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Investec Says Third Quarter ‘Challenging’ Amid Volatile Markets

Investec Plc (INVP), the owner of a bank and money manager in South Africa and the U.K., said the third quarter of its fiscal year was “challenging” due to market volatility.

Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests declined by 5.6 percent in the nine months through December compared with a year earlier, the Johannesburg- and London-based company said in a statement today. Operating costs increased 6.8 percent, it said.

“Against a backdrop of volatile markets and low levels of activity, the third quarter of the group’s 2012 financial year has proven to be challenging,” the company said in the statement.

Investec agreed in September to buy London-based Evolution Group Plc in a transaction valuing the British stockbroker at 233.2 million pounds ($371.8 million), as it sought to gain access to Evolution’s wealth management unit. The unit, Williams de Broe, saw its assets increase by 7 percent to 6.2 billion pounds in the year through April. Total assets under management excluding Evolution declined, Investec said today.

The shares fell 1 percent to 397.9 pence at 8:44 a.m. in London trading.

To contact the reporters on this story: Anne-Sylvaine Chassany in London at achassany@bloomberg.net;

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net.

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