Mixed performance at Investec

17th Mar 2011 09:07

Asset manager Investec expects a rise in UK operating profits to offset a flat performance in South Africa in the year to 31 March, but warns that the slow pace of economic recovery has delayed an improvement of the level of non-performing loans.The company said operating conditions remain "difficult" as the global geopolitical landscape continues to be uncertain. "Whilst some of the group's banking businesses have performed well, notably the Capital Markets division, overall group results have been constrained by the slow recovery of non-performing loans and levels of transactional activity," Investec said. "The group's geographical and operational diversity has, however, supported a sound operational performance."The asset management division is seeing "solid long term investment performance across investment capabilities," the company said. The wealth and investment division is performing better than in the first half of the year, the investment property portfolio has performed well, while market conditions continue to impact activity levels in private banking, where there has been a 'significant increase" in impairments.