Investec to make further acquisitions in Ireland

South African financial services group Investec, which bought NCB Stockbrokers in 2012, needs further scale in its Irish wealth and investment management business and will make further acquisitions where available, the group's chief executive said on Thursday.

"In Ireland we have a business that is well set but just needs scale," Stephen Koseff said at an analysts' presentation as the group unveiled interim results.

“And that’s an area that we could look to consolidate and make some acquisitions to the extent that they are available.”

The comments come after Goodbody Stockbrokers managing director Roy Barrett was forced to deny industry speculation during the summer that the company could be taken over by Investec. In an email to staff in July, Mr Barrett said the group was not in any such talks.

A spokesman for Investec in Ireland said: “Investec continues to have an interest in complimentary businesses in the wealth and investment space.” He declined to comment further.

Gandon

Investec Ireland entered the Irish market in 2000 when it acquired treasury and corporate banking specialist Gandon Capital Markets. Twelve years later it bought NCB in a deal worth up to €32 million.

The Irish businesses, led by chief executive Michael Cullen, are involved in private banking, capital markets and investment banking, including 10 people in its Cork office that was opened last year. The Irish wealth and investment unit is headed by Eddie Clarke.

Meanwhile, the Investec group reported net income of £208.6 million (€243m) for the six months to the end of September, up from £197.6 million for the year-earlier period.

The asset management and wealth and investment units benefited from higher funds under management, which were supported by a recovery in equity markets and net inflows of £1.8 billion, according to Investec.

Earnings

The lender, which started in Johannesburg in 1974 and set up a dual listing in London in 2002, also operates in Australia and Hong Kong, with the biggest portion of earnings coming from South Africa, where the economy is expanding at the slowest pace since a 2009 recession.

“Uncertainty persists in the macro-environment as the UK prepares for Brexit, the US adopts a new presidential administration and South Africa deals with economic, political and social volatility,” Investec said.

The bank’s “operational and geographic diversity is supporting a recurring income base, which has proved resilient notwithstanding fluctuating market conditions”.