Investec on Friday flagged rising credit losses in its UK business as it forecast that first-half profits would be broadly flat compared to the prior year, citing a challenging economic environment.
The Anglo-South African lender said it expects adjusted earnings per share for the six months ending Sept. 30 to be between 38.7 pence and 41.5 pence, compared with 39.5 pence in the same period last year.
Adjusted operating profit before tax is forecast to be between 451 million and 481.8 million British Pounds, against 474.7 million British Pounds a year earlier, the company said in a trading update.
The bank anticipates its credit loss ratio, a measure of expected bad loans, for its UK business will be at the upper end of its previously guided range.
In contrast, its Southern African business is performing more strongly, with credit losses expected to be at the lower end of its target range, according to the company.
Investec said its overall performance was supported by growth in its loan book, which increased by 4.7% on an annualised basis to 33 billion British Pounds.
The company also noted it has repurchased 46 million British Pounds worth of shares as part of a 100 million British Pound buyback program announced in May.