Loading...
See More

Investec full-year earnings drop

May 17 2012 08:56 Reuters

Company Data

NEDBANK GROUP LIMITED [JSE:NED]

Last traded 0
Change 7,23
% Change 0
Cumulative volume 224597
Market cap 121.98bn

Last Updated: 21-11-2014 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA

INVESTEC LIMITED [JSE:INL]

Last traded 0
Change 3,32
% Change 0
Cumulative volume 782939
Market cap 29.70bn

Last Updated: 21-11-2014 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA

BARCLAYS AFRICA GROUP LIMITED [JSE:BGA]

Last traded 0
Change 6,86
% Change 0
Cumulative volume 853886
Market cap 155.10bn

Last Updated: 21-11-2014 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Investec refines some of its disclosures

Investec profit hit by investment banking

Investec in profit warning

Investec buys Ireland’s NCB

Investec in SA renewable energy fund

Investec posts lower H1 profit

 

Johannesburg - South African investment bank and asset manager Investec [JSE:INL] paid for its exposure to struggling mature economies on Thursday, posting a 26% drop in annual earnings due to bad loans in Australia and weak investment bank results.

Investec, which is also listed in London, said impairments in Australia more than doubled to £67.9m.

Its investment income, meanwhile, declined by more than 30%, hit by poorly performing global markets.

"There are certain things that they have done wrong in the past and that's now reflective in the results," said Safs Narker, a financial analyst at Momentum Investments.

"They got involved in Australia and the UK in frothy property deals and now they are feeling the pain of having to take writedowns in those markets. It's the legacy book coming back to sort of haunt them."

Investec's credit loss charge declined to 1.12% from 1.27% a year earlier, a slower pace than hoped, pointing to the need for further writedowns, analysts said.

Bigger South African lenders such as Standard Bank Group [JSE:SBK], Absa Group [JSE:ASA], and Nedbank Group [JSE:NED] have all reported earnings growth for the past year as credit picks up in their key markets in Africa and rebounding economies boost loan repayments.

Investec warned in March that adjusted and headline earnings per share would decline as much as 27%. Diluted adjusted earnings per share totaled 30.1 pence in the year through March, compared with 40.6 pence a year earlier.

Net interest income, a measure of earnings from lending, totaled £699m up from £681.47m. Fees and commissions jumped over 12% to £884.2m.

Impairments, or bad debt costs, rose 2.2% to £325.1m.

Investec will pay shareholders a 17 pence dividend, unchanged from the previous year, and one analyst, who declined to be identified said the maintained dividend payout was a welcome surprise. Investors had expected a cut given earnings were down significantly

Shares of Investec are down 2.6% at 09:54 GMT, undereperforming a 1.18% drop in Johannesburg's Top 40 - (Tradeable) [JSE:J200] index of blue chips. 

investec
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

3 sports games you have to watch this weekend

Whether it’s date night or a braai with buddies, plan around these three exciting sporting games!

 
 

Men24.com

And this year's Miss Bumbum title goes to...
How to maintain your mo, bro
Hottie of the day: Colette
Pro-skater Tony Hawk rides a hoverboard!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...