Babcock increases its 2015 interim dividend by 10%

DividendMax Ltd.

Babcock increases its 2015 interim dividend by 10%


Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ("operating profit") increased 8.6% to GBP240.8 million (2013: GBP221.7 million) - an increase of 21.8% on a currency neutral basis

Recurring income as a percentage of total operating income amounted to 77.1% (2013: 70.9%)

Wealth & Investment's operating profit increased by 23.3%. Asset Management reported operating profit 6.6% ahead of the prior period. Both divisions benefited from higher levels of average funds under management and combined net inflows of GBP4.2 billion

The Specialist Banking business reported an increase in operating profit of 6.0% largely due to strong performances from the South African banking business and the UK Corporate and Institutional business, and a lower loss reported by Australia, partially offset by less investment income earned on the Hong Kong investment portfolio.

The combined South African business reported operating profit 21.5% ahead of the prior year in Rand, whilst the combined UK and Other businesses posted a 17.6% increase in operating profit in Pounds Sterling

The annualised credit loss charge as a percentage of average gross core loans and advances amounted to 0.70%, with impairments decreasing by 20.1%

Capital remained well in excess of current regulatory requirements. All our banking subsidiaries meet current internal targets. Investec Limited and Investec plc should comfortably achieve a common equity tier one ratio above 10% by March 2016. Leverage ratios remain in excess of 7%

Liquidity remains strong with cash and near cash balances amounting to GBP9.0 billion

Dividend increased by 10% from 5p to 5.5p

Companies mentioned