Investec, the international specialist bank and asset manager, announces today its results for the year ended 31 March 2013.
Highlights
Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests ("adjusted operating profit") increased 20.8% to GBP433.2 million (2012: GBP358.6 million).
The Asset Management and Wealth & Investment businesses reported solid results benefiting from higher levels of average funds under management and net inflows in excess of GBP4.9 billion.
The Specialist Banking business incurred lower impairments than the prior year, whilst operating profit before impairments declined marginally.
The South African business reported an increase in operating profit of 13.4% in Rand terms benefiting from growth in revenue and fixed cost containment.
The Australian business returned to profitability as a result of a significant decline in impairments.
The UK business reported results slightly ahead of the prior year.
Overall group results have been negatively impacted by the depreciation of the average Rand: Pounds Sterling exchange rate of approximately 13% over the year.
Recurring income as a percentage of total operating income amounts to 68.6% (2012: 67.7%).
Impairments have decreased by 22.8%, with the credit loss charge as a percentage of average gross core loans and advances improving from 1.12% at 31 March 2012 to 0.84%.
The group maintained a strong capital position with Tier one ratios of 11.0% for Investec plc (per Basel II) and 10.8% for Investec Limited (per Basel III). Liquidity remains strong with cash and near cash balances amounting to GBP9.8bn.
