Investec bleeds R220m from Steinhoff exposure

Investec Bank lost R220-million as a result of credit exposure to Steinhoff, the company said on Thursday, as it released financial results for the year ended March 31.

The company said the trading and investment losses were lower than earlier estimates.

Investec said the credit exposures, through Steinhoff Africa Retail, “represent a small portion [of] the group’s balance sheet”.

In December, Investec said in a statement that its loans to Steinhoff represented less than 0.25% of its total R464.8-billion credit exposure as at September 30.

Steinhoff shares have plunged more than 95% since it reported irregularities in its accounts in December, valuing the business at about R8.85-billion.

The firm is facing various investigations in South Africa and abroad, as regulatory bodies and investors demand accountability from its directors.

“Based on the information currently available to the group, Investec is not expecting to suffer any losses on these exposures,” Investec said in a statement.

Investec reported a 44.9% jump in headline earnings from R3.069-billionn in 2017 to R4.4-billion.

Investment income increased 12.3% to R530-million, boosted by a “strong performance from the bank’s client-driven private equity portfolio”.

The specialist banking group said trading income arising from customer flow decreased by 26.7% to R365-million, due to losses incurred on Steinhoff, while foreign currency exchange also impacted income from other trading activities.

Impairments on loans and advances went up from R657-million to R720-million, while the credit loss remained at the lower end of its long-term average trend at 0.28%, down from 0.29%. — Fin24

PW Botha wagged his finger and banned us in 1988 but we stood firm. We built a reputation for fearless journalism, then, and now. Through these last 35 years, the Mail & Guardian has always been on the right side of history.

These days, we are on the trail of the merry band of corporates and politicians robbing South Africa of its own potential.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertisting

SABC sued over ‘bad’ clip of Ramaphosa

A senior employee at the public broadcaster wants compensation for claims of ‘sabotage’

Soundtrack to a pandemic: Africa’s best coronavirus songs

Drawing on lessons from Ebola, African artists are using music to convey public health messaging. And they are doing it in style

In East Africa, the locusts are coming back for more

In February the devastating locust swarms were the biggest seen in East Africa for 70 years. Now they’re even bigger

Western Cape Judge Mushtak Parker faces second misconduct complaint

The Cape Bar Council says his conduct is ‘unbecoming the holding of judicial office’

Press Releases

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world

SAB Zenzele special AGM rescheduled to March 25 2020

New voting arrangements are being made to safeguard the health of shareholders

Dimension Data launches Saturday School in PE

The Gauteng Saturday School has produced a number of success stories