Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Investec Says Rand Weakness Will Hurt Annual Earnings

March 20 (Bloomberg) -- Investec Plc, the owner of a bank and money manager in South Africa and the U.K., expects a slight increase in earnings for the fiscal full-year through March.

“Operating profit is expected to be marginally ahead of the prior year” in pound terms, the Johannesburg- and London-based company said in a statement today. The figure in rand terms will be about about 28 percent higher as a result of the South African currency weakening by some 20 percent against the pound, it said.

Investec, which also has assets it’s trying to sell in Australia, makes the bulk of its operating profit in South Africa. The rand has slumped more than 14 percent against the dollar and 22 percent against the pound in the past 12 months, making it the second-worst performer of 16 major currencies tracked by Bloomberg after Brazil’s real.

The company’s stock rose 0.3 percent to 447.60 pence in London, bringing this year’s gain to 2.3% percent, compared with the 9.3 percent decline in the six-member FTSE 350 Banks Index.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net Hilton Shone

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.