Investec's annual profits higher on Wealth and Investment

22nd May 2014 10:30

- Operating profit up six per cent- Wealth and Investment division boosts results- Dividend raised to 19p from 18pInvestec reported a six per cent rise in annual operating profit to 451.8m, driven by the strong performance of its Wealth and Investment division.Wealth and Investment operating profits increased by 30.5% in the year ended March 31st 2014 and Asset Management achieved a 2.4% rise, as both divisions benefitted from higher levels of funds under management and net inflows of £4bn.The Specialist Banking business reported a 2.8% gain in operating profit while the South African Specialist Bank posted a 29.2% jump in Rands.The group's total results were negatively affected by the depreciation of the Rand.The UK Specialist Bank's operating profit was up 29.9%, supported by a significant decline in impairments. The Australian business, on the other hand, reported a loss due to strategic restructuring, with the pending sale of a large portion of the business.Chief Executive Stephen Koseff said: "These are good results and very much in line with expectations, despite the weakness of the Rand. "We have made significant strides to reshape and simplify the group to focus on our core businesses with the restructuring and sale of part of our Australian businesses, the sale of our Trust businesses, Lease Direct and strong interest in Kensington. We are now a very different looking business with a lean, well capitalised, focused Specialist Bank sitting alongside our strong Asset Management and Wealth and Investment businesses."The dividend was raised to 19p per share from 18p the prior year. RD