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Johannesburg - South African investment bank and asset manager Investec [JSE:INL] said on Thursday full-year earnings probably rose as much as 17% as strong flows into its asset and wealth management arms offset unfavourable currency swings and bad debts.
Investec, whose other major markets are Britain and Australia, said pound-denominated adjusted earnings per share grew by between 14% and 17% in the year to end-February. Rand earnings are seen up to 34% higher.
Thomson Reuters Starmine Estimates expect a 25% increase in adjusted earnings per share.
The company said assets under management rose 13% to £110bn, boosting fees earned on them thanks to a rally in equity markets.
Although Investec said bad debts fell by 22%, they remain at elevated levels with its credit loss ratio seen at between 0.83% and 0.88% from 1.12%. The ratio excludes its troubled UK mortgage lender Kensington.
Lending increased by 3% to £18.8bn.
Investec, which is also listed in London, has in the past paid for its exposure to home loans in its offshore markets.
Investec shares were up 0.7% in Johannesburg, ahead of a
0.35% rise by the benchmark Top 40 - (Tradeable) [JSE:J200] index.
