Close Brothers Group (CBG)

Sector:

Banking

Index:

FTSE 250

410.60p
   
  • Change Today:
      9.40p
  • 52 Week High: 976.50
  • 52 Week Low: 299.20
  • Currency: UK Pounds
  • Shares Issued: 150.49m
  • Volume: 49,616
  • Market Cap: £617.90m
  • RiskGrade: 146

Close Brothers hails good third-quarter performance

By Michele Maatouk

Date: Wednesday 24 May 2023

LONDON (ShareCast) - (Sharecast News) - Close Brothers said on Wednesday that it performed well in the third quarter, with loan book growth accelerating.
In the period from 1 February to 3 April, the loan book in the banking division rose 2% to £9.2bn, driven mainly by continued strong new business volumes in Commercial, and increased drawdowns and a slowdown in repayments in Property Finance.

Net interest margin in banking remained strong at 7.8%, it said, reflecting both pricing discipline on new lending and "actions taken to optimise the group's liability mix and funding costs in a rising rate environment".

In the asset management business, managed assets rose to £16.1bn from £15.7bn at the end of January, while total client assets ticked up to £17bn from £16.9bn. Close reported annualised net inflows of 9%.

The Winterflood securities segment continued to be impacted by the cyclical trends reported in the first half, with retail investor appetite remaining "subdued".

"Nevertheless, the team's experience and focus on managing risk resulted in no loss days in the quarter," said Close Brothers.

Chief executive Adrian Sainsbury said: "We are seeing good demand in our banking business and the consistent application of our model, combined with our strong financial position, enables us to continue supporting our customers and clients.

"Following a difficult first half, we are well placed to make the most of opportunities in the current environment."

Steve Clayton, head of equity funds at Hargreaves Lansdown, said: "We hold Close Brothers in our two HL Select UK funds because its core businesses are dependable, growing cash generators capable of supporting strong dividend flows. But it has not been an easy time of late; Novitas was a bad acquisition and Close Brothers have learned expensive lessons along the way.

"Today's update is the first in a while not to bring new bad news from Novitas and the market may well be relieved. The core banking operations are in rude health and Close Brothers' balance sheet has long been the envy of many other bankers. Their assets are strongly collateralised, earn rich margins and their liquidity is excellent.

"It is a shame that Winterflood is still under a cloud, but it remains a fundamentally profitable business, with no loss days in the quarter."





Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CBG Market Data

Currency UK Pounds
Share Price 410.60p
Change Today 9.40p
% Change 2.34 %
52 Week High 976.50
52 Week Low 299.20
Volume 49,616
Shares Issued 150.49m
Market Cap £617.90m
RiskGrade 146

CBG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.20% above the market average99.20% above the market average99.20% above the market average99.20% above the market average99.20% above the market average
62.50% above the sector average62.50% above the sector average62.50% above the sector average62.50% above the sector average62.50% above the sector average
Price Trend
81.71% below the market average81.71% below the market average81.71% below the market average81.71% below the market average81.71% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
75.76% above the market average75.76% above the market average75.76% above the market average75.76% above the market average75.76% above the market average
42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average
Growth
93.62% below the market average93.62% below the market average93.62% below the market average93.62% below the market average93.62% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 3
Buy 2
Neutral 3
Sell 1
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CBG Dividends

  Latest Previous
  Final Interim
Ex-Div 19-Oct-23 23-Mar-23
Paid 24-Nov-23 26-Apr-23
Amount 45.00p 22.50p

Trades for 28-Mar-2024

Time Volume / Share Price
09:20 2 @ 410.99p
09:16 187 @ 410.60p
09:16 305 @ 410.20p
09:16 526 @ 410.40p
09:15 244 @ 411.20p

CBG Key Personnel

Chair Michael N Biggs

Top of Page