Financial Services

UPDATE 1-S.Africa's Investec reports 3.6% rise in annual earnings

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JOHANNESBURG, May 16 (Reuters) – Financial services group Investec reported a 3.6% rise in full-year earnings on Thursday despite challenges in its main markets, South Africa and Britain.

The group, which is undergoing a reorganisation under new leadership, reported adjusted basic earnings per share of 55.1 pence in the year to March 31, up from 53.2 pence.

The adjusted figures reflect profits realised in the course of ordinary operations.

“In spite of a challenging operating environment, these results speak to strong support from our clients,” joint chief executive officers said in a statement.

Investec has had to contend with the impact of Brexit in the United Kingdom and a sluggish economy in South Africa, where a weaker rand currency hurt its performance.

Adjusted operating profit there grew by just 1.8% in rand terms versus a 36.1% improvement in sterling adjusted profits in its combined UK and other businesses.

The group also embarked on an overhaul of its structure in an effort to counter falling fees and rising costs.

Its asset management arm, which it said generated substantial net inflows, prompting higher funds under management and annuity fees, is being spun off and listed separately in London. It expects that process to complete in the second half of 2019.

Reporting by Emma Rumney; editing by Mark Potter and Jason


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