According to the firm, the operating environment in the UK has shown continued improvement which has supported good levels of activity in the banking businesses, while in South African businesses “have benefitted from positive business momentum, notwithstanding an overall weakness in macro-economic conditions”.
On the wealth and asset management side, while the group continues to report net inflows, earnings are expected to be marginally behind last year’s numbers as market volatility and currencies bite.
In the asset management unit, net inflows are expected to be £1.5bn for the five months to end August. Since March 2015, the firm said, AUM has fallen 8% (4% on a currency neutral baisis) to £71.1bn.
Its wealth management business reported net inflows of £1.1bn, but here again overall performance was weighed down by weaker equity markets and the rand.
“Since 31 March 2015 assets under management have decreased by 3% to £44.6bn – an increase of 1% on a currency neutral basis,” the firm said.
But, it added that overall performance of the global business is expected to be marginally lower than the prior year as a result of continued investment in its digital offering and some senior staff.
CEO, Stephen Koseff said that despite the expectation that markets are likely to remain volatile, he said he believes the business remains well-placed to navigate that volatility.
“There are some headwinds, we we are in a reasonably comfortable place,” he said. Adding that the firm continues to make good progress on the roll out of its digital strategy.
