17th Sep 2015 07:56
LONDON (Alliance News) - Anglo-South African financial services company Investec PLC on Thursday said the performance of its specialist banking and wealth and asset management operations was diverging, with results for the former set to beat expectations for the full year, but those of the latter set to fall short.
The FTSE 250-listed group said the operating environment in the UK has continued to improve, but while its corporate and private banking arms in South Africa have benefited from good business momentum, notwithstanding the continued challenging macroeconomic conditions in the country, its wealth and asset management business in South Africa is set to face difficulties due to the weakness of the rand and recent equity market volatility.
Investec said its wealth and investment and asset management arms are now expected to post results for the full year to the end of March 2016 marginally weaker year-on-year, though it expects its results from its specialist banking businesses in both the UK and South Africa to be substantially ahead.
Taking into account all of the current operating environments for its business, Investec said it expects its operating profit for the full year will be comfortably higher year-on-year in sterling terms, despite the depreciation of the rand.
By Sam Unsted; [email protected]; @SamUAtAlliance
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