Investec FY profits set to fall as Covid-19 takes its toll
Asset manager Investec said on Friday that full-year profit was expected to decline on the year as it takes an added hit from the coronavirus outbreak.
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For the year to the end of March 2020, group adjusted operating profit is expected to be down 7% to 14% from £732m in FY2019, while adjusted earnings per share are expected to decline 16% to 23% from 60.9p, as already-challenging market conditions are made worse by the spread of Covid-19.
Operating income is expected to be behind the prior year’s £2.5bn, but both net interest income and net fee and commission income are expected to be ahead, it said.
Elsewhere, operating costs are set to decline from 2019’s £1.7bn, while impairments are set to increase and the credit loss ratio is expected to be between 0.31% to 0.37%.
"The operating environment in the second half of the financial year (2H2020) was difficult in both South Africa and the UK," it said. "The effects of Covid-19 on global markets are expected to negatively impact Investec's fourth-quarter operating performance."