Anglo-South African business group Investec warned on its profits for the first half of 2019 this morning as challenges in its specialist UK banking business dragged down the group.
The firm expects headline earnings per share to be roughly 15-18 per cent lower for the six months to 30 September, adding that it would take a pre-tax profit hit of £42m during the period.
“Market variability and persistent uncertainty relating to Brexit and global trade wars, has negatively impacted investment banking fees and trading income,” Investec said in a statement today.
Uncertainty over Britain’s imminent departure from the EU and higher costs paid out for its restructuring are expected to weigh on the firm’s first-half year results.
The depreciation of the rand against the sterling also dented earnings, the firm said.
The warnings come as the group plans to demerge its asset management arm and list separately in London.
Today it said that its ambition to float its asset management unit in 202 is on track.