Close Brothers sees lower activity levels in Q1
By Michele Maatouk
Date: Thursday 21 Nov 2019
(Sharecast News) - Merchant bank Close Brothers said on Thursday that trading in the first quarter reflected lower activity levels across its markets.
In the banking division, the loan book rose 0.9% to £7.7bn, driven mainly by the commercial segment, while retail and property remained broadly flat.
The net interest margin was steady on the 2019 financial year and Close Bros said the bad debt ratio increased "modestly" in the quarter, relative to historically low levels, although the overall credit quality "remains strong".
The asset management business achieved strong net inflows, it said, with managed assets growing to £11.9bn at the end of October from £11.7bn at the end of July, and an increase in total client assets to £13.4 billion from £13.3bn.
Winterflood, the company's market-making business, continued to see subdued investor trading activity. It said the division remains focused on maximising its trading opportunities in all market conditions.
"While the UK economic outlook remains uncertain, we are well positioned to continue supporting our customers and clients in a wide range of market conditions," Close Bros said.
At 0905 GMT, the shares were down 2.3% at 1,421p.
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10 Lower Thames St,
London EC3R 6EN