May 21, 2020 / 6:31 AM / 16 days ago

BRIEF-Investec PLC Says FY Group Adjusted Operating Profit Down 16.8%

May 21 (Reuters) - Investec PLC:

* FY GROUP ADJUSTED OPERATING PROFIT OF £608.9 MILLION WAS 16.8% BEHIND PRIOR YEAR

* FY TOTAL OPERATING INCOME (BEFORE IMPAIRMENTS) DECREASED 7.5% TO £1,806.8 MILLION

* FY GROUP ADJUSTED OPERATING PROFIT OF £608.9 MILLION WAS 16.8% BEHIND PRIOR YEAR (2019: £731.9 MILLION)

* FY CORE LOANS AND ADVANCES WERE BROADLY FLAT AT £24.9 BILLION, BUT INCREASED 9.2% IN NEUTRAL CURRENCY

* COMMON EQUITY TIER 1 (CET1) RATIO OF 10.7% AT 31 MARCH 2020

* HAS DECIDED NOT TO DECLARE A FINAL ORDINARY DIVIDEND

* CET1: GROUP (CET1) RATIO OF 10.7% FOR INVESTEC PLC (STANDARDISED APPROACH) & 10.9% FOR INVESTEC LTD (FIRB APPROACH) AT 31 MARCH 2020

* HAS RETAINED STRONG CASH AND NEAR CASH BALANCES OF £12.7 BILLION AT 31 MARCH 2020

* EXPECT YEAR AHEAD TO BE CHALLENGING AS ECONOMIC RECOVERY FROM DEVASTATING EFFECTS OF COVID-19 IS LIKELY TO BE PROTRACTED

* YEAR AHEAD, CLIENT ACTIVITY IS LIKELY TO BE MUTED, INTEREST INCOME IMPACTED BY LOWER INTEREST RATES & IMPAIRMENTS LIKELY TO BE ELEVATED

* FY ROE 11.0% VERSUS 14.2%

* LONGER-TERM IMPACTS OF CRISIS HARD TO JUDGE AT PRESENT, MAY NECESSITATE REVIEW OF PERFORMANCE TARGETS THAT WERE SET FOR ACHIEVEMENT IN 2022

* FY HEADLINE EARNINGS PER SHARE 29.2 PENCE VERSUS 52.6 PENCE

* FY ROTE 12.2% VERSUS 16.1%

* STRATEGISING FOR A ‘’NEW NORMAL” AND WILL COMMUNICATE FURTHER WHEN IN A POSITION TO DO SO

* FY CONTINUING OPERATIONS NET INTEREST INCOME INCREASED BY 4.5% TO £853.0 MILLION (2019: £816.6 MILLION)

* FY CONTINUING OPERATIONS TOTAL OPERATING INCOME BEFORE EXPECTED CREDIT LOSS IMPAIRMENT CHARGES DECREASED BY 7.5% TO £1,806.8 MILLION

* FY CONTINUING OPERATIONS NET FEE AND COMMISSION INCOME DECREASED BY 0.3% TO £790.5 MILLION

* FY TOTAL ECL IMPAIRMENT CHARGES INCREASED TO £133.3 MILLION (2019: £66.5 MILLION) Source text reut.rs/3bNsd5V Further company coverage:

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