Investec profit declines in tough climate
The London and JSE-listed Investec said the operating profit in September had declined to £373.6 million (R7.14billion), 1.7percent less than the prior period citing a tough operating environment.
Investec joint chief executive Fani Titi told investors during the company’s results presentation in Johannesburg that the weak performance of the UK banking and wealth management sectors, the ongoing Brexit uncertainty and South Africa’s lacklustre economic growth had weighed heavily on the group. He said the South African economy was growing at under 1percent and there was a lack of business confidence.
“In the UK Brexit has meant that private and corporate clients are sitting on their hands and sitting out the uncertainty,” Titi told investors.
The group said the return on equity was 13.1percent from 14.2percent in 2018, and it had maintained the cost to income ratio at 67.3percent.
Source: iol.co.za
