StockMarketWire.com - Investec expects operating results for the year to the end of March to be up on last time despite depreciation of the rand.

The group expects its wealth & investment and asset management divisions to report results ahead of last time. Both divisions have benefited from higher levels of average funds under management supported by net inflows of £2.6bn and £2.4bn, respectively.

The South African specialist banking business is expected to report results substantially ahead of the prior year in rands but the UK specialist banking business is expected to report results behind the prior year. Overall, the global specialist banking business is expected to report results ahead of the prior year.

Investec says that overall group results have been negatively impacted by the depreciation of the average rand against sterling - approximately 11% over the period.

It says: "Against this backdrop of improved operating results and the depreciation of the rand, operating profit is expected to be ahead of the prior year in sterling (a solid increase in rands)."

Revenue (net of depreciation on operating leased assets) is expected to be marginally lower than the prior year. However, after adjusting for strategic disposals, revenue is expected to be marginally ahead of the prior year.

Recurring income as a percentage of total operating income has increased and is expected to be approximately 76% (2014: 71%).

Impairments are expected to be approximately 17% lower than the prior year.

Expenses are expected to be lower than the prior year. However, after adjusting for strategic disposals, expenses are expected to be in line with the prior year.


At 9:24am: [LON:INVP] Investec PLC share price was +2.75p at 600.75p



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