Solid progress at Investec

The asset and wealth management operations - designed to generate another revenue stream away from core banking - now accounts for 44 per cent of group profits. With the benefit of more benign conditions in financial markets, net funds inflows of £4.1bn helped drive assets under management up from £61.6bn to £69.8bn, and adjusted operating profits 4.8 per cent higher to £140m. The wealth management unit was particularly strong, pushing operating profits up almost a third to £50.7m, assisted by the successful integration of Williams de Broё.

Specialist banking remains the main income generator and, on a currency-neutral basis, core loans and advances rose 8.1 per cent to £18.4bn. Crucially, impairments on loans and advances, notably in Australia, fell sharply from £325m to £251m, taking the credit loss as a percentage of average gross core loans and advances down from 1.12 per cent to 0.84 per cent. This helped drive adjusted operating profits up 30.1 per cent to £242m.

Analysts at Numis are forecasting adjusted pre-tax profits of £558m and EPS of 46.6p, up from £433m and 37p in 2013.