Operating pre-tax profits for the six months to the end of September were down 2% at GBP223.6 million from GBP228.2 million while asset management and wealth recorded a strong growth. Bad loan costs were up nearly 17%.
The bank said the private banking division was hit by slump in the real estate in Ireland and Australia resulting in loses of GBP4.9 million.
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Even the investment banking unit posted a major decline due to the slow flow of corporate finance deals. The operating pre-tax profit fell by more than 90%.
But the saving grace for the firm was its asset and wealth management businesses which performed well and accounted for 39.1% of group operating profit up from 28.6% recorded last year.
The Johannesburg and London-listed firm is in the process of reducing its dependency on lending and deals, and is in the process of expanding its asset and wealth management unit.
In an attempt to boost its wealth management unit, Investec is in the process of finalising a GBP233 million deal to take over British firm Evolution Group.
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By GlobalDataPresently asset and wealth management accounts for 40% of operating income, compared with 29% a year ago.
