Investec delivers rise in half year profits

Shares in Anglo-South African banking group, Investec, got a boost on Thursday after the company announced that pre-tax profits climbed 2.6 per cent.

Shares in Anglo-South African banking group, Investec, got a boost on Thursday after the company announced that pre-tax profits climbed 2.6 per cent.

Pre-tax operating profit rose from £223.4m to £229.4m year-on-year (y/y) in the six months ended September 30th. However, adjusted earnings per share fell 4.4% from 20.6p to 19.7p y/y.

The group's wealth management business performed well, accounting for 39.3% of the group's operating profit. Inflows into the business during the period totalled £2.1bn.

Recurring income as a percentage of total operating income amounted to 69.3% (2011: 67.8%).

Third party assets under management increased 2.8% to £99.5bn (March 31st: £96.8bn) - an rise of 6.7% on a currency neutral basis.

The company noted that its overall results have suffered a negative impact from the depreciation of the average Rand.

Stephen Koseff, Chief Executive Officer of Investec said: "I am encouraged by our results and the progress we have made in the last six months, particularly compared to the second half of last year. Impairments have decreased significantly and our Australian business has returned to profit. We have continued improving our efficiencies, streamlining our processes, eliminating duplication and building scale.

"Our priority is to ensure each division and geography makes a proper contribution to our business. Driving the growth in ROE remains our main focus. We have a strong franchise which is well recognised in all our markets, our business is flexible and resilient and we have a good record of overcoming the challenges presented by the global economic environment."

The dividend was maintained at 8p per share.

NR

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023