leased assets, was 1% ahead of the prior year, Investec said, or an 11% increase on a currency neutral basis. Impairment losses on loans and advances decreased by 17%, or a 10% decline currency neutral. Operating costs increased by 1% or 9% on currency neutral basis. Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after total non-controlling interests was 10% ahead of the prior year, representing an increase of 25% on a currency-neutral basis.
Meanwhile, the Investec said that the potential sale of its UK-based specialist mortgage business, Kensington, remains on track and further information will be provided in due course.
Investec shares were Thursday quoted down 1.9% at 509.00 pence.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Investec