Strong banking performance drives rise in operating profit at Close Brothers

Adjusted operating profit increased 26 per cent to 79.8m pounds in the six months to January 31st 2013 at specialist financial services group Close Brothers underpinned by strong performance within the Banking division.

Adjusted operating profit increased 26 per cent to 79.8m pounds in the six months to January 31st 2013 at specialist financial services group Close Brothers underpinned by strong performance within the Banking division.

The group reported that the Banking division saw a 26% increase in adjusted operating profit, reflecting loan book growth of 6.0% and an improved bad debt ratio of 1.2%.

In Securities, UK market-maker Winterflood remained consistently profitable amidst "tough conditions" with adjusted operating profit of £7.0m, down from £8.4m the year before.

The group reported that its Asset Management division is on track to move into profitability this year after delivering a 6.0% increase in assets under management to £8.9bn in the first half.

Strong funding levels were maintained with a core tier-one capital ratio of 12.7% recorded.

The interim dividend per share increased 7.0% to 15.0p and basic earnings per share also increased 16% to 40.4p.

Preben Prebensen, Chief Executive Officer of Close Brothers, commented: "The group achieved a good result in the period as Banking delivered another strong performance, Securities held up well in the continued difficult market conditions and Asset Management made progress and delivered an improved result. We have made good progress on our strategic priorities and look forward with confidence."

MF

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
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020