Investec's first quarter inflows of £900m

The asset management and wealth and investment businesses have continued to see net inflows in the quarter and have benefited from higher average funds under management‚ with both divisions recording results ahead of the previous year.

Releasing an interim management statement‚ the group said the specialist banking business reported results that lagged last year leaving its results flat on a neutral currency basis‚ largely due to lower activity levels from the weak trading environment and the weakness of the Rand.

Overall results have been affected by the depreciation of the rand with the pound exchange rate of rising by about 13%.

Impairment losses on loans and advances decreased by 6% and operating costs increased by 4% compared with last year.

Operating profit

Operating profit before goodwill‚ acquired intangibles‚ non-operating items and taxation - and after non-controlling interests - is in line with last year. There has been an increase of 11% on a currency neutral basis.

Recurring income as a percentage of total operating income amounted to about 76% (2012: 73%)‚ supported by higher average funds under management.

At the end of June the capital adequacy ratio of Investec plc (applying UK Prudential Regulatory Authority rules to its capital base) was 16.8% and the capital adequacy ratio of Investec Limited (applying South African Reserve Bank rules to its capital base) was 14.8%.

The group had about £9.3bn in cash and near-cash to support its activities.

Since the end of March, third party assets under management decreased by 4% to £105.8bn - a decrease of 1% on a currency neutral basis.

Customer deposits decreased by 4% to £23.5bn - an increase of 1% on a currency neutral basis - and core loans and advances decreased by 4% to £17.7bn - an increase of 2% on a currency neutral basis.

Loans and advances as a percentage of customer deposits were 71.2%