Close Brothers, the banking, securities and asset management firm, saw profits rise after its banking division compensated for a big fall in its securities business.
The firm reported pre-tax profits of £66.8m in the six months to the end of January, up from £58.3m the year before.
Its banking division reported a strong performance with adjusted operating profit up 27% to £61.8m.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The bank, which lends mainly to UK small and medium-sized companies and individuals, noted its bad debt ratio improved substantially to 1.7%, from 2.4% the year before.
But it was a different story at its securities division where profits fell 58% to £13m.
The firm blamed this on a flight from risk by retail investors and a resulting reduction in trading activity, particularly in smaller, less liquid stocks.
After exceptional items and amortisation, basic earnings per share came in at 34.8p, compared to 29.4p in 2011.
This included £5.9m of exceptional income largely related to foreign exchange gains when it sold part of its investment in market maker Mako in October.
The firm declared an ordinary interim dividend of 14p per share, a 4% increase on the 13.5p interim dividend last year.
"Economic and market conditions remain uncertain but the group's businesses are well positioned," Close Brothers said in a statement.
"The banking division continues to see good opportunities for growth and expects a further strong performance in the second half," the firm said.
"The securities businesses remain well positioned for any recovery in financial markets and have seen early signs of improvement in trading conditions since the start of the second half."
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
