Investec operating profit up 12% in first half

In the six months to the end of September, statutory operating profit increased 11.8% to £314.6m, or 1.1% on a currency neutral basis, as the asset management and wealth & investment businesses benefited from higher funds under management supported by favourable equity markets and combined net inflows of £3.6bn.

Statutory adjusted earnings per share rose 17.2% to 26.6p, or 5.7% on a currency neutral basis.

Asset management operating profit was up 1.2% to £83.2m thanks to higher average funds under management and solid net inflows of £2.1 billion. Meanwhile, operating profit in the wealth & investment division increased by 14.7% to £49.5m, with net inflows of £1.5bn.

Investec said the UK business had a strong performance, but earnings in South Africa have were hit by lower brokerage volumes.

Chief executive Stephen Koseff said: “We have continued to invest to grow our client franchise businesses. We have improved and enhanced our digital and online services to complement our strong client centric service model. This spending has further strengthened our franchises in private banking and wealth management. Our geographical and operational diversity supports a strong recurring income base and earnings which will help us weather an uncertain world.”