Reports
“A Very Satisfactory Year” For Investec As W&I Profit Reaches £78.8 million
Investec Wealth & Investment and Investec Asset Management together generated robust inflows of £5.8 billion, reported in a results statement.
The wealth & investment arm of London and Johannesburg-listed banking group Investec enjoyed a 19.2 per cent year-on-year jump in operating profit to £78.8 million ($123.6 million) in the year to the end of March.
As the business's operating margins improved, it generated net inflows of £2.7 billion over the year, while its funds under management grew 15 per cent to £46.1 billion.
Meanwhile, operating profit at Investec's asset management arm climbed 3.6 per cent year-on-year to £149 million, driven by net inflows of £3.1 billion and a 14 per cent increase in funds under management to £77.5 billion at the end of March. Operating margins here remained steady at 34.2 per cent.
The division has been busy bulking up its investment team in the UK. Recent additions include Jane Warren, who joined last month as head of digital. Investec Asset Management also welcomed Jeff Boswell and Garland Hansmann to its London-based multi-asset team. The headcount growth of the two businesses was deemed partly responsible for the group's 4.2 per cent rise in operating costs to £1.25 billion.
Elsewhere, Investec highlighted the success of recent product launches, including that of its private banking and wealth & investment businesses' global platform, One Place.
“The group is in the best position it has been since the mid-2000s. We have delivered on all the strategic initiatives set out in 2013 and can now focus on growing our three core businesses, Asset Management, Wealth & Investment and Specialist Banking,” said Investec's chief executive, Stephen Koseff, in the results statement.
“The ongoing results reflect a very satisfactory year. The performance of Wealth & Investment and Asset Management continues to reflect the quality of the businesses,” said the group's managing director, Bernard Kantor.
Last month, Investec Wealth & Investment launched a private office to serve the “underserved and under-represented” entrepreneurial high net worth market.
