Add back amortisation and goodwill costs and operating profits grew 1.5 per cent to £222.4m at investment bank Investec (INVP). That progress would have been better, though, had it not been for a 15 per cent decline in the rand that dampened South African earnings. Indeed, all three of Investec's divisions delivered higher operating profits although the shares - which have performed well in recent months - aren't so cheap.
Specialist banking, covering private banking, property and capital markets, increased operating profit by 2.3 per cent to £139.4m - reflecting higher interest income from more South African lending and a solid investment performance. Although fee and commission income from institutional and corporate banking did fall. On the asset management side, meanwhile, total funds under management rose from £61.6bn at the March year-end to £62.4bn. There was also a £1.5bn net inflow of funds, helping to lift operating profits at the division by 2.5 per cent to £67.2m. Investec's wealth and management operation, meanwhile, benefited from the integration of Williams de Broë and operating profits here grew 4.9 per cent to £22.9m.
Numis Securities expects to upgrade its current full-year estimates and currently expects pre-tax profit of £444.9m, giving EPS of 36.8p (2012:£347.6m/32.4p).
INVESTEC (INVP) | ||||
---|---|---|---|---|
ORD PRICE: | 373p | MARKET VALUE: | £3.32bn† | |
TOUCH: | 373-374p | 12-MONTH HIGH: | 419p | LOW: 309p |
DIVIDEND YIELD: | 4.6% | PE RATIO: | 16 | |
NET ASSET VALUE†: | 418p* |
Half-year to 30 Sep | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|
2011 | 214 | 19.2 | 8.00 |
2012 | 200 | 16.8 | 8.00 |
% change | -7 | -13 | - |
Ex-div: 12 Dec Payment: 28 Dec †Reflects shares in both UK and South African listed entities *Includes intangible assets of £658m, or 74p† a share |