Investec struggles in challenging market conditions
Anglo-South African banking group, Investec, saw a disappointing performance from its wealth and specialist banking divisions last year.
Anglo-South African banking group, Investec, saw a disappointing performance from its wealth and specialist banking divisions last year.
Profits before tax in the 12 months to the end of March came in at £358.6m, a drop of 17.4% over the previous financial year. The consensus (median) forecasts among investment analysts following the stock had been for profit before tax of £442.8m.
Specialist Banking has been hardest hit with profits down 30.2% on the prior year at £186.2m as investment and trading income dried up amid the Eurozone meltdown and consequent market volatility.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Wealth and Investment business saw earnings down 4.2% at £38.7m after "restructuring and sales of certain of the operations in the UK and Europe."
Profits at Asset Management gained 5% from increasing funds under management and a "competitive" investment performance.
The Chief Executive, Stephen Koseff, described the results as "disappointing but reflective of very challenging market conditions".
The full year dividend was held at 17.0p.
There was no mercy on the markets; Investec shares had fallen 3% by 12:31 and are now down 31% over the last 12 months.
BS
-
Zoopla: UK property supply hits eight-year high ahead of general election
News More homeowners are putting their properties up for sale but many are relisting after failing to find a buyer last year - is now a good time to buy?
By Marc Shoffman Published
-
What’s happening to the NatWest share sell-off? Impact of general election 2024 explained
The UK government has held shares in NatWest Group since the 2008 Financial Crisis. But a plan to sell off a large chunk of them appears to have been delayed.
By Henry Sandercock Published