Investec lost R220 million due to Steinhoff
Investec released its financial results this week, which showed a 44.9 percent increase in headline earnings.
Investec released its financial results for the year ending 31 March, at which the bank said that it has lost R220 million as a result of credit exposure to Steinhoff. Investec said the credit exposures, through Steinhoff Africa Retail (STAR), "represent a small portion [of] the group’s balance sheet".
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In December 2017, Investec said that its loans to Steinhoff represented less than 0.25 percent of its total R464.8 billion credit exposure as at 30 September. Investec further said that trading income arising from customer flow decreased by 26.7 percent, to R365 million, as a result of losses incurred on Steinhoff.
Highlights from the bank’s results include a 44.9 percent jump in headline earnings, from R3.069 billion in 2017 to R4.4 billion, as well as an increase of 12.3 percent in nvestment income, to R530 million. Investec attributed the latter to "strong performance from the bank’s client-driven private equity portfolio".
Pictured: Nishlan Samujh, Investec CFO and winner of the 2017 Compliance & Governance Award