Investec says exposure to Steinhoff negligible

Harare - According to banking and asset manager group Investec, its losses from the Steinhoff saga could come to a maximum of 3% of post-tax operating profit as the exposure represents a small portion of the group's balance sheet.

Investec said exposure to client share covered loans which rely on the value of Steinhoff shares to support repayment is negligible, and that its biggest exposure is on certain derivatives.

"Investec Bank Limited (South Africa) does have certain derivative exposures linked to the Steinhoff share price, where a trading loss could materialise.

"The loss could be zero but the maximum potential loss could be approximately 3% of the Investec group’s post-tax operating profit," said Investec in a statement released on Monday morning.

Other exposures to Steinhoff Africa largely comprise lending exposures and overnight facilities, and are secured by guarantees from certain of the Steinhoff Africa and STAR subsidiaries.

In addition to the above, Investec Bank Limited (South Africa) holds Steinhoff convertible bonds in its available for sale portfolio. The carrying value of these bonds represents less than 0.3% of the group’s consolidated tier one capital.