Mixed performance continues at Close Brothers

Finance house Close Bros said strong growth in its banking division was maintained while challenging trading conditions continued to hurt its securities division, with Winterflood dragged down by low retail investor activity.

Finance house Close Bros said strong growth in its banking division was maintained while challenging trading conditions continued to hurt its securities division, with Winterflood dragged down by low retail investor activity.

The banking division's loan book recorded 6% growth year to date to £4.4bn, after growth across the portfolio.

Close Brothers said the net interest margin was lower than the last financial year as expected, however this was largely offset by a reduction in the bad debt ratio reflecting strong credit performance in the period across the businesses.

Meanwhile low trading volumes across the market impacted the performance of the securities division, with Winterflood continuing to experience low retail investor activity.

The asset management division continued to make progress with total assets under management (AuM) up 3% to £8.5bn at December 31st 2012, reflecting positive market movements over the period, it said.

The revenue margin also improved reflecting an increased proportion of higher margin private client assets, it added.

"The group is well positioned for the remainder of the 2013 financial year. The banking division continues to see solid prospects for growth and asset management remains on track to move into profitability during the course of this financial year," the group said in a company statement.

"Challenging trading conditions continue to impact Winterflood's performance although it remains well positioned for any market recovery."

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021