LONDON (dpa-AFX) - Investec plc (INVP.L), a specialist bank and asset manager, Friday said its expects lower earnings in fiscal 2020 amid challenging market conditions, mainly due to the ongoing public health and economic effects of COVID-19.
For fiscal 2020, the company expects adjusted operating profit to be 7 percent to 14 percent lower than last year's 732 million pounds, and adjusted earnings per share to be 16 percent to 23 percent lower than last year's 60.9 pence.
The company expects annual operating income to be behind the prior year's 2.53 billion pounds. Both net interest income and net fee and commission income are expected to be ahead of the prior year, while other income would be lower.
Net asset value is expected to be between 425 pence and 450 pence, compared to last year's 434.1 pence. Net asset value has been positively impacted by profitability and the demerger of Ninety One, formerly known as Investec Asset Management, and negatively by the depreciation of the Rand.
Fani Titi, CEO of Investec, said, '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. ...We remain optimistic about our longer-term potential.'
Investec said it decided not to proceed with the sell down of a 10 percent stake in Ninety One given market volatility and its already comfortable capital position.
The company is slated to release annual results on May 21.
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