Investec slowed by write-downs
Write-downs of £49m in its US structured products portfolio knocked South African bank Investec's performance last year with the outlook described as challenging for 2008/9.
UK mortgage arm Kensington also took £55.4m of impairment losses. Pre-tax profits rose to £548m from £469m in the year to March with adjusted earnings per share of 56.9p, up from 53.3p. Stripping out a disposal gain, profits were up 1% to £475m.
Operating profit before goodwill and non-operating items rose 15.2% to £538m thanks to 27% growth in South Africa, which offset a 1.6% decline in its business in the UK. The capital markets division's contribution fell because of the US write-downs, while investment banking tumbled 15% to £77.3m.
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Chief executive Stephen Koseff told reporters he expects a tough operating environment to last for at least this whole year.
Investec proposes an increased final dividend of 13.5p per share, equating to a full year dividend of 25p.
