21st Jan 2022 09:07
(Alliance News) - Close Brothers Group PLC on Friday has reported its half-year has seen some positive growth in banking and asset management, but Winterflood's trading income has "moderated" since financial 2021.
The London-based merchant bank said in the five months to December 31, its loan book increased 2.9% to GBP8.69 billion from GBP8.44 billion in its previous year ended July 31. This was driven by new business in Asset Finance and Motor Finance, improved utilisation in Invoice Finance, offsetting continued high repayments in Property.
Close Brothers Asset Management benefitted from rising markets, achieving annualised net inflows of 8% in the five-month period, up from 7% in the full-year financial 2021. Managed assets grew by 6.4% to GBP6.6 billion, from GBP5.6 billion at the end of July, bringing the total client assets to GBP18.0 billion, up 5.9% from July's GBP17.0 billion.
Annualised net interest margin remained strong, owing to a focus on pricing discipline.
Winterflood's trading performance has moderated since the end of financial 2021, as the company previously noted in November. Close Brothers expects operating profit to be "broadly in line" with the first half of financial 2020 at GBP10.6 million.
Looking ahead, the bank says it is "well-placed" to make the most of the remaining year, despite being "mindful of ongoing uncertainty".
Chief Executive Officer Adrian Sainsbury said: "We have seen good momentum in our business, as we continue to make the most of opportunities in our core markets. We are navigating the current environment effectively and remain confident that our proven and resilient model, supported by the hard work and expertise of our people, leave us well positioned to protect, grow and sustain our business over the long term."
Close Brothers' share price fell by 2.7% to 1,311.00 pence each in London on Friday morning.
By Elizabeth Winter; [email protected]
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