Investec’s share price rose more than 3% on Thursday
after it reported a 22% jump in interest income to £1bn and a 13.5% rise
in fee income to £671m for the six months to end-September.
Its aftertax profit grew 9% to £237m, and Investec declared an interim dividend of 10 pence, a 5.3% increase from the matching period’s 9.5p.
The group achieved this despite its biggest profit centre, Southern African specialist banking, suffering a 9.8% decline in operating profit to £117.6m. It contributed 35% of Investec’s total operating profit of £338.3m, which managed to show fractional growth from the matching period’s £337.6m.
The results statement said this decline was mainly due to accounting for assets transferred to Investec Equity Partners.
"Excluding the impact of this transaction, operating profit was comfortably ahead of the prior period," the company said in its results statement.
The next biggest operating profit contributor, UK and other specialist banking, which contributed 28% of the total, declined 3.6% to £95m.
Investec said this was due to a writedown of investments in its Hong Kong portfolio.
Investec’s Southern African asset management division managed to grow operating profit 28.6% to £39m while its UK and other asset management division grew operating profit 7.4% to £43m.
Its Southern African wealth and investment division grew operating profit 17.2% to £14m while its UK and other wealth and investment division grew operating profit 12.7% to £29m.
"These results show the long-term strength and diversity of our business, delivering sustainable recurring client-driven income streams amidst high levels of macro uncertainty," CEO Stephen Koseff.
"We are pleased with the growth in net interest income and fees and commissions, as well as good fund management inflows. We continue to invest with confidence in our business to build even stronger franchises."
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Its aftertax profit grew 9% to £237m, and Investec declared an interim dividend of 10 pence, a 5.3% increase from the matching period’s 9.5p.
The group achieved this despite its biggest profit centre, Southern African specialist banking, suffering a 9.8% decline in operating profit to £117.6m. It contributed 35% of Investec’s total operating profit of £338.3m, which managed to show fractional growth from the matching period’s £337.6m.
The results statement said this decline was mainly due to accounting for assets transferred to Investec Equity Partners.
"Excluding the impact of this transaction, operating profit was comfortably ahead of the prior period," the company said in its results statement.
The next biggest operating profit contributor, UK and other specialist banking, which contributed 28% of the total, declined 3.6% to £95m.
Investec said this was due to a writedown of investments in its Hong Kong portfolio.
Investec’s Southern African asset management division managed to grow operating profit 28.6% to £39m while its UK and other asset management division grew operating profit 7.4% to £43m.
Its Southern African wealth and investment division grew operating profit 17.2% to £14m while its UK and other wealth and investment division grew operating profit 12.7% to £29m.
"These results show the long-term strength and diversity of our business, delivering sustainable recurring client-driven income streams amidst high levels of macro uncertainty," CEO Stephen Koseff.
"We are pleased with the growth in net interest income and fees and commissions, as well as good fund management inflows. We continue to invest with confidence in our business to build even stronger franchises."
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