Investec wealth and investment arm has posted an operating profit of £46.4m for the six months ended 30 September 2018, a decrease of 6.3% compared to £49.5m in the previous year.

The firm said that the performance in this division was affected by headcount increase and compliance needs.

The unit’s funds under management totalled £56.7bn at the end of September 2018, versus £56bn as at 31 March 2018. Net inflows were £650m at the division.

Operating profit at the firm’s asset management arm rose 10% year-on-year to £91.5m.

The unit’s funds under management totalled £109.2bn as at 30 September 2018, compared to £103.9bn at the end of March 2018. Net inflows in asset management were £4.1bn.

Overall, the group’s operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests was £359.3m over the six months to 30 September 2018. The figure marks a 14% rise from last year.

The combined operating profit of the South African businesses was 5% higher than the previous period (in Rands). Operating profit of the combined UK and other businesses surged 40% in Pounds Sterling.

Investec joint CEOs Fani Titi and Hendrik du Toit said: “The outgoing executives have handed over a resilient business with positive momentum and good growth potential.

“It is now up to us to implement our strategy of simplification and greater focus, involving the demerger and separate listing of the asset management business and the positioning of the specialist bank and wealth and investment businesses for sustainable long-term growth. Revenue growth, capital allocation and cost discipline remain high on our agenda.”