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Johannesburg - Investment bank and asset manager Investec [JSE:INL] said on Thursday it expects flat first-half profit, hit by higher bad debts and weakness in its property and investment banking activities.
Investec, which plans to buy British investment bank Evolution for $374m, has been focused on building its wealth management business to compensate for weak demand for commercial loans.
The bank, also listed in London, said in a trading update it expects pre-tax operating profit for the six months to end-September to be in line with the £228.16 it reported last year.
Investec also said in a statement that first-half impairments, or bad debt costs, would be higher than the year-earlier period, due to its exposure to Ireland.
Investec in May posted a 5% decline in full-year profit, after its private bank was whiplashed by exposure to soured Irish debt.
Weak market conditions resulted in a “subdued performance” in investment banking, particularly institutional stockbroking in South Africa.
Investec, which plans to buy British investment bank Evolution for $374m, has been focused on building its wealth management business to compensate for weak demand for commercial loans.
The bank, also listed in London, said in a trading update it expects pre-tax operating profit for the six months to end-September to be in line with the £228.16 it reported last year.
Investec also said in a statement that first-half impairments, or bad debt costs, would be higher than the year-earlier period, due to its exposure to Ireland.
Investec in May posted a 5% decline in full-year profit, after its private bank was whiplashed by exposure to soured Irish debt.
Weak market conditions resulted in a “subdued performance” in investment banking, particularly institutional stockbroking in South Africa.
