Close Bros delivers improved Q3 performance

(ShareCast News) - Financial services group Close Brothers said it delivered an improved third quarter performance, with good loan book growth, tighter cost control and better market conditions for its market making unit Winterflood.It added that it was confident of "delivering a satisfactory outcome for the full year".The banking division's loan book increased 4.0% in the quarter and was up 8.2% in the year to date to £6.2bn benefiting from strong growth in leasing products and a seasonal uplift in motor finance."The return on net loan book remains strong, as both the net interest margin and bad debt ratio have remained broadly in line with the first half. The rate of growth in expenses was lower than the first half as we continue to tighten cost control whilst maintaining investment in the business and in new growth initiatives," Close said.Winterflood's performance improved following a difficult first half, with increased profitability across all trading books reflecting a modest recovery in the equity markets and improved investor risk appetite, but Close warned the business remained "sensitive to an unpredictable market".Asset Management continued to achieve solid net inflows in managed assets, which increased 4% to £7.5bn, total client assets increased 2% to £9.3bn with a broadly stable revenue margin compared to the prior financial year. Close Bros