Banking group Investec Ireland has announced pre-tax profits for the year to the end of March 2009 of €36m, up 9% from the previous year.
Net revenues for the year rose by 6% from €33m to €36m in what the company called a 'very challenging economic cycle'. It also said that the outlook for Ireland and the financial services sector remains challenging.
The company owns the mortgage lender Nua Homeloans. It says Nua has been integrated within the Investec Ireland business and its main focus continues to be managing its existing loan portfolio.
It said its capital markets business performed strongly during the year with gross revenues up 40%. Investec said the Irish deposit market continues to be very competitive with funding costs still high.
Investec's private banking business has been impacted by 'the severe decline in Irish and global economic conditions over the year'.
'The destruction of wealth as seen over the last 18 months is unprecedented,' a statement said. It said that as a result, activity levels in its private banking business are greatly reduced with overall gross revenues down 19%.
Investec also said that the continuing slowdown in the property market here has impacted its structured property finance business. It added that it has seen increased levels of stress on some parts of its loan book and its impairment provisions have risen.
'However, our exposure to the planning and development aspect of this market is limited, therefore allowing us to closely manage any issues arising,' the lender said.
