East Capital Half Year Results 2020

Financial Results

East Capital’s results are driven by actions taken over recent years to improve businesses and focus on quality investment instruments, while pushing hard on cost-effectiveness. But with the impacts of COVID-19, the spectrum of investment has changed as did the need of private investors to create exposure to the investment field overall, opting for more conservative instruments or retreating into cash altogether.

Outlook

Our mission, here at East Capital in London, is to provide strong customer service. In that regard, our efforts for change continue throughout the business focused on digital enabling, improving service and sustaining strong and effective investment returns. With our brokers and affinity clients we remain equally committed to good and productive partnerships. We appreciate the mutual support and focus on our end-customers.
COVID-19 has brought several unique challenges – including an ongoing move to "work from home," supply chain interruptions, plus difficulties in the policy areas that respond to COVID-19. Throughout the course of the crisis, East Capital has worked in very much the same way we did in the past, serving our customers and adapting to the new challenges.But we remain committed to produce successful results while shielding all clients from the negative impact of the shut-downs.
It is unavoidable that the financial markets represent the wider economic conditions around them. As such, there are risks and the possibility of a decrease in the quality of the financial instruments available as a direct result of COVID-19 and as a result of the economic instability that it generates.
We must weather these impacts but work hard to keep expenses in line with any profit reduction. Insurers also attach importance to the financial markets. The fall in risk-free interest rates hurts investment income, and capital is also affected by the volatility of credit and other asset classes. In tackling these challenges we will continue to prioritise resilience and a conservative risk profile.

Improvements

Across East Capital we are working resolutely toward our success goals of "best in class." At its heart our business model seeks to sustain and improve those business areas that already achieve excellent performance, while taking strong action to improve where they lag.
In the United Kingdom our results were down in the second half of last year due to the flooding in February but improved substantially in the first half of this year due to the fiscal stimulus that has driven the financial markets to all time highs. We are making encouraging progress here in re-establishing good performance standards but with a great deal left to do. The UK also wants better cost competitiveness. The cost plan that we launched in 2019 has been going well and this year will be further extended to tackle economic challenges and get the company to where we need to be.
Despite the unique challenges of 2020, our priorities for the year are mainly to provide customer support, to safeguard the well-being of our people and to maintain financial strength and resilience. We are also determined, however, that for this year East Capital will reach 2021 in good shape and with solid "business as normal" performances, irrespective of the other challenges that surround this.

Michael Spencer
Group Senior Analyst
m.spencer ( @ ) east-cap dot com
www.east-cap.com

Old Street,
London EC1V 9LT
United Kingdom
pr@east-cap.com

East Capital is a London based financial advisory firm that focuses on conservative investment vehicles, like Bonds or ETF's.

This release was published on openPR.