Acquisition of Evolution boosts Investec assets

Investec has recorded an increase in assets under management for the nine months to December 2011, following the acquisition of Evolution Group parent company of Williams de Broë.

Since end March 2011 - the end of the group’s financial year, third party assets under management increased 1.9 per cent to £90.6bn, an increase of 8.2 per cent on a currency neutral basis. This, though, includes £6.9bn related to the acquisition of Evolution.

In its interim statement, published today (3 February), Investec said that the specialist banking businesses benefited from growth in both margin and fee income but earnings from principal activities decreased “substantially”.

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The group said for the nine months ended December 2011, it recorded an increase in total operating income, net of insurance claims and depreciation of leased assets of 4.6 per cent, while net interest income was 7.7 per cent ahead of the prior year.

It said that net fees and commissions jumped 16.3 per cent compared to the same period in 2010, yet income from principal transactions was 31.3 per cent behind the prior year.

Operating costs increased by 6.8 per cent compared to 2010. Recurring income as a percentage of total operating income amounted to approximately 69 per cent.

The group said it had approximately £9.5bn of cash and near cash available to support its activities, it said.