South African investment bank and asset manager Investec posted a 4,8% rise in operating profit, but impairment losses on loans and advances increased as a result of the weaker credit environment.
The bank, which is also listed in London, said on Thursday operating profit for the year to end-March rose to £652,9-million and earnings per share fell 33,3% to 38,5 pence.
Investec had forecast a drop in EPS of 30 percent.
Investec said its private banking unit’s operating profit fell by 51,6% to £80,5-million, while that of its private client portfolio management and stockbroking business fell by 11,8 %.
Unlike South Africa’s main domestic lending banks, Investec had some exposure to the United States subprime market, though analysts have said it is unlikely to suffer the huge losses seen at some of its international counterparts. — Reuters