Investec Says Nine-Month Operating Income Is Little ChangedRenee Bonorchis
Investec Plc, the owner of a bank and money manager in South Africa and the U.K., said operating income rose 1 percent in the nine months through December.
Operating profit before goodwill, acquired intangibles, non-operating items and taxation as well as non-controlling interests rose 5 percent from a year ago, the Johannesburg- and London-based company said in a statement today without giving details. Operating costs increased 4 percent in that period.
Asset management experienced net inflows as did the wealth and investment unit, while the South African banking business reported a “solid increase in operating profit in rand terms,” the company said. The Australian banking unit performed “significantly ahead of the prior period” as bad debts fell while the U.K. operations “reported results behind the prior period largely due to lower investment income earned,” it said.
Investec was hurt by the U.K.’s recession, Europe’s sovereign debt crisis and a weakening rand. While the South African economy slowed last year, it averted a recession and banks have not needed government support. Investec has been focused on boosting return on equity, eliminating duplication and taking on more clients.
The shares closed at 64.59 rand, down 2.7 percent, in Johannesburg. That’s the biggest drop in four months.