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Investec Bank CEO sees no sector-wide relief to come from South African banks

Bank has strong liquidity, capital to support clients.
Image: Moneyweb

South African banks are unlikely to join forces to offer industry-wide relief to a sector hit by the coronavirus and will assess each case individually, Investec Bank’s CEO said.

The South Africa Real Estate Investment Trust Association, which represents real estate investment firms, has approached banks for a relief package, Richard Wainwright told Reuters.

Wainwright, chief executive of the South Africa banking division of financial services firm Investec , said on Thursday that South African banks would “weigh up the demands of relief on a case-to-case basis.”

But it is unlikely that they would offer blanket relief, Wainwright said, adding that South Africa’s aviation, hospitality, real estate and retail sectors have been most severely hit by the coronavirus crisis.

Investec had already been hit by lacklustre growth in South Africa, which tipped into recession in the final quarter of 2019, and Britain’s departure from the European Union, with its specialist UK banking arm in particular struggling.

The problems have been exacerbated by the economic impact of coronavirus lockdowns in both countries, although Investec said on Thursday it has strong liquidity and capital to support its clients, while also warning that lending will be muted, impairments rise and interest income hit.

“The year ahead will be challenging. And (the) impact of Covid-19 will be protracted,” Fani Titi, Investec’s Chief Executive told a media call after reporting a 16.8% drop in full-year profit as a result of the coronavirus crisis.

The pandemic wiped 105 million pounds off its adjusted operating profit, which was 608.9 million pounds ($743 million) for the year ended March 2020, said Investec, whose adjusted earnings per share were 46.5 cents, versus 60.09 a year earlier.

The company’s shares fell 2.83% in Johannesburg, while the benchmark all share index dropped 0.5% by 1230 GMT.

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Haha – Moneyweb?

‘’In war, truth is the first casualty’’
Aeschylus Greek Dramatist

There can be no doubt that despite the ‘’all the obvious shortcomings’’ of the mainstream media and how they selectively (CNN Style) publish their stories, the appearance of plurality remains ‘’conspicuous by their absence’’
The media prides itself on that it operates as an authoritarian with regards to ‘’facts’’. I commented on well-published facts (two days running) with regards to this Bank, but it has become clear to me that, however reluctantly, that you now proved to me that you are unable and unwilling to publish my story.
Like in the cases of Enron and WorldCom, after the scandals broke, the authoritarian nature of modern corporate governance became a massive issue and there was a great deal of justified concern about the corporate abuses that authoritarians fostered.

Dear Investec,
You have been devoid of ethics for a number of years. Hence, not surprised. However, no doubt, the property market is too big to fail, since fire sales are likely to bring banks to its knees. We must not forget, that in 2008, many banks went bankrupt (not in SA but globally). I know nothing about your company, and I do not intend to study your company since management has been subpar/dishonest for a number of years (my opinion). Lest not forget that you advised on Steinhoff transactions and also did the STEINHOFF AFRICA RETAIL advisory work where critical information was omitted. Also Randgold….. Again your analyst was reprimanded publicly for doing his job well on Tongaat Hullet.

There is virtually no conscience with corporates, especially Investec.

look at the share price over the last 20. last 10?
Q. Where to from here without Mr C and Du Toit.

End of comments.

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