28th Jan 2015 08:07
LONDON (Alliance News) - Brewin Dolphin Holdings PLC Wednesday said first-quarter income growth was constrained by a 23% decline in commission income, largely due to fewer transactions amid market volatility.
In a statement, Brewin Dolphin said income grew by 1% year-on-year to GBP70.2 million in the last three months of 2014, which is Brewin's financial first quarter. Fee income rose by 14% to GBP47.4 million, while commission income amounted to GBP17.0 million.
Funds under management increased to GBP37.9 billion from GBP36.8 billion on September 28, 2014. Discretionary funds rose to GBP24.8 billion at the end of 2014, up from GBP24.0 billion on September 28.
"Despite tough market conditions in the first quarter the group has made good progress growing overall funds under management, in particular in our discretionary service, whilst continuing to invest in the business to drive future growth," David Nicol, chief executive, said in a statement.
"Strong growth in fee income was driven by organic fund inflows and positive investment performance. However total income growth in the quarter was impacted by a material decline in commission income as a result of lower transaction volumes due to volatile market conditions," Nicol said.
According to Nicol, market volatility arising from global economic concerns coupled with political uncertainty in the UK and Europe is likely to persist in the short term.
"This may lead to a continuation of the trend for lower transaction volumes and associated commission income. Our outlook remains positive as we continue to implement our transformation and growth strategy. Our financial position remains strong and the business continues to benefit from the initiatives being pursued to deliver improved efficiency and organic growth in funds under management," Nicol said.
At the open Wednesday, Brewin Dolphin shares were down 1.6% at 295.00 pence.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BRW.L