Investec warns of losses, as pretax profit drops

Investec PLC reported Thursday a 40% fall in pretax profit for fiscal 2020, and said that it expected to book credit losses of around 105 million pounds ($128.5 million) due to the economic hit of the coronavirus pandemic.

The financial-services company, listed in London and Johannesburg, posted a pretax profit for the year ended March 31 of GBP310.5 million compared with GBP514.5 million for the year-earlier period.

Total operating income before expected credit loss impairment charges fell to GBP1.81 billion from GBP1.95 billion, the group said.

Excluding items, adjusted operating profit decreased to GBP608.9 million from GBP664.5 million, Investec said.

Third-party assets under management fell significantly to GBP44.5 billion from GBP167.2 billion, it said. Adjusted earnings per share were 46.5 pence a share from 60.9 pence a share at the end of fiscal 2019, the company added.

“The reported results are slightly below the guided range, reflecting a severe deterioration in the operating environment since the guidance was given,” Investec noted. It added that fiscal 2021 is expected to be challenging.

Source:marketwatch.com