South African investment banking and asset management group Investec increased full-year operating profit by 20%, driven by private client activities and a solid performance from its capital markets unit, the company said on Thursday.
Operating profit before goodwill, non-operating items and taxation for the year to end-March was £466,6-million compared to £388,8-million in 2006.
Investec’s operations in the United Kingdom and Australia improved their contribution to earnings to 44% from around 32% a year ago.
”The UK and Australia have driven the numbers for us,” said Investec managing director Bernard Kantor.
Adjusted earnings per share rose 27,2% to 53,3 pence. The company said on May 2 it expected EPS to increase 24% to 29%.
Kantor said the company would have posted higher earnings if the South African rand did not appreciate as much as it had over the period under review.
Investec said average loans and advances increased 23,6% to £9,9-billion and third-party assets under management rose 22% to £55,7-billion.
The group’s Return on Equity rose to 26,1% from 25,5% a year ago while its cost-income ratio was 59%, up from 58,7%. – Reuters