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Investec W&I profits surge by 30% on £1.4bn inflows
by James Phillipps on May 22, 2014 at 08:32
Investec Wealth & Investment saw operating profit rise by over 30%, as net inflows surged by £1.4 billion over the 12 months to the end of March.
The company's wealth management arm grew its profits by 30.5% from £50.7 million to £66.1 million year-on-year as total funds under management rose from £40.4 billion to £41.5 billion.
At the wider group level, Investec Asset Management saw its profits rise by 2% to £143.8 million on the year on the back of net inflows of £2.6 billion, taking the group's total assets under management up to £68 billion. A 15% stake in the fund management business, headed by Hendrik du Toit (pictured) was sold to management last July, the group said.
Overall, group profits were up 6% to £451.8 million, which it said equated to a 20.3% rise on a currency neutral basis, removing the negative impact of rand weakness. Its UK banking arm, benefiting from a fall in impairments, saw operating profits rise by 29.9% to £157.4 million, although its legacy business reported a loss of £102.8 million.
Stephen Koseff, chief executive officer of Investec, said: 'These are good results and very much in line with expectations, despite the weakness of the rand. We have made significant strides to reshape and simplify the group to focus on our core businesses with the restructuring and sale of part of our Australian businesses , the sale of our trust businesses, Lease Direct and strong interest in Kensington.
'We are now a very different looking business with a lean, well capitalised, focused specialist bank sitting alongside our strong asset management and Wealth & Investment businesses.'
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