Full year results from Investec showed the Anglo-South African bank increased profits as it makes progress with its rejigged model despite the turbulence in its markets.
Investec produced a statutory operating profit before goodwill, acquired intangibles, non-operating items and tax of £505.6m in the year ended 31 March, up 2.5% amid significant rand headwinds or an increase of 13.5% on a currency neutral basis.
The results were hit by a 16.3% depreciation of the average rand-sterling exchange rate
over the period, as assets under management increased 2% to £122bn and core loans increased 6% to £17.5bn.
Statutory adjusted earnings per share (EPS) on the same basis increased 4.8% to 41.3p, or 15.7% given neutral currencies.
After selling the Australia bank, the UK Kensington business and the Irish mortgage business the prior year, and ignoring a legacy UK portfolio that is being run off over an expected four more years, ongoing operating profits were up 0.6% to £583.9m and adjusted EPS up 2.3% to 48.6p.
"The decisive action we took within the Specialist Bank in prior years, supported by continued penetration of our target client base, has achieved strong results," said chief executive Stephen Koseff.
"Wealth and Investment's increased collaboration with the Private Banking business is proving successful. Asset Management have continued to see good net inflows across their client groups. Overall a good performance in a challenging environment reinforces our strategy of building a diversified business model."
The UK legacy portfolio shrank 16% to £583m through redemptions and write-offs and cost the group a loss before tax of £78.3m.
Directors proposes a final dividend of 11.5p per share, making for a full year dividend of 21p, an increase of one penny.
Analysts at Numis said: "While Investec achieved less than 30% of its profit outside South Africa last year, we estimate that the UK business is worth half the current market valuation of the group.
"We expect a strong recovery in the UK bank profitability this year, and we forecast its share of banking profitability will more than double the 14% it reported last year."