Close Brothers Group PLC on Thursday said it performed well in the first 11 months of its financial year, mainly due to growth in its Banking arm.
The merchant bank said its Banking division performed ‘strongly’ in the 11 months of the financial year that ends July 31, without providing revenue or profit figures. The company will issue full annual results on September 27.
Close Brothers said that it registered good demand and momentum in the loan book of the division. The book increased 5.0% to £8.9 billion in the period from £8.4 billion as at July 31, 2021.
‘This was primarily driven by healthy new business volumes in Commercial and high demand in Motor Finance, with the Property book slightly down as high repayments more than offset strong drawdowns from our pipeline,’ the company explained.
Within Close Brothers Asset Management, annualised net inflows remain at the same pace in the fourth quarter as in the third, though managed assets slipped to £14.8 billion from £15.4 billion on April 30, due to negative market movements.
The performance of the Winterflood’s stock brokerage division was hurt by reduced trading activity, following ‘exceptional highs’ experienced during the Covid-19 pandemic. This was ‘exacerbated’ by falling markets and the resulting hit to investor sentiment, the company noted.
Nonetheless, Winterflood Business Services recorded continued growth in income and client assets.
‘We have delivered a solid performance so far this year despite the uncertain backdrop. Performance in the Banking division was strong as we continued to see good demand across our lending businesses and remain focused on maximising growth in each of our markets, whilst actively identifying new opportunities that align with our disciplined approach,’ Chief Executive Adrian Sainsbury said.
The company’s Common Equity Tier 1 ratio was 14.8% on June 30, down slightly from 14.9% on April 30, though still well above the regulatory minimum, Close Brothers said.
Shares were down 0.4% at 1,053.00 pence each on Thursday in London.
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