21st Nov 2013 08:46
LONDON (Alliance News) - Specialist finance company Close Brothers PLC Thursday said it has made a strong start to the financial year, and is optimistic on its full-year outcome.
Close Brothers, which operates three business divisions - Banking, Securities and Asset Management - said the banking division has made a strong start to the year, with the loan book increasing to GBP4.8 million from GBP4.6 billion over the three months to October 31, with good growth across all of the lending businesses. The banking division's bad debt ratio has improved in the quarter, driven by property, while the net interest margin remained "broadly stable".
Meanwhile, the asset under management increased to GBP9.3 billion from GBP9.1 billion over the three months, after positive market movements and net inflows. The revenue margin was broadly stable on the prior financial year.
Finally, the securities division, which includes Winterflood Securities Ltd., improved in the first quarter, mostly because of the recovery in the markets and more favourable trading conditions. Close Brothers specifically cited improved trading on the London Stock Exchange's AIM as a reason for the increase in its income per bargain.
It said its German business Close Brothers Seydler Bank AG was trading broadly consistently with a year before.
"We continue to see good growth opportunities for the Banking division and remain focused on maintaining the quality of our lending model. Winterflood has maintained its market leading position and is well placed to benefit if current market conditions are sustained throughout the year. Asset Management remains on track as the division continues to progress towards our medium-term targets," Close Brothers said in a statement.
Close Brothers added that it still has solid funding, liquidity and capital.
Close Brothers shares were Thursday quoted at 1,253.00 pence, up 0.6%.
By Samuel Agini; [email protected]; @samuelagini
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