LONDON (ShareCast) - (Sharecast News) - Close Brothers reported a "good performance" for the year ended 31 July in its preliminary results on Tuesday, with a 4% increase in adjusted operating profit to £278.6m.
The FTSE 250 company saw an increase of 5% in its adjusted basic earnings per share to 140.2p, and a return on equity of 17.0%.

It said its proposed full-year dividend per share of 63.0p represented growth of 5%, reflecting its progressive dividend policy.

Close Brothers said its banking operations delivered an adjusted operating profit of £251.8m, up 2% on the prior year, with continued low impairments and a strong net interest margin as it maintained its pricing and underwriting discipline.

The increase in banking was driven by commercial activities, with adjusted operating profit growth there of 5%, as well as property, which was up 3%, while adjusted operating profit in retail was down 2%.

It said its loan book grew 6.6% on an underlying basis to £7.3bn, which the board said reflected its "strong" customer proposition and the diversification benefits of its loan portfolio.

Winterflood delivered another strong result, the firm reported, with operating profit of £28.1m, in line with the prior year.

Asset Management delivered a 33% increase in adjusted operating profit to £23.1m, with "strong" net inflows at 12% of opening managed assets.

"I am pleased to report another good performance in the 2018 financial year, achieving both continued strong profitability and significant strategic progress," said chief executive officer Preben Prebensen.

"All of our businesses have continued to successfully navigate and make the most of current trading conditions, while continuing to focus on maximising opportunities in future years."

Prebensen said the company's strategic priorities were "clear and unchanged", adding that it remained "strongly committed" to its business model, maintaining confidence in its ability to trade successfully in a range of economic conditions.

"All of this ensures we can continue to support our customers and clients, and deliver value for our shareholders, through all stages of the financial cycle."

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