Close Brothers posts strong Q3 results driven by growth in AUM

FTSE 250-listed specialist financial services group Close Brothers Group has unveiled strong results for the third quarter relating to the period from February 1st to April 30th, underpinned by growth in the loan book and assets under management.

The loan book increased 2.0% to £4.5bn, driven by growth in motor finance and the Commercial businesses. Close Brothers reported that growth remained "solid but slightly lower than last year" due to a moderation in demand in some of its markets.

The group added that the bad debt ratio was in line with the first half, at the lower end of its longer-term range, reflecting continued strong credit performance across the loan book and the net interest margin was described as remaining broadly stable.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

In the asset management division, assets under management increased 4.0% to £9.2bn. The group said this reflected positive market movements and positive net flows.

Going forwards, the group was said it remained well placed for the rest of the financial year.

Close Brothers' share price was up 0.83% to 1,099p at 08:09 on Friday.

MF