The South Africa/UK-based group reported stronger profits in the first three months of this year. It noted, however, that operating costs grew faster than revenue.

South Africa/UK-based Investec yesterday said that it logged a 9.4 per cent year-on-year rise in adjusted operating profit of £664.5 million ($850.2 million), with wealth and related business segments logging strong client inflows.

The firm said that its asset management business generated “substantial net inflows”, supporting higher average funds under management and annuity fees. The bank and wealth business benefitted from client acquisition and growth in key earnings drivers, it said. 

Adjusted earnings per share stood at 55.1 pence per share, a rise of 3.6 per cent on a year earlier. Investec said that its cost/income ratio widened a touch to 69.9 per cent from 68.3 per cent. 

Third-party assets under management rose by 4.1 per cent on a year earlier to £167.2 billion.

“We are implementing our strategy to simplify, focus and grow with discipline. We are committed to the demerger and listing of the asset management business and the positioning of the bank and wealth business for long-term growth,” Fani Titi and Hendrik du Toit, joint chief executives of Investec, said.

“The wealth and investment business generated positive discretionary net inflows,” the bank said in a statement.

Less positively, Investec said that operating costs grew faster than revenue.