23rd Sep 2014 06:58
LONDON (Alliance News) - Close Brothers Group PLC Tuesday reported a 19% increase in pretax profit in its recent financial year, driven by the performance of its banking division, which showed loan book growth and was helped by an improved credit environment.
In a statement, the FTSE 250 financial services group said it made a GBP195.7 million pretax profit in the year ended July 31, compared with GBP163.8 million in the prior year.
Close Brothers reported loan book growth of 14% to GBP5.3 billion in its banking division and said its bad debt ratio improved to 0.9% from 1.2%.
Within its securities division, UK market-maker Winterflood's adjusted operating profit increased by 57% to GBP26.6 million. The group cited improved trading conditions and increased investor risk appetite.
Its asset management division's assets under management rose by 7% to GBP9.7 billion, driven by GBP438.0 million of net inflows and GBP187.0 million attributable to market movement.
"Close Brothers has continued to execute its strategy, strengthening its market leading specialist propositions, and has delivered a strong result with growth in all of our divisions. We are well positioned to benefit from the growth opportunities we see in each of our businesses and have the resources available to pursue them. We enter the 2015 financial year with confidence," Chief Executive Preben Prebensen said in a statement.
The group reported a common equity tier 1 capital ratio of 13.1%, down from 13.3% last year.
Close Brothers increased its full-year dividend by 10% to 49.0 pence.
By Samuel Agini; [email protected]; @samuelagini
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