Investec posts rise in operating costs

Investec, the FTSE 250 Anglo-South African banking group, said Thursday that operating costs rose by four per cent in the nine months ended December 31st, compared to the same period the previous year.

Investec, the FTSE 250 Anglo-South African banking group, said Thursday that operating costs rose by four per cent in the nine months ended December 31st, compared to the same period the previous year.

More positively, total operating income rose 1.0%, while impairment losses on loans and advances decreased by 20% and the credit loss charge as a percentage of average gross loans and advances annualised for the period amounted to 0.83% (March 31st 2012: 1.12%).

Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests was 5.0% ahead of the prior year.

Since the end of the group's financial year, March 31st, third party assets under management increased by 7.0% to £103.3bn - an increase of 12% on a currency neutral basis. The group recorded net inflows of £2.8bn.

Core loans and advances remained flat at £18.1bn - an increase of 7.0% on a currency neutral basis, while customer accounts (deposits) decreased by 4.0% to £24.4bn - an increase of 3.0% on a currency neutral basis.

In a statement the company said: "The Asset Management business has continued to see net inflows, recording results ahead of the prior year. The Wealth & Investment division reported net inflows and profits ahead of the prior year, and has continued to make good progress with the integration of Williams de Bro.

"The South African Specialist Banking business reported a solid increase in operating profit in Rand terms benefiting from growth in revenue and cost containment. The Australian Specialist Banking business is performing significantly ahead of the prior period mainly as a result of a substantial decrease in impairments. The UK Specialist Banking business reported results behind the prior period largely due to lower investment income earned.

"Overall results have been impacted by the depreciation of the average rand to pounds sterling exchange rate of approximately 13%."

The share price fell 3.58% to 453.10p by 09:52.

NR

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021