Investec warns of profit drop amid market turmoil

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The group says market conditions have been challenging, and expects the coronavirus to further weigh on its fourth-quarter performance

Financial services group Investec, which recently spun off and separately listed its asset management arm, warned difficult market conditions could result in profit almost halving in its year to end-March.

Headline earnings per share is expected to fall by between 41% and 46% from the prior year, with Investec expecting the coronavirus to weigh on its fourth quarter performance.Group basic earnings per share are expected to rise by between 135% and 148%, with the group recognising a net gain of £837m due to the demerger and listing of Ninety One.

Investec spun off a separately listed Ninety One in March, proceeding with the move despite significant volatility on global markets.“Investec has delivered a resilient performance in challenging market conditions,” said CEO Fani Titi. “We have also made notable progress in the simplification of the business and have continued to invest in our platforms to achieve sustainable growth for the long term,” he said. “We remain optimistic about our longer-term potential.”

In morning trade on Friday Investec’s share price was up 3.32% to R28.01, having lost 51.50% of its value so far in 2020. Over the same period, the JSE’s financial index has fallen 42.35%.

 

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Oh fucking shame

That's the only thing business companies worried about,their 'profit'

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