Investec ‘on track for growth’
INVESTEC CEO Stephen Koseff yesterday said the specialist bank and asset manager was on track to grow the business in this financial year, despite global economic volatility.
INVESTEC CEO Stephen Koseff said yesterday the specialist bank and asset manager was on track to grow the business in this financial year, despite continuing global economic volatility.
Although Investec has a strong private banking and wealth management franchise, the economies of some of its key markets such as Europe have been hit by the eurozone crisis.
“The world is still volatile but we have done well, even in SA where the rand (has) weakened,” Mr Koseff said in an interview after Investec released its interim management report for the quarter to June.
Investec — which is listed in the UK and SA — said the South African operations performed strongly in local currency terms, but were affected in sterling terms by the 17% depreciation of the rand.
The credit loss charge, as a percentage of average gross loans and advances annualised for the period, fell to 0,61% from 1,12% in the quarter to March. Recurring income as a percentage of total operating income was about 72% (2011: 71%) and had been boosted by higher average funds under management.
“Operating profit before goodwill, acquired intangibles, nonoperating items and taxation and after noncontrolling interests is in line with the prior year,” Investec said.
The group said since the end of March, third party assets under management remained flat at £96,6bn and customer deposits fell 2,7% to £24,7bn, while the balance sheet remained strong with £9bn in cash and near-cash to fund growth.
UK-based analysts Numis Securities said conditions at Investec were ripe for it to benefit from economic recovery.
“The balance sheet is conservatively placed with substantial excess liquidity. The strong performance track record should see Investec Asset Management continue to deliver superior to sector net inflows.
“The strong brand and market position of the global wealth business should see it deliver good organic growth once integration is complete.”