22nd Jan 2020 08:27
(Alliance News) - Merchant banker Close Brothers Group PLC reported "strong" interim inflows in asset management, with the banking business stable.
However, Close Bros did note costs in the Banking business are set to rise ahead of income growth.
Close Bros said its Asset Management division saw solid net inflows and, combined with positive market movements, managed assets as of December 31 grew to GBP12.6 billion, 7.7% higher than the figure at the end of July.
Close Bros' total client assets over the period increased by 5.3% to GBP14.0 billion.
In Banking, the company's loan book was "broadly" flat over the period, rising 0.4% to GBP7.68 billion. Modest growth in the Commercial loan book was offset by a slight decline in Property, Close Bros noted, with Retail flat.
The firm's net interest margin in Banking was 7.8%, compared to 7.9% in its prior financial year. Close Bros said credit quality "remained strong", but bad debts increased "modestly" relative to current historically low levels.
London-based Close Bros did note costs in the Banking division are expected to rise ahead of income in its current financial year, due to investments being made in a period of lower activity.
Turning to market making business Winterflood, the company said performance improved towards the end of 2019 after a slow start to its current financial year.
"While there remains uncertainty about the economic outlook for the UK, we are well positioned to continue supporting our customers and clients in a wide range of market conditions," added Close Bros.
Shares were 2.9% lower on Wednesday in early trade in London at 1,522.00 pence each.
By George Collard; [email protected]
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