Investec's Wealth Arm Logs Pre-Tax Operating Profit Increase

Robbie Lawther

17 November 2017

has logged a 14.7 per cent year-on-year rise in pre-tax operating profit for the six month period ending 30 September 2017. The figure stood at £49.5 million ($65.3 million).

The firm also reported net inflows of £1.5 billion, and total funds under management of £55.5 billion (31 March 2017: GBP54.8 billion).

Its asset management arm also reported its pre-tax operating profit rose by 1.2 per cent to £83.2 million, compared to the same six-month period in 2016, which was £82.3 million. The asset management business logged funds under management at £98.2 billion (31 March 2017: £95.3 billion), as well as net inflows of £2.1 billion.

Investec said “digital and online innovation and enhancements across the group” had increased the “strength” of its operations particularly, private banking and wealth management.

The group’s overall operating profit before tax increased by 10.5 per cent to £347.5 million (2016: £314.5 million).

“Investec achieved a satisfactory operating performance in all its businesses despite macro-economic and political uncertainty in both South Africa and the UK,” said Bernard Kantor, managing director of Investec. “In particular, asset management and Wealth & Investment benefited from higher funds under management and favourable equity markets while the specialist banking businesses continued to see good growth in loan portfolios and client activity.”

In October, this publication reported that Investec Wealth & Investments had appointed Lucy Grier as business development director of its Reigate, Surrey office.