10th Mar 2015 08:36
LONDON (Alliance News) - Close Brothers Group PLC Tuesday reported a 32% rise in first-half net profit, as its banking and asset management divisions more than offset a decline in its market-making securities division.
In a statement, the banking and asset management group said it made a GBP95.3 million net profit in the six months ended January 31, compared with GBP72.4 million in the corresponding period last year.
An increase in net interest income, effectively the difference between what Close Brothers received on money it lends to customers and what it pays on deposits held in accounts by clients, more than offset a small fall in non-interest income, helping the company to report that operating income increased to GBP330.4 million from GBP306.8 million. Administrative expenses rose to GBP202.5 million from GBP190.1 million.
The banking arm's operating income increased to GBP244.8 million from GBP217.8 million, while asset management showed an increase to GBP43.3 million from GBP40.5 million. Operating income at its securities arm fell to GBP41.9 million from GBP48.3 million.
"We continued to achieve strong returns in the banking division and asset management has made steady progress, although performance in Securities was affected by difficult trading conditions," Preben Prebensen, chief executive, said in a statement.
"Looking forward, we remain committed to our strategic priorities and remain confident in the outlook for the current financial year," Prebensen said.
Close Brothers increased its interim dividend to 18 pence from 16.5p.
Close Brothers shares were down 0.8% at 1,649.00 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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