NEWS ANALYSIS: Investec’s zebra crossing falters
The success of the firm’s overseas foray will be determined by how well the UK bank performs
Investec is one of the textbook examples of a business which went overseas in pursuit of riches after the relaxation of exchange controls 20 years ago. Yet what no-one expected happened, as the banking and asset management group significantly underperformed other SA-focused investment companies, such as PSG. The unexpected strength of the rand since 2000 didn’t help. But Investec also scored some own goals, making poor acquisitions in the US, Israel and Australia. Investec is now focused on SA and the UK, which are two of the slower growing sizeable world economies, both with less than 2% growth.It has certainly moved beyond property in its UK specialist bank, offering finance for aircraft, project finance, private equity and small assets as well as the full suite of treasury services: but it plays in the mid-cap market, while in SA it competes at the top end with RMB, Nedbank CIB and so on, though with a smaller balance sheet. And it still has footholds in other financial centres. ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.