24th Sep 2019 08:13
(Alliance News) - The long-serving boss of Close Brothers Group PLC announced Tuesday his plan to leave, as the merchant bank boosted its dividend amid "very solid" annual results.
For the financial year ended July, pretax profit slipped 2.4% to GBP264.7 million from GBP271.2 million the year prior. This was despite operating income rising 1.3% to GBP816.4 million from GBP805.8 million the year before.
Profit performance was hurt by operating costs increasing at the faster pace of 3.5% to GBP497.4 million from GBP480.5 million the year prior.
"I am pleased that the group has delivered a very solid performance, maintaining strong returns and profitability," Chief Executive Officer Preben Prebensen said.
The bank's common equity tier one ratio widened to 13.0% as of July 31 from 12.7% a year prior. The loan book rose 5.6% to GBP7.6 billion from GBP7.2 billion the year before, with total client assets jumping 9.0% to GBP13.3 billion from GBP12.2 billion the year prior.
"The banking division has achieved good loan book growth whilst maintaining strong margins and consistent pricing in a competitive market, and our market facing businesses have continued to deliver strong net inflows and solid trading profitability in challenging conditions," Prebensen added. "The disciplined application of our business model and investment in key strategic initiatives give us confidence that we can continue to support our customers in a wide range of market conditions."
Close proposed a 44.0 pence per share final dividend, up 4.8% from 42.0p a year prior. For the full year, the dividend rose 4.8% to 66.0p from 63.0p.
Prebensen said Tuesday he will step down as boss of the FTSE 250-listed firm after a decade in the role. He will remain at the firm for another year in order to "ensure a smooth handover."
"I have decided that the time has come to step down as chief executive in the next 12 months," Prebensen said. "The group is clearly well positioned for the future, with an excellent team in place, and I look forward to working closely with the board over the next year to continue delivering on our strategy and ensure a smooth and successful transition."
Close will begin the formal search for a successor, encompassing both internal and external candidates.
Shares in Close Brothers were 5.5% lower at 1299.00 pence in London early Tuesday.
By Ahren Lester; [email protected]
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