Investec profits rise in wealth and fund management arms

Added 17th November 2016

Investec Wealth & Investment (IW&I) has reported a 14.1% growth in its operating profit in the six months to 30 September as its assets under management (AUM) grew to £51.3bn.

Investec profits rise in wealth and fund management arms

At 31 March, IW&I had AUM of £45.5bn, whereas asset growth and net inflows have grown by £700m over the period.

In terms of the asset management business, operating profit increased by 16.6% over the period, from £70.6m to £82.3m.

Following net inflows of £1.1bn over the six months and a recovery in equity markets total AUM grew from £75.7bn in March to £89.8bn at 30 September.

The division also benefited from higher performance fees.

Stephen Koseff, chief executive of Investec, said in a market statement: “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.”

The group cited Brexit, the US election result and the economic, political and social volatility still present in South Africa as the key macro challenges causing uncertainty.

Yet Investec said with its operational and geographical diversity, supporting a recurring revenue base it remained “resilient”.

Koseff added: “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."

Specialist banking posted a 7.1% decline in operating profits from £229.2m to £212.8m.

While it reported good levels of client activity and support of the franchise, its numbers were hit by a fall in investment income.

With cash and near-cash on the balance sheet of £13.1m, Investec Group will grow its dividend by 5.3%, from 9.5p last year to 10p per ordinary share.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Channel Islands November 2017
PA Channel Islands November 2017

Tuesday 14 November
Royal Yacht Hotel, Jersey

PA Alternative Ucits November 2017
PA Alternative Ucits November 2017

Tuesday 7 November 
Furniture Makers' Hall

PA Global 2017
PA Global 2017

Thursday 23 November
M by Montcalm Shoreditch Tech City

PA Emerging Markets November 2017
PA Emerging Markets November 2017

Tuesday 28 November
Radisson Blu Edwardian Bloomsbury Street Hotel

OTHER STORIES FROM LAST WORD...