The bank’s specialist banking business saw profits decrease to £56m – for the six months to 30th September 2016 – compared with £66.1m for the same period in the previous year.
Investec Specialist Banking provides services for private banking, property investments, corporate and institutional banking as well as investment banking.
Overall, Investec Bank reported a 7.4% decrease in operating profit for the six months to 30th September 2016.
Explaining the reasons behind Investec’s specialist banking business profit decline, the bank revealed it was negatively impacted by the write down of an investment in its Hong Kong portfolio.
It also pointed to increased costs after Investec invested in improving its IT systems, as well as increasing staff numbers to help grow its franchise and build out its private client banking offering.
The specialist banking arm also reported that despite Brexit-driven volatity, the division recorded a strong performance in its customer flow trading business along with robust levels of activity across its lending and advisory business.
Investec’s half-year report also stated that it had seen a 6.3% rise in core loans and advances to £8.3bn, while customer accounts increased 11.7% to £12.3bn.
David van der Walt, CEO of Investec Bank, outlined the outlook for the bank and how it would deal with the uncertainty in the macro environment following the Brexit vote and the US presidential election.
“While Investec is mindful of the potentially challenging external circumstances, its operational diversity is supporting a recurring income base which has proved resilient notwithstanding fluctuating market conditions.
“The group remains committed to providing value for shareholders balanced by appropriate outcomes for stakeholders and an exceptional experience for clients.”
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