Q3 2016 Trading Update

RNS Number : 7944Y

Close Brothers Group PLC

20 May 2016

 

Close Brothers Group plc ("the group" or "Close Brothers") today issues its scheduled trading update for the third quarter from 1 February 2016 to 30 April 2016 ("the quarter").  All statements in this release relate to that period unless otherwise indicated.

Group and divisional performance

We delivered an improved performance in the quarter, with good loan book growth, tighter cost control and better market conditions for Winterflood.

The Banking division continues to see robust demand for our specialist lending services with good levels of new business.  The loan book increased 4.0% in the quarter and is up 8.2% year to date to £6.2 billion (31 January 2016: £6.0 billion), benefiting from strong growth in our leasing products and a seasonal uplift in motor finance.

The return on net loan book remains strong, as both the net interest margin and bad debt ratio have remained broadly in line with the first half.  The rate of growth in expenses was lower than the first half as we continue to tighten cost control whilst maintaining investment in the business and in new growth initiatives.

Winterflood's performance improved following a difficult first half, with increased profitability across all trading books reflecting a modest recovery in the equity markets and improved investor risk appetite.  However, the business remains sensitive to an unpredictable market. 

Asset Management continued to achieve solid net inflows in managed assets, which increased 4% to £7.5 billion (31 January 2016: £7.3 billion).  Total client assets increased 2% to £9.3 billion (31 January 2016: £9.1 billion) with a broadly stable revenue margin compared to the prior financial year.

Outlook

Building on our good performance in Q3, we are confident in delivering a satisfactory outcome for the full year.

Enquiries

Sophie Gillingham                              Close Brothers Group plc                                        020 7655 3844

Eva Hatfield                                        Close Brothers Group plc                                        020 7655 3350

Lois Hutchings                                   Close Brothers Group plc                                        020 7655 3468

Andy Donald                                       Maitland                                                                    020 7379 5151

About Close Brothers

Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading.  We employ around 3,000 people, principally in the UK.  Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.

 

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