23rd Jan 2015 07:45
LONDON (Alliance News) - Close Brothers Group PLC's securities division is continuing to be a drag on the group, according to a first-half pre-close trading update on Friday, but the financial services group reported loan book growth in its banking division and a rise in assets under management over the course of the period.
Overall, Close Brothers said it remains "confident" in the outlook for the current financial year.
In a statement for the five months ended December 31, 2014, Close Brothers said that Winterflood Securities has suffered from "difficult" market conditions, with average bargains per day remaining broadly stable but income per bargain declining "significantly" due to higher market volatility and reduced investor risk appetite.
Nevertheless, Close Brothers said the market maker is well positioned even if market conditions continue to be challenging.
Elsewhere, the banking division's loan book grew by 4.0% to GBP5.5 billion between July 31, 2014 and the end of that year, with growth in property and asset finance offsetting slower growth in motor finance.
"The division continues to benefit from favourable market conditions with a slight improvement in both net interest margin and the bad debt ratio compared to the previous financial year," Close Brothers said, adding that it expects to sees continued loan book growth while remaining focused on the quality of its lending.
In asset management, assets under management rose to GBP9.9 billion at the end of 2014 from GBP9.7 billion at the end of July, with Close Brothers citing positive market movements and net inflows.
"The revenue margin has remained broadly stable on the previous financial year," Close Brothers said. "We continue to see opportunities for growth in asset management," the group added.
Close Brothers said it will release its half-year results for the six months ending January 31, 2015 on March 10.
By Samuel Agini; [email protected]; @samuelagini
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