LONDON (ShareCast) - (ShareCast News) - FTSE 250 merchant bank Close Brothers reported a jump in first-half operating profit thanks to a solid performance across the business, as it lifted its interim dividend.
For the six months to the end of January 2017, adjusted operating profit was up 21% to £134.2m, while pre-tax operating profit rose to £131.4m from £108.7m in the first half of the previous year,

Adjusted basic earnings per share increased 9% to 66.6p and the company upped its dividend by 5% to 20p per share.

The loan book stood at £6.5bn from £6.4bn the year before, with total client assets up 3.2% to £10.2bn.

All banking segments reported adjusted operating profit growth, with Retail Finance up 3%, Commercial Finance up 9% and Property Finance up 29%.

Meanwhile, operating profit at its market-making arm, Winterflood Securities, more than doubled to £14.4m thanks to strong retail investor risk appetite. In Asset Management, adjusted operating profit was up 8% to £9.1m.

Chief executive Preben Prebensen said: "We are pleased to report a strong performance for the first half of the 2017 financial year, with continued growth in our earnings and dividend.

"Trading conditions have clearly been favourable in the first half, but as always our priority remains to protect, sustain and invest in our business for the long term. Our service driven model, focused on specialist markets, has allowed us to support our clients, invest in our business and generate strong returns for shareholders over many years."

Also on Tuesday, the company confirmed that Mike Biggs has been appointed to succeed Strone Macpherson as chairman. Biggs, who is also chairman of Direct Line, has joined the board with immediate effect and will become chairman from 1 May, following Strone's retirement on 30 April.

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