Investec sees good fund inflows offset slump in demand for loans

SOUTH African investment bank and asset manger Investec said profit rose slightly in the first nine months of the year, as a strong fund business helped offset weak demand for loans.

Investec, which operates in South Africa, Britain and Australia and is also listed in London, said demand for credit and deal activity remained subdued.

The bank said in a trading update yesterday that operating profit before goodwill, taxes and other items increased marginally in the nine months to the end of December.

Attributable earnings, or net profit before goodwill and non-operating items, rose four per cent.

Bad debt costs amounted to 1.04 per cent of the bank’s total loan book, down from 1.16 per cent at the end of March. It said its asset and wealth management businesses benefited from substantial inflows.