Numis sees improved H2 revenues despite 'unprecedented times'

(Sharecast News) - Investment banking group Numis Corporation expects to report a 10% jump in second-half revenues despite the period being marred with elevated political uncertainty and significant declines in global markets in reaction to the Covid-19 pandemic.
Although Numis noted that the window available for it to execute transactions during the first half was limited, leading to subdued investment banking deal volumes for the period, the group highlighted that this had been partially offset by an increase in its average fee.

"As such, investment banking revenues are expected to be marginally below the comparable period," said the group.

Numis stated that equities had delivered a "materially stronger performance", more than offsetting the decline in revenues from investment banking.

"Execution revenues benefited from an improvement in activity levels subsequent to the UK General Election; this has been sustained through the current market volatility experienced in recent weeks," said the group.

"In addition, our trading book performance has been strong across the period delivering gains materially ahead of the prior period."

Operationally, Numis said it responded to the Covid-19 outbreak promptly and had successfully implemented "comprehensive remote working capability" - enabling it to ensure both the safeguarding of its staff and the ability to continue servicing clients.

Numis added that it benefited from a "strong liquidity and capital position", with a cash balance currently higher than that reported at the end of 2019.

"We believe that now, more than ever, our balance sheet strength, market expertise and our long term partnership approach, ensure we are well-positioned to provide broad support to our corporate and institutional clients during these unprecedented times."

As of 1330 BST, Numis shares were up 9.69% at 226.50p.