LONDON (ShareCast) - (Sharecast News) - FTSE 250 merchant bank Close Brothers reported a drop in full-year profit on Tuesday, with a solid performance from the banking division offset by weaker trading in its securities arm, as it announced the departure of chief executive Preben Prebensen.
In the year to the end of July, adjusted operating profit fell to £270.5m from £278.6m the year before.

Adjusted operating profit in the banking arm ticked up 1% to £253.7m, but the company's market maker, Winterflood, saw profits slump 29% to £20m amid lower market activity, while profits in the asset management segment declined 6% to £21.8m.

Prebensen said the group had delivered "a very solid performance", maintaining strong returns and profitability.

"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," he said.

"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 Brothers also announced that Prebensen will be leaving the company after 10 years as CEO as he moves on "to the next stage of his career".

A formal search for a successor will now begin and Prebensen will remain with the group for the next 12 months to ensure a smooth handover.

At 0820 BST, the shares were down 4.7% at 1,311p.

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