“Favourable market movements” and weaker sterling helped drive FUM in Investec’s asset management arm to £95.3bn.
The South Africa-based firm admitted its group results on the whole had benefitted from an 11.1% appreciation of the average rand-to-sterling exchange rate over the period.
Both asset and wealth management divisions proved profitable over the financial year, with the asset management arm posting 22.3% higher operating profit of £164.8m and IW&I generating £93.2m, an increase of 8.8%.
The increase in FUM in both business units led to a 20% boost in net fee and commission income to £1.27bn.
Despite a setback from 3.3% lower operating profits from its South African banking business, the specialist banking business grew profits 11% to £454.4m.
At group level, Investec’s operating profit surged 13.7% to £663.7m, though on a currency-neutral basis, the rise was just 4.5%.
Revenues were also higher, smashing the £2bn mark for the first time, which CEO Stephen Koseff said highlighted the “strength and resilience of our businesses in the face of macro uncertainty in our two key markets.”
The group proposed a dividend hike of 9.5%, taking its dividend for the year to 23.0p.
