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5 months ago
UPDATE 1-Investec expects higher full-year revenue on equity market boost
March 14, 2017 / 11:02 AM / 5 months ago

UPDATE 1-Investec expects higher full-year revenue on equity market boost

(Adds details, share price)

March 14 (Reuters) - Investec Plc expects higher full-year revenue and operating profit as a recovery in equity markets boosted the company's asset management and wealth and investment units.

The South Africa-focused bank, which is also listed in London, also said it expects its specialist banking businesses to report results for the year ended March 31 ahead of the previous year, helped by the UK unit.

"The UK economy has been performing better than initially expected, however the possibility of a hard Brexit continues to create uncertainty and could impact overall levels of economic growth," the company said.

Investec, which is being investigated along with more than a dozen other banks for colluding to rig South Africa's rand, said it had not yet been received relevant information on the precise allegations against it.

Investec said last month that South Africa's Competition Commission's case against the bank was confined to the conduct of a single trader.

The company's shares rose about 0.7 percent to trade at its highest price since July 2015. Over half of its 30-day average volumes were traded by 1038 GMT on the London Stock Exchange.

Investec said it expects its capital ratios - the percentage of a bank's capital to risk-weighted assets - to be within the group's target total capital adequacy range, for the year to March 31 for both Investec Plc and Investec Ltd.

Common equity tier 1 ratio is expected to remain slightly below the 10 percent target for Investec Ltd while Investec Plc is expected to remain ahead of target.

The company also said third-party assets under management rose 24.3 percent to 151.2 billion pounds ($183.4 billion) for the period from March 31 to Feb.28. ($1 = 0.8243 pounds) (Reporting by Arathy S Nair and Sanjeeban in Bengaluru; editing by Susan Thomas)

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