Investec FY16 Profit Rises, Says Uncertainty and Volatility Impacted Results

LONDON--Investec PLC (INVP.LN) Thursday reported a 32% rise in pretax profit for fiscal 2016, but said that macro uncertainty and volatility in the group's key operating markets impacted the overall results.

The macro environment remains volatile due to uncertainty in global markets, the pending European Union membership referendum in the U.K., and economic, political and social challenges in South Africa, Investec said. However, the current levels of activity are supporting the group's performance, the company added.

The specialist bank and asset manager said the specialist banking business reported results ahead of the prior year, adding that strong loan growth was supported by client activity in both the corporate and private banking businesses.

The company, which provides a range of financial products and services to a niche client base in the U.K. and South Africa, reported net inflows of 5.3 billion pounds ($7.76 billion).

For the 12 months ended March 31 the company made a pretax profit of GBP518.2 million compared with GBP392 million a year earlier, on interest income of GBP1.71 billion and GBP1.79 billion respectively.

Stripping out the results of the businesses sold in the prior year and the remaining legacy business in the U.K., the group's operating profit was GBP567.4 million in 2016, compared with GBP562.5 million in 2015.

The board has proposed a final dividend of 11.5 pence a share, making the total payout for the year of 21 pence a share, up from 20 pence in the previous year.

Write to Olga Cotaga at [e-mail], Twitter @OlgaCotaga

(END) Dow Jones Newswires

May 19, 2016 02:48 ET (06:48 GMT)

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