19th Nov 2020 11:34
(Alliance News) - Close Brothers Group PLC on Thursday said it delivered a strong performance in the first quarter of its financial year with all segments doing well.
Close Brothers is a London-based merchant banking group, providing lending, deposit taking, wealth management and securities trading.
Close Brothers said the strong performance reflected high levels of new business volumes in the lending businesses, continued net inflows in the Asset Management division, and elevated trading volumes at stock broker Winterflood.
In the Banking arm, at October 31, the loan book stood at GBP8.0 billion, up 5.6% from GBP7.6 billion at July 31.
Close Brothers said: "We continued to progress with a number of key strategic programmes, to protect, improve and extend our business model. Notwithstanding our rigorous focus on cost management, operating expenses are expected to remain elevated as we continue to invest and incur related depreciation charges.
"While it is still too early to know the full impact of Covid-19, performance of the forborne loan book so far has been encouraging, and we take comfort from the predominantly secured nature of our loans.
In the Asset Management division, at October 31, managed assets stood at GBP12.8 billion, up 1.6% from GBP12.6 billion at July 31, while total client assets increased to GBP13.8 billion from GBP13.7 billion at July 31.
Winterflood saw average daily bargains "remaining elevated" at 83,000, but down 23% from 108,000 during the second half ended July 31. "The division is well positioned to continue trading profitably in a range of conditions, but due to the nature of the business, it remains sensitive to changes in the market environment," Close Brothers said.
Close Brothers said it is well placed to respond to challenges going forward.
Close Brothers shares were up 0.1% at 1,377.02 pence each in London on Thursday morning.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Close Bros