Brexit doubts cut into Investec's UK banking business

Investec [JSE:INL] has warned of a fall in profits for the first six months of the year, citing challenging market conditions and an ongoing restructuring.  

The financial services provider put out a trading update on Friday in anticipation of its upcoming half year earnings report. Its shares were down 4.5% in early trade on the JSE. 

It said a fall in revenue and costs meant that adjusted earnings per share would fall by between 4% and 7%.

The company, which is dual listed on the Johannesburg and London stock exchanges, said that "uncertainty relating to Brexit and global trade wars" had negatively impacted its UK specialist banking business

"Interest income has been impacted by the additional liquidity required to pre-fund the exit of Irish deposits as a result of Brexit."

Its SA specialist banking business, on the other hand, was expected to report a profit, despite "weak economic growth and low business confidence."

Investec said the proposed spinoff and separate listing of Investec Asset Management was on track after approval was obtained in August. It intends to list the asset management businesses in London with a secondary inward listing on the JSE.

ZAR/USD
16.76
(-0.05)
ZAR/GBP
21.18
(-0.23)
ZAR/EUR
18.94
(-0.09)
ZAR/AUD
11.65
(-0.04)
ZAR/JPY
0.16
(+0.04)
Gold
1798.11
(+0.03)
Silver
18.69
(+0.17)
Platinum
824.50
(+0.30)
Brent Crude
43.14
(+2.10)
Palladium
1961.36
(+0.61)
All Share
55417.89
(-0.66)
Top 40
51154.08
(-0.74)
Financial 15
10472.31
(+1.28)
Industrial 25
76134.69
(-1.67)
Resource 10
52483.78
(-0.20)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1967 votes
I am taking a hit, but should be able to recover in the next year
23% - 2578 votes
My finances have been devastated
34% - 3826 votes
It's still too early to know what the full effect will be
25% - 2757 votes
Vote