Close Brothers Group PLC said on Friday it performed well in the three months to April 30, with good momentum across its lending businesses and robust demand in its core markets.
In the third quarter, the merchant bank saw continued loan book growth in its Banking division. Its loan book increased 1.8% in the quarter to £8.8 billion from £8.6 billion at the end of January, representing year-to-date growth of 3.7%.
The company said this was driven by good new business volumes in Commercial and Motor Finance as well as in Property.
Its common equity tier 1 ratio was 14.9% at the end of April, down from 15.1% at January 31 but well above the minimum regulatory requirement.
The firm said it is yet to see a ‘direct impact of the deteriorating economic conditions’, but noted that the year-to-date bad debt ratio increased marginally to 1.2% from 1.1% at the half-year stage.
‘Client assets reduced in Close Brothers Asset Management, reflecting negative market movements, and Winterflood saw an improvement in trading income,’ said Close Brothers, though it added that trading conditions remain ‘volatile’ for Winterflood, a London stockbroker.
CBAM’s managed assets fell to £15.4 billion at the end of the quarter from £15.8 billion at January 31.
Shares in Close Brothers were up 1.7% at 1,089.00 pence on Friday morning in London.
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