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Johannesburg - Investment bank and asset manager Investec [JSE:INL] posted a 2% decline in first-half earnings on Thursday, hit by a loss at its private banking business and a sharp decline in investment banking.
Investec, which is also listed in London, said operating profit before certain items totalled £223.63m ($353m) in the six months to end-September, compared with £228.16m a year earlier.
Investec, which is expanding its wealth and asset management businesses to scale back its dependence on lending, said it was hit by a £4.9m private banking loss, hurt again by real estate in Ireland and Australia.
Operating profit at its investment banking unit fell by more than 90% as corporate finance deal flow remains slow. Bankers have said that corporations in South Africa, a major trading partner with Europe, are unlikely to do deals as long as there is uncertainty about the outlook for Europe.
Investec, which is also listed in London, said operating profit before certain items totalled £223.63m ($353m) in the six months to end-September, compared with £228.16m a year earlier.
Investec, which is expanding its wealth and asset management businesses to scale back its dependence on lending, said it was hit by a £4.9m private banking loss, hurt again by real estate in Ireland and Australia.
Operating profit at its investment banking unit fell by more than 90% as corporate finance deal flow remains slow. Bankers have said that corporations in South Africa, a major trading partner with Europe, are unlikely to do deals as long as there is uncertainty about the outlook for Europe.
