Investec reports profits of £229.4m for first half

Banking group Investec has announced pre-tax operating profits of £229.4m during the first six months of the year, rising 2.6 per cent from the prior-year period’s £223.6m.

The group revealed net inflows of £2.1bn into its asset and wealth management business, which generated 39.3 per cent of the group’s operating profits.

Chief executive Stephen Koseff says: “I am encouraged by our results and the progress we have made in the last six months, particularly compared to the second half of last year.”

He adds: “We have a strong franchise which is well recognised in all our markets, our business is flexible and resilient and we have a good record of overcoming the challenges presented by the global economic environment.”

The asset management business saw operating profit rise 2.5 per cent to £67.2m, compared with the £65.6m reported during the same period last year, fuelled by net inflows of £1.5bn, with total funds under management reported at £62.4bn.

Its wealth & investment arm saw operating profits rise by 4.9 per cent to £22.9m, compared with £21.8m for its first half last year. According to Investec, the business was boosted by higher average funds under management, with net inflows of £600m.