Investec Ireland reports 38% rise in profits

INVESTEC Ireland, part of the international specialist banking group Investec, has announced pre-tax profit growth of 38% to €33 million for the year to 31 March 2008.

The group’s diversified businesses delivered positive returns in a difficult year, said chief executive, Martin Cullen

Capital markets performed ahead of budget with revenues increasing by 51%, with international structured equity business and treasury the main contributors.

“Our product offerings in both businesses continue to meet the demands of our customers and the outlook remains positive for both,” he said.

“We have noticed an increase in competitiveness in the marketplace but are well placed to grow our market share,” said Mr Cullen.

Nua, the group’s subsidiary in the specialist residential mortgage space performed in line with expectations.

Elsewhere, the group said income from private banking grew 22%, with contributions from structured property lending business and from wealth management boosting the outturn in that sector.

“While there has undoubtedly been a slowdown in the demand for finance for property related transactions in Ireland, our focus on the international market has insulated us somewhat from this development,” Mr Cullen said.

The group’s wealth management is beginning to establish itself and the launch of an international portfolio should see further good growth this year, he said.

An addition of 33 employees brought staff numbers to 116 during the year.

That increase “reflects our confidence in our ability to grow the Investec franchise in Ireland,” said Mr Cullen.