Johannesburg - Investec’s (INL) total operating income for the nine months ended December 2012 is 1% ahead of the prior year‚ the company said on Thursday.
Releasing its interim management statement for the period on Thursday. Investec noted that impairment losses on loans and advances decreased by 20% and the credit loss charge as a percentage of average gross loans and advances annualised for the period amounted to 0.83% compared with 1.12% at end March 2012.
Since 31 March 2012 - the end of the group’s financial year - third party assets under management increased by 7% to GBP103.3 billion - an increase of 12% on a currency neutral basis. The group recorded net inflows of GBP2.8 billion.
The group had approximately GBP8.9 billion of cash and near cash available to support its activities.
Customer accounts (deposits) decreased by 4% to GBP24.4 billion - an increase of 3% on a currency neutral basis anc core loans and advances remained flat at GBP18.1 billion - an increase of 7% on a currency neutral basis.
Loans and advances as a percentage of customer deposits were 70.9% (31 March 2012: 67.8%).
Investec said the Asset Management business has continued to see net inflows‚ recording results ahead of the prior year‚ while theWealth & Investment division reported net inflows and profits ahead of the prior year‚ and has continued to make good progress with the integration of Williams de Broe.
The South African Specialist Banking business reported a solid increase in operating profit in Rand terms benefiting from growth in revenue and cost containment‚ while the Australian Specialist Banking business is performing significantly ahead of the prior period mainly as a result of a substantial decrease in impairments.
The UK Specialist Banking business reported results behind the prior period largely due to lower investment income earned. Overall results have been impacted by the depreciation of the average Rand: Pounds Sterling exchange rate of approximately 13%.
Investec noted that operating costs increased by 4% compared to the prior year‚ but are flat excluding the impact of acquisitions.
Operating profit before goodwill‚ acquired intangibles‚ non-operating items and taxation and after non-controlling interests is 5% ahead of the prior year.
Recurring income as a percentage of total operating income amounted to approximately 71% (2011: 69%)‚ supported by higher average funds under management.
As at end December 2012 the capital adequacy ratio of Investec plc - applying UK rules to its capital base - was 17.0% and the capital adequacy ratio of Investec Limited - applying SA Reserve Bank rules to its capital base - was 16.8%. - I-Net Bridge