Investec PLC (LON:INVP) saw strength in its banking unit drive an increase in first-half profit as the South African financial services group gears up for a break-up of its asset management operations.
The FTSE 250-listed firm reported a 14.2% rise in operating profit for the six months to September 30 to £359.3mln, up from £314.6mln a year earlier.
READ: Investec rejigs board ahead of asset management spin out
Investec said its banking unit reported an 18% increase in operating profit to £245.4mln, while its asset management arm saw its operating profit rise by 10% to £91.5mln.
The company is currently looking to spin-off and separately list its asset management operations in London, with the break-up expected to be completed in the second half of 2019.
Fani Titi and Hendrik du Toit, Investec’s joint chief executive officers said: "The outgoing executives have handed over a resilient business with positive momentum and good growth potential. It is now up to us to implement our strategy of simplification and greater focus, involving the demerger and separate listing of the Asset Management business and the positioning of the Specialist Bank and Wealth & Investment businesses for sustainable long-term growth.
“Revenue growth, capital allocation and cost discipline remain high on our agenda."
The firm is paying an interim dividend of 11.0p per ordinary share, up from the 10.5p it paid in 2017.
In early morning trading, Investec shares were 0.9% higher at 497.50p.