Banking, securities and asset management firm Close Brothers Group has admitted that difficult trading conditions in the Winterflood division continued to affect its overall performance during the five months ended June 30th, but said the Banking division delivered another strong performance in the period.
The Securities division continues to experience difficult market conditions and within this Winterflood has been affected by low retail investor risk appetite throughout the period.
Overall Winterflood's, average bargains per day and income per bargain were in line with the first half. Within Securities, Seydler's performance has improved modestly since the first half although market conditions remain challenging.
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The Banking loan book increased a further 10% to £4.1bn (31 Jan 2012: £3.8bn) and is up 20% in the financial year to date. Growth was particularly strong in motor finance, asset finance and property, the firm said.
The credit quality of the loan book continued to improve and as a result the bad debt ratio for the period was lower than the first half of the financial year. The net interest margin remains strong, but lower than the first half reflecting changes in lending mix across the portfolio.
The Asset Management division is nearing completion of its restructuring and made a small loss, as expected. Private Clients Assets under Management (AuM) remained unchanged at £6.9bn at June 30th (31 Jan: £6.9bn) as positive net new funds were offset by negative market movements.
Total AuM in the division reduced to £8.2bn (31 Jan: £8.6bn) reflecting the previously announced sale of OLIM's property fund management business with £0.4bn AuM.
"Overall the group continues to expect a solid performance for the year," the firm said.
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