Investec says Covid-19 has cost it R2.3bn despite growth in client-related revenues
Financial services group Investec says growth in client-related revenues was more than offset by a deteriorating global economic backdrop in its year to end-March, when Covid-19 cost it £105m (R2.3bn) in lost profits.
Adjusted operating profit, the group’s preferred measure of profit achieved in the course of ordinary operations, fell 16.8% to £608.9m, with the group also citing Brexit uncertainty and SA’s weak economy as weighing on its performance.
The coronavirus pandemic had weighed on income and led to increased credit writedowns.
“In the course of the last two months, the social and economic impact of the Covid-19 pandemic on our customers and the markets in which we operate has affected the performance of the group,” said CEO Fani Titi.
The group said its client franchises showed resilience. Over the year, core loans were broadly flat while customer deposits increased 2.9% to £32.2bn.
The group’s Wealth & Investment business achieved net inflows of £599m.
Investec recently spun off and separately listed its asset management arm and had declared a final dividend of 245c in the previous period, restated for the effect of this unbundling. The group has opted not to pay a final dividend for its year to end-March, bringing its total dividend to 11p, from 24.5p previously.