Investment banking giant Investec is not concerned that an expected drop in interest rates could impact its sound revenue and profit growth as it has enough growth opportunities across its business. One area of growth it plans to target in the year ahead is business banking.
“We currently have just over 2 000 clients and we want to have 3 000 clients in the next financial year.” In a telephonic results presentation early on Thursday morning, group CEO Fani Titi said Investec delivered a strong financial performance notwithstanding the “uncertain operating environment that prevailed throughout the financial year”.
This was primarily driven by higher average interest-earning assets, positive endowment effect from higher interest rates, increased client activity, and continued client acquisition. He points out that Investec could face headwinds when interest rates eventually drop. “If interest rates come down 200 basis points it will impact profits, although not that significant that it will prevent them from growing profits.”Banks generally earn higher profits on loans when interest rates are high.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: mybroadband - 🏆 11. / 67 Lire la suite »
La source: News24 - 🏆 4. / 80 Lire la suite »