Investec to axe 210 jobs in London
Investec will axe 210 jobs at its London headquarters as the banking and wealth management firm warned that profits could fall by up to 60pc in the first half of the year.
The company will cut around 13pc of its City-based roles in order to help "simplify and focus the business".
It comes after the UK and South African broker and fund manager said its performance for the five months to the end of August was hit by lower average interest rates, reduced client activity and a 22pc depreciation of the rand against the pound.
Investec said adjusted operating profit for the six months to the end of September was expected to be between 50 and 60pc lower than the same period last year, when it reported profits of £175.6m.
Chief executive Fani Titi said that severe GDP contractions and volatile financial markets had negatively affected its revenues.
However, he added that the business "proved resilient" in the face of stringent lockdowns in the first quarter before economies started to reopen.
The bank's assets under management rose by 14pc to £51.4bn for the period, while loans declined by 1.3pc to £24.6bn.
Mr Titi said: "Capital and liquidity ratios remain robust and are expected to be stable.
"The business is well positioned to support its clients through this challenging environment.
"We will continue to ensure the safety and wellbeing of our people and the integrity of our balance sheet."
Investec does not expect to pay an interim dividend.
Shares fell 2.7pc to 134.6p in early trading.
