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.

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.

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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.

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