Investec reports flat first-half profit

Investec reports flat first-half profit

London, United Kingdom

South African investment bank and asset manager Investec said on Thursday it made a first-half operating profit of £241,8-million, unchanged from a year ago, and that its business would remain slow.

”The group expects activity levels to remain low, which may impact revenue generation in the second six months of its financial year. A high level of recurring income should support sustainability of earnings, albeit at a lower level,” it said in a statement.

Adjusted earnings per share slipped 3,7% to 26,3 pence for the six months to September 30.

In investment banking the South African and Australian agency divisions closed fewer deals than they did in the first half of 2007, while the United Kingdom division recorded an increase in corporate fees and trading revenues, it said.

Kensington Group, a mortgage lender bought by Investec for about £220-million in August 2007, produced a stable performance. — Reuters