StockMarketWire.com - Investec said Thursday first-half profits grew double digits supported by strong performance in its asset management business.

For the six months ended 30 September, operating profit increased 14.2% to £359.3m from a year earlier and net interest income increased by 11.2% to £405.0m.

Asset Management operating profit increased by 10.0% to £91.5m, supported by strong net inflows of £4.1bn, which lifted total funds under management to £109.2bn from £103.9bn in the second quarter.

Wealth & Investment operating profit decreased by 6.3% to £46.4m weighed down by rising costs relating to an increased headcount for IT initiatives, compliance requirements, and continued recruitment of experienced portfolio managers and financial planners.

Its specialist banking operating profit rose 18.8% to £245.4m.

The total expected credit loss impairment charges amounted to £31m, a 'substantial reduction from £59.6m in the prior period, as charges from legacy impairments moderated.

The common equity tier one ratios were 10.4% for Investec plc and 10.3% for Investec Limited, ahead of the group's CET1 ratio target.

This was the first results since the group announced plans to spin off that division and overhaul its board as part of a generational handover.

'The outgoing executives have handed over a resilient business with positive momentum and good growth potential. It is now up to us to implement our strategy of simplification and greater focus, involving the demerger and separate listing of the Asset Management business and the positioning of the Specialist Bank and Wealth & Investment businesses for sustainable long-term growth,' said said Fani Titi and Hendrik du Toit, Joint Chief Executive Officers of Investec.

'Revenue growth, capital allocation and cost discipline remain high on our agenda.'


At 8:58am: [LON:INVP] Investec PLC share price was -0.05p at 493.15p



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