Advertisement

Investec posts strong results driven by wealth and investment business growth

FTSE 250-listed specialist bank and asset manager Investec has posted strong annual results for the year ended March 31st, underpinned by profit increases in its three core business areas.

FTSE 250-listed specialist bank and asset manager Investec has posted strong annual results for the year ended March 31st, underpinned by profit increases in its three core business areas.

Adjusted operating profit in the group's asset management business rose 4.8% to £140.2m, 30.9% to £50.7m in the wealth and investment business and 30.1% to £242.3m in the specialist banking division.

Advertisement - Article continues below

Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests increased 20.8% to £433.2m.

The asset management and wealth and investment businesses reported solid results benefiting from higher levels of average funds under management and net inflows in excess of £4.9bn.

The group said that, overall, its results had been negatively affected by the depreciation of the average Rand: Pounds Sterling exchange rate of approximately 13% over the year.

Stephen Koseff, Chief Executive Officer of Investec said: "I am encouraged by the progress we have made over the past few years in realigning our business model. Our capital light businesses now account for 49% of the group's operating profit, providing a sustainable base for our recurring income."

He added: "Our priority is to ensure each division and geography achieves an appropriate return. The recent improvement in equity markets bodes well for our business and we are well positioned to take advantage of a sustained market upturn."

Investec's share price was down 3.84% to 485.60p at 11:32 on Thursday.

MF

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/stockmarkets/601611/nasdaq-all-time-high-markets-and-the-real-economy
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020