Investec full-year profit beats analyst estimates

Johannesburg - Investec [JSE:INP], owner of a bank and money manager in South Africa and the UK, posted full-year earnings that beat analyst estimates as assets under management and lending jumped.

Net income for the 12 months ended March 31 climbed to £487.1m ($630.9m) from £423.1 a year earlier, it said in a statement on Thursday.

Adjusted earnings per share increased 11%to 54.1 pence, compared with the 45.8 pence median estimate of eight analysts surveyed by Bloomberg.

Investec, which also has operations in Australia, makes most of its operating profit in South Africa.

The South African economy is forecast to grow in 2017 at about double last year’s pace, yet still remains sluggish after two ratings companies cut the country’s debt to junk status.

"Strong, sustainable levels of corporate and private-client activity are reaping rewards for the specialist bank, while both asset management and wealth and investment are benefiting from higher funds under management,"managing director Bernard Kantor said in the statement.

Revenue broke through £2bn for the first time.

Third-party assets under management increased 24% to £150.7bn, while loans increased 27% to £22.2bn, the lender said.

Investec’s credit-loss charge as a percentage of average gross core loans and advances deteriorated to 0.29% from 0.26% as impairments increased by £15.8m to £57.1m.