LONDON (ShareCast) - (Sharecast News) - Wealth management firm Investec warned on Friday that full-year profits had plummeted amid the Covid-19 pandemic.
Investec said full-year profits were expected to have fallen 29% year-on-year, with adjusted earnings per share dropping from 33.9p in 2019 to somewhere between 24.0p and 27.0p in 2020.

The FTSE 250-listed firm stated it had been impacted throughout the year by lower interest rates, falling client activity and currency depreciation, as well as costs associated with hedging on its UK structured deposits book - a unit it now intends to exit but will still incur costs from, including another £53.0m in the second half of the trading year.

While adjusted operating profit for its UK bank division was pegged to be "significantly" lower year-on-year, Investec said its board would consider a final dividend.

Chief executive Fani Titi said: "We are encouraged by the momentum we are seeing across our business, the continued recovery of markets and the positive developments related to Covid-19 vaccines.

"While the general outlook is improving, the long-term impact of the pandemic is uncertain. Investec remains well capitalised, highly liquid, and well provisioned for impairments. With the simplification of the group now substantially complete, we are positioned to pursue long term growth."

As of 0845 GMT, Investec shares were down 3.98% at 221.90p.

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