StockMarketWire.com - Investment Bank Investec said it expected adjusted earnings in 2021 to be at least a fifth behind that of last year, in line with its previous guidance, amid the ongoing impact from the pandemic.

Adjusted earnings per share from continuing operations is expected to be 20% to 29% behind the prior year, the company said.

The updated guidance comes as the company saw a recovery in performance during the second half as adjusted operating profit and earnings were expected to be ahead of comparable numbers reported in the first half of the financial year.

Over the 11 months to 28 February 2021, third-party funder under management increased by 26.7% to £57 billion with net inflows of £961 million.

Operating costs for FY2021 are expected to be lower than FY2020 by mid-single digits, the company said.

Expected credit loss charge in 2H2021 compared to 1H2021 are forecast to be lower, between 37bps and 44bps, compared with 47bps in H1, and 52bps in 2020.

The company said it would consider paying a final dividend leading up to the release of the final 31 March 2021 results on 21 May 2021

'While the general outlook is improving, the long-term impact of the pandemic is uncertain,' it added.








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