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.

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.

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