Investec said its profits in the first half of the year declined 1.6% as the South African currency weakened. A global specialist bank and asset management firm, Investec has a bank and money management company in South Africa and the UK.
According Bloomberg, its services include corporate and investment banking, private banking, asset management, securities trading, trade finance services and property trading and management.
In a statement, the lender said net income fell to GBP 164.3 million or USD 264 million in the six months that ended September 30. This compared with GBP 166.9 million from the year before. Although the dividend per share remained the same at 8 pence, the earnings per share dropped 1.3% to 15.6 pence.
Investec said, "The challenge for the group remains to ensure its specialist banking businesses are in the best possible shape to take advantage of the upturn in markets and generate the appropriate shareholder returns." The group added that if the rand had not weakened, it would have posted an increase of 13% in its earnings.
Investec CEO Stephen Koseff said in the statement, "We have delivered results at the top end of what we anticipated, despite a sharp fall in the rand without which we would have shown a 13% increase in earnings."
Bloomberg reported that the South African currency had fallen 16% against the dollar and the pound in 2013. This made it the worst performer among the major currencies that Bloomberg had monitored. Investec was established in South Africa in 1974.
However, Investec remained optimistic. "While economic conditions remain mixed, the overall group is improving. The group will continue to realign the business model." It is currently restructuring its private banking business in Australia.
Despite the decrease, Investec stock gained 15% in the South Africa bourse this year. It outperformed the FTSE/JSE Africa Banks Index which had risen by 4.4. The benchmark has six members.mon
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