Investec plc (LON:INVP) posted full-year underlying profits up 9.4% for the year to end-March and said the spin-off of its asset management arm was on track.
In the 12 months to March 31, the South Africa-focused financial giant posted adjusted operating profits of £664.5mln. Growth would have been 12.6% had it not been for the weak rand.
READ: Investec rejigs board ahead of asset management spin out
Profits at the asset management division were up 0.7% year-on-year, with the drivers of growth coming from a 13% uplift at the investment banking and wealth management businesses.
The group announced last September it would demerge its fund management operation into a separate London-listed vehicle as part of a strategy to simplify operations. Assets under management swelled 7.3% to £111.4bn thanks to net inflows of £6.1bn and favourable market movements.
With group adjusted earnings per share were up 1.6% to 52p and cash up 3.6% or 10% at constant currency rates to £13.3bn, the board have proposed a 24.5p dividend per share.
Strategy to simplify
Fani Titi and Hendrik du Toit, joint chief executives, said: "We are implementing our strategy to simplify, focus and grow with discipline. We are committed to the demerger and listing of the asset management business and the positioning of the bank and wealth business for long-term growth.
"In spite of a challenging operating environment, these results speak to strong support from our clients.”
Titi and du Toit said the past year has seen a "smooth" transition to the new boardoom roles as the strategic review of the group was completed.
"We are on track with the proposed demerger and separate listing of Investec Asset Management which should enhance the long-term prospects of both businesses."
Shares in Investec were up just over a penny to 482.7p after almost an hour of trading on Thursday morning.