Investec says rand’s decline will dent profits
However, despite a difficult operating environment, the group’s operating profit will probably be ‘ahead of the prior year’
Investec says its results for the year ending March 31 will be dented by the rand’s decline.
Revenue was expected to be in line with the prior year, the financial services group said on Friday. Its shares were 1.3% up at R92 at midday.
Amid a difficult operating environment, the group’s operating profit will probably be “ahead of the prior year”, Investec said in a statement.
The bank and wealth business was expected to report improved results, though the asset management business will be “marginally behind” the prior year.
“Global equity markets experienced a sharp decline at the end of the 2018 calendar year before showing some recovery. Economic growth has been weak in both SA and the UK, the group’s two core banking markets,” it said.
Since March 2018, assets under management have increased by 5.2% to £109.2bn.
The group said its proposed demerger and separate listing of Investec Asset Management “is on track, subject to regulatory and shareholder approvals”.
Investec said its expected credit loss charge will be “significantly less” than the prior year. The credit-loss ratio will probably be between 0.3% and 0.35%.