JOHANNESBURG, March 20 (Reuters) – South Africa’s Investec expects full-year earnings growth after increasing the funds it manages, the investment bank and asset manager said on Friday but warned that a weaker rand currency would hurt group results.
Investec, which is also listed in London, said in a statement that its Wealth and Investment and Asset Management businesses had received a combined 5 billion pound ($7 billion) in net fund inflows during the financial year.
However, the rand’s depreciation against the pound would hurt the group’s overall results for the year ending March 2015, Investec said, adding that the rand had depreciated about 11 percent over the period.
Bad debt charges, are seen contracting 17 percent, Investec said.
Chief Executive Stephen Koseff told an investors’ briefing that the lender’s credit loss ratio could come in at between 0.65 to 0.7 percent. This compares with 0.44 percent in the year ended March 31, 2014.
Lending in the first 11 months fell 1 percent to 16.9 billion pounds, while third party assets under management grew 12 percent to a total 123.4 billion pound, the bank said.
Investec shares were almost flat at 107.43 rand in Johannesburg at 0932 GMT, but gains so far this year are at 10 percent.
($1 = 0.6782 pounds) (Reporting by Helen Nyambura-Mwaura; Editing by James Macharia)
