Investec profit edges higher

3rd Feb 2011 07:48

South Africa-focused bank Investec said it saw a marginal improvement in profit in the nine months to 31 December as strength in its asset and wealth management businesses helped offset a weaker performance from banking and advisory businesses.Investec, which also has a large presence in the UK and Australia, said that the pace of the economic recovery is varied across the markets in which it operates and that the regulatory environment remains challenging. In the nine months to 31 December, operating profits before goodwill, acquired intangibles, non-operating items and taxation and after minorities increased marginally, but would have risen by 23% but for a £47m exceptional gain seen in the previous period."The group's non-capital intensive asset and wealth management businesses have gained significant momentum and the platform is in place for these businesses to continue to increase their contribution to group earnings," the company said. "Whilst some of the group's banking businesses are performing well, notably the Capital Markets division, overall group results will remain constrained by the slow recovery of non-performing loans and transactional activity levels. "Investec said it expects its geographical and operational diversity to continue to support a 'sound' performance.