11th Mar 2014 09:15
LONDON (Alliance News) - Close Brothers Group PLC Tuesday reported increased half-year pretax profit, driven by its banking division's increased lending to commercial and retail borrowers, while its securities and asset management divisions also delivered growth.
In a statement, Close Brothers said it made a GBP94.8 million pretax profit in the six months ended January 31, compared with GBP78.0 million in the corresponding period in the previous year, driven by a 14% rise in operating income to GBP322.0 million. Administrative expenses grew by 14% to GBP202.1 million, but impairment losses on loans and advances declined to GBP22.7 million from GBP25.8 million.
FTSE 250 Close Brothers, which sees itself as a modern merchant banking group, said the banking division's loan book increased to GBP4.9 billion from GBP4.6 billion, adding that lending was predominantly "secured, small ticket and short-term in nature".
Close Brothers also saw solid growth in the securities division, comprised of Winterflood and Seydler, and the asset management division.
Chief Executive Preben Prebensen said he remains confident in Close Brothers' strategy, adding that he sees "good opportunities" for growth in niche markets.
"In the banking division, we expect to continue to deliver good growth at attractive margins. Winterflood is well positioned to continue to benefit from a stronger cyclical recovery, particularly if current market conditions on AIM continue. In Asset Management we continue to make progress towards our profitability target as the business builds scale," Prebensen and Chairman Philip Macpherson said in a joint-statement.
"Our business model, strong performance and financial position ensure that we are well placed going forward, and we remain confident in the outlook for the year," they added.
Close Brothers increased its interim dividend to 16.5 pence from 15.0 pence.
Close Brothers shares were Tuesday quoted at 1,482.00 pence, up 2.9%.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Close Bros