Investec Ireland profits rise by 38%

Investec Ireland has reported a 38 per cent increase in pretax profits to €33 million for the year to March 31st, largely due a 51 per cent in revenues from its capital business markets.

Deposits at the Irish operation of the South African bank, which employs 116 people in Dublin, grew 17 per cent to more than €1 billion. Much of this growth had come during the first half of the year.

Profits from its private banking business recorded a 22 per cent increase in profits. The Irish unit's return on equity was more than 60 per cent, while the bank had a cost-income ratio of 50 per cent.

Investec Ireland said its book had grown by 37 per cent.

The bank said while there has been an undoubted slowdown in demand for property-related transactions its "focus on the international market has insulated us somewhat from this development".

Investec Ireland owns Irish subprime lender, Nua Homeloans and said this subsidiary had "performed in line with expectations".

Parent company Investec today reported a 16.75 per cent rise in its full-year pre-tax profit, helped by a 15.2 per cent rise in its pre-tax operating profit.

The company posted a pre-tax profit of £547.76 million for the year to March 31st, 2008, from £469.15 million earlier. Its pre-tax operating profit rose to £537.67 million for the period from £466.6 million.

It said its full-year pre-tax operating profit was marginally down as growth in its UK businesses was hit by principal finance writedowns.

Investec said its South African and Australian businesses have more than compensated for its UK performance, which was affected by difficult credit market conditions.

It added that its South African and Australian businesses have enabled it to continue to grow earnings.