Investec revenue down 24%, shares fall

Investec shares (LON: INVP) were down over 7% on Thursday as the group revealed a 24% in revenues.

The group described “reduced economic activity and increased market volatility” amid the Covid-19 backdrop.

Adjusted operating profit was down 48.4% to £142.5m – from £276.3m a year previously.

Investec has declared an interim dividend of 5.5p.

Fani Titi, Chief Executive commented: “The first half of the financial year has been characterised by difficult and volatile market and economic conditions attributed primarily to COVID-19. As a result, group adjusted operating profit of GBP142.5 million was 48.4% behind the prior period and adjusted basic earnings per share of 11.2p was 50.0% behind the prior period, albeit ahead of pre-close guidance. We are encouraged by the resilience of our loan book, the performance of our core franchises against a tough backdrop and progress made on our strategic objectives. Tangible net asset value per share increased by an annualised 10.4% and a dividend of 5.5p has been declared.

“We entered this crisis from a position of strength and continue to have a strong capital, funding and liquidity position, leaving us well placed, both operationally and financially, to navigate this evolving environment for the benefit of our clients and other stakeholders.”

Looking forward, the group expects the overall performance this year to be ahead of the first half.

Investec shares (LON: INVP) are -7.73% at 188,50 (1319GMT).