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Johannesburg - International specialist banking group Investec [JSE:INL] said on Thursday its operating profit for the year ending March 31 2011 is expected to be marginally higher than the previous year, notwithstanding operating conditions remaining difficult.
At a pre-close briefing the group, which has dual listings in London and Johannesburg, said that the UK business was expected to post an operating profit ahead of the prior year and the South African business an operating profit in line with the prior year.
However, it cautioned that the slower pace of economic recovery had caused a delay in the improvement of the level of non-performing loans.
It said impairments remained at elevated levels and that the credit loss charge as a percentage of average gross loans and advances was expected to be 1.2% compared with 1.16% at the end of March 2010.
Since March 31 2010 core loans and advances had increased by 3% to £18.5bn, customer deposits had increased by 7% to £24.1bn and third-party assets under management had increased by 17% to £86.4bn.
Core advances (excluding own originated securitised assets) as a percentage of customer deposits were 72.1% (March 31 2010:76.2%).
The group added that it had a strong balance sheet with low gearing, substantial cash and near cash and solid capital ratios.
Investec CEO Stephen Koseff said operating conditions remained difficult as the global geopolitical landscape continued to be uncertain.
At a pre-close briefing the group, which has dual listings in London and Johannesburg, said that the UK business was expected to post an operating profit ahead of the prior year and the South African business an operating profit in line with the prior year.
However, it cautioned that the slower pace of economic recovery had caused a delay in the improvement of the level of non-performing loans.
It said impairments remained at elevated levels and that the credit loss charge as a percentage of average gross loans and advances was expected to be 1.2% compared with 1.16% at the end of March 2010.
Since March 31 2010 core loans and advances had increased by 3% to £18.5bn, customer deposits had increased by 7% to £24.1bn and third-party assets under management had increased by 17% to £86.4bn.
Core advances (excluding own originated securitised assets) as a percentage of customer deposits were 72.1% (March 31 2010:76.2%).
The group added that it had a strong balance sheet with low gearing, substantial cash and near cash and solid capital ratios.
Investec CEO Stephen Koseff said operating conditions remained difficult as the global geopolitical landscape continued to be uncertain.
