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Johannesburg - South African investment bank and asset manager Investec [JSE:INL] said on Friday first-quarter net operating income rose by 11%, as strength in its UK business offset weakness in South Africa.
South Africa's fifth-largest bank, which is also listed in London, said in a trading statement that it was bolstered by "particularly strong results" at its British asset management and capital markets divisions.
The bank, which has been looking to cut its reliance on lending by bulking up its asset management business, gave few details on performance in the quarterly update.
Attributable earnings, or net profit before goodwill and non-operating items, rose by 2% in the April-June quarter compared with a year earlier.
It did not give quarterly figures for either net operating income or attributable earnings.
The bank said bad debts remain at "elevated levels".
Banks in Africa's largest economy have been hit as consumer demand and corporate earnings remain weak, even after the country exited a recession last year.
Absa Group [JSE:ASA], which is majority owned by Britian's Barclays, said on Thursday it expects first-half profit to fall by as much as 5% after being hit by slack loan demand.
Investec is also targeting rising investor interest in fast-growing Africa.
The bank's asset management arm has said it aims to triple its assets under management in Africa outside South Africa over the next five years.
Shares of Investec have risen 14.6% so far this year, outperforming a 1.6% gain in Johannesburg's Top-40 index.
- Reuters
