TOP NEWS: Investec Expects Annual Operating Profit To Remain In Line

16th Mar 2018 09:44

LONDON (Alliance News) - FTSE 250-listed Investec PLC said on Friday that for its current year it expects its Asset Management and Wealth & Investment divisions to be ahead of the year before, despite Brexit and political uncertainty.

The bank and wealth manager said operating profit for the year ending March 31 is expected to be in line with the year before, which stood at GBP663.7 million.

Revenue for its operations as a whole is expected to be ahead of the prior year, and recurring income is set to represent 76% of total operating income.

However impairments are expected to rise, and expenses are set to be slightly ahead of revenue due to continued planned investment in growing Investec's client franchise businesses and related infrastructure, as well as costs from the London office move.

The Asset Management and Wealth & Investment arms of the group are expected to be ahead of the year before, due to higher levels of average funds under management and strong inflows. The Specialist Banking business, however, is expected to be behind the year before, as a decline in the UK more than offset growth in South Africa.

Investec noted for its financial year up to February 28, it saw a 9.1% increase in third-party assets under management to GBP164.5 million. Customer deposits increased by 5.5% to GBP30.7 billion while core loans and advances rose by 12% to GBP25.4 billion.

Shares in Investec were down 2.9% at 600.00 pence on Friday.

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