Investec Plc expecting largely unchanged profit
by Renee Bonorchis,
2016-03-18 13:10:42.0
INVESTEC Plc, owner of a bank and money manager in SA and the UK, expects to report fiscal full-year operating profit that is little changed after the rand weakened against the British pound, hurting earnings when converted into the UK currency.
Excluding the effect of currency translations, the company will report a "solid increase" in operating profit in the 12 months to the end of March, Investec, which is based in Johannesburg and London, said on Friday. Impairments are expected to be about 20% lower than the prior year, it said.
Investec, which also has operations in Australia, makes the bulk of its operating profit in SA, where the rand has dropped 19% against the pound since the beginning of March 2015. The effect of the currency’s decline on Investec’s earnings comes as other UK financial services companies with operations in SA, Barclays Plc and Old Mutual Plc, reduce holdings in Africa’s most industrialised economy.
"The UK specialist banking business is expected to report results substantially ahead of the prior year, whilst the South African specialist banking business is expected to report results comfortably ahead of the prior year in rands," the company said.
"Wealth and investment is expected to report results marginally ahead of the prior year, whilst asset management is expected to report results behind the prior year."
Investec rose 1.5% to 509 pence as at 9.17am in London trading.
Bloomberg
Investec. Picture: MARTIN RHODES
INVESTEC Plc, owner of a bank and money manager in SA and the UK, expects to report fiscal full-year operating profit that is little changed after the rand weakened against the British pound, hurting earnings when converted into the UK currency.
Excluding the effect of currency translations, the company will report a "solid increase" in operating profit in the 12 months to the end of March, Investec, which is based in Johannesburg and London, said on Friday. Impairments are expected to be about 20% lower than the prior year, it said.
Investec, which also has operations in Australia, makes the bulk of its operating profit in SA, where the rand has dropped 19% against the pound since the beginning of March 2015. The effect of the currency’s decline on Investec’s earnings comes as other UK financial services companies with operations in SA, Barclays Plc and Old Mutual Plc, reduce holdings in Africa’s most industrialised economy.
"The UK specialist banking business is expected to report results substantially ahead of the prior year, whilst the South African specialist banking business is expected to report results comfortably ahead of the prior year in rands," the company said.
"Wealth and investment is expected to report results marginally ahead of the prior year, whilst asset management is expected to report results behind the prior year."
Investec rose 1.5% to 509 pence as at 9.17am in London trading.
Bloomberg
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