LONDON (ShareCast) - (Sharecast News) - UK merchant bank Close Brothers said its loan book was broadly flat due to a "difficult" domestic economic environment.
The company on Wednesday added that costs were expected to grow ahead of income in the current year as as it continued to invest in strategic initiatives "to protect and grow our business".

Close's banking division loan book rose 0.4% to £7.68bn in the five months to December 31, with modest growth in commercial offset by a slight decline in property, while retail remained broadly flat.

The net interest margin was 7.8% compared with 7.9% in 2019. While overall credit quality remained strong, bad debts increased modestly relative to historically low levels, with a bad debt ratio of 0.8% for the period, the company said.

Managed assets grew to £12.6bn from £11.7bn at the end of July, while total client assets increased to £14bn from £13.3bn.

"While there remains uncertainty about the economic outlook for the UK, we are well positioned to continue supporting our customers and clients in a wide range of market conditions," the company said.

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