Tech investment eats into the profit of Investec’s UK division
Investec CEO Stephen Koseff says geographical and operational diversity supports a strong recurring income base, ‘which will help us weather an uncertain world’
Strong growth in Investec’s Southern African specialist banking division offset declines in its UK specialist banking and South African asset management divisions. Investec’s interest income grew 18% to £1.23bn and its fee and commission income grew 12.4% to £754m in the six months to end-September from the matching period in 2016, it reported on Thursday. After-tax profit grew nearly 20% to £238m. Investec raised its interim dividend by 5% to 10.5 pence. The group segments itself into three divisions — asset management, wealth and investment, and specialist banking — split between two geographic regions — Southern Africa, and UK and other. "Our geographical and operational diversity supports a strong recurring income base and earnings which will help us weather an uncertain world," Investec CEO Stephen Koseff said in the results statement. Investec’s largest division, Southern Africa specialist banking, reported a 44% surge in operating profit to £165m, helping the group’s total gr...
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