Investec, the Johannesburg and London-listed private and investment bank, on Thursday said operating profit for the year ending March was expected to surge by about 23 percent.

In a trading update focusing on developments within the group’s core business areas in the second half of the financial year ending 31 March 2013, Investec said the asset management and wealth management businesses experienced strong net inflows in excess of £4 billion ($6 billion).

These two divisions were expected to report results ahead of the prior year and South African Specialist Banking business was expected to report a sound increase in operating profit in Rand terms, benefiting from growth in revenue and cost containment.

The Australian Specialist Banking business performed significantly ahead of the prior year mainly as a result of a substantial decrease in impairments.

The UK Specialist Banking business is expected to report results marginally ahead of the prior year, the company said in a statement.

However, overall results have been impacted by the depreciation of the average Rand: Pound exchange rate of approximately 13 percent.

Revenue was expected to be 3 to 4 percent higher than the prior year while recurring income as a percentage of total operating income is expected to be approximately 67 percent (2012: 68 percent).

Adjusted earnings per share (EPS) in pounds was expected to be 14 to 17 percent higher than the prior year, the group said.

Adjusted EPS in Rands was also expected to be 30 to 34 percent higher than the prior year.

Investec is an international specialist bank providing financial products and services to a niche client base in three principal markets. These markets include the United Kingdom, South Africa and Australia as well as certain other countries.

The group was established in 1974 and currently has approximately 8 000 employees.