LONDON (dpa-AFX) - Banking and wealth management group Investec Plc.(INVP.L) Friday said it expects second half of fiscal 2021 adjusted operating profit and earnings to be ahead of comparable numbers reported in the first half, reflecting an improving trend, particularly in the last quarter.
For fiscal 2021, the company projects earnings per share from continuing operations between 19.7 pence and 22.5 pence, up from last year's 17.5 pence.
However, adjusted earnings per share from continuing operations would be down 20 percent to 29 percent from the prior year, and adjusted operating profit would be down 16 percent to 24 percent.
Adjusted earnings per share would be 24 pence to 27 pence for the year, compared to 33.9 pence last year. Headline earnings per share would be 19.5 pence to 22.3 pence, compared to 21.5 pence a year ago.
In its pre-close trading update for the year ending March 31, the company said its full-year operating results are expected to be in line with the previously provided guidance.
The year-on-year performance has been negatively impacted by lower interest rates, elevated costs related to the hedging of UK structured products book as guided in November, and reduced client activity, among others. This was offset by lower expected credit losses and continued cost containment.
Fani Titi, Group Chief Executive, said, 'We are encouraged by the momentum we are seeing across our business, the continued recovery of markets and the positive developments related to COVID-19 vaccines.'
Looking ahead, Investec said it remains well capitalised, highly liquid, and well provisioned for impairments. The company said it is positioned to pursue long term growth.
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