Investec expects earnings per share and profits to climb despite volatile backdrop
Investec said it expects profits to continue to climb as the specialist banking and asset management group rides out the volatile macro environment with diverse revenue streams.
The firm said it expects adjusted operating profit before tax to be between £372.6m and £406.2m in its pre-close trading update, with the UK business’ figure at least 20 per cent higher than prior period.
Adjusted earnings per share are set to be between 30.0p and 33.0p, up to 25 per cent ahead of the prior period.
Basic earnings per share are set to be between 46.5p and 51.p (or 84 per cent to 104 per cent ahead of prior period), positively impacted by the gain on the implementation of the Ninety One distribution in May 2022.
For the five months period ended 31 August 2022, Investec noted that the prevailing uncertain and volatile macro environment has had a negative impact on certain market facing businesses.
The Wealth & Investment business FUM declined by 2.7 per cent to £61.7bn during the period, driven by market volatility which was partly offset by net inflows of £48m.
Within Specialist Banking, core loans grew by 7.8 per cent annualised to £30.9BN, driven by corporate lending in both geographies and residential mortgage growth predominantly in the UK.
However, the wealth manager firm said it is” well capitalised” with strong liquidity.
Interim results are set to be released on 17 November.