Close Bros Share News (CBG)

(Alliance News) - Close Brothers Group PLC on Thursday said assets and the loan book grew in the first quarter of its current financial year despite uncertainties in the UK.

The FTSE 250 merchant bank said performance in the three months to the end of October reflects lower activity levels.

On a divisional basis, Close Brothers said the Banking unit's loan book increased by 0.9% in the first quarter to GBP7.7 billion from GBP7.6 billion recorded in the first quarter of the financial year ended in July.

The net interest margin remained broadly stable, Close Brothers said, and the bad debt ratio increased modestly in the first quarter, but the overall credit quality remained "strong".

Close Brothers said it continues to invest in strategic initiatives including its Motor transformation programme, a new deposit platform, and a planned transition to an internal ratings-based approach to capital.

Turning to the Asset Management division, the company achieved "strong" net inflows, with managed assets growing 1.7% to GBP11.9 billion as at October 31 compared to GBP11.7 billion at the end of July. Total client assets, meanwhile, increased 0.8% to GBP13.4 billion from GBP13.3 billion, respectively.

Lastly, Winterflood continued to see "subdued" investor trading activity in the first quarter, Close Brothers said, with the division keeping a focus on maximising trading opportunities.

Looking ahead, the firm said the UK economic outlook remains uncertain, but it is "well positioned" to continue supporting its customers and clients.

The stock was trading 3.0% lower in London on Thursday morning at 1,412.00 pence a share.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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