INVLTD: 9,800 +239 (+2.50%)
Investec sees steady earnings growth as it prepares for changing of the guard
JOHANNESBURG, May 17 (Reuters) - Anglo-South African
investment bank and asset manager Investec Plc
reported an increase in operating profit on Thursday, with funds
managed by its asset management business topping 100 billion
British pounds ($135 billion) for the first time.
The 5.6 percent rise in operating profit for the year ended
in March indicates stability as Investec heads for a changing of
the guard this year with co-founder Stephen Koseff set to step
down as CEO in October and two other founding members of the
business - Bernard Kantor and Glynn Burger - also due to retire.
Analysts do not expect any big strategy shift for the group,
which reported ongoing operating profit of 701 million pounds
($949 million) for the full-year ended March 31, up from 663.7
million pounds a year earlier.
"Operating performance during the year was underpinned by
sound growth in loans and funds under management and a solid
recurring income base, despite a challenging backdrop in South
Africa and the UK," Koseff said in a statement.
Adjusted earnings per share before goodwill, acquired
intangibles and non-operating items jumped 13.3 percent to 61.3
pence, the company said in a statement.
The board proposed a final dividend of 13.5 pence per
ordinary share, equating to a full year dividend of 24 pence, up
from 23 pence last year.
Uncertainty about the terms of Britain's departure from the
European Union and political uncertainty in South Africa
continued to affect corporate and consumer confidence in those
two markets during the period under review, Investec said.
The group's wealth & investment and asset management
businesses generated substantial net inflows taking fund
management's assets under management above 100 billion pounds,
Shares in Johannesburg-listed Investec were up 1 percent at
95.99 rand by 0704 GMT, while in London the group's shares were
Chairman Fani Titi and Hendrik du Toit - head of Investec's
asset management business - have been picked as the group's new
joint chief executives and will formally take charge in October.
($1 = 0.7401 pounds)
(Reporting by Nqobile Dludla; Editing by Susan Fenton)
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