Investec will continue to shift from "capital-heavy" to "capital-light" activities as part of its efforts to raise return on equity from the bottom to the top of its target range in response to calls from investors. The specialist banking and wealth management group reported solid results in a volatile environment for the six months to end-September, with a 1.6% increase in operating profit on a currency neutral basis, to £281.4m. Investec, which is dual-listed in London and Johannesburg and reports in sterling, benefited from £1.8bn of net inflows, with its less capital-intensive asset and wealth management businesses increasing their contribution to 39.9% of operating profit, from 34% in the comparable period. It now has £141.8bn in third-party assets under management, up 10.3% on a currency-neutral basis on the comparable period (but up 16.5% in pound terms). The rand exchange rate boosted the balance sheet (in pound terms) because it appreciated 15.4% against the pound from Sept...
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