CAPE TOWN - Investec Bank has said on Thursday that they have lost R220 million due to their credit exposure relating to Steinhoff.
The company released their financial results for the year ended March 31 and said that trading and investment losses were considerably lower than their initial estimates.
Investec was quick to add that the Steinhoff loss was just a small portion of the group’s balance sheet.
Investec’s loans to Steinhoff represented less than 0.25% of its total R464.8bn credit exposure, according to Fin24.
Since the Steinhoff scandal broke the company’s shares have plunged by more than 95%.
"Based on the information currently available to the group, Investec is not expecting to suffer any losses on these exposures," Investec said.
Investec reported an increase in operating profit on, with funds managed by its asset management business topping $135 billion (R1.6 trillion) for the first time.
The 5.6 percent rise in operating profit for the year ended in March indicates stability as Investec heads for a changing of the guard this year with co-founder Stephen Koseff set to step down as CEO in October and two other founding members of the business - Bernard Kantor and Glynn Burger - also due to retire.
Analysts do not expect any big strategy shift for the group, which reported ongoing operating profit of $949 million for the full-year ended March 31, up from 663.7 million pounds a year earlier.
“Operating performance during the year was underpinned by sound growth in loans and funds under management and a solid recurring income base, despite a challenging backdrop in South Africa and the UK,” Koseff said in a statement.
-BUSINESS REPORT, REUTERS