* Australian operation posts a loss
* Asset management in line with previous year
(Adds details, CEO quote)
JOHANNESBURG, March 15 – South African bank Investec
flagged on Thursday that full-year earnings probably
fell as much as 27 percent, hurt by a poorly performing
investment bank and a loss in its Australian unit.
The $2 billion bank that is also listed in London
said it was hit by a drop in principal transactions in the year
to the end of this month.
Chief Executive Stephen Koseff told Reuters the bank had to
close down a lending division last year.
“We just need to clear that problem loan book which we are
in the process of doing. We have written the book down to
clearance levels,” he said.
Investec said third party assets under management increased
over 11 percent to 98.8 billion pounds ($155 billion) by the
end-February, which included 7.4 billion pound worth of assets
from the British investment group Evolution that it bought last
year.
As part of its strategy to cut its reliance on traditional
lending, Investec has been diversifying its business. Its latest
move was to buy Irish unlisted broker and wealth manager NCB for
32 million euros earlier this year.
Investec said deposits rose 4 percent while lending
increased 1 percent during the 11-month period.
Continued…
