Investec makes 'satisfactory' start to year

30th Jul 2010 07:28

Private bank and wealth manager Investec had a "satisfactory" first quarter as the UK business did well, although weak stock markets hurt operations in South Africa and AustraliaThe company, which bought fund manager Rensburg Sheppards in June, said net operating income (after expenses and minorities but before impairments on loans and advances) rose by 11%. "The UK business performed well with particularly strong results recorded by the Asset Management and Capital Markets divisions," it said Friday. "The South African and Australian operations were affected by weak equity markets and low levels of economic activity posting results behind the prior year."Attributable earnings were up 2% and recurring income as a percentage of total operating income was about 66%.Investec's capital adequacy ratio as at 30 June was 16.1% and the capital adequacy ratio of Investec Limited was 15.6%. The bank has around £9.8bn of cash and near cash available to support its activities. In the three months since the March year-end, core loans and advances fell 2% to £17.5bn, customer deposits increased by 1% to £22.2bn and third party assets under management dropped by 4% to £70.9bn."Increased savings levels in the developed world should continue to underpin growth in both the wealth and asset management businesses whilst the banking and advisory revenue streams remain dependent on the sustainability of economic recovery and the normalisation of economic activity," the firm said.There'll be a pre-close update on 16 September.