Investec logo

INVP - Investec News Story

155p 0.3  0.2%

Last Trade - 8:15am

Sector
Financials
Size
Mid Cap
Market Cap £1.49bn
Enterprise Value £70.3m
Revenue £1.85bn
Position in Universe 330th / 1806

UPDATE 1-S.Africa's Investec flags up to 71% drop in interim profit

Fri 18th September, 2020 7:35am
* Investec says impact of pandemic on key markets hurt
performance
    * Expects interim profits to fall by between 64% and 71%
    * Plans to cut 210 jobs in the UK
    * Says interim dividend unlikely 

 (Adds detail)
    JOHANNESBURG, Sept 18 (Reuters) - South Africa's Investec
 INVP.L   INLJ.J  warned on Friday its half-year profits could
fall by up to 71% citing the impact of the coronavirus crisis
and some tax effects. 
    The financial services firm's main markets, the United
Kingdom and South Africa, have been hard hit by the pandemic,
with the latter enforcing one of the world's strictest lockdowns
in March. 
    Investec said the crisis had seen severe economic
contractions, volatile financial markets, lower interest rates
and a depreciation in the South African rand versus pound
sterling, hitting its performance. 
    CEO Fani Titi said provisions for expected credit losses
were likely to remain elevated, but Investec's capital and
liquidity ratios were robust. 
    "The business is well-positioned to support its clients
through this challenging environment," he said.
    Investec expects its adjusted earnings per share, which
reflect profits on ordinary operations, to be between 8.3 pence
($0.1076) and 10.5 pence, compared to 28.9 pence a year earlier.
    It said "effective tax rate normalisation" and the March
demerger of its asset management business, Ninety One  N91.L ,
also affected its performance.  urn:newsml:reuters.com:*:nL8N2B92KA
    It plans to cut around 210 jobs, or 13% of its UK-based
bank's London headcount, it said. 
    It also does not expect to declare an interim dividend
following guidance from both British and South African
regulators regarding shareholder payouts. 
    ($1 = 0.7712 pounds)

 (Reporting by Emma Rumney; editing by Olivia Kumwenda-Mtamob
and Jason Neely)
 ((Emma.Rumney@thomsonreuters.com; +27115952832;))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.