22nd Jan 2016 07:28
LONDON (Alliance News) - Financial services company Close Brothers Group PLC on Friday said its banking arm has continued to grow but said its securities division is taking a hit from weak market activity, while its asset management arm also suffered from negative market movements.
The FTSE 250-listed company, which operates banking, securities and asset management units, said its banking business continued to grow in the five months to the end of December, with its loan book growing 4.9% to GBP6.0 million. Its net interest margin is lower year-on-year, but the group's bad debt ratio has improved and the returns from its net loan loan book are still strong, it said.
Close's Winterflood securities business has been hit by tough market conditions and this persisted in the first five months of its financial year, driven by falling equity markets and lower levels of market activity, particularly on AIM.
The asset management unit continued to deliver solid net inflows in the period, though total client assets under management dipped to GBP9.4 billion from GBP10.8 billion due to negative market movements and the sale of its corporate arm.
Close said is remains confident it will deliver a "satisfactory" outcome for the full year to the end of July. It will publish its interim results, to end-January, on March 8.
By Sam Unsted; [email protected]; @SamUAtAlliance
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