DURBAN - Investec reported weak earnings for the six months to end September, hit by a poor performance in the UK.
The group said the decrease in the UK Specialist Bank's adjusted operating profit of 18.9 percent reflected lower investment banking fees in weak market conditions. However, this weak performance was offset by the South African Specialist Bank’s division which reported a 6.7 percent increase in adjusted operating profit.
The group’s overall headline earnings per share (Heps) declined by 17.2 percent to 22.7 pence a share, down from 27.4p compared to last year and adjusted operating profit declined by 1.7 percent to £373.6 million.
The group declared an interim dividend of 11p a share, in line with the prior period.
Looking ahead Investec said it plans to conclude the demerger of the asset management business, subject to Investec shareholder and other customary approvals, and deliver the benefits of focus and simplicity.
Joint chief executives Fani Titi and Hendrik du Toit said the preparations for the demerger of Investec Asset Management becoming Ninety One are on schedule.
“In spite of the challenging economic environment in which we operate, we are pleased to report further growth in assets under management, customer deposits and the loan book. Profitable and sustainable growth with improved cost control remain priorities. We are committed to our stated objective to simplify, focus and grow for the long term, in the interest of all our stakeholders,” the chief executives said.