* Investment and trading income down
* Lending also declined
* Australian home loans improve
JOHANNESBURG, Sept 13 (Reuters) – South African investment
bank and asset manager Investec said on Thursday it
expects flat first-half earnings, following declining investment
and trading income and despite a recovery in its home loans
business in Australia.
Investec has been the worst hit of major South African banks
by the global economic meltdown, given its exposure to Europe
and Australia.
Bigger rivals — Standard Bank, FirstRand
and Nedbank — have reported profit increases but No. 3
bank Absa Group saw profit shrink in the first half as
a result of bad mortgages.
Dual-listed Investec said in a trading update it
expects pre-tax operating profit for the six months to
end-September to come in line with last year.
Lower investment and trading income are expected to cut
earnings in the United Kingdom, but Investec’s South African
business is seen showing an improvement in local currency terms.
Investec said lending fell 3 percent to 17.7 billion pounds,
which caused a marginal decline in net interest income.
Continued…
